Pinterest said 2024 was a “transformative” year for its business, as it achieved its first billion-dollar revenue quarter. The social network noted that it had its biggest holiday shopping season ever, recording its highest revenue volume ever during the five-day period between Thanksgiving and Cyber Monday.
According to its financial report, its Q4 2024 revenue was $1.15 billion, representing a year-over-year growth of 18%. The app closed the year with $3.6 billion, doubling its growth rate since 2023. In Canada and the U.S. alone, the company’s revenues grew by 18%. to $2.8 billion for the full year.
The platform’s monthly active users also rose by 11% to 553 million for the full year, beating estimates of 547 million. In Canada and the U.S., it ended 2024 with 101 million monthly active users.
Sales and marketing revenue for the year grew 11% to $1 billion. Clicks to advertisers also increased 90% in the quarter thanks to AI-powered performance ads, which have led to deeper, more useful sessions for users and better results for advertisers. The company said its focus on the lower funnel (including Pinterest Performance+, which is an AI-based tool that helps brands maximize ad impressions) is also generating significant benefits for advertisers.
In the quarter, retailers took advantage of new products such as celebrity and publisher gift guides, promotional ads, and Pinterest Performance+, according to the company.
The social network has been focusing on boosting its advertising business through new AI-powered products and tools. Last October, it introduced a new line of automation and AI ad products, including promotions, Performance+ campaigns, Performance+ creatives and Performance+ ROAS offers. Through AI and automation capabilities, the suite of products is designed to reduce campaign creation time with 50% less input required. In September, the platform also partnered with Amazon to direct Pinterest users to Amazon’s website to complete their purchase when they click on an ad in the app.
“2024 was a banner year for Pinterest, capped off by a milestone Q4 – achieving the company’s first billion-dollar revenue quarter and a record 553 million monthly active users, as we continue to drive profitable growth and free cash flow,” said Bill Ready, CEO of Pinterest. “Our strategy is paying off. People are coming to Pinterest more often, the platform has never been more actionable, and our lower funnel focus is driving results for users and advertisers. Looking ahead, I’m confident that our focus on being a positive platform is a competitive advantage in driving long-term success for the business and value for our advertisers and users.”
