Pinterest’s latest earnings report has given the stock market a boost, with shares rising over 18% despite overall market averages falling. The company’s strong revenue growth and user base expansion are driving this move.
User growth is a key factor, with Pinterest’s monthly active users reaching 553 million in the fourth quarter – an 11% increase from last year. The platform’s monetization progress also shows promise, with average revenue per user (ARPU) growing 6% year-over-year.
However, there’s still room for improvement, particularly in non-U.S. markets where a significant gap exists between users and revenue. While the U.S. and Canada-based users generated $9 in revenue each quarter, European users earned just $1.38 and users from the “rest of world” group made only $0.19.
Despite this, Pinterest’s management has provided strong guidance for its first-quarter 2025 revenue, exceeding expectations. If the company can continue to execute on its strategy, 2025 may end up being a successful year for Pinterest.
Source: https://www.fool.com/investing/2025/02/07/pinterest-is-soaring-after-stellar-numbers-is-the