Pinterest's Q2 Results: AI-Driven Growth Amidst Profit Miss and Gen Z Surge

Pinterest profit miss overshadows Gen Z, AI-driven growth

Aug 7 (Reuters) - Pinterest (PINS.N), opens new tab missed analysts' estimates for second-quarter profit on Thursday, overshadowing robust revenue and user growth, and sending its shares down over 11% in extended trading. The social media platform reported adjusted profit per share of 33 cents, below analysts' average estimate of 35 cents, according to data compiled by LSEG. However, its quarterly revenue grew 17% to $998.2 million, beating expectations of $974.8 million. The company's stock has gained about 35% so far this year. The growth was boosted by a surge in Gen Z users -- who now represent more than half of Pinterest's user base -- and adoption of its AI-powered ad suite, Performance+, which has appealed to advertisers seeking personalized and automated campaigns. CEO Bill Ready said adoption of Performance+ among mid-market advertisers was accelerating, cutting campaign creation time in half. Still, Pinterest forecast third-quarter revenue between $1.03 billion and $1.05 billion, broadly in line with estimates of $1.03 billion. The revenue growth outlook "is strong but not accelerating from second quarter's 17%," said eMarketer analyst Jeremy Goldman. "In a high-expectation environment, even a small gap between reality and euphoria can trigger a sell-the-news reaction." Rivals Meta (META.O), opens new tab and Reddit (RDDT.N), opens new tab posted upbeat second quarter performance last week. In contrast, Snap (SNAP.N), opens new tab reported its slowest quarterly revenue growth in over a year. The termination of the "de minimis" exemption - a U.S. duty-free import provision - led to tighter ad budgets for smaller platforms such as Snap, as marketers preferred to larger platforms with wider reach. Pinterest CFO Julia Donnelly said the change prompted Asia-based e-commerce retailers to reduce their U.S. ad spending, though some shifted spending to Europe and other international markets. The San Francisco-based company's ad pricing fell 25% year over year, as a larger share of ad impressions now comes from international markets, where ad prices are generally lower than in the U.S. Pinterest has third-party ad deals with Google (GOOGL.O), opens new tab, Amazon.com (AMZN.O), opens new tab and ad platform Magnite (MGNI.O), opens new tab. The platform's global monthly active users (MAUs) rose 11% from a year earlier to 578 million, topping estimates of 553 million, but user growth slowed to 8 million additions in the quarter from 17 million in the first. "MAUs are approaching a ceiling level of maturity, and the market is maturing rapidly despite the incremental implementation of AI to drive user growth," Zephirin Group analyst Lenny Zephirin said. Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab

Pinterest beats revenue estimates as AI tools drive ad spend

Aug 7 (Reuters) - Pinterest (PINS.N), opens new tab beat analysts' estimates for second-quarter revenue on Thursday, as increased marketing spend on the platform was fueled by its artificial intelligence-powered advertising tools. However, shares of the company fell around 8.2% in extended trading. The stock has risen about 35% so far this year. The social media platform's rapid growth among Gen Z users -- who now represent more than half of its user base -- combined with the AI-powered tools for personalized and automated campaigns, has made the platform attractive to advertisers. Pinterest's results follow Meta (META.O), opens new tab and Reddit's (RDDT.N), opens new tab strong second quarter performance last week. In contrast, Snap (SNAP.N), opens new tab reported its slowest quarterly revenue growth in over a year. The company's focus on direct-response ads, designed to prompt specific actions like shopping, app downloads, or website visits, continued to drive ad demand. "We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers," CEO Bill Ready said in a statement. Pinterest has third-party ad deals with Google (GOOGL.O), opens new tab, Amazon.com (AMZN.O), opens new tab and advertising platform Magnite (MGNI.O), opens new tab. Revenue for the second-quarter grew 17% to $998.2 million, beating analysts' average estimate of $974.8 million, according to data compiled by LSEG. Global monthly active users on the platform rose 11% to 578 million, exceeding estimates of 553 million. Pinterest expects third quarter revenue to be between $1.03 billion and $1.05 billion, compared with estimates of $1.03 billion. Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab

Pinterest (PINS) Q2 Revenue Jumps 17% | The Motley Fool

Pinterest (PINS 0.18%) is a visual discovery social media platform that helps users find and save ideas, serving as a destination for inspiration and shopping. On August 7, 2025, it released results for the second quarter of fiscal 2025, highlighted by a 17% year-over-year revenue increase to $998 million (GAAP) and a record high in its global user base. The company's revenue (GAAP) exceeded analyst predictions by $23.07 million, while non-GAAP earnings per share (EPS) of $0.35 matched consensus estimates. Strong gains in adjusted EBITDA and free cash flow (both non-GAAP) contributed to a steady quarter overall, with ongoing advances in artificial intelligence (AI) and advertiser-focused products reinforcing its growth model. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Pinterest is a social platform centered on sharing and discovering visual content, mostly images and videos. Users save "Pins," organize them into themed boards, and use the platform for planning, shopping, and inspiration. This unique visual model, compared to text-driven social media, makes Pinterest especially popular among people planning major events, home projects, or life changes. The company's core growth drivers include expanding its user base, deepening engagement, and increasing advertising revenue. Key initiatives focus on leveraging AI for better personalization and visual search, rolling out new advertising solutions to improve returns for marketers, and closing the monetization gap in international markets -- areas where the company sees significant long-term opportunity. User demographics are shifting, with Gen Z now making up over half the global audience. Pinterest's global monthly active users (MAUs) reached 578 million, an 11% increase year over year. Notably, Gen Z users are now the majority, supporting Pinterest's position as a platform of choice for younger, digitally savvy consumers. Regional performance varied: MAUs grew 5% in the U.S. and Canada, 7% MAU growth in Europe, and 14% in the rest of the world. Regional revenue trends mirrored user growth but also highlighted a longstanding challenge: average revenue per user (ARPU) remains much lower outside North America, with ARPU at $7.29 in the U.S. and Canada, $1.30 in Europe, and $0.19 in Rest of World. U.S. and Canada ARPU rose 6% to $7.29, while Europe's ARPU increased 26% to $1.30, and the Rest of World saw a 44% leap to $0.19 in ARPU. These increases, though significant in percentage terms, reinforce the gap in monetization between mature and developing markets. Europe and Rest of World delivered the highest growth rates in revenue -- up 34% and 65%, respectively -- yet still represent a smaller proportion of total sales. Financially, the company saw its non-GAAP net income rise 33%, and adjusted EBITDA (non-GAAP) improved by 33% year over year. Free cash flow increased 94% to $196.7 million. The balance sheet remains solid, with over $2.6 billion in cash and marketable securities at quarter-end. Share-based compensation (SBC), however, continues to be a substantial expense, totaling $227 million, nearly 23 % of revenue for the quarter. On the advertising front, Pinterest emphasized the growing impact of its Performance+ campaign toolkit -- an automated, AI-driven ad solution. Management reported that 80% of campaigns using Performance+ outperformed traditional ones, based on internal AB tests as discussed in Q1 2025, and campaign creation times were significantly reduced. Shopping ad revenue, especially in Europe and the Rest of World, grew at over three times the pace of overall regional revenue in Q1 2025. Internal productivity improvements were also notable: AI-generated code constituted over 25% of all new code created during Q1 2025, up 10 percentage points since the beginning of the year. Pinterest offered guidance, forecasting revenue between $1,033 million and $1,053 million. -- representing 15-17% year-over-year growth. Adjusted EBITDA is expected to land in the $282 million to $302 million range, above the Adjusted EBITDA margin achieved last quarter. Management expects a minor positive contribution from foreign exchange rates and signaled ongoing investment in AI, product, and sales capabilities to support future periods. Looking forward, investors and analysts will focus on how effectively Pinterest can continue to increase international ARPU, deepen Gen Z user engagement, and defend its niche amid intensifying competition from other digital platforms. Special attention will also be given to ongoing regulatory changes related to data privacy in key regions, as well as the balance between ambitious R&D spending and sustained profitability.

Pinterest outlines 15%-17% Q3 revenue growth target while expanding AI-driven user engagement (NYSE:PINS)

CEO William J. Ready stated Pinterest has achieved "another quarter of record high users," reaching 578 million monthly active users (MAUs), an 11% increase year-over-year, and highlighted that "over 50% of our monthly active users are Gen Z, which speaks to Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.