(Reuters) – Pinterest beat Wall Street estimates for third-quarter revenue and profit on Thursday, thanks to robust advertising spending on the platform driven by the image-sharing platform’s AI investments.
Advertisers turn to the California-based company to target its growing base of Gen Z users and leverage its AI-powered ad tools in a bid to spur shopping activity.
The company’s results follow quarterly reports by digital ad bellwethers – including Google-parent Alphabet, Meta Platforms, Reddit and Snap – which posted upbeat third quarter revenue, helped by robust ad spending.
Pinterest released Performance+ suite in October to better target users by enhancing ad campaigns with new AI tools and automation features on the platform.
“Our AI investments are driving results by powering better personalized experiences and greater performance for advertisers, with our lower-funnel ad tools being the fastest-growing part of our business,” CEO Bill Ready said in a statement.
Third party ad deals with Google and Amazon.com have also been helping in boosting Pinterest’s revenue.
The company’s revenue grew 18% to $898.4 million in the reported quarter, compared with analysts’ average estimate of $896.4 million, according to data compiled by LSEG.
Adjusted profit per share for the quarter came in at 40 cents, compared with estimates of 34 cents.
Global monthly active users on the platform rose 11% to 537 million in the July-to-September period, compared with estimates of 531.5 million.
Pinterest forecast fourth-quarter revenue between $1.13 billion and $1.15 billion, the midpoint of which was in line with estimates.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh Kuber)
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