Pinterest surges after earnings beat, company posts strong guidance

on Pinterest On Monday, it reported first-quarter earnings on both the top and bottom lines. Shares rose 17 percent following the report.

Here’s how the company performed compared to analysts’ consensus estimates from LSEG:

• earnings per share: 27 cents corrected, 23 cents expected
• Revenues: $1.01 billion, expected $966 million

While sales in Pinterest’s first quarter increased 18% compared to the same period last year, the company reported a net loss of $73.59 million, a loss of 12 cents per share. A year ago, the social media company reported net income of $8.92 million, or 1 cent per share.

Pinterest said second-quarter revenue should be in the range of $1.13 billion to $1.15 billion; That’s higher than the $1.11 billion Wall Street had predicted.

The company said adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, for the second quarter will be between $256 million and $276 million. Analysts expected second-quarter EBITDA to be $261 million.

Pinterest’s first-quarter EBITDA was $207 million, above analysts’ estimates of $176 million.

The social media company’s global monthly active users in the first quarter reached 631 million, up 11% year-on-year, in line with analysts’ forecasts.

Global average revenue per user in the first quarter was $1.61, beating Wall Street estimates of $1.54.

Pinterest for December announcement The company announced Monday in its quarterly statement that it will acquire tvScientific, which specializes in connected TV ad analytics. filing He said he paid approximately $465.1 million, primarily in cash.

Pinterest CEO Bill Ready told analysts during the earnings call that the company closed the tvScientific deal in the first quarter, explaining that the goal of the acquisition was to “strengthen high-performing CTV campaigns by extending Pinterest’s unique consumer intent, signal and audience beyond our owned and operated properties.”

Before the current period, Pinterest had missed financial forecasts for five consecutive quarters and said in February that President Donald Trump’s tough tariffs hurting major retailers were hurting the company’s online advertising business.

“Overall, large retailers continue to be a headwind to growth, but AI-driven platform improvements, including bid optimizations we’re rolling out for these advertisers, began to offset some of that headwind later in the quarter,” Pinterest chief financial officer Julia Donnelly said in its first-quarter earnings call.

Pinterest announced in January that the company would cut about 15% of its workforce and reduce office space as it shifted more resources to AI.

reddit It reported first-quarter earnings at the top and bottom lines last Thursday, and its shares rose 9% in after-hours trading.

Digital advertising giants Meta and Alphabet announced their latest quarterly earnings last Wednesday, where they both beat revenue, and they also announced plans to spend more money on AI-related infrastructure.

Although Alphabet shares rose, Meta shares fell; It was a sign of investors’ concerns about Facebook’s parent company spending big on artificial intelligence without a clear new revenue opportunity or cloud computing business.

WRISTWATCH: Jim Cramer says Meta’s overall numbers are impressive.