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Pinterest Lifts Revenue Forecast as AI Ad Tools and Gen Z Engagement Drive Growth

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Pinterest (PINS) raised its second-quarter revenue outlook on Thursday, citing strong advertiser demand fueled by AI-powered tools and continued engagement from its growing Gen Z user base. The upbeat forecast pushed shares up 16% in after-hours trading, signaling renewed investor confidence despite macroeconomic uncertainty.

The company expects Q2 revenue between $960 million and $980 million, beating analysts’ average forecast of $966.3 million, according to LSEG data. First-quarter revenue came in at $855 million, surpassing expectations of $846.6 million, though adjusted earnings per share of 23 cents missed the consensus estimate of 26 cents.

Pinterest’s strength lies in its “Performance+” automation and AI features, which help advertisers create more targeted, personalized campaigns. This, combined with Pinterest’s focus on direct response ads — such as those driving shopping or app downloads — has positioned the platform as a reliable marketing channel, even amid tightening ad budgets.

Key Growth Drivers:

  • Gen Z users are the platform’s fastest-growing and most engaged demographic.

  • Global monthly active users grew 10% year-over-year, reaching 570 million — well above the expected 564 million.

  • Pinterest is expanding ad partnerships with third parties like Magnite, adding to existing deals with Google and Amazon to aggregate demand from smaller advertisers.

Finance chief Julia Donnelly acknowledged that broader economic pressures — including the end of the U.S. “de minimis” import exemption and ongoing trade tensions — have impacted some advertisers, especially Asia-based e-commerce firms. However, she noted that many of those advertisers are shifting focus to European and other international audiences on Pinterest.

Compared to rivals, Pinterest is faring well. While Meta and Reddit also reported strong Q1 revenues, Snap declined to provide guidance due to market volatility, highlighting Pinterest’s relative resilience.

eMarketer’s Jeremy Goldman summed up the performance, saying,

“The results show Pinterest can sustain momentum without the holiday tailwind.”

As Pinterest sharpens its ad-tech offering and diversifies its advertiser base, the platform appears well-positioned to navigate market headwinds and tap into new growth regions.

Pinterest Shares Surge on Strong AI Ad Forecasts

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Pinterest’s stock soared by 20% on Friday after the company raised its first-quarter revenue forecast, indicating that its AI-driven advertisement tools will boost ad spending on the platform. The surge was driven by Pinterest’s prediction of revenue exceeding expectations, with a focus on its direct response ads, which encourage actions like app downloads or website visits.

CEO Bill Ready highlighted the success of Pinterest’s AI tools, particularly the Performance+ suite, which automates ad targeting and reduces the inputs required for campaign creation. This has been especially helpful for smaller advertisers. “Advertisers using these tools now need 50% fewer inputs to create a campaign,” Ready explained.

Bernstein analyst Mark Shmulik noted that automating the ad creation process makes Pinterest an appealing choice for advertisers, particularly smaller ones, due to the ease it offers. Shmulik also expressed confidence that Pinterest’s progress is sustainable.

In the fourth quarter, Pinterest reported record revenue, driven by strong ad spending from the retail, technology, and financial services sectors. However, advertising spend from food and beverage companies remained weak. Following the positive earnings report, at least 27 brokerages raised their price target for Pinterest.

The company’s first-quarter revenue projection of $837 million to $852 million exceeds analysts’ consensus estimate of $832.8 million. Additionally, its adjusted core earnings forecast of $155 million to $170 million also surpassed expectations.

Pinterest’s stock value could increase by over $4 billion if the gains hold, with the company’s market valuation currently sitting at $22.70 billion. Despite volatility in stock price following earnings reports, Pinterest’s outlook remains positive, with its first-quarter projections further fueling investor optimism.

Pinterest Forecasts Strong Q1 Revenue, Shares Surge on AI Advertising Boost

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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.