Pinterest's Q1 Expectations Beaten Using Solid User Monetization; Shares Are Undervalued

Pinterest posted strong first-quarter 2022 results which exceeded consensus estimates on the top and bottom line. While the firm’s monthly active user count continues to decline coming out of the pandemic lockdowns, this impact was more than offset by increased revenue as the demand from advertisers remains intact. Despite macroeconomic and geopolitical headwinds, Pinterest continues to focus on long-term ambitions that the firm believes will increase monthly active users further down the road.