Kristina Roberts
Sometimes, even when a company does many things right, one small miss can grab all the attention. That is what happened to Pinterest this week. The social media platform reported that its profit for the second quarter did not meet the expectations of Wall Street experts. This overshadowed some very positive news about its rising revenue and growing number of users.
On Thursday, Pinterest revealed that its adjusted profit per share was 33 cents, which is slightly lower than the 35 cents analysts had predicted. This small gap, although just two cents, was enough to make investors nervous. After the news came out, Pinterest’s shares fell by more than 8% in extended trading. In the stock market, even small differences from what experts expect can cause big movements in share prices, especially when a company has been doing well in other areas.
But not everything in Pinterest’s report was disappointing. In fact, there were strong signs of progress in several areas. The company’s revenue — which is the total amount of money it makes before subtracting costs — grew by an impressive 17% compared to the same time last year. This means Pinterest earned $998.2 million in just three months, which was more than what analysts were expecting. They had predicted the figure would be around $974.8 million, so the company beat that estimate.
One of the biggest reasons for this revenue growth is the sharp rise in the number of younger users. The company shared that Gen Z users — people born roughly between 1997 and 2012 — now make up more than half of Pinterest’s total user base. This is an important achievement for the platform because younger users often set online trends, and their engagement attracts more advertisers. Companies know that if they can reach Gen Z on platforms like Pinterest, they have a better chance of selling products or building brand loyalty early.
Another factor driving Pinterest’s success is its use of artificial intelligence (AI) tools. Over the past year, Pinterest has been investing in AI to improve the user experience and make advertising more effective. These tools help advertisers create more personalised and automated campaigns. For example, if a user often searches for home décor ideas, Pinterest’s AI can show them ads for furniture or wall art that match their taste. This kind of targeted advertising is very attractive to brands because it increases the chances of people clicking on their ads and making a purchase.
Pinterest’s strategy has focused strongly on direct-response ads. These are advertisements designed to make viewers take a specific action — such as shopping for an item, downloading an app, or visiting a website — right away. This is different from general brand advertising, which aims more at building awareness over time. Direct-response ads often lead to faster results, and Pinterest has been using this approach to keep advertisers interested and spending more on the platform.
In the larger picture, Pinterest’s results come at a time when many social media companies have been reporting their own quarterly earnings. Just last week, tech giants Meta (the parent company of Facebook and Instagram) and Reddit announced strong performances, with higher revenues and growing user numbers. In contrast, Snap, the owner of Snapchat, reported its slowest quarterly revenue growth in over a year. This shows that while some social media platforms are thriving, others are struggling to keep up.
Even with the profit miss in this quarter, Pinterest’s overall performance in 2025 has been impressive. The company’s stock has risen by about 35% so far this year. This means that many investors still believe in its long-term potential. Often, stock prices reflect not just current results but also future expectations, and Pinterest’s ability to attract younger audiences and embrace AI gives it a promising outlook.
It is also worth noting how much the online advertising world has changed in recent years. Brands are no longer satisfied with simply showing their name to millions of people; they want to connect with the right people at the right time. Platforms like Pinterest, which allow users to search for ideas and products they genuinely want, have a natural advantage. If someone is already searching for “wedding decoration ideas” or “healthy breakfast recipes,” they are likely to be more interested in related ads, making the advertising more effective for businesses.
Pinterest’s leadership has been working to position the company as more than just a place for inspiration boards. It wants to be a shopping-friendly platform where ideas quickly turn into purchases. By blending creative content with direct shopping links, Pinterest is trying to shorten the journey from “I like this” to “I’m buying this.” This vision is supported by its AI tools and its growing younger audience, both of which can help the platform stay competitive.
However, the pressure from Wall Street and the stock market means that every quarter’s results are closely watched. A slight profit miss can raise questions about costs, investments, or competition. For Pinterest, the main challenge ahead will be balancing its spending on new tools and features with its need to keep profits strong. AI development, for instance, is expensive, but it can bring great returns if done well.
Looking ahead, the company will likely continue investing in features that keep users engaged and help advertisers reach their targets more efficiently. The strong revenue growth in this quarter shows that the demand from advertisers is there, especially when campaigns are personalised and relevant. The next step will be ensuring that this growth also turns into consistently higher profits.
In summary, Pinterest’s latest financial report tells two stories at once. On one hand, there is a slight disappointment in profit, which caused a quick reaction from the stock market. On the other hand, there are very strong signs of health in the company’s business — from record revenue to an expanding and youthful audience, to innovative use of AI. The balance between these two sides will decide how investors and advertisers see Pinterest in the months ahead. For now, the platform remains a favourite place for millions of people to find ideas, save inspiration, and, increasingly, shop for what they love — even if Wall Street wanted just a little more profit this time.
