Thu, May 8, 8:18 PM (35 days ago)
**Pinterest, Inc. (PINS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $855.0 million, a 16% increase year-over-year (YoY) and 17% on a constant currency basis. - **Net Income:** $8.9 million, a significant improvement from a loss of $24.8 million in Q1 2024. - **Adjusted EBITDA:** $171.6 million, up 36% YoY. - **Cash Flow:** Net cash provided by operating activities was $363.7 million, with free cash flow at $356.4 million. - **Cash Reserves:** $2,615.2 million in cash, cash equivalents, and marketable securities. **User Metrics:** - **Monthly Active Users (MAUs):** 570 million, a 10% increase YoY. - **Average Revenue per User (ARPU):** $1.52 globally, with U.S. and Canada ARPU at $6.54. **Operational Metrics:** - **Cost of Revenue:** $199.3 million, a 10% increase YoY. - **Research & Development:** $331.7 million, an 18% increase YoY. - **Sales & Marketing:** $253.9 million, a 12% increase YoY. - **General & Administrative:** $105.6 million, a 1% decrease YoY. **Trends & Uncertainties:** - **User Growth:** Continued investment in relevance and personalization drives MAU growth. - **Revenue Growth:** Driven by a 5% increase in ARPU and a 10% increase in average MAUs. - **Advertising:** Dependence on advertising revenue; need to attract and retain advertisers. - **International Expansion:** Challenges in monetizing international markets and managing global operations. - **Technological Risks:** Dependence on AWS and potential disruptions in technology infrastructure. - **Regulatory Risks:** Compliance with data privacy laws and potential legal actions. **Future Operations Impact:** - **Stock Repurchase:** $175.0 million spent on repurchasing 4.998 million shares, with $1.725 billion remaining for future repurchases. - **Capital Expenditure:** Focus on maintaining and scaling technology infrastructure. - **Strategic Initiatives:** Continued investment in AI and machine learning to enhance user experience and advertising effectiveness. **Conclusion:** Pinterest's Q1 2025 shows strong financial performance with significant improvements in revenue, net income, and cash flow. The company continues to invest in user growth and international expansion while navigating regulatory and technological challenges. The strategic focus on AI and advertising effectiveness positions Pinterest for future growth, but uncertainties in the advertising market and international operations remain key risks.