Pinterest’s Q1 2025 Earnings Report Anticipated: Key Insights
Pinterest, Inc. (PINS) is set to release its first-quarter 2025 earnings on May 8, just after the market closes. The company has consistently surprised analysts with an average earnings beat of 13.24% over the past four quarters. Year-over-year revenue growth is expected, spurred by increasing user engagement across the United States, Canada, and Europe. Key factors driving this growth include advancements in artificial intelligence (AI) and automation-powered advertising products, alongside heightened interaction among Gen Z users.
Engagement and Revenue Growth Factors
Pinterest is seeing a surge in engagement from its current user base. The company’s dedication to enhancing operational efficiency and applying advanced AI models for relevance and personalization is anticipated to generate incremental revenue in the upcoming quarter. Additionally, Pinterest is focused on developing new advertising tools and formats to expand monetization opportunities. Innovations in lower funnel solutions, such as mobile deep linking and shopping ads, are providing advertisers with measurable returns on investment, which enhances their decision-making processes.
By establishing a distinct value proposition for advertisers, Pinterest may gain a competitive edge over time. The company is undertaking various initiatives aimed at enhancing actionable content, making it an attractive advertising platform for consumer discretionary brands seeking to reach customers effectively, even with modest advertising budgets. This strategy has resulted in substantial improvements in engagement metrics—sessions, impressions, and saves—across all regions.
Moreover, increased engagement from Gen Z users is a favorable trend. Management’s decision to expand access to the mobile deep linking product for more advertisers has enhanced shoppability on the platform. These developments are projected to positively influence the first-quarter earnings results.
Overall Financial Expectations
Estimates predict the average revenue per user (ARPU) in the U.S. and Canada will be $6.86, while the ARPU for Europe is expected to be $0.90. It is estimated that monthly active users (MAUs) from the U.S. and Canada will reach 98.8 million during the first quarter. In Europe, MAUs are anticipated to be around 143.6 million, with the rest of the world contributing approximately 297.1 million MAUs.
For the March quarter, the Zacks Consensus Estimate for total revenue stands at $845.74 million, indicating growth from the previous year’s $739.98 million. The consensus estimate for adjusted earnings per share is expected to rise to 25 cents, compared to 20 cents reported last year.
Earnings Forecast Insights
Current predictions do not strongly suggest an earnings beat for Pinterest this quarter. Typically, a combination of a positive earnings surprise percentage (ESP) and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) enhances the probability of an earnings beat. However, this situation differs for Pinterest.
Earnings ESP: The earnings ESP, which reflects the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is currently at -2.31%.
Pinterest, Inc. Price and EPS Surprise
Zacks Rank: Pinterest currently holds a Zacks Rank of #3.
Stocks Worth Monitoring
Here are a few companies that may be in a favorable position for an earnings beat this season:
The earnings ESP for TELUS Corporation (TU) is +6.06%, and it has a Zacks Rank of 3. The company is set to report its quarterly earnings on May 8.
The earnings ESP for Advanced Micro Devices (AMD) stands at +0.74% with a Zacks Rank of 3. Its earnings report is scheduled for May 6.
Additionally, Fortinet (FTNT) will announce its quarterly results on May 7, with an earnings ESP of +3.77% and a Zacks Rank of 3.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
