Pinterest Reports Profit and Shares Jump Double Digits
Pinterest has achieved a significant milestone in its first quarter of 2025, reporting a profit after a loss in the previous year. This resulted in a substantial increase in the stock price, which rose by more than 10% in after-hours trading.
Financial Highlights
- Earnings per Share: Pinterest increased its earnings per share from -$0.040 in the previous year to $0.01 in the first quarter of 2025. However, this profit was below analyst expectations, which averaged $0.255 per share.
- Revenue: Revenue surged from $740 million in the previous year to $854.99 million, surpassing market expectations of $846.5 million.
- Stock Price: The Pinterest stock rose by as much as 10.04% to $30.69 in after-hours trading.
Importance for Investors
This profit is particularly relevant for investors looking to invest in high-growth technology companies. Pinterest’s ability to emerge from the loss zone and report a revenue increase indicates a positive trend. However, the expectation gap between actual and forecasted earnings remains a key point for future valuations.
Outlook
For the current fiscal year, analysts expect an average earnings per share of about $1.78 to $1.81, which is a decrease compared to the previous year ($2.74). Revenue for the entire year is estimated at around $4.15 billion, representing an increase compared to the previous year. These forecasts indicate that Pinterest continues on a growth path, but challenges regarding profit margins persist.