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This Social Media Stock Just Beat Expectations in a Tough Quarter. Is Now the Right Time to Buy?

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  • Pinterest defied Q1 advertising slowdown trends with record user growth.

  • The untapped potential in Pinterest’s global user base hints at a revenue opportunity that investors might be overlooking.

  • Pinterest’s AI-powered ad technology leverages unique user intent to deliver superior results, outperforming traditional campaigns.

  • 10 stocks we like better than Pinterest ›

Pinterest (NYSE: PINS) stock surged 12.39% on May 12, a few days after the company delivered a surprisingly strong Q1 earnings report.

The numbers were hard to ignore. Revenue topped estimates. User growth increased to an all-time high. Margins moved in the right direction. And Pinterest pulled this off in what’s typically the slowest stretch of the year for digital advertising.

Still, it’s hardly a liftoff. The stock’s up on the year, but it’s well below its pandemic-era peak. Even after a stronger Q1, Pinterest is trading more than 20% below where it was this time last year.

It looks underpriced, but is Pinterest a buy? Let’s pin down the details and see.

First quarters tend to be sleepy for ad-driven businesses. Post-holiday lull. Budget resets. Not much to see. But Pinterest bucked the trend.

Person looking at computer.
Image source: Getty Images.

Revenue rose 16% year over year to $855 million. Monthly active users (MAUs) across the globe climbed to a record high of 570 million, a 10% increase. While it missed slightly on earnings per share (EPS), costs grew more slowly than revenue. Most notably, Pinterest turned a profit, posting $9 million in generally accepted accounting principles (GAAP) net income after a loss in the same quarter last year.

In short; Pinterest didn’t just grow. It got more efficient. And it’s turning that scale into profit.

Pinterest’s improving finances owe much to its global business kicking into gear. In fact, the standout in Q1 wasn’t the U.S. or Europe, but its “Rest of World” segment, the fastest-growing yet most undermonetized part of its business.

Let’s look at the spread.

Region

Monthly Average Users (Millions)

Average Revenue Per User (USD)

Revenue Growth YoY

U.S. & Canada

102

6.54

+12%

Europe

148

1.00

+24%

Rest of World

320

0.14

+49%

Data source: Pinterest Q1 2025 earnings report.

Monthly average users (MAUs) in “Rest of World” climbed 14% to 320 million, and average revenue per user (ARPU) jumped 29%. That pushed revenue in the segment up 49%, far outpacing other regions. It’s still just 5.3% of Pinterest’s revenue, but the trajectory is steep.

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