Pinterest Q3 Earnings Miss Estimates Despite Y/Y Revenue Growth

Core Insights - Pinterest Inc. reported modest third-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 - Net income on a GAAP basis was $92.1 million, or 13 cents per share, compared to $30.5 million, or 4 cents per share, in the prior-year quarter, reflecting improved profitability due to top-line growth [2] - Non-GAAP net income increased to $262.9 million, or 38 cents per share, up from $223.3 million, or 32 cents per share, in the year-ago quarter [2] - Revenues rose to $1.049 billion from $898.4 million in the prior-year quarter, surpassing the Zacks Consensus Estimate of $975 million, marking a 17% year-over-year growth [3][9] User Metrics - Global monthly active users (MAUs) reached 600 million, a record high, with a 17% year-over-year increase [3][9] - MAUs from the United States and Canada were 103 million, up 4% year over year, while the Rest of the World saw a 16% increase to 347 million [7] Revenue Breakdown - Revenues from the United States and Canada totaled $786 million, up 9% year over year, while revenues from Europe increased by 41% to $193 million [6] - Revenues from the Rest of World rose to $70 million from $42 million in the prior-year quarter, exceeding estimates [6] Average Revenue Per User (ARPU) - Global ARPU stood at $1.78, up from $1.70 in the year-ago quarter, with significant increases in Europe (31% to $1.31) and the Rest of World (44% to $0.21) [8][9] Operational Efficiency - Adjusted EBITDA was $306.1 million, up from $246.9 million in the prior-year quarter, attributed to disciplined expense management and operational efficiency [9] - Total costs and expenses increased to $990.6 million from $904.3 million in the year-ago quarter, with R&D expenses rising to $371.3 million [10] Cash Flow and Liquidity - The company generated $321.6 million in cash from operating activities, compared to $248 million in the prior-year quarter, with cash and cash equivalents totaling $1.13 billion as of September 30, 2025 [11] Future Outlook - For Q4 2025, Pinterest expects revenues between $1.313 billion and $1.338 billion, indicating a year-over-year growth of 14-16%, with adjusted EBITDA projected between $533 million and $558 million [12]