Pinterest announced its first-quarter results on Monday, surpassing analyst expectations for both revenue and profit. Following the announcement, its stock price climbed by 15%.

Here is a breakdown of the company’s performance relative to LSEG analyst consensus estimates:

• Adjusted earnings per share: 27 cents compared to the projected 23 cents
• Revenue: $1.01 billion versus the anticipated $966 million

During the first quarter, Pinterest’s sales grew 18% compared to the same period last year. The company reported a net loss of $73.59 million, equating to 12 cents per share. In contrast, the social media platform recorded a net profit of $8.92 million, or 1 cent per share, during the first quarter of the previous year.

Predictions for the second quarter indicate revenue between $1.13 billion and $1.15 billion, exceeding Wall Street’s forecast of $1.11 billion.

Additionally, the company projects adjusted earnings before interest, taxes, depreciation, and amortization (EBIDTA) for the second quarter to fall within the $256 million to $276 million range. Analysts had previously estimated $261 million for this metric.

Pinterest’s first-quarter EBIDTA reached $207 million, outperforming analyst estimates of $176 million.

The global monthly active user base for Pinterest grew by 11% year-over-year in the first quarter, reaching 631 million, which aligns with analyst projections.

Average revenue per user globally for the first quarter was $1.61, surpassing Wall Street’s estimate of $1.54.

The company disclosed spending approximately $465.1 million, mostly in cash, for its February acquisition of tvScientific, a firm specializing in connected TV advertising analytics.

Pinterest CEO Bill Ready explained during the earnings call that the acquisition aims to «extend Pinterest’s unique consumer intent, signal and audiences beyond our owned and operated properties to power high-performing CTV campaigns.»

Before the current quarter, Pinterest had missed earnings per share estimates for five consecutive quarters. In February, the company attributed its struggles to President Donald Trump’s stringent tariffs, which negatively impacted large retailers and subsequently affected Pinterest’s online advertising business.

«Overall, large retailers remained a headwind to growth, but AI-driven platform improvements, including bidding optimizations we delivered for these advertisers, began to offset some of this headwind later in the quarter,» Pinterest finance chief Julia Donnelly stated during the first-quarter earnings call.

Donnelly mentioned that the company is «tracking the conflict in the Middle East,» but has observed minimal impact on its overall advertising operations so far.

However, Donnelly acknowledged some adverse effects from the Iran war, which started in February, particularly in the rest-of-world region and Europe, «where it’s really isolated to certain verticals impacted by higher oil prices.»

«But this has all been factored in as we thought about our Q2 guidance,» Donnelly added.

In January, Pinterest announced it would reduce its workforce by nearly 15% and downsize office space to redirect resources toward artificial intelligence initiatives.

Reddit reported first-quarter earnings last Thursday, beating revenue and profit expectations, which led to a 9% surge in its stock during after-hours trading.

Digital advertising giants Meta and Alphabet released their latest quarterly earnings last Wednesday, both exceeding revenue forecasts while also announcing increased spending on AI-related infrastructure.

While Alphabet shares increased, Meta shares declined, reflecting investor concerns regarding the Facebook-parent’s substantial AI investments without a clear new revenue stream or cloud computing business.

WATCH: Meta’s overall numbers were impressive, says Jim Cramer.