Pinterest has posted a very respectable set of Q3 numbers, with revenue and monthly active users surging, especially in what it calls the Rest of the World, which includes Australia.
Its top line revenue was up 17 per cent year on year, to a touch over US$1 billion (AU$1.62 billion). The number of monthly active users on the platform climbed 12 per cent, too, to 600 million.
While 94 per cent of Pinterest’s revenue is concentrated in the Europe, the US and Canada—with the North American countries accounting for 75 per cent of that revenue—the rest of the world saw a dramatic revenue jump of 66 per cent year on year.
Monthly active users in the rest of the world jumped 16 per cent to 347 million, too.
“We had a strong Q3, with 17 per cent year-over-year revenue growth,” said Bill Ready, CEO of Pinterest. “Our investments in AI and product innovation are paying off. We’ve become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600 million consumers. In turn, global advertisers are increasingly counting on Pinterest as a go-to search platform to reach their customers and drive sales.”
However, Pinterest’s US and Canadian sales and global revenue per user narrowly missed analyst expectations, causing its share price to drop.
Pinterest finance boss Julia Donnelly said during an earnings call that the company experienced some “pockets of moderating ad spend” in the US and Canada during the third quarter. Donnelly attributed the sales moderation to unspecified “larger US retailers” dealing with tariff-related issues putting pressure on their margins.
Regarding the company’s fourth-quarter guidance, Donnelly said that “we see these broader trends and market uncertainty continuing with the addition of a new tariff in Q4 impacting the home furnishing category.”
Meta, Alphabet and Amazon reported their Q3 numbers last week, too. Meta’s revenue jumped 26 per cent year on year, Amazon’s online ad sales similarly climbed 24 per cent and Alphabet, which owns Google and YouTube, experience a 13 per cent climb in revenue.
