In a bowl, mix warm water, yeast, and sugar. Let sit for 5–10 minutes until frothy.
Add flour, salt, and olive oil. Knead for 5–7 minutes until smooth. Cover and let rise for 1 hour (or use instant dough).
Blend basil, Parmesan, pine nuts, garlic, salt, and pepper in a food processor. Slowly drizzle in olive oil until smooth.
Preheat oven to 475°F (245°C). Roll out the dough on a floured surface.
Spread pesto evenly over the dough, leaving a small border for the crust.
Top with mozzarella, cherry tomatoes, and red onion.
Transfer pizza to a preheated pizza stone or baking sheet. Bake for 12–15 minutes until crust is golden.
Garnish with fresh arugula (optional) and a drizzle of olive oil. Slice and enjoy!