Pinterest Q1 Earnings Miss Estimates Despite Y/Y Revenue Growth

Core Viewpoint - Pinterest, Inc. reported modest first-quarter 2025 results with net income missing estimates while revenues exceeded expectations, driven by strong growth across all regions and enhanced monetization efforts [1][2]. Financial Performance - Net income on a GAAP basis was $8.9 million, or $0.01 per share, compared to a net loss of $24.8 million, or a loss of $0.04 per share, in the prior-year quarter [2]. - Non-GAAP net income was $159.6 million, or $0.23 per share, up from $119.8 million, or $0.17 per share, in the year-ago quarter [2]. - Revenues increased to $855 million from $740 million in the prior-year quarter, surpassing the Zacks Consensus Estimate of $846 million [3]. User Growth - Global monthly active users (MAUs) grew by 10% year-over-year to reach 570 million, marking an all-time record [3]. - MAUs in the United States and Canada were 102 million, up 4% year-over-year, exceeding estimates [7]. - The Rest of World segment registered MAUs of 320 million, up 14% from the previous year [7]. Revenue Breakdown - Revenues from the United States and Canada totaled $663 million, a 12% year-over-year increase, although it missed the revenue estimate of $678.3 million [6]. - European revenues reached $147 million, up 24% from $118 million in the year-ago quarter, surpassing the estimate of $129.3 million [6]. - Revenues from the Rest of World increased to $45 million from $30 million, exceeding the revenue estimate of $38.9 million [6]. Average Revenue Per User (ARPU) - Global ARPU stood at $1.52, compared to $1.46 in the year-ago quarter [8]. - ARPU in Europe improved by 17% year-over-year to $1.00, while in the United States and Canada, it rose by 8% to $6.54 [8]. - ARPU from the Rest of World increased by 29% year-over-year to $0.14 [8]. Operational Efficiency - Adjusted EBITDA was $172 million in Q1 2025, up from $126 million in the prior-year quarter, reflecting a 36% year-over-year improvement [9]. - Total costs and expenses rose to $890.5 million from $794.4 million in the year-ago quarter [9]. Cash Flow and Liquidity - The company generated $363.7 million in cash from operating activities, compared to $356.1 million in the prior-year quarter [10]. - As of March 31, 2025, Pinterest had $1.25 billion in cash and cash equivalents [10]. Outlook - For Q2 2025, Pinterest expects revenues in the range of $960-$980 million, indicating a year-over-year growth of 12-15% [11]. - Management anticipates adjusted EBITDA to be between $217-$237 million [11].