Pinterest surges after earnings beat, company posts strong guidance

Pinterest reported first-quarter earnings on Monday that beat on the top and bottom lines. Shares soared 15% after the report.

Here’s how the company did, compared to analysts’ consensus estimates from LSEG:

• Earnings per share: 27 cents adjusted vs. 23 cents expected
• Revenue: $1.01 billion vs. $966 million expected

Sales in Pinterest’s first quarter rose 18% year over year while the company posted a net loss of $73.59 million, a loss of 12 cents per share. A year ago, the social media company posted net income of $8.92 million, or 1 cent per share.

Pinterest said second-quarter revenue should come in the range of $1.13 billion to $1.15 billion, which is higher than the $1.11 billion that Wall Street was projecting.

The company said adjusted earnings before interest, taxes, depreciation and amortization, or EBIDTA, for the second quarter will come in between $256 million to $276 million. Analysts were expecting $261 million in EBIDTA for the second quarter.

Pinterest’s first-quarter EBIDTA came in at $207 million, ahead of analysts’ estimates of $176 million.

The social media company’s global monthly active users for the first quarter increased 11% year over year to 631 million, in line with analyst’s estimates.

First-quarter global average revenue per user came in at $1.61, topping Wall Street estimates of $1.54.

The company said it paid about $465.1 million, primarily in cash, for its February acquisition of tvScientific, which specializes in connected TV advertising analytics.

Pinterest CEO Bill Ready told analysts during an earnings call that the acquisition is intended “to extend Pinterest’s unique consumer intent, signal and audiences beyond our owned and operated properties to power high-performing CTV campaigns.”

Prior to the current period, Pinterest had missed on earnings per share for five straight quarters, and said in February that President Donald Trump‘s tough tariffs, which has stung large retailers, hurt the company’s online advertising business.

“Overall, large retailers remained a headwind to growth, but AI-driven platform improvements, including bidding optimizations we delivered for these advertisers, began to offset some of this headwind later in the quarter,” Pinterest finance chief Julia Donnelly said during the first-quarter earnings call.

Donnelly said that the company is “tracking the conflict in the Middle East,” but has so far seen little impact to its overall advertising business.

Still, Donnelly did note some negative effects from the Iran war, which began in February, highlighting the impact to the company’s rest-of-world region and Europe, “where it’s really isolated to certain verticals impacted by higher oil prices.”

“But this has all been factored in as we thought about our Q2 guidance,” Donnelly said.

The company said in January that it would cut nearly 15% of its workforce and reduce office space as it moves more resources into artificial intelligence.

Reddit reported first-quarter earnings last Thursday that beat on the top and bottom lines, sending its stock jumping 9% in after-hours trading.

Digital advertising titans Meta and Alphabet reported their latest quarterly earnings last Wednesday in which they both beat on revenue while also disclosing plans to spend more money on AI-related infrastructure.

Although Alphabet shares rose, Meta shares tumbled, a sign of investor concerns about the Facebook-parent’s massive AI spending without a clear new revenue opportunity or cloud computing business.

WATCH: Meta’s overall numbers were impressive, says Jim Cramer.