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2d ago

Pinterest Shares Surge 13% After Revenue and User Growth Beat Expectations

The company exceeded Q1 forecasts, issued strong Q2 guidance, and highlighted AI-driven ad tools as a key growth driver despite challenges from U.S. trade policy changes.

A Pinterest logo is seen on a smartphone in this illustration taken October 20, 2021. REUTERS/Dado Ruvic/Illustration/File photo
A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration/ File Photo
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Overview

  • Pinterest reported Q1 revenue of $855 million, surpassing analyst estimates of $847 million, with a 16% year-over-year increase.
  • Global monthly active users grew 10% to 570 million, exceeding Wall Street's forecast of 564–565 million.
  • The company issued Q2 revenue guidance of $960–$980 million, above the midpoint of analysts' expectations of $966 million.
  • AI-powered advertising tools and a strong Gen Z user base continue to attract advertisers, driving growth in direct-response ad spending.
  • Management acknowledged reduced ad spending from Asia-based e-commerce retailers due to U.S. trade policy changes but noted offsetting growth in Europe and other regions.