Pinterest Shares Surge 18% as Q4 Revenue Soars to $1.15 Billion, Beating Expectations

Pinterest Shares Soar 18% on Strong Q4 Earnings and Positive Outlook

Pinterest, the popular image-sharing and social media platform, saw its stock surge 18% following the announcement of its fourth-quarter earnings and an optimistic sales forecast. The company reported its first-ever billion-dollar quarter, with revenue reaching $1.15 billion, surpassing analyst expectations.

The impressive financial performance was driven by a significant increase in ad impressions, which rose by more than 40% in the final quarter of 2024. This growth contributed to the company’s revenue jump from $981 million in Q4 2023 to $1.15 billion in Q4 2024, slightly exceeding analyst forecasts of $1.14 billion.

During the earnings call, Pinterest’s CFO highlighted the 43% rise in ad impressions, indicating strong growth in the company’s advertising business. Notably, ad clicks are growing faster than ad impressions, suggesting improved ad relevance for users. The company’s AI ad optimization tool, Performance+, is expected to drive sustainable revenue growth in 2025.

Looking ahead, Pinterest projected sales for Q1 2025 to be between $837 million and $852 million, surpassing earlier estimates. CEO Bill Ready emphasized increased user engagement and the platform’s effectiveness for advertisers as key factors in the positive outlook.

The company reported 553 million monthly active users, with a significant increase in clicks on products featured in gift guides during the holiday season. This uptick in user engagement and platform actionability bodes well for Pinterest’s future growth prospects.

In its annual report, Pinterest flagged Diversity, Equity, and Inclusion (DEI) efforts as a potential business risk, acknowledging the impact of DEI initiatives on hiring, retention, and stock price. This transparent approach to addressing DEI considerations demonstrates the company’s commitment to navigating complex social issues.

The market responded positively to Pinterest’s strong performance, with Bernstein upgrading the company’s stock price target from $34 to $47. The upgrade was based on Pinterest’s strong execution and overall performance, further bolstering investor confidence in the platform’s future.

As Pinterest continues to innovate and expand its advertising capabilities, the company appears well-positioned for continued growth in the competitive social media landscape.