Pinterest Q2 Earnings Miss Estimates Despite Y/Y Revenue Growth

Core Insights - Pinterest, Inc. reported modest second-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][3] Financial Performance - GAAP net income was $38.7 million, or 6 cents per share, compared to $8.9 million, or 1 cent per share, in the prior-year quarter, reflecting improved profitability due to revenue growth [2] - Non-GAAP net income increased to $228.3 million, or 33 cents per share, up from $172.2 million, or 24 cents per share, year-over-year [2] - Revenues rose to $998.2 million from $853.6 million in the prior-year quarter, surpassing the Zacks Consensus Estimate of $975 million [3] User Engagement - Global monthly active users (MAUs) reached 578 million, marking an 11% year-over-year increase, with the U.S. and Canada contributing 102 million MAUs, up 5% [3][7] - MAUs in Europe increased to 146 million from 136 million, while the Rest of World segment saw a rise to 329 million, up 14% from the previous year [7] Revenue Breakdown - Revenues from the United States and Canada were $745 million, up 11% year-over-year, while Europe generated $191 million, a 34% increase from $143 million [6] - The Rest of World segment's revenues rose to $63 million from $38 million, exceeding estimates [6] Monetization and Growth Drivers - The AI-powered Pinterest Performance+ suite has gained traction among advertisers, enhancing campaign performance and click-through rates through improved personalization [4][5] - The company is focusing on bridging upper-funnel storytelling with lower-funnel conversion, which is positively impacting overall campaign effectiveness [5] Future Outlook - For Q3 2025, Pinterest expects revenues between $1.033 billion and $1.053 billion, indicating a year-over-year growth of 15-17%, with adjusted EBITDA projected between $282 million and $302 million [12]