Pinterest Reports Record User Growth and Revenue Milestones

Pinterest ((PINS)) has held its Q4 earnings call. Read on for the main highlights of the call.

The recent earnings call from Pinterest conveyed an overall positive sentiment, underscored by notable user growth, record revenue milestones, and advancements in technology, particularly in AI integration and product innovation. While these achievements were somewhat tempered by challenges in specific sectors and a decline in ad prices, the transformative growth and strategic initiatives discussed set a promising stage for the company’s continued success.

Record High Global Users

Pinterest has reached an impressive milestone, surpassing 550 million monthly active users (MAUs) globally and 100 million in the US and Canada. This marks a record high for user engagement, highlighting the platform’s growing popularity and reach.

Revenue Growth

The company reported a remarkable full-year revenue growth rate, more than doubling from 2023 to an impressive 19% in 2024. This growth signifies Pinterest’s successful strategies in driving monetization and expanding its market footprint.

Adjusted EBITDA Growth

Pinterest achieved over $1 billion in adjusted EBITDA, reflecting a substantial increase of approximately 50% year-over-year. This milestone underscores the company’s operational efficiency and profitability improvements.

First $1 Billion Revenue Quarter

For the first time, Pinterest recorded a $1 billion revenue quarter, with Q4 2024 revenue up by 18%. This achievement highlights the company’s strong financial performance and growth trajectory.

AI and Technology Advancements

The integration of AI into user experiences has been a game-changer for Pinterest, resulting in a 250 basis points lift in saves and a 150 basis points lift in outbound clicks. These advancements demonstrate the company’s commitment to leveraging technology to enhance user engagement and satisfaction.

Performance Plus Launch

The introduction of Performance Plus has significantly improved advertiser campaign setup and efficiency. This initiative is poised to attract more advertisers and boost the platform’s revenue potential.

Dilution Management

Pinterest allocated $100 million towards share repurchases in Q4, bringing the total for 2024 to $600 million. This move reflects the company’s focus on managing dilution and enhancing shareholder value.

Softness in Food and Beverage Sector

Despite overall growth, the food and beverage subsector of CPG experienced softness, which partially offset revenue growth. This challenge indicates areas where the company may need to focus on improvement.

Ad Pricing Decline

Ad pricing saw an 18% decline year-over-year, driven by an increase in ad impressions growth and downward pressure on global platform pricing. This decline presents a challenge that the company must address to sustain revenue growth.

Infrastructure Spend Increase

Increased infrastructure spending related to user and engagement growth impacted the cost of revenue. This investment is crucial for supporting the platform’s expanding user base and ensuring robust performance.

Forward-Looking Guidance

Looking ahead to 2025, Pinterest plans to build on its achievements by investing further in AI-driven personalization and expanding its lower funnel advertising tools. The company aims to continue leveraging partnerships to diversify its revenue streams, driving sustained growth and deeper user engagement. These strategic initiatives position Pinterest for success in the coming year.

In summary, Pinterest’s earnings call painted a picture of a company on a strong growth trajectory, with positive sentiment driven by record user numbers, significant revenue milestones, and innovative technological advancements. While challenges remain, particularly in ad pricing and sector-specific growth, the strategic initiatives and forward-looking guidance provide a solid foundation for continued success.