01:06 PM EDT, 05/09/2025 (MT Newswires) -- Pinterest's ( PINS ) first-quarter results were "much better-than-feared" and demonstrated the company's resilience in the face of tariffs and macro challenges, RBC Capital Markets said in a note e-mailed Friday.

The image-sharing platform late Thursday reported non-GAAP earnings of $0.23 a share for the March quarter, up from $0.17 a year earlier, but below the FactSet-polled consensus estimate of $0.26. Revenue advanced 16% to $855 million, surpassing Wall Street's view of $846.5 million. Global monthly active users grew 10% to 570 million, topping the Street's 564.6 million call.

The results showed "continued momentum" in revenue, user growth and engagement, Chief Executive Bill Ready said in a statement.

"The company's exposure to tariffs has arguably been looked at as the least favorable in the space, but its idiosyncratic product cycle, improved auction density and partnership-fueled growth is holding up in spite of acknowledging certain pockets of headwinds owed to tariffs and macro," RBC analyst Brad Erickson said in a note to clients. "Tariffs are of course a risk, but we believe (Pinterest ( PINS )) is running its own race and is underappreciated."

The brokerage reiterated its outperform rating and a $45 price target on Pinterest's ( PINS ) stock. The company's shares were up 5.3% in Friday afternoon trade.

"There have been small pockets of spend that have been impacted by tariffs in recent weeks," Pinterest ( PINS ) Chief Financial Officer Julia Donnelly said on an earnings conference call late Thursday, according to a FactSet transcript. "For example, like other platforms, we have observed a reduction in spend from Asia-based e-commerce retailers in the US given the change in the de minimis exemption."

US President Donald Trump in April signed an executive order eliminating duty-free treatment for low-value imports from China and Hong Kong.

However, Donnelly said that business fundamentals remain strong and that the company has seen "a geographic diversification from some of those Asia-based retailers to our European and rest of world user regions."

Last month, Trump announced reciprocal tariffs, but he later paused certain levies for non-retaliating countries. On Thursday, he announced a trade deal with the UK and said pacts with other countries would follow. Markets are looking forward to trade talks between US and Chinese officials over the weekend. Trump on Friday floated the idea of lowering tariffs on China to 80% from 145%.

For the ongoing quarter, Pinterest ( PINS ) expects revenue between $960 million and $980 million versus the Street's projections for $967.5 million.

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