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Pinterest Shares Surge on Q1 Beat and Higher Q2 Outlook

AI-focused ad products are starting to lift monetization.

Overview

  • Pinterest, which reported results Monday, saw its stock jump about 16% to 17% in extended and premarket trading after topping revenue and EPS estimates.
  • The company guided second-quarter revenue to $1.13 billion to $1.15 billion and projected adjusted EBITDA of $256 million to $276 million, both above Wall Street forecasts.
  • Global monthly active users reached a record 631 million, up 11% from a year earlier, marking a tenth straight quarter of double-digit growth.
  • Adjusted EBITDA came in at $207 million with free cash flow of $312 million, while GAAP results showed a net loss of about $74 million.
  • Pinterest is expanding its ad reach with AI tools like Performance+ and the PinRec model and with connected-TV inventory from tvScientific, as Elliott backs a new $3.5 billion buyback following $2 billion of Q1 repurchases.