Latest news with #JuliaDonnelly
Yahoo
2 days ago
- Business
- Yahoo
PINS Q1 Earnings Call: AI-Driven Product Enhancements Support User Growth and Advertiser Adoption
Social commerce platform Pinterest (NYSE: PINS) reported Q1 CY2025 results beating Wall Street's revenue expectations , with sales up 15.5% year on year to $855 million. Guidance for next quarter's revenue was better than expected at $970 million at the midpoint, 0.6% above analysts' estimates. Its non-GAAP profit of $0.23 per share was 9.8% below analysts' consensus estimates. Is now the time to buy PINS? Find out in our full research report (it's free). Revenue: $855 million vs analyst estimates of $846.9 million (15.5% year-on-year growth, 1% beat) Adjusted EPS: $0.23 vs analyst expectations of $0.26 (9.8% miss) Adjusted EBITDA: $171.6 million vs analyst estimates of $162.6 million (20.1% margin, 5.6% beat) Revenue Guidance for Q2 CY2025 is $970 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $227 million at the midpoint, below analyst estimates of $230.8 million Operating Margin: -4.1%, up from -7.4% in the same quarter last year Monthly Active Users: 570 million, up 52 million year on year Market Capitalization: $23.1 billion Pinterest's first quarter performance reflected continued momentum in user engagement and product innovation, with management emphasizing the platform's growing appeal to Gen Z and international audiences. CEO Bill Ready highlighted investments in visual search and multimodal AI models as central to improving relevance and actionability for users. Management credited deeper engagement across all core regions to these enhancements, while also citing the improved ability of advertisers to reach high-intent audiences. CFO Julia Donnelly noted that strength in retail and emerging verticals, such as financial services and technology, contributed to revenue gains, as Pinterest's evolving performance ad suite and measurement tools attracted more sophisticated marketers. Looking ahead, Pinterest's leadership expects ongoing investment in AI-driven personalization and international expansion to support further revenue growth and margin improvement. Management believes that broadening adoption of the Performance+ ad suite, enhancements in measurement capabilities, and continued penetration into under-monetized markets will be key drivers. CEO Bill Ready stated, 'We still have a lot more in front of us than behind us,' emphasizing that adoption of new tools and international monetization remain in early stages. CFO Julia Donnelly cautioned that while the company anticipates margin expansion for the full year, the pace will be slower than in previous periods due to increased R&D and marketing investments. Management attributed the quarter's performance to user growth, AI-powered product advancements, and increased adoption of lower-funnel ad tools, particularly in international markets. AI-driven personalization: Pinterest's proprietary multimodal AI model now powers visual search and content recommendations, allowing for more relevant and actionable user experiences. This model, which interprets both images and text, is 30% more likely to generate relevant results than leading off-the-shelf models, according to management. Performance+ ad suite rollout: The company expanded its Performance+ suite, integrating new creative and bidding features. Management reported that 80% of campaigns using Performance+ outperform traditional campaigns, and advertisers adopting these tools see higher conversion rates and increased efficiency. International monetization progress: Revenue from Pinterest's shopping ad formats grew over three times faster than overall regional revenue in Europe and other international markets. The company is exporting its lower-funnel playbook and expanding partnerships with resellers to broaden its advertiser base outside the U.S. and Canada. Emerging vertical growth: Management cited financial services, technology, and entertainment as sectors showing accelerating ad spend. Pinterest's appeal to users during key life moments, such as starting a family or major purchases, is attracting advertisers from sectors beyond retail. Operational efficiency through AI: Internally, over 25% of Pinterest's code is now generated using AI tools, which management says has improved engineering velocity and allowed for more targeted R&D investment. Productivity enhancements are being applied across product development and sales operations. Pinterest's outlook for the next quarter and full year centers on scaling AI-driven product innovation, expanding international monetization, and balancing investment with disciplined cost management. Adoption of Performance+ and measurement tools: Management expects broader uptake of the Performance+ suite and privacy-centric measurement solutions to drive increased advertiser spend and improve conversion tracking. The company believes that making campaign creation more efficient and enhancing reporting capabilities will help close the gap between user engagement growth and revenue realization. International revenue expansion: Pinterest plans to further extend its lower-funnel advertising tools and shopping features to new global markets, with a particular focus on regions where user growth is outpacing monetization. Management sees significant runway as international users represent roughly 80% of the base but a much smaller share of revenue. Investments in AI and R&D: The company will continue prioritizing investments in AI-powered personalization, visual search, and product velocity. While these investments are expected to support long-term growth, management noted they will result in higher near-term R&D and marketing expenses, which could moderate the pace of margin expansion. In the quarters ahead, analysts will monitor (1) adoption rates of the Performance+ suite among mid-market and global advertisers, (2) progress in monetizing the growing international user base, and (3) evidence that AI-driven product enhancements are sustaining engagement and conversion gains. It will also be crucial to track whether investments in R&D and marketing support profitable growth as the company scales. Pinterest currently trades at a forward EV/EBITDA ratio of 18.8×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
RTÉ News
09-05-2025
- Business
- RTÉ News
Pinterest's revenue forecast gets boost from AI ad tools
Pinterest has forecast current-quarter revenue above Wall Street estimates, signalling its artificial intelligence tools are boosting advertising spend on the platform and sending its shares up 16% in extended trading. Despite uncertainty over marketing budgets, the company's emphasis on direct response ads - designed to prompt specific actions like shopping, app downloads or website visits - continues to drive ad spend. Pinterest's results came after the termination of a duty-free import loophole in the US, which, combined with deepening trade tensions, has constrained ad budgets for some social media platforms. Finance chief Julia Donnelly said on the post-earnings call that Pinterest is "not immune to the macro environment," but added that the company is confident in its "multiple revenue initiatives." "We have observed a reduction in spend from Asia-based e-commerce retailers in the US, given the change in the de minimis exemption; however, we have also seen a geographic diversification from some of those Asia-based retailers to our European and rest-of-world user regions," Donnelly added. Rivals Facebook-parent Meta and Reddit topped revenue expectations in the first quarter. In contrast, Snap said that it would not issue a quarterly forecast due to economic uncertainty. Pinterest is becoming increasingly attractive to advertisers due to its largest and fastest growing user cohort, Gen Z, along with its "Performance+" automation and AI tools for creating personalised ad campaigns. CEO Bill Ready also announced a third-party ad deal with Magnite to help the company "aggregate smaller sources" of advertising demand. The company already has such deals with Google and Pinterest's global monthly active users rose 10% to 570 million in the first quarter, exceeding analysts' average estimate of 564 million, according to data compiled by LSEG. The quarterly results show the company "can sustain momentum without the holiday tailwind," eMarketer senior director Jeremy Goldman said. Pinterest forecast second-quarter revenue of $960-980m, above estimates of $966.3m.
Yahoo
09-05-2025
- Business
- Yahoo
'Pinterest is where Gen Z goes to shop,' says platform's CEO
"Pinterest is where Gen Z goes to shop," CEO Bill Ready said on Pinterest's Q1 earnings call. Gen Z has been "raised on an internet of visual content" and likes to search visually, he added. Pinterest reported that revenue rose 16% in Q1, sending stock up as much as 18% after hours. Millennials had the mall. Gen Z has Pinterest. On its first-quarter earnings call on Thursday, Pinterest's CEO, Bill Ready, said Gen Z users are engaging heavily with the image-sharing platform. Gen Z are those who were born between 1996 and 2010. "We've made Pinterest a destination for our users, particularly a shopping destination," Ready said on the call. "Pinterest is where Gen Z goes to shop." Ready said that a key driver of Pinterest's success is its ability to connect users to products and aesthetics "they may not have the words to describe." "This is especially relevant for Gen Z, our largest and fastest-growing user cohort, who have been raised on an internet of visual content," and like to search visually, the CEO said. Pinterest execs also touted Gen Z in examples of how advertisers are finding value on their platform. Chief financial officer Julia Donnelly said advertisers valued Pinterest's insights into consumer behaviour, especially for Gen Z users who are making "significant" decisions such as selecting insurance or a credit card for the first time. The CEO highlighted PacSun, a clothing brand he said was popular with Gen Z, and said the retailer saw a higher return on ad spending with new Pinterest features. The company's first-quarter revenue grew 16% to $855 million compared to the same period last year. Monthly average users, an important metric for media companies, grew 10% year-on-year. AI also played a role in the company's strong quarter. Ready said Pinterest has been using AI to personalize user experience and to improve the platform's visual search capabilities. "It also makes us a highly valuable partner to advertisers that are looking for early signals on how consumer trends may be shifting before it shows up in traditional purchasing data," he said of AI. Pinterest stock jumped as much as 18% after-hours on Thursday on the heels of encouraging second-quarter guidance. Pinterest, which is most popular for searching travel, style, and home decor ideas, saw a slowdown in user growth post-pandemic. It has since rebounded due to increased focus on shoppability and engagement from Gen Z users. Gen Z, most of whom are in their 20s, has a reputation for taking their life and careers slow. Some research shows members of this generation are not drinking, driving, working, or taking risks as much as other age groups did at their age. In addition to Pinterest, Gen Z is being credited for the revival of the image-blogging platform Tumblr, which reported that 50% of its active monthly users in 2025 are Gen Zers. When it comes to their shopping habits, Gen Z is often associated with "underconsumption core," a trend that's all about buying less and rejecting influencer marketing. Pinterest did not immediately respond to a request for comment from BI. Read the original article on Business Insider
CNA
08-05-2025
- Business
- CNA
Pinterest's revenue forecast gets boost from AI ad tools, growing marketing spend
Pinterest forecast current-quarter revenue above Wall Street estimates on Thursday, signaling its artificial intelligence tools are boosting advertising spend on the platform and sending its shares up 16 per cent in extended trading. Despite uncertainty over marketing budgets, the company's emphasis on direct response ads — designed to prompt specific actions like shopping, app downloads or website visits — continues to drive ad spend. Pinterest's results came after the termination of a duty-free import loophole in the U.S., which, combined with deepening trade tensions, has constrained ad budgets for some social media platforms. Finance chief Julia Donnelly said on the post-earnings call that Pinterest is "not immune to the macro environment," but added that the company is confident in its "multiple revenue initiatives." "We have observed a reduction in spend from Asia-based e-commerce retailers in the U.S., given the change in the de minimis exemption; however, we have also seen a geographic diversification from some of those Asia-based retailers to our European and rest-of-world user regions," Donnelly added. Rivals Facebook-parent Meta and Reddit topped revenue expectations in the first quarter. In contrast, Snap said that it would not issue a quarterly forecast due to economic uncertainty. Pinterest is becoming increasingly attractive to advertisers due to its largest and fastest growing user cohort, Gen Z, along with its "Performance+" automation and AI tools for creating personalized ad campaigns. CEO Bill Ready also announced a third-party ad deal with Magnite to help the company "aggregate smaller sources" of advertising demand. The company already has such deals with Google and Pinterest's global monthly active users rose 10 per cent to 570 million in the first quarter, exceeding analysts' average estimate of 564 million, according to data compiled by LSEG. The quarterly results show the company "can sustain momentum without the holiday tailwind," eMarketer senior director Jeremy Goldman said. Pinterest forecast second-quarter revenue of $960 million to $980 million, above estimates of $966.3 million.
