Pinterest projected first-quarter revenue exceeding market expectations, driven by AI-powered advertising tools that enhanced ad spending. Shares surged 19% in extended trading following the announcement. The platform benefited from a strong holiday shopping season, setting new records for monthly active users and revenue in the fourth quarter.

AI-driven ad solutions, including the Performance+ suite, have attracted advertisers by automating and improving targeting. Increased engagement from Gen Z users and the introduction of more shoppable content have also made the platform more appealing to marketers. Expanding partnerships with Google and Amazon further diversified revenue streams, although most ad revenue remains concentrated in North America.

Ecommerce merchants using Shopify and Adobe Commerce can now integrate their products into Pinterest more easily. Analysts suggest that while global engagement is high, expanding third-party ad integrations will be crucial for long-term growth.

The company forecasts revenue between$837 million and$852 million, surpassing analyst expectations. Adjusted core earnings are expected to range from$155 million to$170 million, also exceeding estimates. Monthly active users reached a record 553 million, reflecting an 11% year-on-year increase.