The quarter’s top line was built on two separate engines, and both were moving at once. Global monthly active users rose 11% from a year earlier to a record 631 million, while average revenue per user increased 6%, the 10-Q shows.

That growth was broad-based, though not exactly balanced. Rest-of-world users climbed 15% to 367 million, Europe rose 7% to 159 million, and the U.S. and Canada increased 4% to 106 million, all records, the earnings call transcript shows.

Ad activity also looked healthy, even if pricing was a little softer. Impressions rose 24% year over year, while average ad prices declined 5%, the 10-Q says. That is not a bad trade if you are chasing scale, but it does mean Pinterest still has work to do on monetization per ad.

The AI story here is concrete, not just a slide deck flourish. Pinterest said Performance Plus campaigns now account for about 30% of lower-funnel revenue, and those campaigns require roughly half the setup inputs of a traditional campaign, the earnings call transcript says.

Management also said advertisers using Performance Plus grew lower-funnel spend nearly twice as fast as non-adopters, with better return on ad spend, cost per acquisition and cost per click, the transcript shows. That gives the market something sturdier than vague enthusiasm about AI tools.

Two other updates reinforced the point. Pinterest said it retrained its Shopping ROAS models in Q1, and controlled experiments produced ROAS gains of up to 11%, the company said on the call.

It also updated its search-ranking model to use up to 16,000 user actions over a two-year period, a 30-fold expansion in context, the transcript says. Pinterest said that improved search fulfillment by roughly 70 basis points and saves by about 390 basis points, per the same source.

The GAAP loss is real, but it is not the cleanest way to read the quarter. Pinterest posted a net loss of $74 million, largely because of restructuring charges tied to its January transformation plan, the 10-Q discloses.

That plan reallocates resources toward AI-focused roles and products, while also trimming headcount by less than 15% and reducing office space, the filing says. Additional charges of $12.5 million to $22.5 million are expected through the end of the third quarter.

Underneath that, the cash generation looked healthier. Adjusted EBITDA reached $207 million, with a margin of about 20%, Business Wire reported, and free cash flow was about $312 million, seasonally the strongest quarter because of Q4 ad revenue collections, the transcript says.

The balance sheet has been put to work as well. Pinterest ended the quarter with about $1.3 billion in cash and equivalents, the 10-Q says, after issuing $1 billion of 1.75% convertible senior notes due 2031 to Elliott affiliates and closing the $465.1 million acquisition of connected TV ad platform tvScientific, the filing says.

Pinterest also completed about $2 billion in share repurchases, the call transcript shows. That combination, debt-funded buybacks, an acquisition and restructuring charges, makes the quarter messier than the revenue headline suggests. Wall Street generally likes a tidy story. Pinterest has chosen a more complicated one.

The second reason shares moved was guidance. Pinterest expects second-quarter revenue of $1.133 billion to $1.153 billion, implying 14% to 16% growth and landing ahead of market expectations, Business Wire reported.

Adjusted EBITDA guidance for Q2 is $256 million to $276 million, the release said. That points to a margin of roughly 22% to 24% at the midpoint, comfortably above the quarter just reported.

Pinterest also disclosed a new AWS pricing addendum. In May, it entered into an agreement requiring at least $4 billion of cloud services purchases through May 2031, the 10-Q says. That is not the kind of line investors memorize, but it is a good hint that the company expects to keep scaling.

For now, the guidance suggests Q1 was not a fluke. If ad demand holds, Performance Plus keeps gaining share and the newer ad tools continue to show measurable gains, Pinterest has a decent shot at sustaining mid-teens growth. That is a sturdier case than a one-quarter beat, and the market seemed willing to pay for it.