Core Insights - Pinterest's stock has experienced a decline of over 16% due to a weaker revenue forecast for the upcoming holiday quarter, which is typically the company's strongest period [1] Group 1: Company Performance - The revenue forecast for Pinterest has been downgraded, indicating potential challenges in achieving expected financial performance during the holiday season [1] - The holiday quarter is traditionally a critical time for Pinterest, as it usually sees increased shopping activity [1] Group 2: Market Reaction - The significant drop in stock price reflects investor concerns regarding the company's ability to capitalize on the holiday shopping season [1]

Q3 2025 Earnings Report © 2025 Pinterest. All rights reserved. Non-GAAP Financial Measures To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) ...

Financial Performance - Revenue for the three months ended September 30, 2025, was $1,049.2 million, representing a 17% increase compared to the same period in 2024[89] - Adjusted EBITDA for the three months ended September 30, 2025, was $306.1 million, up from $246.99 million in the same period of 2024[110] - Net income for the three months ended September 30, 2025, was $92.1 million, compared to $30.6 million in the same period of 2024[110] - Revenue for the three months ended September 30, 2025, increased by 17% to $1,049,205 thousand compared to $898,373 thousand for the same period in 2024[123] - Adjusted EBITDA for the three months ended September 30, 2025, was $306,051 thousand, up from $246,990 thousand in 2024, representing a 24% increase[121] - Net income for the three months ended September 30, 2025, was $92,108 thousand, compared to $30,556 thousand in 2024, reflecting a significant increase[121] - Free cash flow for the nine months ended September 30, 2025, was $871.5 million, compared to $689.8 million in 2024[112] - Adjusted EBITDA for the nine months ended September 30, 2025, was $728.5 million, reflecting a 30% increase from $561.4 million in the same period of 2024[134] User Metrics - Monthly active users (MAUs) reached 600 million, an increase of 12% year-over-year[89] - The number of average monthly active users (MAUs) increased by 12% for the three months ended September 30, 2025, compared to the same period in 2024[123] Revenue Breakdown - Average revenue per user (ARPU) globally was $1.78, a 5% increase from the previous year[100] - ARPU in the U.S. and Canada was $7.64, an increase of 5%, while Europe saw a 31% increase to $1.31, and Rest of World increased by 44% to $0.21[100] - Revenue from Europe increased by 41% to $193.2 million for the three months ended September 30, 2025, compared to the same period in 2024[124] Expenses - Research and development expenses for the three months ended September 30, 2025, increased by 14% to $371,253 thousand from $326,679 thousand in 2024[126] - Sales and marketing expenses for the three months ended September 30, 2025, rose by 19% to $296,679 thousand compared to $249,033 thousand in 2024[127] - Cost of revenue for the three months ended September 30, 2025, was $212,325 thousand, an increase of 13% from $187,453 thousand in 2024[125] - General and administrative expenses decreased by 22% to $110,432 thousand for the three months ended September 30, 2025, compared to $141,124 thousand in 2024[128] - Share-based compensation expense was $235.1 million, an increase of $27.2 million compared to the same period in 2024[89] Cash and Investments - Cash, cash equivalents, and marketable securities totaled $2,671.3 million as of September 30, 2025[89] - As of September 30, 2025, the company had $2,671.3 million in cash, cash equivalents, and marketable securities, with $190.5 million held by foreign subsidiaries[135] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $893.1 million, an increase of $182.5 million compared to $710.6 million in 2024[145] Share Repurchase and Credit Facilities - The company repurchased 12,180,904 shares of Class A common stock for an aggregate purchase price of $427.0 million at an average price of $35.06 per share during the nine months ended September 30, 2025[143] - The company amended its revolving credit facility in October 2023, increasing the aggregate commitment to $500.0 million[137] - The company is in compliance with all covenants under the revolving credit facility as of September 30, 2025[140] - The company anticipates that existing cash and available credit will be sufficient to meet working capital and capital expenditure needs over the next 12 months[141] Other Financial Information - Interest income (expense), net for the three months ended September 30, 2025, was $28,536 thousand, a decrease of 12% from $32,477 thousand in 2024[129] - The company has not engaged in hedging activities related to foreign currency exchange risk, although it may consider doing so in the future[156] - The company continues to invest in relevance and personalization, contributing to the growth in MAUs[94]

Financial Performance - Q3 2025 revenue reached $1,049 million, representing a 17% year-over-year growth and 16% growth on a constant currency basis[2] - GAAP net income for Q3 2025 was $92 million, a 201% increase compared to $30.6 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $306 million, reflecting a 24% increase from $247 million in Q3 2024[3] - Free cash flow for Q3 2025 was $318 million, up 30% from $244 million in Q3 2024[3] - Revenue for Q3 2025 reached $1,049,205, an increase of 16.8% compared to $898,373 in Q3 2024[21] - Net income for Q3 2025 was $92,108, compared to $30,556 in Q3 2024, representing a growth of 201.5%[21] - Non-GAAP net income rose to $262.925 million in Q3 2025 compared to $223.298 million in Q3 2024, reflecting a 17.7% increase[27] - Adjusted EBITDA for Q3 2025 reached $306.051 million, up from $246.990 million in Q3 2024, indicating a 23.8% growth[25] - Free cash flow improved to $318.421 million in Q3 2025, compared to $244.111 million in Q3 2024, a 30.4% increase[27] - Total costs and expenses were $990.689 million in Q3 2025, up from $904.289 million in Q3 2024, an increase of 9.5%[25] User Metrics - Global monthly active users (MAUs) increased by 12% year-over-year to 600 million[3] - Average revenue per user (ARPU) globally increased by 5% to $1.78, with ARPU in Europe rising by 31% to $1.31[4] - Average Monthly Active Users (MAUs) are defined as authenticated users interacting with Pinterest at least once in a 30-day period, with ongoing improvements in user base estimation methodologies[16] Revenue Breakdown - Revenue from the U.S. and Canada was $786 million, a 9% increase year-over-year, while revenue from Europe grew by 41% to $193 million[4] - Revenue from the Rest of World segment surged by 66% to $70 million[4] Future Projections - For Q4 2025, the company expects revenue to be between $1,313 million and $1,338 million, indicating a year-over-year growth of 14% to 16%[6] - Q4 2025 Adjusted EBITDA is projected to be in the range of $533 million to $558 million[6] Balance Sheet and Cash Flow - Total current assets increased to $3,565,418 as of September 30, 2025, up from $3,484,707 as of December 31, 2024[19] - Total liabilities rose to $690,442 as of September 30, 2025, compared to $591,506 as of December 31, 2024[19] - Operating cash flow for the nine months ended September 30, 2025, was $893,051, an increase from $710,599 in the same period of 2024[23] - Cash and cash equivalents at the end of Q3 2025 were $1,137,200, compared to $1,040,402 at the end of Q3 2024[23] - The total stockholders' equity increased to $4,824,968 as of September 30, 2025, from $4,751,154 as of December 31, 2024[19] Expenses and Compensation - Research and development expenses for Q3 2025 were $371,253, up from $326,679 in Q3 2024, indicating a focus on innovation[21] - Total share-based compensation increased to $235.136 million in Q3 2025 from $207.976 million in Q3 2024, representing a 13.1% increase[25] Earnings Per Share - The company reported a diluted net income per share of $0.13 for Q3 2025, compared to $0.04 for Q3 2024[21] - Non-GAAP net income per share increased to $0.38 in Q3 2025 from $0.32 in Q3 2024, a growth of 18.8%[27] - Basic weighted-average shares used in computing net income per share were 677.819 million in Q3 2025, slightly down from 678.496 million in Q3 2024[27] Legal and Accounting Adjustments - The company recorded a legal settlement expense of $34.7 million in Q3 2024, which was excluded from Adjusted EBITDA due to its non-recurring nature[27] - The company began excluding payroll tax expense related to share-based compensation from Adjusted EBITDA and non-GAAP net income starting Q4 2024[27]

Core Insights - Pinterest's shares dropped by as much as 15% following the release of third-quarter financial results that fell short of earnings expectations and provided weak guidance [1][2] Financial Performance - Third-quarter sales increased by 17% year-over-year, with net income reaching $92.11 million, a 201% increase from $30.56 million in the same period last year [1] - The company projected fourth-quarter revenue between $1.31 billion and $1.34 billion, with a midpoint of $1.325 billion, which is below Wall Street's expectation of $1.34 billion [2] - Adjusted EBITDA for the third quarter was $306 million, exceeding estimates of $295 million [3] - U.S. and Canada sales for the third quarter were $786 million, lower than the expected $799 million [3] - Global average revenue per user for the third quarter was $1.78, slightly below the projected $1.79 [3] User Metrics - Pinterest reported 600 million global monthly active users in the third quarter, surpassing the projected 590 million [2] - This figure represents an increase from 578 million monthly active users reported in the second quarter [2] Strategic Initiatives - The CEO highlighted that investments in AI and product innovation are yielding positive results, positioning Pinterest as a leader in visual search and an AI-powered shopping assistant for consumers [4]

Core Viewpoint - Pinterest's fourth-quarter revenue forecast is slightly below Wall Street estimates, indicating strong competition from larger platforms like Meta during the holiday shopping season [1] Group 1: Company Performance - Pinterest's revenue forecast for the fourth quarter is projected to be lower than expected, reflecting challenges in maintaining market share against larger competitors [1] - The competitive landscape is intensifying, particularly with the holiday shopping season approaching, which is critical for advertising revenue [1] Group 2: Industry Competition - The presence of larger platforms such as Meta is significantly impacting Pinterest's performance, highlighting the fierce competition in the digital advertising space [1] - The holiday shopping season is expected to be a crucial period for all players in the industry, with companies vying for advertising dollars [1]

Core Insights - Pinterest reported a strong Q3 2025 with a revenue of $1,049 million, reflecting a 17% year-over-year growth and a 16% increase on a constant currency basis [1][3] - The platform achieved an all-time high of 600 million global monthly active users (MAUs), marking a 12% increase year-over-year [1][3] Financial Performance - Revenue for Q3 2025 was $1,049 million, up from $898 million in Q3 2024, representing a 17% increase [2][3] - Net income reached $92 million, a significant increase of 201% compared to $30.6 million in the same quarter last year [2][3] - Non-GAAP net income was $262.9 million, up 18% from $223.3 million in Q3 2024 [2][3] - Adjusted EBITDA for the quarter was $306 million, a 24% increase from $247 million in Q3 2024 [2][3] User Metrics - Global MAUs increased to 600 million, up from 537 million in Q3 2024, representing a 12% growth [3][4] - Average revenue per user (ARPU) globally was $1.78, a 5% increase from $1.70 in Q3 2024 [4] Geographic Revenue Breakdown - Revenue from the U.S. and Canada was $786 million, a 9% increase from $719 million in Q3 2024 [4] - Revenue from Europe surged by 41% to $193 million, up from $137 million [4] - Revenue from the Rest of the World saw a remarkable 66% increase, reaching $70 million compared to $42 million in Q3 2024 [4] Cash Flow and Operating Activities - Net cash provided by operating activities was $321.7 million, a 30% increase from $248 million in Q3 2024 [2][3] - Free cash flow for the quarter was $318.4 million, also a 30% increase from $244 million in the same period last year [2][3] Future Guidance - For Q4 2025, Pinterest expects revenue to be between $1,313 million and $1,338 million, indicating a year-over-year growth of 14% to 16% [5] - The company anticipates Q4 2025 Adjusted EBITDA to range from $533 million to $558 million [5]

User Growth - Pinterest has reached 600 million monthly active users, adding 22 million users over the last reporting period [1] - User growth is observed in every region, with significant traction in the "Rest of World" category, particularly in Brazil and Mexico, despite a loss of 2 million users in Europe in the last report [2] Revenue Performance - Pinterest reported a 17% year-over-year increase in revenue for Q3, bringing in just over $1 billion, primarily from its ad business [1][3] - The average revenue per user (ARPU) in the U.S. is significantly higher than in Europe and the "Rest of World" category, but ARPU is not rising significantly [3] Future Growth Potential - Pinterest is looking for a boost in end-of-year sales to drive revenue numbers higher, leveraging its position as a key discovery platform with improved search tools and recent AI additions [4] - The introduction of a new AI assistant tool aims to enhance user experience by using visual matches and conversational queries to find relevant items [5][6] - The integration of shopping tools and direct purchase activity is crucial for Pinterest to capitalize on its user base and improve monetization [6][7]

Core Viewpoint - Pinterest, Inc. is set to release its third-quarter earnings on November 4, with expectations of increased earnings and revenue compared to the previous year [1] Financial Performance - Analysts predict Pinterest will report earnings of 42 cents per share for Q3, up from 40 cents per share in the same quarter last year [1] - The consensus estimate for Pinterest's Q3 revenue is $1.05 billion, a significant increase from $898.37 million a year earlier [1] - In Q2, Pinterest reported revenue of $998.23 million, exceeding estimates of $974.01 million, but adjusted earnings of 33 cents per share fell short of the 35 cents expected by analysts [2] Analyst Ratings - UBS analyst Stephen Ju maintained a Buy rating and raised the price target from $50 to $51 [5] - Mizuho analyst Lloyd Walmsley initiated coverage with an Outperform rating and a price target of $50 [5] - Guggenheim analyst Michael Morris reiterated a Buy rating [5] - Citigroup analyst Ronald Josey maintained a Buy rating and increased the price target from $44 to $50 [5] - Wedbush analyst Scott Devitt maintained an Outperform rating and raised the price target from $42 to $44 [5]

Group 1 - Pinterest Inc. is projected to double in value over the next three years, with a Buy rating and a price target of $47 maintained by Stifel analyst Mark Kelley [1][2] - The overall digital advertising environment remains supportive, with Q3 growth showing improvement over Q2, particularly in September, which was noted as the strongest month of the quarter [1][2] - Pinterest is recognized as a strong exception in the digital advertising sector, with ongoing improvements making it more attractive to advertisers, especially as the holiday quarter approaches [3] Group 2 - Despite the positive outlook for Pinterest, there are concerns regarding Q4 guidance across the sector due to challenging year-over-year comparisons, tariff issues, and macroeconomic uncertainty [2] - The platform operates as a visual search and discovery service across multiple regions, including the US, Canada, and Europe [3]