Jakarta, Indonesia Sentinel — Pinterest, the digital pinboard-style social media platform, has seen a sudden surge in new users, driving its stock price higher. Shares of the company, which was founded in December 2009, soared 20% on February 7 after it forecasted first-quarter revenue exceeding market expectations.
According to CNBC, Pinterest projected first-quarter revenue between $837 million and $852 million, surpassing analysts’ average estimate of $832.8 million, according to data compiled by LSEG.
The company also reported record-high monthly active users and revenue in the fourth quarter. Global monthly active users grew 11% year over year to 553 million in Q4. The company also posted record revenue of $1.15 billion for the quarter, driven by strong advertising demand in the retail, technology, and financial services sectors.
AI Adoption
A key driver behind this surge is Pinterest’s adoption of artificial intelligence (AI) in its digital advertising features, which has significantly boosted ad spending on the platform. The company’s Performance+ AI-powered feature enables advertisers to target consumers more precisely and automatically.
“Our strategy is delivering results. Users are visiting Pinterest more frequently, and the platform has never been this active,” said Pinterest CEO Bill Ready, as reported by CNBC Indonesia.
Bill noted that advertisers utilizing AI-powered tools now require 50% fewer inputs to create campaigns. The platform’s appeal has also been bolstered by growth in Gen Z users and an expansion of shopping-related content, supported by partnerships with Google and Amazon.
“Pinterest has strong global engagement, but spending remains largely concentrated among North American users,” Bill added.
E-commerce platforms like Shopify can now integrate their stores with Pinterest through extensions provided by the company, further enhancing its advertising ecosystem.
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Pinterest’s strong performance follows a trend among social media firms posting positive quarterly results. Snap shares surged in after-hours trading on Tuesday (February 4) after reporting better-than-expected fourth-quarter earnings. Last week, Meta also reported stronger-than-anticipated results for both revenue and earnings.
(Raidi/Agung)
