AI and Deeper Engagement Drive Pinterest’s User, Revenue Growth

For Pinterest CEO Bill Ready, 2024 was “transformative” because the company’s global monthly active users (MAUs) reached an all-time high of 553 million, an 11% increase year over year, and hit a major financial milestone in the fourth quarter, surpassing $1 billion in revenue for the first time.

During the company’s fourth-quarter earnings call Thursday (Feb. 6), Ready said the platform drove deeper engagement through personalized experiences. Quarterly revenue rose 18%, to $1.15 billion, and full-year revenue increased 19%, to $3.64 billion.

“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,” Ready said.

“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.”

Ready added Pinterest’s user base is more active than ever, with a notable increase in clicks to advertisers, up over 90% year over year. He emphasized the results are driven by the platforms ability to deliver relevant, actionable content, thanks in part to the increased integration of artificial intelligence (AI).

One of Pinterest’s strategies has been the integration of AI across its platform to create a more personalized and seamless shopping experience, Ready said. AI now plays a central role in Pinterest’s recommendations, search algorithms and advertising models.

By incorporating signals from user actions, Pinterest shows more relevant and tailored content, ensuring users are presented with products they are more likely to engage with and purchase. 

“AI is deeply integrated in every aspect of our user experience and advertising business,” Ready said. “Our recommendations are highly relevant, incorporating more signals from user actions. This drives deeper engagement and strengthens our flywheel. We focused heavily on improving the user experience. We invested in better curation experiences through boards and collages.”

Ready noted the company’s performance during the holiday season.

“During Q4 users leaned into Pinterest to shop,” he added. “Holiday shopping efforts drove deeper, more actionable sessions and helped more users find the perfect gift on Pinterest.

“We distributed gift guides through personalized recommendations and they resonated with users. Sixty-two percent of users are coming back more frequently. Our shoppable content aligns with the needs of our users and advertisers.”

Pinterest has made strides in making its visual tools even more actionable for users, Ready added. Pinterest’s search functionality, powered by AI, provides even more context, helping users find products and ideas that align with their specific tastes and needs. This has proven especially effective in the shopping journey, where Ready said users are moving from inspiration to purchase with greater ease.

AI also plays a key role in Pinterest’s advertising business, Ready said. The platform’s ad suite, particularly its Performance+ tools, is designed to help advertisers create more effective campaigns by automating tasks like image cropping, adjusting brightness, and adding logos. These tools, combined with Pinterest’s AI-driven recommendations, are making it easier for advertisers to reach the right audience at the right time, improving ad relevance and efficiency.

Pinterest is gaining popularity with Generation Z, the company’s largest and fastest-growing demographic, Ready said.

According to the PYMNTS Intelligence report, “Tracking the Digital Payments Takeover: Monetizing Social Media,” Gen Z shoppers are more likely to engage with social media for discovering products and making purchases.

According to the report, 43% of consumers use social media to explore goods and services, with 14% purchasing through these platforms. Among Gen Z, these figures jump to 68% for discovery and 22% for purchases.

Consumers are seeking more personalized shopping experiences. The PYMNTS Intelligence report, “Personalized Offers Are Powerful — but Too Often Off-Base,” found 83% of consumers are interested in receiving targeted discounts and promotions, but only 44% feel the offers they get are relevant to their needs.

Looking ahead, first-quarter guidance calls for a revenue increase of 13%-15%, to $837 million to $852 million.

“We’re doubling down on the shopability for our users,” Ready added. “Advertisers are taking advantage of all that value creation.”

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