Pinterest Q2 2025 Earnings Call Summary: Strong Revenue Growth & Record Users, But EPS Miss

Here's a YouTube summary based on the provided earnings information for Pinterest's Q2 2025:

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**Pinterest Q2 2025 Earnings Call Summary: Strong Revenue Growth & Record Users, But EPS Miss**

Hello, and welcome to our quick rundown of Pinterest's Q2 2025 earnings! Today, August 7, 2025, Pinterest (NYSE: PINS) announced its latest financial results, showing significant growth in several key areas.

**Key Financial Highlights for Q2 2025:**

* **Revenue soared to $998 million**, marking a **17% increase year-over-year** on both a reported and constant currency basis. This figure comfortably **beat analysts' estimates of $975 million**.
* While sales were strong, Pinterest **missed on earnings per share**, reporting 33 cents adjusted versus an expected 35 cents. This led to a **more than 10% drop in Pinterest shares** on Thursday after the announcement.
* **GAAP Net Income saw a massive jump of 336%**, reaching **$39 million**, up from $8.9 million in the same period last year.
* **Adjusted EBITDA came in at $251 million**, representing a **33% increase** year-over-year and **exceeding StreetAccount's estimates of $233 million**.
* The company also demonstrated robust cash flow, with **net cash provided by operating activities increasing 95% to $208 million**, and **free cash flow rising 94% to $197 million**.

**User Growth & Engagement:**

* Pinterest hit an **all-time high of 578 million global Monthly Active Users (MAUs)**, an **11% increase year-over-year**. This figure was **ahead of StreetAccount's projection of 574.5 million**.
* CEO Bill Ready highlighted that **Gen Z now makes up over half of Pinterest's user base**, indicating strong appeal to younger demographics.

**Geographic Performance Insights:**

* Revenue growth was strong across all regions:
* **Europe** saw the highest increase at **+34% year-over-year**.
* **Rest of World** revenue grew by an impressive **+65% year-over-year**.
* **US & Canada** revenue increased by **+11% year-over-year**.
* Average Revenue Per User (ARPU) also showed healthy growth:
* **Europe ARPU increased by 26%**.
* **Rest of World ARPU surged by 44%**.
* Global and US & Canada ARPU both grew by 6%.

**CEO's Vision & Outlook:**

* Bill Ready expressed pride in the Q2 results, stating, "I’ve never been more confident in Pinterest’s ability to deliver for our users and advertisers". He emphasized Pinterest's "best product market fit ever" as a **personalized shopping destination** and an **AI-powered performance platform**.
* For **Q3 2025, Pinterest expects revenue to be between $1.033 billion and $1.053 billion**, which **tops analysts' estimates of $1.025 billion**. This represents a projected growth of 15% to 17% year-over-year.
* Adjusted EBITDA for Q3 2025 is expected to be in the range of $282 million to $302 million.
* However, CFO Julia Donnelly noted that there are still **lingering concerns from advertisers regarding tariffs and broader market uncertainty**, including pullbacks in spending from Asia-based e-commerce retailers due to changes in a "de minimis exemption".

**Understanding Non-GAAP Measures:**

* It's important to note that Pinterest uses non-GAAP financial measures like Adjusted EBITDA to supplement its GAAP statements. These are not a substitute for GAAP but provide additional insights into the company's core operating performance, excluding items such as share-based compensation, amortization, and certain non-recurring expenses.

In summary, Pinterest delivered strong revenue and user growth in Q2 2025, beating expectations on these fronts and highlighting its strategic focus on shopping and AI. Despite a miss on EPS, the outlook for Q3 remains positive regarding revenue.

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