Pinterest's AI-Powered Ad Tools Drive Strong Q4 Results and Optimistic Forecasts

Pinterest shares jump as AI advertisement tools drive forecasts

(Reuters) - Pinterest's shares rose 20% on Friday as it forecast first-quarter revenue above estimates, indicating that its AI-powered tools would spur ad spend on the image sharing platform. Pinterest has focused on direct response ads, designed to prompt specific actions like app downloads or website visits. Investments in AI tools such as its Performance+ suite for improving targeting of ads with automation are also helping Pinterest. CEO Bill Ready said advertisers that were using these tools required 50% fewer inputs to create a campaign now. "If you're a smaller ad platform, the less time and more automated you can make it for the advertisers, the easier it is to get them to try you out," Bernstein analyst Mark Shmulik said. "We think the progress Pinterest has shown is sustainable." The social media firm also posted record revenue in the fourth quarter as strength in advertising from retail, technology and financial services sectors offset the ongoing weakness in marketing spend from food and beverage. At least 27 brokerages raised their price target on Pinterest after its latest earnings report. The company is set to add more than $4 billion in its market value if gains hold. As of last close, it had a market valuation of $22.70 billion. Pinterest's shares often react wildly after its earnings reports. They dropped 14% after the company's weak holiday quarter forecast in November, but the stock rose 21% a day after it reported first quarter results in April last year. The company's first-quarter revenue forecast of $837 million to $852 million was above analysts' average estimate of $832.8 million, according to data compiled by LSEG. Its adjusted core earnings forecast of $155 million to $170 million was also ahead of analysts' estimates. In the fourth quarter, revenue of $1.15 billion was slightly ahead of estimates. Global monthly active users were 553 million. Pinterest currently trades at 17.88 times the estimates of its earnings for the next 12 months, compared with 27.37 times for Meta and Snap's 25.40 times. (Reporting by Jaspreet Singh in Bengaluru; Editing by Leroy Leo)

Pinterest shares jump 20% as AI advertisement tools drive forecasts

Pinterest's shares rose 20% on Friday as it forecast first-quarter revenue above estimates, indicating that its AI-powered tools would spur ad spend on the image sharing platform.Pinterest's shares rose 20% on Friday as it forecast first-quarter revenue above estimates, indicating that its AI-powered tools would spur ad spend on the image sharing platform. Pinterest has focused on direct response ads, designed to prompt specific actions like app downloads or website visits. Investments in AI tools such as its Performance+ suite for improving targeting of ads with automation are also helping Pinterest. CEO Bill Ready said advertisers that were using these tools required 50% fewer inputs to create a campaign now. "If you're a smaller ad platform, the less time and more automated you can make it for the advertisers, the easier it is to get them to try you out," Bernstein analyst Mark Shmulik said. "We think the progress Pinterest has shown is sustainable." The social media firm also posted record revenue in the fourth quarter as strength in advertising from retail, technology and financial services sectors offset the ongoing weakness in marketing spend from food and beverage. At least 27 brokerages raised their price target on Pinterest after its latest earnings report. The company is set to add more than $4 billion in its market value if gains hold. As of last close, it had a market valuation of $22.70 billion. Pinterest's shares often react wildly after its earnings reports. They dropped 14% after the company's weak holiday quarter forecast in November, but the stock rose 21% a day after it reported first quarter results in April last year. The company's first-quarter revenue forecast of $837 million to $852 million was above analysts' average estimate of $832.8 million, according to data compiled by LSEG. Its adjusted core earnings forecast of $155 million to $170 million was also ahead of analysts' estimates. In the fourth quarter, revenue of $1.15 billion was slightly ahead of estimates. Global monthly active users were 553 million. Pinterest currently trades at 17.88 times the estimates of its earnings for the next 12 months, compared with 27.37 times for Meta and Snap's 25.40 times. (Reporting by Jaspreet Singh in Bengaluru; Editing by Leroy Leo)

Pinterest's AI 'Taste Graph' Expands 75% As Meta-Rival Hits First $1 Billion Revenue Quarter - Meta Platforms (NASDAQ:META), Pinterest (NYSE:PINS)

Pinterest Inc. PINS revealed significant advancement in its artificial intelligence capabilities alongside its first-ever billion-dollar revenue quarter, showcasing how the company's tech investments are driving commercial success. What Happened: During its fourth-quarter earnings call, Pinterest disclosed that its proprietary "Taste Graph" - the AI-powered system that maps relationships between user behavior, content, and products - has expanded its connections by 75% over the past two years. This technological backbone appears to be paying off. The company reported fourth-quarter revenue of $1.15 billion, up 18% year-over-year, while monthly active users grew to 553 million, an 11% increase. The platform's ability to convert user engagement into sales was evidenced by a 90% year-over-year increase in clicks to advertisers. "Our Taste Graph contains many billions of connections," CEO Bill Ready said during the earnings call. Unlike traditional social media algorithms, Pinterest's system specifically leverages user curation and shopping intent signals to power recommendations. See Also: Bitcoin Spikes Among Trump Media ETF Move, Ethereum, Dogecoin Drop -- Top Analyst Eyes ETH At $14K On Breakout Why It Matters: The company is also embracing AI in its development process, with 15% of its current codebase now generated through AI assistance tools. This adoption of AI for internal operations suggests Pinterest is finding efficiencies in both user-facing and backend applications. Looking ahead, Pinterest projects the first quarter of 2025 revenue between $837 million and $852 million. The platform's unique position in combining visual discovery with shopping intent appears to be resonating with advertisers, as Ready noted that for some of their largest advertisers, lower-funnel revenue objectives now account for over 80% of spending. Pinterest competes with Meta Platforms Inc META in visual discovery, social commerce, and digital ads, leveraging intent-driven shopping. Price Action: Pinterest shares were up 18.49% at $39.80 in Thursday's after-hours session at publication time, according to Benzinga Pro. Read Next: Amazon Says 1,000 GenAI Applications In Development, CEO Andy Jassy Sees 'Significant Productivity And Cost Savings' Image Via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. METAMeta Platforms Inc$712.451.08%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverviewPINSPinterest Inc$39.8019.5%Market News and Data brought to you by Benzinga APIs

Pinterest Projects Revenue Above Estimates as AI Tools Boost Ad Spend

(Reuters) - Pinterest forecast first-quarter revenue above market estimates on Thursday, betting on the image-sharing platform's artificial intelligence-powered advertising tools to boost ad spend. The forecast followed better-than-expected record monthly active users and revenue during the fourth quarter, thanks to a robust holiday shopping season. Advertisers turn to Pinterest for its AI-driven ad tools such as Performance+ suite, designed to help advertisers better target users with automation features. "Our strategy is paying off. People are coming to Pinterest more often, the platform has never been more actionable," CEO Bill Ready said in a statement. Rising Gen Z users and new shoppable content have made the platform more lucrative for marketers. That is bolstered by Pinterest's third-party ad deals with Google and Amazon.com, which are expanding and helping the company to diversify its revenue streams. Ecommerce merchants such as those on Shopify or Adobe Commerce can integrate their products into Pinterest by using platform-specific extensions that are offered by the company. Its first-quarter revenue forecast of $837 million to $852 million was above analysts' average estimate of $832.8 million, according to data compiled by LSEG. The company expects adjusted core earnings of $155 million to $170 million, above the average estimate of $140.8 million. Global monthly active users on the platform were at an all-time high of 553 million, exceeding estimates of 545.8 million. They rose 11% from a year earlier. Revenue in the fourth quarter ended December 31 grew 18% to $1.15 billion, compared with estimates of $1.14 billion. Adjusted profit per share of 56 cents missed estimates of 65 cents due to certain tax adjustments in the quarter. (Reporting by Jaspreet Singh in Bengaluru; Editing by Maju Samuel)

Pinterest's AI Push & Shoppable Ads Fuel Optimistic Outlook -- Why Analysts Are Bullish - Pinterest (NYSE:PINS)

Analysts raise Pinterest's stock price targets, citing strong Q4 results and optimism around AI-driven monetization strategies. Pinterest, Inc. PINS shares are trading higher on Friday. Yesterday, Pinterest reported fourth-quarter revenue of $1.15 billion, beating estimates of $1.14 billion, according to Benzinga Pro. The company reported fourth-quarter earnings of 56 cents per share, missing analyst estimates of 65 cents per share. Pinterest expects first-quarter revenue to be in the range of $837 million to $852 million. Here are the analysts' take on the stock: BofA Securities analyst Justin Post reiterated the Buy rating on the stock, raising the price forecast to $46 from $39. JP Morgan analyst Doug Anmuth reiterated the Neutral rating on Pinterest, raising the price forecast to $42 from $35. Goldman Sachs analyst Eric Sheridan reiterated the Buy rating on Pinterest, raising the price forecast to $47 from $42. Guggenheim analyst Michael Morris reiterated the Neutral rating on the stock, raising the price forecast to $39 from $33. Also Read: Pinterest's Gen Z Boom: Engagement Hits All-Time High As Advertiser Clicks Surge 90% -- What's Working For The Meta Rival BofA Securities: The analyst notes that Pinterest is seeing strong execution with its larger AI models, which are boosting user retention (WAU/MAU ratio hit a record 62%) and ad conversion (clicks to advertisers up 90%). Pinterest's historical discovery and intent-driven platform is well-positioned to benefit from AI improvements, with long-term potential for shopping ads through AI-powered targeting and automation tools like Performance Plus. AWS is its cloud partner, and these advancements are expected to drive continued growth, the analyst writes. The analyst raised the estimates to reflect higher usage and monetization. For 2025, the analyst lifted revenues by 2% to $4.2 billion and EBITDA by 8% to $1.3 billion. For 2026, the analyst increased revenues by 4% to $4.9 billion and EBITDA by 9% to $1.6 billion. The forecast now includes 16% year-over-year revenue growth in 2025 and an EBITDA margin of 30.5%, the analyst adds. Also Read: Affirm Holdings Posts Q2 Beat On All Key Indicators - Is Firing On All Cylinders, Analysts Say JP Morgan: The analyst notes early signs of improvement in F&B as comparisons ease into 2025. While 2025's adjusted EBITDA margin growth will slow from 510 bps in 2024, Pinterest is on track to meet its 30-34% 3-5 year EBITDA margin target, the analyst highlights. Anmuth is encouraged by Pinterest's progress in capturing value, with key factors like measurement, higher ad load, and third-party demand partners critical for monetization. Revenue estimates for 2025 and 2026 are raised by about 2%, while adjusted EBITDA projections increase by 6% and 3%, respectively, the analyst adds. Goldman Sachs: The analyst suggests that Pinterest's outlook and positive comments on the ad environment should ease concerns about short-term growth. Despite short-term challenges, Pinterest's focus on key initiatives like shoppable content, direct response ads, and partnerships will drive long-term monetization. Guggenheim: The analyst notes that the company is investing more in AI to enhance user experience and advertising tools, supported by increased R&D staff. While ad impression growth is ahead of monetization, the company is expanding advertising in lower eCPM international markets, Morris adds. Price Action: PINS shares are trading higher by 17.1% to $39.32 at last check Friday. Read More: Expedia Posts Strong Results, Joins Affirm Holdings, Take-Two, Cloudflare And Other Big Stocks Moving Higher On Friday Image via Shutterstock. PINSPinterest Inc $39.3417.1% Overview Rating: Speculative 50% Technicals Analysis 66 0100 Financials Analysis 40 0100 Watchlist Overview Market News and Data brought to you by Benzinga APIs

AI and Deeper Engagement Drive Pinterest's User, Revenue Growth | PYMNTS.com

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."

Pinterest targets 15%-17% Q1 2025 revenue growth with focus on AI and Performance+ (NYSE:PINS)

CEO Bill Ready highlighted that 2024 was a transformative year with record global users surpassing 550 million MAUs and a 50% increase in adjusted EBITDA to over $1 billion. He noted a focus on Seeking Alpha's Disclaimer: The earnings call insights are compilations of earnings call transcripts and other content available on the Seeking Alpha website. The insights are generated by an AI tool and have not been curated or reviewed by editors. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of the earnings call insights cannot be guaranteed. Please see full earnings call transcripts here. The earnings call insights are intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

Pinterest Beats Revenue Goals, EPS Lags | The Motley Fool

Pinterest (PINS 0.87%), the image-sharing social media platform, announced its earnings for Q4 2024 on February 6, 2025. The company reached an important milestone by recording its first billion-dollar quarter, with revenue reaching $1.154 billion, up 18% from the previous year. This result surpassed analyst expectations of $1.139 billion and even exceeded the higher end of management's own guidance of $1.125 to $1.145 billion. However, EPS for the quarter came in at $0.56, missing the analyst estimate of $0.64 by 12.5%. Despite the revenue achievement, this earnings miss highlighted ongoing profitability challenges. Overall, the quarter showcased robust user growth but was marred by slower-than-expected EPS growth. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in 2024-11-07 earnings report. Pinterest, a popular platform that allows users to discover and save creative ideas, has become a significant player in the social media landscape. Its business model revolves around increasing user engagement and monetizing this through advertising. The platform offers an inspirational journey from browsing to purchase, making it appealing to advertisers. Currently, Pinterest is focusing on expanding its user base, particularly in international markets, and enhancing its ad offerings. Key success factors for Pinterest include its ability to engage users and provide them with relevant, seamlessly integrated advertising. The company is investing in AI and technology to improve its ad auction system and tailor recommendations, aiming to increase both the number of advertisers and the average revenue per user. During Q4 2024, Pinterest recorded an impressive 18% increase in revenue year-over-year, reaching $1.154 billion. This growth was driven by increased international user engagement and a successful monetization strategy. Notably, Global MAUs surged to 553 million, reflecting an 11% increase, with a significant 15% jump in Rest of World (ROW) markets. Adjusted EBITDA, which reflects earnings before interest, taxes, depreciation, and amortization, rose by 28% to $471 million, showcasing strong operational performance. Despite these positive results, Pinterest's EPS fell short at $0.56, missing the $0.64 estimate. The deviation is attributed to high operating expenses, notably in share-based compensation. While U.S. and Canada continue to deliver higher Average Revenue Per User (ARPU) at $9.00, the ROW markets lag at $0.19, highlighting disparities in regional monetization. Pinterest achieved improved advertiser engagement that boosted conversion rates. However, regional ARPU disparities present a challenge, reflecting the need for a more effective monetization strategy in emerging markets. While ad formats are diversified, global advertiser relationships remain crucial to future revenue streams. For Q1 2025, Pinterest projects revenue between $837 million and $852 million, aiming for 13-15% growth. Adjusted EBITDA is forecasted to be $155 million to $170 million. Management's cautious yet optimistic outlook reflects expectations of revenue growth, supported by expanding penetration in under-monetized international markets. Investors should focus on Pinterest's monetization strategies and expense management. The quarter presents an opportunity to refine international revenue generation, aligning advertising growth with increasing MAU figures globally. Management remains committed to building upon its technological capabilities, which will be essential in enhancing user and advertiser experiences.