Pinterest Reports 16% Revenue Growth to $854.99 Million in Q1 2025

Pinterest, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with revenue reaching $854.99 million, a 16% increase from $739.98 million in the same period last year. This growth was driven by a 10% rise in monthly active users (MAUs), which totaled 570 million, and a 5% increase in average revenue per user (ARPU), which reached $1.52. The company also reported a net income of $8.92 million, a notable turnaround from a net loss of $24.81 million in the first quarter of 2024. Adjusted EBITDA for the quarter was $171.65 million, reflecting a 36% increase year-over-year.

In terms of operational metrics, Pinterest's MAUs increased by 10% compared to the previous year, indicating successful user engagement strategies. The company served 49% more advertisements, although the average price per advertisement decreased by 22%. Revenue from the U.S. and Canada rose by 12% to $663.5 million, while Europe and the Rest of the World saw increases of 24% and 49%, respectively. The company’s total cash, cash equivalents, and marketable securities stood at $2.62 billion as of March 31, 2025.

Pinterest's expenses also saw an increase, with total costs and expenses rising to $890.47 million from $794.40 million in the prior year. Research and development costs increased by 18% to $331.67 million, driven by higher personnel expenses and share-based compensation. Sales and marketing expenses rose by 12% to $253.92 million, reflecting increased marketing efforts. Despite these rising costs, the company managed to reduce its loss from operations to $35.48 million, down from $54.42 million in the previous year.

Strategically, Pinterest has continued to focus on enhancing user engagement and monetization. The company has been investing in relevance and personalization to attract and retain users. Additionally, Pinterest has authorized a stock repurchase program of up to $2 billion, with $1.72 billion remaining available for repurchases as of the end of the quarter. The company’s headcount was reported at 4,778 employees, reflecting its ongoing investment in talent to support growth.

Looking ahead, Pinterest expressed optimism about its growth trajectory, citing ongoing investments in product development and user engagement strategies. However, the company acknowledged potential risks, including economic uncertainties and competition in the digital advertising space. The management emphasized its commitment to maintaining profitability while continuing to innovate and expand its platform.