Pinterest(US:PINS)2025-11-04 21:09Financial 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]