Pinterest Stock Soars After Q1 Beat, Users Hit Record 570 Million

Pinterest Inc. (NYSE: PINS) shares surged 10% in after-hours trading Tuesday after the digital advertising platform reported better-than-expected Q1 results and issued bullish guidance, underscoring its resilience in a challenging digital ad landscape. The company’s global monthly active users (MAUs) hit a record 570 million, while strategic bets on AI-driven product innovation and performance-based advertising tools are fueling optimism among investors.

Pinterest's global monthly active users (MAUs) reaching 570 million in Q1 2025, showcasing year-over-year growth

Financial Highlights: A Quarter of Strategic Momentum
Pinterest’s Q1 revenue rose to $855 million, exceeding consensus estimates of $847 million, driven by strong international growth and advertiser adoption of its advanced ad tools. Adjusted EPS of $0.23 narrowly missed estimates but reflected the company’s focus on long-term investments. Global MAUs grew 10% year-over-year to 570 million, outpacing expectations of 565 million, with robust gains in both mature and emerging markets.

Regionally, U.S. and Canada revenue totaled $663 million, narrowly missing estimates, while Europe revenue surged to $147 million, exceeding projections. The real standout was the Rest of World region, where revenue jumped 49% year-over-year (59% on a constant-currency basis), highlighting Pinterest’s expanding footprint in markets like Southeast Asia and Latin America.

Pinterest's stock price performance over the past quarter

AI and Ad Innovation: The Engine of Growth
Pinterest’s Q1 results were bolstered by its AI-driven product enhancements, which improved user engagement and advertiser performance. The company’s new multimodal AI model, trained on image and text data, enhanced visual search capabilities, leading to a 4% increase in ad click-through rates through knowledge graph embeddings. This innovation is critical as competitors like Meta and Snap grapple with declining user engagement.

The company’s Performance+ ad tool also gained traction, with 80% of A/B tests outperforming traditional campaigns, driving advertiser adoption. For example, PacSun, a retailer using Pinterest’s ROAS bidding feature launched in March, saw a 3x higher return on ad spend by optimizing campaigns for conversion value. These tools position Pinterest as a “shopping destination” for high-intent users, a strategic advantage as advertisers shift budgets toward platforms proving measurable ROI.

Financial Health and Guidance: A Path to Margin Expansion
Pinterest’s adjusted EBITDA rose to $172 million in Q1, with margins improving to 20% (up from 17.7% in Q1 2024), reflecting cost discipline. Free cash flow hit $356 million, enabling the company to repurchase $175 million in shares and invest in growth initiatives.

Second-quarter guidance was equally encouraging: Pinterest expects revenue between $960 million and $980 million, exceeding analyst estimates of $966 million, with adjusted EBITDA projected to reach $217–237 million. CEO Bill Ready emphasized Pinterest’s focus on scaling monetization in underpenetrated regions, expanding reseller partnerships, and driving Performance+ adoption to sustain growth amid macroeconomic uncertainty.

Comparison of Pinterest's revenue growth vs. Meta and Snap in Q1 2025

Conclusion: A Resilient Play in a Challenging Market
Pinterest’s Q1 results and guidance suggest the company is executing its strategy to transform into a performance-driven ad platform, leveraging AI and shopping tools to differentiate itself. The 570 million MAU milestone, 20% EBITDA margin, and the success of Performance+ (with 80% of campaigns outperforming benchmarks) provide tangible evidence of its shift toward advertiser-centric growth.

While macroeconomic risks persist—trade disputes and advertiser caution remain concerns—Pinterest’s focus on high-intent users and measurable ROI aligns with advertiser priorities in a cost-conscious environment. The stock’s 10% post-earnings surge reflects investor confidence in its ability to outperform peers like Meta (down 12% YTD) and Snap (down 17% YTD).

With 49% revenue growth in international markets and 8% user growth globally, Pinterest is building a durable moat in the digital ad sector. Its Q2 guidance, projecting 12–15% revenue growth, reinforces this narrative. For investors, the stock’s current valuation—trading at ~3.5x 2025 revenue estimates—offers a compelling entry point if Pinterest can sustain its momentum in AI innovation and advertiser adoption. The path forward hinges on execution, but the first quarter has set a strong foundation.