Pinterest CEO: AI is winning over Gen Z — but growth isn't guaranteed

Core Insights - Pinterest is experiencing significant growth, particularly among Gen Z users, who now represent over 50% of the platform's user base [2][3] - The platform has achieved eight consecutive quarters of record-high users, with AI-driven recommendations outperforming traditional models by 30 percentage points in shopping relevancy [3] - Pinterest's stock has increased by 20% in 2025, surpassing the S&P 500's 11% gain, with second quarter sales rising 17% year-over-year to $998 million [4] User Demographics and Engagement - Gen Z is the largest and fastest-growing demographic on Pinterest, with 39% of this group likely to start their search on the platform [2] - Monthly active users reached a record 578 million, reflecting an 11% increase from the previous year, although there was flat growth in the US & Canada and a slight decline in Europe [4][5] Financial Performance and Future Outlook - The company is investing in AI talent and its sales force, which may lead to a decrease in margins in the third quarter compared to the first half of 2025 [5] - Goldman Sachs highlights a long-term narrative focused on solid double-digit percentage compounded revenue growth and margin expansion through strategic initiatives like shoppable content and partnerships [6] - The CEO noted that the platform is still in the early stages of the AI cycle, with a multi-year runway for growth as it diversifies into new categories like travel and autos [3]