Pinterest surpasses 500 million monthly active users

Pinterest (NYSE: PINS) this week announced its financial results for the first quarter of 2024. The report highlights significant growth in both revenue and monthly active users (MAUs), indicating a positive performance for the social media platform.

Revenue reached $740 million, reflecting a 23% year-over-year increase. This represents nearly double the growth rate achieved in the previous quarter.

Global MAUs surpassed 518 million, demonstrating a 12% increase compared to the same period in 2023.

The company reported a GAAP net loss of $25 million for Q1. However, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $113 million, showcasing significant improvement in profitability from the previous year.

Strategic investments drive growth

Bill Ready, CEO of Pinterest, attributed the company's success to its investments in artificial intelligence (AI) and shoppable features. These advancements have enhanced the platform's value proposition for advertisers, enabling them to target audiences more effectively and potentially gain access to increased performance budgets. The focus on user experience through new product development is also credited with driving user engagement and platform adoption.

Financial Breakdown by Region

The financial performance varied slightly across different geographic regions. The United States and Canada remained the largest revenue contributor, generating $592 million, which represents a 22% year-over-year increase. Europe followed with a revenue of $118 million, reflecting a 27% growth. The Rest of World segment also witnessed a 25% increase in revenue, reaching $30 million.

While the US and Canada boast the highest average revenue per user (ARPU) at $6.05, significant growth was observed across all regions. The global ARPU reached $1.46, a 10% increase compared to Q1 2023.

Looking forward

Pinterest's positive Q1 performance suggests a promising outlook for the remainder of 2024. The company anticipates revenue in the range of $835 million to $850 million for Q2, representing an 18-20% year-over-year growth. Continued investments in AI, shoppable features, and user experience are likely to remain core strategies for driving future success.