Pinterest's AI Investments Are Paying Off: Shares Surge On Q1 Earnings Beat

Pinterest Inc PINS reported first-quarter financial results after the market close on Tuesday. Here’s a rundown of the report.

Q1 Earnings: Pinterest’s first-quarter revenue increased nearly 23% year-over-year to $740 million, which beat the consensus estimate of $699.872 million, according to Benzinga Pro. The company reported a loss of 4 cents per share, which beat analyst estimates for a loss of 9 cents per share.

Pinterest’s global monthly active users increased 12% year-over-year to an all-time high of 518 million. Average revenue per user grew 10% year-over-year to $1.46.

“Q1 was a milestone quarter for Pinterest as we reached new highs: surpassing half a billion monthly active users and reporting 23% revenue growth — our fastest user and revenue growth since 2021,” said Bill Ready, CEO of Pinterest.

“Thanks to our investments in AI and shoppability, we’re driving even greater returns for advertisers and gaining access to performance budgets. We’re executing with tremendous clarity and focus, shipping new products and experiences that users want, and in doing so, we’re finding our best product market fit in years.”

Outlook: Pinterest expects second-quarter revenue to be in the range of $835 million to $850 million versus estimates of $826.48 million. Second-quarter operating expenses are expected to be between $490 million and $505 million.

Pinterest said it plans to provide more details about its forward guidance on its earnings call, which is scheduled for 4:30 p.m. ET.

See Also: While Mark Zuckerberg-Led Meta Battles Advertiser Complaints, Elon Musk Continues To Thrash Facebook, Instagram For Allegedly Stealing ‘Credit For Traffic’

PINS Price Action: Pinterest shares were up 18.57% after hours at $39.80 at the time of publication Tuesday, according to Benzinga Pro.

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