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Pinterest beats Q1 estimates, lifts Q2 outlook
Pinterest reported first-quarter results that beat analyst estimates, with revenue rising 18% year on year.
Its second-quarter guidance also topped Wall Street forecasts, sending shares up 17%.
Revenue reached US$855 million versus LSEG estimates of US$847 million, while adjusted EBITDA was US$207 million against a US$176 million estimate.
The company posted a net loss of US$73.6 million, or 12 cents a share, compared with net income of US$8.9 million a year earlier.
Pinterest forecast second-quarter revenue of US$1.13 billion to US$1.15 billion and adjusted EBITDA of US$256 million to US$276 million.
Its global monthly active users rose 11% to 631 million and average revenue per user came in at US$1.61.
🔗 Source: CNBC
🧠 Food for thought
Implications, context, and why it matters.
Growth comes after an AI-led restructuring
- Pinterest posted a strong earnings report a few months after saying it would cut less than 15% of its staff 1.
- The plan shifted money and people toward AI product and engineering work, including an AI-powered shopping assistant 1.
- Pinterest said the restructuring would bring US$35 million to US$45 million in pre-tax charges and back its “AI-forward strategy” 2.
- The results may give investors more confidence that the overhaul is starting to pay off.
AI-driven cuts are changing tech teams
- Pinterest is part of a wider tech pattern where companies tie layoffs to a move into AI 1.
- Some experts are skeptical and say some firms may be “AI-washing,” using AI language to explain what are still standard cost cuts 1.
- Amazon earlier said it would cut about 14,000 corporate jobs, nearly 4% of its workforce, while raising AI spending and cutting costs in other areas 3.
- Pinterest’s results may strengthen the appeal of that approach, which could displace more workers in older tech roles and sharpen competition for scarce AI talent 3.
Recent Pinterest developments
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