Pinterest Q1 2025 slides: revenue jumps 16%, shares surge on profit growth

Pinterest (NYSE:PINS) shares jumped 12.02% in after-hours trading to $31.21 following the release of its Q1 2025 earnings presentation on May 8, 2025. The social media platform reported substantial revenue growth, user expansion, and significant profitability improvements across all regions, with international markets showing particularly strong momentum.

Quarterly Performance Highlights

Pinterest delivered global revenue of $1,154 million in Q1 2025, representing a 16% year-over-year increase. This growth was driven by strong performance across all geographical segments, with the Rest of World region leading at 49% growth.

As shown in the following chart of quarterly revenue performance:

The company’s user base continued to expand, with global monthly active users (MAUs) reaching 570 million, a 10% increase from the previous year. User growth was strongest in the Rest of World region at 14%, while US & Canada and Europe grew at 4% and 5% respectively.

The following chart illustrates Pinterest’s MAU growth across regions:

Pinterest’s ability to monetize its growing user base also improved, with global average revenue per user (ARPU) increasing 5% year-over-year to $1.52. While US & Canada remains the highest monetized region at $6.54 ARPU (up 8%), the company saw its strongest ARPU growth in the Rest of World region at 29%, albeit from a much lower base of $0.14.

The company’s ARPU trends are visualized in this chart:

Detailed Financial Analysis

Pinterest demonstrated significant improvement in profitability metrics during Q1 2025. Adjusted EBITDA reached $172 million, representing a 36% year-over-year increase, while the Adjusted EBITDA margin expanded 300 basis points to 20%.

The following chart shows Pinterest’s quarterly Adjusted EBITDA performance:

On a trailing twelve-month basis, Pinterest’s Adjusted EBITDA reached $1,078 million with a margin of 29%, demonstrating consistent improvement in the company’s long-term profitability trajectory.

The twelve-month Adjusted EBITDA trend is illustrated here:

The company maintained disciplined expense management, with non-GAAP costs and expenses showing controlled growth. Research and Development expenses increased 20% year-over-year to $203 million, reflecting continued investment in product innovation. Sales and Marketing expenses grew 11% to $221 million, while General and Administrative expenses actually decreased by 3% to $70 million, demonstrating operational efficiency.

Pinterest’s free cash flow conversion remains strong, indicating the company’s ability to translate its growing profitability into cash generation. This positions the company well for continued investment in growth initiatives while potentially returning capital to shareholders.

Strategic Initiatives & Forward-Looking Statements

Pinterest’s Q1 2025 results build upon the momentum seen in previous quarters. Comparing to Q3 2024, when the company reported 18% revenue growth and 11% MAU growth, the Q1 2025 results show slightly moderated but still robust growth rates of 16% for revenue and 10% for MAUs.

The company’s continued focus on enhancing user engagement and improving ad relevance appears to be yielding results, as evidenced by the consistent ARPU growth across all regions. The significant growth in international markets, particularly in the Rest of World region, suggests Pinterest’s global expansion strategy is gaining traction.

Pinterest’s ability to expand its Adjusted EBITDA margin to 20% in Q1 2025 (up from 17% in Q1 2024) demonstrates the scalability of its business model and effective cost management. The company appears to be successfully balancing investments for future growth with improving current profitability.

The strong market reaction to Pinterest’s Q1 2025 results, with shares jumping over 12% in after-hours trading, suggests investors are responding positively to the company’s ability to deliver both growth and improving profitability. With a solid balance sheet and strong cash flow generation, Pinterest appears well-positioned to continue executing its growth strategy while enhancing shareholder value.

Full presentation:

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