Pinterest (NYSE:PINS) shares surged 17% in after-hours trading after its first-quarter earnings report smashed expectations. The social media company announced a revenue increase of 23% to $740 million, which significantly beat the estimated $700 million. This growth was driven by strong performance across all regions. As a result, the company’s operating loss narrowed significantly to $54.4 million from last year’s $243.7 million, while adjusted EPS of $0.20 beat estimates of $0.14.
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Impressively, this was Pinterest’s highest level of revenue and user growth since 2021, as global monthly active users climbed 12% to reach 518 million. Revenue per user globally rose 10% to $1.46. When breaking down the numbers further, the U.S. and Canada saw a 19% increase to $6.05, Europe saw a 17% rise to $0.86, and the rest of the world grew 8% to $0.11.
Pinterest Is an “Online Oasis”
Essentially, Pinterest’s growth was broad-based and suggests the platform is gaining popularity across the world. This makes sense when considering the controversies surrounding Elon Musk‘s X (formerly Twitter) and the legal issues TikTok has been facing in the U.S. It also helps that Pinterest is viewed much more positively than its competitors. In fact, the company states on its website that “8 out of 10 people say Pinterest is a place where they feel positive. 9 in 10 call it an online oasis. Only 3 in 10 say that about social media competitors.”
In a world where most social media platforms thrive on polarizing topics and negativity, providing a calming online environment is a great way for Pinterest to differentiate itself from competitors.
Is PINS Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PINS stock based on 21 Buys, nine Holds, and zero Sells assigned with an average PINS price target of $42.90 per share. However, it’s worth noting that estimates will likely change following today’s earnings report.
