From Nasdaq: 2025-05-05 11:23:00

Pinterest, Inc. (PINS) is set to report first-quarter 2025 results on May 8, after a strong four-quarter earnings surprise of 13.24% on average. Top-line expansion is expected due to increased user engagement in the United States, Canada, and Europe, driven by AI and automation-powered ad products and rising engagement among Gen Z users.

Pinterest’s focus on enhancing user engagement through AI models and new ad tools is likely to boost revenues in the first quarter. The company is improving lower funnel solutions for advertisers, leading to increased conversion rates and decision-making capabilities. These efforts have resulted in improved engagement metrics across all regions.

The company’s initiatives to improve advertising platforms and bring more actionable content have positioned it as a competitive advantage for consumer discretionary brands. Increased accessibility of the mobile deep linking product has enhanced shoppability on the platform, especially among Gen Z users. These factors are expected to positively impact the first-quarter results.

For the first quarter, Pinterest’s average revenues per user (ARPU) from the United States and Canada are estimated at $6.86, with Europe’s ARPU at $0.9. Monthly active users (MAUs) from the United States and Canada are expected to be 98.8 million, with Europe at 143.6 million and the rest of the world at 297.1 million. The Zacks Consensus Estimate for total revenues is $845.74 million, with an adjusted EPS estimate of 25 cents.

Despite positive expectations, Pinterest may not beat earnings this time due to a negative Earnings ESP of -2.31%. The company currently holds a Zacks Rank #3. Investors may consider other stocks like TELUS Corporation (TU), Advanced Micro Devices (AMD), and Fortinet (FTNT) for potential earnings beats based on their Earnings ESP and Zacks Rank.

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Read more at Nasdaq: PINS Set to Report Q1 Results: Will Top-Line Growth Boost Earnings?