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Pinterest Beats Q2 Estimates but Guides to Slower Revenue Growth

Profitability measures, including large buybacks and AI-focused ad tools, are steering strategy despite a modest slowdown in near-term sales.

Overview

  • Tuesday’s results showed a second-quarter revenue beat of $1.18 billion and adjusted EPS of $0.43, with monthly active users rising 11% to 640 million and ARPU increasing to $1.86.
  • For the current quarter Pinterest guided revenue of $1.19 billion to $1.21 billion, implying 13%–15% growth that would mark a slowdown from the 18% expansion in Q2 and assumes a modest foreign-exchange headwind.
  • The company is pushing AI-powered ad products under its Performance+ suite as a core growth driver and completed the tvScientific acquisition to extend advertising reach into connected TV.
  • Pinterest spent more than $2 billion on share buybacks this year, retiring roughly 111 million shares which materially boosted EPS while reducing cash and marketable securities.
  • Intensifying competition from Meta, Google, Reddit and OpenAI on AI-driven ad automation heightens pressure to convert Pinterest’s large international user base into stronger ad revenue.