Pinterest: User Growth and Monetization

Core Insights - Pinterest's financial report for Q4 2023 shows strong revenue growth and user engagement, despite a slight miss in adjusted earnings per share [3][5]. Financial Performance - Revenue for Q4 2023 was $981.3 million, increasing to $1.154 billion in Q4 2024, representing an 18% growth and beating expectations [2]. - Adjusted earnings per share rose from $0.53 to $0.56, marking a 6% increase, but this was below expectations [2]. - Monthly active users (MAUs) grew from 498 million to 553 million, an 11% increase, exceeding expectations [2][3]. - Average revenue per user (ARPU) increased from $2.00 to $2.12, a 6% rise [2]. Market Reaction - Following the earnings report, Pinterest's stock rose approximately 16% in after-hours trading, reflecting investor enthusiasm despite the earnings miss [6]. Monetization and User Growth - Monetization is particularly strong in international markets, which account for over 80% of Pinterest's user base. Revenue growth was 16% in the U.S. and Canada, 21% in Europe, and 44% in the rest of the world [4]. - The average user outside the U.S., Canada, and Europe generated 24% more revenue year-over-year [4]. - User growth is critical, as Pinterest's user base had previously declined post-COVID-19 reopening but has since rebounded [9]. Future Guidance - Pinterest's first-quarter guidance is optimistic, with expected revenue between $837 million and $852 million, surpassing analyst expectations of $832.77 million [5]. - Continued user growth and effective monetization, especially in international markets, will be essential for sustaining profits in 2025 [9].