Pinterest, Inc. (NYSE: PINS) delivered its first-ever billion-dollar revenue quarter and reached an all-time high in user growth, as the social media platform reported fourth-quarter earnings that demonstrated strong momentum in both user engagement and monetization.

The company reported Q4 revenue of $1.15 billion, an 18% increase year-over-year, while global monthly active users (MAUs) grew 11% to reach 553 million. The quarter capped off a strong 2024, with full-year revenue rising 19% to $3.65 billion.

Pinterest posted significant earnings growth, with GAAP net income soaring to $1.85 billion in Q4, though this included a one-time tax benefit of $1.60 billion from the release of certain deferred tax assets. Adjusted EBITDA for the quarter grew 28% to $471 million, representing a healthy 41% margin.

The platform showed robust user growth across all geographic regions. The Rest of World segment led with a 15% increase in MAUs to 307 million users, while Europe grew 7% to 145 million users, and the mature U.S. and Canada market added 4% to reach 101 million users.

Monetization metrics also improved, with global average revenue per user (ARPU) increasing 6% to $2.12. The U.S. and Canada region maintained its position as the highest-monetizing market, with ARPU growing 12% to $9.00.

“2024 was a banner year for Pinterest, capped off by a milestone Q4,” said CEO Bill Ready.

“People are coming to Pinterest more often, the platform has never been more actionable, and our lower funnel focus is driving results for users and advertisers.”

The company demonstrated strong cash generation, with operating cash flow of $254 million for Q4 and $965 million for the full year. Free cash flow remained robust at $250 million for the quarter and $940 million for the year.

Looking ahead, Pinterest provided Q1 2025 guidance projecting revenue growth of 13-15% year-over-year, or 15-17% on a constant currency basis, targeting revenue between $837 million and $852 million. The company expects Q1 2025 Adjusted EBITDA to range from $155 million to $170 million.

Opinion

Pinterest’s Q4 results reveal both significant strengths and potential challenges in its business model. The achievement of its first billion-dollar quarter, coupled with record user growth, demonstrates the platform’s growing appeal and successful monetization strategies. The company’s ability to grow users across all regions, particularly in the Rest of World segment, shows strong global adoption.

However, the disparity in ARPU between regions remains stark. While U.S. and Canada users generate $9.00 per user, Rest of World users yield just $0.19, highlighting both a challenge and opportunity in international monetization. The projected slowdown in revenue growth for Q1 2025 (13-15% versus Q4’s 18%) suggests potential headwinds in maintaining current growth rates.

The platform’s focus on being “more actionable” and emphasis on “lower funnel” activities indicates a strategic shift toward commerce, though the effectiveness of this transition remains to be proven. While the strong margins and cash flow generation demonstrate operational efficiency, the sustainability of these metrics will depend on Pinterest’s ability to maintain user engagement while managing costs in an increasingly competitive digital advertising landscape.

Source: (https://www.nasdaq.com/press-release/pinterest-announces-fourth-quarter-and-full-year-2024-results-delivers-first-billion) Pinterest Q4 2024 Earnings Release