Pinterest Quarterly Earnings Exceed Expectations With Gen Z User Surge, Ad Market Rebound

Record-high growth driven by Gen Z engagement and advertising strategies lead to Pinterest's shares soaring 17%, adding nearly $3 billion in market value.

Pinterest reported record-high monthly active users at 482 million in Q3, 2023, attributing the surge to Gen Z users who are the fastest-growing and most engaged users on the platform.
Gen Z users save twice as much content in their first year relative to older cohorts and make up 42% of Pinterest's users.
Pinterest's successful advertising strategies, particularly the 'Shop the Look' feature which allows users to receive advertisements for lifestyle products matching their Pinterest boards, have contributed to a 17% surge in Pinterest's stock.
Luxury brands such as Dior and Louis Vuitton are capitalizing on Pinterest's strong hold over the Gen Z demographic by advertising on the platform.
The company expects to roll out more tools for advertisers in 2024 and include more advertisements on the platform.
Pinterest beat Q3 earnings estimates with an adjusted earnings per share of 28 cents and revenue of $763.2 million, largely due to the rebounding ad market and engagement from Gen Z users.