Pinterest has posted its latest performance update, showing increases in both users and revenue, neither in a major swing, in broader terms, but both, most importantly, pointing upwards once again.
First off, on users – Pinterest added 12 million more users in the quarter, taking it back up to 445 million monthly actives, which is exactly where it was at this time last year.
As you can see, Pinterest saw the most growth in the ‘Rest of World’ category, though it also added 3 million users in both the US and Europe as well. That’s still below the 98 million North American users it had last year, but any growth is a positive, after three periods of decline in its most lucrative market.
This is the key area that Pinterest needs to improve, because while it is growing in other regions, which points to future opportunity, you can see how significant the divide is between the value of US and other users.
Pinterest credits its rising usage to increased video engagement, with video content supply in the app increasing 3x YoY. Idea Pins, its Stories-like option, has been a big winner in this respect, while Pinterest is also looking to latch onto the live-stream commerce trend, which hasn’t taken hold in western markets yet, but could develop into a key opportunity for the commerce-focused app.
That would also open up new revenue pathways – and on that front, Pinterest brought in $685 million in Q3, up 8% YoY.
Pinterest is still in the process of expanding access to its ad tools, with Pinterest ads only recently launched in Argentina, Chile, and Colombia.
That’s obviously a crucial step in maximizing its revenue potential, and it’ll take time to see these increased investments come to fruition.
But they are investments – which Pinterest is also increasing:
The company increased both Research and Development and Sales and Marketing spend, which again, points to coming opportunities, and Pinterest’s confidence in smoother sailing ahead.
“In Q3, Gen Z users grew double digits year over year, accelerating from Q2.”
If Pinterest can enhance its appeal to younger users, that could make it a more valuable tool for the latest trends, which could be a big tick in its favor.
Today’s report is also the first under former Google commerce chief Bill Ready, who was appointed CEO of Pinterest back in June. And Ready says that he’s pleased with the numbers:
“Despite the challenging macro environment, we are delivering performance and a distinct value proposition to advertisers, reaching users across the full funnel. Through clear focus on increasing engagement that delights our users, we are deepening our monetization per user, and building personalized and relevant experiences that go from inspiration and intent to action.”
Of course, that’s pretty much what he has to say, so no big revelation there, but the trends do suggest that Pinterest is making a comeback, of sorts.
It’s another incline in the roller-coaster that’s been Pinterest’s performance over the past two years.
After seeing a huge increase in activity at the start of the pandemic, with the lockdowns pushing people towards online shopping, many predicted that this would establish a new norm, and that Pinterest, with its focus on being essentially a digital shopping mall, would be a key beneficiary of this new shift.
But as the lockdowns eased, shopping habits largely returned to the norm, and Pinterest’s user count dropped – from a peak of 478 million at the start of 2021, to 431 by the end of that year.
As noted, those numbers are now inching their way back up again, largely due to global expansion, and it’s difficult to now predict what Pinterest’s expected baseline growth and usage stats should be.
Of course, in a wider scope, and based on trends, eCommerce sales are only going to keep rising, which should see Pinterest win out, and have it well positioned to be a key conduit between many creators and customers, all around the world.
The potential in this respect is big, and it is definitely worth taking note of the latest Pin trends and audience behaviors in relation to your business, especially as its audience count continues to rise.
Whether you use it or not, its clear that Pinterest is improving its value for millions of people. And as that continues, that’ll also facilitate all new opportunities, for a range of brands.