Pinterest, Inc. (PINS) shares surged 15.22% in pre-market trading on Friday, following the company's impressive first-quarter 2025 results and optimistic second-quarter forecast. The social media platform's performance demonstrates resilience in the face of economic uncertainties affecting the digital advertising landscape.

Pinterest reported Q1 revenue of $855 million, surpassing analysts' expectations of $846.6 million and marking a 16% year-over-year increase. The company's global monthly active users (MAUs) grew by 10% to reach 570 million, exceeding the projected 564 million. This user growth, particularly among Gen Z users who now comprise over 40% of Pinterest's user base, has made the platform 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 AI-driven advertising tools. Ready stated, "Our AI advancements are helping users take action and make more intentional shopping decisions." The success of Pinterest's "Performance+" automation suite, with 80% of campaigns outperforming traditional ones, signals strong adoption and effectiveness of these new technologies. This focus on AI implementation, combined with Pinterest's unique position in visual discovery and commercial intent, has allowed the company to tap into larger, more durable performance advertising budgets, driving investor confidence and the substantial pre-market stock price increase.