Image curation platform Pinterest reported a substantial increase in revenue this quarter, surpassing Wall Street predictions.
The company attributed the success to its AI technology, which are increasing ad spend and have increased its shares 16 percent.
Pinterest’s revenue reached $855m for Q1 of 2025, beating estimations of $846.6m. Its Q2 predictions are between $960-980m, also beating estimates of $966.3m.
The digital inspiration platform introduced new AI advertising tools at the end of last year. The app’s Pinterest Performance + suite hosts a variety of products to optimise and manage campaigns. After its release, the company shared that most advertisers saw at least a 10 percent improvement in cost per acquisition (CPA) or cost per click (CPC) for campaigns.
Pinterest uses Gen AI to better target ads and posts, or “pins,” to its users.
The company also reported a 10 percent increase in Global Active Monthly Users year-over-year. The app has garnered a large Generation Z audience base, who make up nearly 40 percent of the users. Pinterest’s algorithms appeal to these younger users as a form of expression and understanding trends.
Posts on the home feed can direct users straight to a seller’s site, where items can be purchased. Other sites have recently made upgrades to AI shopping assistants, including ChatGPT and Google.
Other social media platforms have recently raised concerns about future ad revenue amid tariff implementation in the US.
“Our AI advancements are helping users take action and make more intentional shopping decisions.” Bill Ready, CEO of Pinterest, said in a press release. “We’re driving performance for advertisers and winning market share, giving us a solid foundation for long-term, sustainable growth.”
