Pinterest (PINS.N) announced Thursday that it expects first-quarter revenue to exceed market expectations, with a forecast between $837 million and $852 million, driven by the platform’s AI-powered advertising tools. The forecast came after a successful fourth-quarter performance, with record monthly active users and revenue, bolstered by a strong holiday shopping season.
Pinterest’s Performance+ suite, which leverages artificial intelligence to help advertisers target users more effectively, has become a major driver of ad spend. CEO Bill Ready highlighted the platform’s increasing engagement, stating that users are visiting Pinterest more frequently and finding the platform more actionable. The growth is particularly fueled by a rise in Gen Z users and the expansion of shoppable content, making Pinterest increasingly appealing to marketers.
The platform is also benefiting from growing third-party ad deals with major players like Google and Amazon, helping to diversify Pinterest’s revenue streams. However, experts note that ad spend remains heavily concentrated in North America, and the company has historically been slow to execute on expanding these third-party integrations.
Pinterest’s global monthly active users reached 553 million, surpassing estimates of 545.8 million, marking an 11% increase from the previous year. Despite an 18% year-on-year revenue growth to $1.15 billion in Q4, the company’s adjusted profit per share of 56 cents missed analyst expectations of 65 cents due to tax adjustments.
