×
Pinterest leverages AI tools to outpace revenue expectations
Written by
Published on
Join our daily newsletter for breaking news, product launches and deals, research breakdowns, and other industry-leading AI coverage
Join Now

Pinterest‘s AI-powered advertising tools are driving stronger-than-expected revenue growth, highlighting how visual discovery platforms are capitalizing on artificial intelligence to attract advertisers despite economic uncertainties. The company’s focus on direct response ads and its growing Gen Z user base are proving particularly valuable as it navigates a complex advertising landscape affected by both international trade tensions and changing import regulations.

The big picture: Pinterest forecast second-quarter revenue between $960 million and $980 million, exceeding Wall Street estimates of $966.3 million and sending shares soaring 16% in after-hours trading.

  • The company’s first-quarter revenue reached $855 million, beating analyst expectations of $846.6 million.
  • Monthly active users grew 10% year-over-year to 570 million, surpassing the expected 564 million.

Behind the numbers: Despite broader economic uncertainty affecting some competitors, Pinterest’s emphasis on direct response advertising is continuing to drive advertiser spending.

  • The platform’s “Performance+” automation and AI tools, which create personalized ad campaigns, are making Pinterest increasingly attractive to advertisers.
  • The company’s largest and fastest-growing user demographic is Gen Z, a coveted audience for marketers.

What they’re saying: Finance chief Julia Donnelly acknowledged that Pinterest is “not immune to the macro environment” but expressed confidence in the company’s “multiple revenue initiatives.”

  • “We have observed a reduction in spend from Asia-based e-commerce retailers in the U.S., given the change in the de minimis exemption; however, we have also seen a geographic diversification,” Donnelly noted.
  • eMarketer senior director Jeremy Goldman said the quarterly results show Pinterest “can sustain momentum without the holiday tailwind.”

Expanding partnerships: CEO Bill Ready announced a new third-party advertising deal with Magnite to help the company “aggregate smaller sources” of advertising demand.

  • This arrangement complements existing partnerships with major platforms Google and Amazon.

Industry context: Pinterest’s strong performance stands in contrast to mixed results across social media companies.

  • Meta and Reddit exceeded revenue expectations in the first quarter.
  • Snap declined to issue a quarterly forecast, citing economic uncertainty.

Worth noting: Pinterest’s adjusted earnings per share of 23 cents missed analyst expectations of 26 cents despite the revenue beat.

Pinterest's revenue forecast gets boost from AI ad tools, growing marketing spend

Recent News

Microsoft brings OpenAI’s Sora to Bing Video Creator for free

Microsoft's integration of OpenAI's Sora into Bing mobile apps makes advanced AI video generation freely accessible to smartphone users, though with five-second limits and amid growing competition from rival platforms.

Day.ai aims to become the Waymo of CRM software

Day.ai develops autonomous CRM software that handles routine tasks while preserving human control over critical customer relationships.

Turkish students develop AI, robotics for disaster preparedness in earthquake-prone nation

Turkish academic institutions are designing AI-powered robots and systems that can search for survivors, navigate hazardous environments, and detect pathogens in earthquake-affected areas.