Pinterest, Inc. (PINS) shares surged 12.46% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results, which exceeded analysts' expectations and provided an optimistic outlook for the second quarter.

The social media platform reported Q1 revenue of $855 million, surpassing the estimated $846.6 million, marking a 16% year-over-year growth. Pinterest's global monthly active users (MAUs) increased by 10% to 570 million, beating the projected 564 million. This user growth, particularly among Gen Z users who now comprise over 40% of the platform's user base, has made Pinterest increasingly attractive to advertisers.

Looking ahead, Pinterest forecast second-quarter revenue between $960 million and $980 million, above the average analyst estimate of $966.3 million. CEO Bill Ready attributed the strong performance to the company's emphasis on direct response ads and its resilient strategy in the face of evolving macroeconomic and digital advertising landscapes. Ready also highlighted the role of AI advancements in helping users make more intentional shopping decisions, further solidifying Pinterest's position in the competitive social media advertising market.