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Pinterest Stock Jumps 15% After Beating Q1 Earnings Forecasts with Strong Forward Guidance

Pinterest shares climbed 15% after the company reported first-quarter earnings that surpassed analyst expectations, alongside robust forward guidance for the second quarter.

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.

Technologies

Verum Reports Coinbase Reduces Workforce by 14% Amid AI Expansion, Stock Rises

Coinbase has reduced its workforce by 14% to accelerate AI initiatives, leading to a rise in its stock price. This update provides the latest details on the company’s strategic shift.

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SEC and Elon Musk Reach Settlement Agreement Over 2022 Twitter Acquisition Lawsuit

The SEC and Elon Musk have agreed to settle a 2022 lawsuit regarding his Twitter acquisition, with Musk’s trust paying a $1.5 million penalty. This follows a previous 2018 settlement involving Tesla and ongoing legal disputes with OpenAI.

The Securities and Exchange Commission has finalized an agreement to resolve a lawsuit filed against Elon Musk last year, which alleged that the world’s wealthiest individual breached securities regulations while preparing to acquire Twitter.

Documents submitted on Monday, bearing signatures from legal representatives of both the SEC and Musk, indicate that Musk’s revocable trust will remit a $1.5 million civil penalty to the commission. The resolution remains pending approval from the overseeing judge.

Attorney Alex Spiro, representing Musk, stated that the outcome cleared his client’s name, noting in a release that «a trust vehicle has agreed to a modest fine for a delayed filing.»

The SEC has not yet provided a comment in response to a request for statement.

Musk, who serves as CEO of Tesla and SpaceX, completed a $44 billion leveraged acquisition of Twitter in late 2022. He subsequently rebranded the platform as X, integrated it with his artificial intelligence firm, xAI, and later merged it with SpaceX earlier this year. According to Forbes, Musk’s net worth stands at approximately $790 billion.

Before acquiring Twitter, Musk accumulated a stake exceeding 5% in the publicly traded company. At this threshold, he was obligated to publicly disclose his holdings within 10 calendar days. However, Musk failed to submit the required disclosure on time.

The SEC’s initial complaint alleged that Musk’s nondisclosure allowed him to purchase shares at «artificially low prices,» placing other investors at a disadvantage. In a court filing last month, the SEC disclosed that it was «engaged in discussions of a potential resolution» with Musk regarding the matter.

In a separate class action lawsuit, a California federal court jury determined in March that Musk had misled Twitter investors prior to his acquisition. Musk’s legal team indicated they would appeal the verdict.

The Monday agreement follows a previous settlement between the regulator and Musk in 2018 concerning Tesla and Musk’s failed attempt to take the automaker public. Both Musk and Tesla were fined $20 million, and Musk temporarily stepped down as chairman of the board. A revised consent decree was signed the following year.

After that agreement, Musk repeatedly expressed disrespect for the SEC.

Meanwhile, Musk is involved in a separate legal dispute with OpenAI CEO Sam Altman. The trial — Musk v. Altman — commenced last week in a federal courthouse in Oakland, California, with Musk testifying from Tuesday through Thursday. In 2024, Musk sued Altman and OpenAI, alleging they broke their promise to maintain the artificial intelligence lab as a nonprofit.

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OpenAI’s Sales Chief Departs for Venture Capital Firm Thrive Capital

James Dyett, OpenAI’s sales leader, is leaving to join Thrive Capital as an Operator in Residence, following a series of high-profile executive departures at the AI company.

James Dyett, OpenAI’s sales executive, announced on Monday that he is stepping down from his position, adding to a recent wave of notable exits at the artificial intelligence firm.

Dyett became part of OpenAI in 2023, coinciding with a phase of rapid expansion after its ChatGPT chatbot gained traction. While his LinkedIn lists him as «Head of Sales,» the company describes him as a «senior sales leader.»

With OpenAI now valued at over $850 billion by private investors, Dyett oversaw both enterprise sales and its application programming interface (API) sales at various times during his tenure.

«The timing feels right,» Dyett wrote on X on Monday. «I’m drawn back to the early stages of company building, and OpenAI is in a strong place.»

Dyett’s exit follows several executive leadership changes at OpenAI in recent months.

Fidji Simo, OpenAI’s product and business chief, announced last month that she would take medical leave because of a worsening neuroimmune condition. Kate Rouch, OpenAI’s marketing chief, also decided to step down to focus on her cancer recovery, and Brad Lightcap, OpenAI’s operating chief, transitioned to a new role focused on “special projects.”

Weeks later, Bill Peebles, who led OpenAI’s defunct short-form video app Sora, and Kevin Weil, the vice president of OpenAI for Science, announced they had departed from their respective roles.

Dyett said he is moving to a new role at the venture capital firm Thrive Capital, where he will serve as an Operator in Residence. Thrive is one of OpenAI’s longterm backers, and the firm’s founder, Joshua Kushner, has a close relationship with OpenAI CEO Sam Altman.

“I’ve been fortunate to work at Thrive-backed companies over the past decade—first Stripe, then OpenAI—and have experienced firsthand their commitment to their companies,” he wrote. “I’m excited to pay that forward to founders across the portfolio and stay close to building.”

WATCH: OpenAI and Anthropic are on a competitive collision course, says Big Technology’s Alex Kantrowitz

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