PINS Q1 2025 Earnings

Call Details

• Call Title: Pinterest, Inc. Q1 2025 Earnings Call
• Date: May 8, 2025 at 8:30 PM UTC
• Management Team:
  • Andrew Somberg (Vice President of Investor Relations and Treasury)
  • Bill Ready (Chief Executive Officer)
  • Julia Brau Donnelly (Chief Financial Officer)

Call Summary

Financial Performance

• Pinterest finished Q1 with 570 million MAUs globally, growing 10% year over year.
• Q1 revenue was $855M, up 16% year over year and up 17% on a constant currency basis.
• Adjusted EBITDA was $172M, representing a 20% adjusted EBITDA margin and an increase of 300 basis points versus Q1 last year.
• Q1 free cash flow was $356M and cash, cash equivalents, and marketable securities totaled $2.6B at quarter end.
• Regional revenue was $663M in U.S. and Canada up 12%, $147M in Europe up 24% reported and 27% constant currency, and $45M in rest of world up 49% reported and 59% constant currency.
• Ad impressions grew 49% year over year while ad pricing declined 22% year over year.
• Cost of revenue was $193M, up 10% year over year and up 1% versus Q4, and non-GAAP operating expense was $494M, up 12% year over year.
• In Q1 the company allocated $175M to share repurchases and $94M to net share settlement of equity awards as disclosed in the prepared remarks.

Guidance

• Pinterest expects Q2 revenue in a range of $960M to $980M, representing 12% to 15% growth year over year.
• Pinterest expects Q2 adjusted EBITDA to be in the range of $217M to $237M.
• The company expects Q2 non-GAAP cost of revenue to grow at a similar year over year rate as Q1.
• Primary Q2 investments are expected to be headcount in R&D and seasonally higher sales and marketing spend.
• The company expects modest foreign exchange impact in Q2 based on current spot rates.
• Pinterest expects adjusted EBITDA margin expansion year over year for full year 2025, with the magnitude of expansion lower than the outsized expansion delivered in 2024.