Pinterest shares soared following the release of its first-quarter earnings.
Sales for the social media company rose 18% year-over-year, despite the company posting a net revenue loss of US$73.59 million, or a loss of 12 cents per share. Last year, Pinterest posted net income of $8.92 million or 1 cent per share.
Despite this, the revenue came in at $1.01 billion, surpassing Wall Street expectations of $966 million.
Pinterest also reported an 11% jump in global monthly users to 631 million.
“Global monthly active users growing to 631 million, our tenth consecutive quarter of double-digit user growth,” Pinterest CEO Bill Ready said.
For Q2 2026, the company expects revenue to be within the range of $1.13 million to $1.53 million, representing year-over-year growth of 14% to 16%.
It also expects adjusted EBITDA of $256 million to $276 million. Analysts were expecting $261 million in EBITDA for the second quarter.
First quarter EBITDA came in at $176 million.
This quarter's earnings follow the company missing estimates for five straight quarters.
In February, the company said Donald Trump’s tough tariffs, which have stung retailers, hurt its online advertising business.
“Overall, large retailers remained a headwind to growth, but AI-driven platform improvements, including bidding optimisations we delivered for these advertisers, began to offset some of this headwind later in the quarter,” Pinterest finance chief Julia Donnelly said during the first-quarter earnings call.
Donnelly said the conflict in the Middle East has had little impact on its overall advertising business.
The company said in January that it would cut nearly 15% of its workforce and reduce office space as it moves more resources into artificial intelligence.
At the time of writing, Pinterest (NYSE: PINS) shares rose 3.12% to $29.85 and climbed a further 15.59% in after-market trading to $24.10. Its market cap is $12.01 billion.
