Pinterest Reports Strong Q1 2025 Results: 16% Revenue Growth and Record-Breaking User Engagement
Pinterest, Inc. (NYSE: PINS) has announced its financial results for the first quarter of 2025, showcasing impressive growth in revenue, user engagement, and profitability. The company reported $855 million in revenue, representing a 16% year-over-year increase (or 17% on a constant currency basis) and achieving a new milestone with 570 million global monthly active users (MAUs)—a 10% increase compared to the same period last year. These results highlight Pinterest’s continued momentum as a leader in the digital advertising and social media space.
Q1 2025 Financial Highlights
Pinterest delivered robust financial performance across key metrics, reflecting strong execution and resilience in a dynamic macroeconomic environment:
- Revenue Growth: Revenue reached $855 million, up 16% year over year. On a constant currency basis, revenue grew by 17%, underscoring the company’s ability to navigate foreign exchange headwinds.
- Global Monthly Active Users (MAUs): Pinterest achieved a record 570 million MAUs, marking a 10% increase from Q1 2024. This growth was driven by steady adoption across all regions, with particularly strong gains in the Rest of World segment.
- Profitability:
- GAAP Net Income: $9 million, a significant improvement from a net loss of $25 million in Q1 2024.
- Adjusted EBITDA: $172 million, reflecting a 36% year-over-year increase.
- Free Cash Flow: $356 million, up 4% from the prior year.
CEO Bill Ready commented on the results: “Our strong results in the first quarter demonstrate continued momentum in revenue, user growth, and engagement. As the macroeconomic and digital ad landscape evolves, our strategy and consistent execution have made Pinterest more resilient than ever. The fundamentals in the business are strong, and we’re continuing to see healthy growth. Our AI advancements are helping users take action and make more intentional shopping decisions. We’re driving performance for advertisers and winning market share, giving us a solid foundation for long-term, sustainable growth.”
Regional Performance and Key Metrics
Pinterest’s growth was evenly distributed across its key geographic regions, with notable highlights including:
- U.S. and Canada: Revenue grew by 12% to $663 million, while MAUs increased by 4% to 102 million. Average Revenue Per User (ARPU) rose by 8%, reaching $6.54.
- Europe: Revenue surged by 24% to $147 million, with MAUs growing by 5% to 148 million. ARPU in Europe increased by 17%, reflecting stronger monetization efforts.
- Rest of World: This segment showed the most dramatic growth, with revenue jumping 49% to $45 million and MAUs increasing by 14% to 320 million. ARPU in this region soared by 29%, demonstrating improved engagement and advertiser interest.
These regional trends underscore Pinterest’s ability to scale its platform globally while enhancing user engagement and monetization capabilities.
AI-Driven Innovations Fueling Growth
A key driver of Pinterest’s success in Q1 2025 was its focus on leveraging artificial intelligence (AI) to enhance user experience and advertiser performance. The company’s AI advancements have enabled users to make more informed and intentional shopping decisions, aligning with Pinterest’s mission to inspire creativity and action. By integrating AI into its platform, Pinterest is not only improving user engagement but also delivering higher value to advertisers through targeted campaigns and measurable ROI.
This strategic emphasis on AI has positioned Pinterest as a competitive player in the evolving digital advertising landscape. Advertisers are increasingly turning to Pinterest for its unique blend of inspiration and intent-driven content, which drives higher conversion rates compared to traditional social media platforms.
Strong Cash Flow and Financial Health
Pinterest’s financial health remains robust, with net cash provided by operating activities totaling $364 million and free cash flow reaching $356 million. These figures reflect the company’s disciplined approach to managing expenses while investing in growth opportunities. With a solid balance sheet and strong cash generation, Pinterest is well-positioned to continue innovating and expanding its offerings.
Guidance for Q2 2025
Looking ahead, Pinterest has provided guidance for the second quarter of 2025:
- Revenue: Expected to be in the range of $960 million to $980 million, representing 12% to 15% year-over-year growth.
- Adjusted EBITDA: Projected to be between $217 million and $237 million.
This outlook reflects management’s confidence in the company’s ability to sustain its growth trajectory while maintaining operational efficiency.
Why Pinterest’s Q1 Results Matter
Pinterest’s Q1 2025 performance demonstrates the company’s ability to thrive in a competitive and rapidly changing digital landscape. By focusing on user engagement, AI-driven innovation, and global expansion, Pinterest has established itself as a go-to platform for both consumers and advertisers. The combination of record-breaking user numbers, strong revenue growth, and improved profitability positions Pinterest for long-term success.
For investors, these results reinforce Pinterest’s potential to deliver sustainable growth and value creation. As the company continues to invest in AI and expand its global footprint, it is well-equipped to capture additional market share and capitalize on emerging opportunities in the digital economy.
Join the Conversation: Q1 2025 Earnings Call
To provide further insights into its Q1 2025 results, Pinterest will host an earnings call where management will discuss the company’s performance and strategic priorities. Investors and stakeholders can access the call via the Pinterest Investor Relations website.
For those who prefer to join via phone, dial-in details and additional information will be available on the website. Participants are encouraged to log in or dial in early to ensure a smooth connection.
