Executive Summary

Q1 2025 revenue of $855M grew 16% YoY and modestly exceeded both the top end of prior Q1 guidance ($837–$852M) and S&P Global consensus ($846.1M), while non‑GAAP EPS of $0.23 was below consensus ($0.256) .
Record global MAUs reached 570M (+10% YoY), with ARPU up 5% globally; ad impressions rose 49% while ad pricing fell 22% on mix shift to faster-growing international markets .
Q2 2025 guidance: revenue $960–$980M (+12–15% YoY) and Adjusted EBITDA $217–$237M; midpoint revenue ($970M) is slightly below S&P Global consensus ($975.5M)*, framing a prudent outlook amid macro and tariff-related crosscurrents .
Management emphasized AI-driven personalization and Performance+ adoption (80% of A/Bs outperform), expanding reseller partnerships, and discipline on costs; catalysts revolve around accelerating lower‑funnel monetization and international penetration offset by pricing pressure from mix .

What Went Well and What Went Wrong

What Went Well

Continued user and engagement momentum: “record” 570M MAUs (+10% YoY), with broad-based regional growth and improving ARPU, underscoring product-market fit and shopping intent on the platform .
Execution on AI and lower-funnel: Pinterest’s multimodal AI model is “30% more likely” to recommend relevant content than leading off-the-shelf models; Performance+ outperforms in 80% of A/B tests, with new ROAS bidding showing early positive results (e.g., PacSun 3x ROAS) .
Strong cash generation and capital returns: Free cash flow of $356M; $175M share repurchases and $94M for net share settlement, contributing to a 2.2% YoY decline in fully diluted share count .

What Went Wrong

Pricing pressure from international mix: Ad impressions +49% YoY but ad pricing −22% YoY, primarily due to growth in lower‑priced international markets; UCAN trends less pronounced but global averages pressured .
EPS miss versus S&P Global consensus: Non‑GAAP EPS of $0.23 trailed the $0.256 consensus*, despite adjusted EBITDA margin expansion YoY to 20% .
Tariff-related demand pockets: CFO cited reductions in U.S. spend from Asia-based e-commerce retailers following de minimis exemption changes; some spend diversified to Europe/ROW, but visibility remains fluid .

Financial Results

Consolidated performance vs prior periods

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	$898.4	$1,154.1	$855.0
Non‑GAAP EPS ($)	$0.40	$0.56	$0.23
Adjusted EBITDA ($M)	$242.1	$470.9	$171.6
Adjusted EBITDA Margin (%)	27%	41%	20%
Diluted GAAP EPS ($)	$0.04	$2.68 (tax allowance effect)	$0.01
Free Cash Flow ($M)	—	$250.2	$356.4

Notes: Q4 2024 GAAP EPS/Net margin elevated by release of valuation allowance on deferred tax assets .

Q1 2025 geographic revenue and KPIs

Metric	Global	U.S. & Canada	Europe	Rest of World
Revenue ($M)	$855	$663	$147	$45
MAUs (M)	570	102	148	320
ARPU ($)	1.52	6.54	1.00	0.14

Operating drivers (Q1 2025)

Ad impressions: +49% YoY; Ad pricing: −22% YoY (international mix) .
Non‑GAAP OpEx focus: R&D headcount and AI/product investments; still guiding full‑year 2025 adj. EBITDA margin expansion YoY (less than 2024’s outsized expansion) .

Results vs S&P Global consensus (Q1 2025)

Metric	Consensus	Actual	Beat / (Miss)
Revenue ($M)	846.1*	855.0*	+8.9*
Primary EPS ($)	0.256*	0.23*	(0.026)*

Values marked with * retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q1 2025	$837–$852	Actual $855	Beat top end of guide
Adjusted EBITDA ($M)	Q1 2025	$155–$170	Actual $171.6	Slight beat
Revenue ($M)	Q2 2025	—	$960–$980 (+12–15% YoY)	New
Adjusted EBITDA ($M)	Q2 2025	—	$217–$237	New

Context: Q2 2025 revenue midpoint ($970M) is modestly below S&P Global consensus ($975.5M)*.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024, Q-2)	Previous Mentions (Q4 2024, Q-1)	Current Period (Q1 2025)	Trend
AI/Technology	AI investments driving personalization; lower‑funnel fastest-growing part of business	“Platform has never been more actionable” with lower‑funnel focus	Multimodal model 30% more likely to recommend relevant content; AI-powered Performance+ enhancements	Improving
Lower‑funnel/Performance+	Strong adoption; revenue/EBITDA scaling	Continued execution; first $1B quarter	80% of A/Bs outperform; ROAS bidding GA; PacSun 3x ROAS	Improving
Regional trends	ROW revenue +38% YoY; broad MAU growth	MAUs hit 553M; Europe/ROW strength	Europe +24% rev; ROW +49% rev; resellers expanded to 8 more markets	Improving
Pricing/Impressions	Noted growth with legal items	Seasonal strength in Q4	Impressions +49%; pricing −22% on international mix	Mixed (volume up, price down)
Measurement & Partners	—	—	New partnerships (NorthBeam, TripleWhale); clean rooms; CAPI	Improving
Macro/Tariffs	—	—	De minimis changes reduced U.S. spend from Asia e‑comm; some geographic diversification	Cautious
Regulatory/Legal	Legal settlement charge in Q3	Tax valuation allowance release	No new items; former Pinterest GC joined law firm (context)	Stable

Management Commentary

“Our AI advancements are helping users take action… We’re driving performance for advertisers and winning market share” — Bill Ready, CEO .
“Performance+ outperforms traditional campaigns in 80% of A/B tests… ROAS bidding addresses the need to bid on conversion value” — CEO .
“In Q1, ad impressions grew 49%, while ad pricing declined 22% year‑over‑year… primarily driven by international mix shift” — CFO .
“We expanded our reseller efforts to 8 additional markets… unlocking new accounts focused on performance” — CEO .
“We expect Q2 revenue of $960–$980M… and adjusted EBITDA of $217–$237M” — CFO .

Q&A Highlights

Outlook and tariffs: Guidance reflects healthy in‑quarter trends with slightly expanded range; de minimis changes reduced U.S. spend from Asia‑based e‑commerce, partially offset by shift to Europe/ROW .
Third‑party demand: Strategy unchanged; first‑party remains primary; adding Magnite to aggregate smaller demand sources alongside Amazon/Google tests; no near‑term hockey stick expected .
UCAN vs Global pricing dynamics: Global pricing declines are primarily international mix; UCAN trends less pronounced .
Bridging clicks to dollars: Emphasis on measurement integrations (NorthBeam, TripleWhale), CAPI, and easier campaign creation (Performance+) to convert strong click growth into budget share gains –.
Capital allocation: $175M Q1 buyback plus $94M for net share settlement; 2.2% YoY decline in fully diluted share count; $1.7B authorization remaining .

Estimates Context

Q1 2025 vs S&P Global consensus: Revenue beat ($855.0M vs $846.1M); non‑GAAP EPS miss ($0.23 vs $0.256).
Q2 2025 context: Guidance midpoint ($970M) slightly below consensus revenue ($975.5M)*; sets a prudent tone given macro/tariff dynamics and international mix.
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Healthy top‑line with modest beat on revenue but EPS under consensus; unit volume is strong while pricing reflects international scale‑up .
AI differentiation and Performance+ are translating into better advertiser outcomes (80% A/B outperformance; ROAS bidding live) and should support budget share gains over time .
International expansion (resellers, under/previously unmonetized markets) is a core growth lever, but near‑term mix will pressure pricing; watch ARPU convergence .
Q2 guidance is prudent vs consensus; near‑term stock drivers include evidence of accelerating lower‑funnel adoption, measurement wins, and stabilization in pricing as the mix matures .
Strong cash generation and buybacks provide downside support; focus on margin discipline with CFO reiterating full‑year adjusted EBITDA margin expansion (less than 2024’s outsized gain) .
Monitor macro/tariff headlines (de minimis changes) and third‑party demand partnerships (Magnite) as potential incremental tailwinds/headwinds to demand pacing .

Additional detail:

Q1 2025 headline results and guidance were disclosed via 8‑K and press release, including segment KPIs and non‑GAAP reconciliations – –.
Prior quarters (Q3/Q4 2024) provide context on trajectory and mix dynamics ahead of Q1 2025 –.

PINTEREST, INC. (PINS)·Q1 2025 Earnings Summary