Pinterest (PINS) has surged past expectations, posting its first-ever billion-dollar revenue quarter in Q4 2024.
The image-sharing platform reported revenue of $1.15 billion, up 18% year-over-year, surpassing Wall Street’s $1.14 billion estimate. The milestone was fueled by strong user growth, AI-driven advertising improvements, and a broader push toward making Pinterest a more actionable platform for both users and advertisers.
Global monthly active users (MAUs) reached a record 553 million, an 11% increase from the previous year. The company’s strategy to leverage artificial intelligence to enhance ad targeting and engagement appears to be paying off, as advertisers are seeing better performance on the platform. CEO Bill Ready highlighted that Pinterest has “never been more actionable,” attracting more users and ad spend.
Global monthly active users (MAUs) reached a record 553 million, an 11% increase from the previous year. The company’s strategy to leverage artificial intelligence to enhance ad targeting and engagement appears to be paying off, as advertisers are seeing better performance on the platform. CEO Bill Ready highlighted that Pinterest has “never been more actionable,” attracting more users and ad spend.
Stock Skyrockets as Analysts Turn Bullish
Shares of Pinterest surged more than 20% on Friday following the earnings release, marking a strong rebound from recent declines. The stock had previously dipped 14% in November after concerns over rising AI-related expenses, but the latest earnings have rekindled investor confidence.
Several analysts raised their price targets, with Evercore lifting its target to $50 from $43, citing Pinterest’s solid execution and continued growth momentum. Citi analysts reiterated their "buy" rating, emphasizing that Pinterest is transitioning into an "always-on, performance platform." The company’s ability to monetize its growing user base and improve advertiser return on investment has been a key driver of renewed optimism.
Shares of Pinterest surged more than 20% on Friday following the earnings release, marking a strong rebound from recent declines. The stock had previously dipped 14% in November after concerns over rising AI-related expenses, but the latest earnings have rekindled investor confidence.
Several analysts raised their price targets, with Evercore lifting its target to $50 from $43, citing Pinterest’s solid execution and continued growth momentum. Citi analysts reiterated their "buy" rating, emphasizing that Pinterest is transitioning into an "always-on, performance platform." The company’s ability to monetize its growing user base and improve advertiser return on investment has been a key driver of renewed optimism.
AI-Powered Advertising Drives Revenue Growth
Pinterest’s advertising business continues to expand, with artificial intelligence playing a crucial role. The company has rolled out AI-powered tools that streamline ad creation and improve targeting, making it easier for advertisers to launch campaigns with fewer inputs. The platform’s focus on shoppable content and performance-based ads has also attracted more spending from retailers, technology firms, and financial services companies.
Additionally, Pinterest is diversifying its revenue streams through third-party ad deals with major tech players like Amazon (AMZN) and Google (GOOG). These partnerships are expected to provide long-term growth opportunities as the platform builds a more robust advertising ecosystem.
Looking Ahead: A Strong 2025 Outlook
Pinterest provided an optimistic outlook for Q1 2025, forecasting revenue between $837 million and $852 million, ahead of analysts’ $836 million consensus estimate. The company also expects strong adjusted EBITDA, signaling continued profitability and operational efficiency.
With its stock on the rise, an expanding user base, and improving ad performance, Pinterest is positioning itself as a formidable player in the digital advertising space. If the company continues to execute its AI-driven strategy successfully, its growth trajectory could remain strong well into 2025 and beyond.
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