Pinterest has posted positive results for the first quarter, largely due to its AI-based tools.
The social network’s revenues increased 23% to US$740 million in the three months ending March 31. The company’s total costs and expenses were US$794 million.
Revenues in the U.S. and Canada, its largest revenue contributing region, rose 22% to US$592 million, compared to the first quarter of 2023, when the company recorded US$486 million. However, the Europe region grew the most, with revenues of US$118 million, up 27% year-on-year. The rest of the world saw a 25% growth.
Pinterest also reported a 12% increase in the number of global monthly active users on its platform. It ended with 518 million users, with average revenue per user of US$1.46. Analysts expected 504 users with revenue of US$1.40 each.
Pinterest Canada managing director Kristie Painting tells MiC that the platform is experiencing growth in shopping in the country, largely driven by reaching Gen Z audiences. For example, clicks and saves of shoppable pins increased 190% year-over-year. Also, searches have grown in all categories year-over-year among Canadian Gen Z. Popular categories include men’s fashion (+27%), women’s fashion (+22%), event planning (+22%) and travel (+21%).
The marketing and sales segment also saw growth from US$201.1 million to US$226.2 million in the quarter. Painting says the company is generating higher returns for advertisers due to its investments in AI and shoppability.
“At Pinterest, we are committed to driving both user and advertiser growth through multiple initiatives, including the enhancement of tools like direct links and our strategic investments in AI,” says Painting. “We are creating a personalized experience that’s crucial for revenue growth. We are particularly focused on human curation at scale, which allows our AI to deliver highly relevant personalization and recommendations throughout the shopping journey, enhancing both user engagement and advertiser ROI.”
“Moreover, our improvements in the lower sales funnel – including mobile deep links, direct links, and API for conversions – have been instrumental in doubling year-over-year clicks and significantly increasing ad spend, particularly from major, sophisticated advertisers,” she adds.
The inclusive AI-based tools that the company recently launched – including skin tone ranges, hair pattern recognition and body type tech – have also fueled the company’s growth, according to Painting. “This AI-driven approach has not only doubled the number of searches using skin tone filters over the past year but also continuously evolves our platform to meet diverse user needs with greater relevance and personalization.”
For its second quarter, Pinterest expects to report revenue between US$835 million and US$850 million, which equates to 18% to 20% growth. Operating expenses could be in the range of US$490 million to US$505 million.
