Pinterest, Inc. (PINS) reported strong performance in the third quarter (Q3) of 2025, with revenue rising 17% to $1.049 billion, slightly exceeding Wall Street's expectations. However, the big news wasn’t just the numbers.
In its latest earnings report, CEO Bill Ready stated that the company had transformed from a digital "mood board" into the "first AI-powered visual shopping assistant." For users, this means a significantly different experience.
From Mood Board to AI Shopping Assistant
Pinterest’s user base continues to break records. According to Seeking Alpha, the company now has 600 million monthly active users (MAUs) globally, marking the ninth consecutive quarter of record user growth.
What's more promising for the platform's future is that Gen Z has now become the largest demographic cohort, representing over 50% of the user base and is the fastest-growing group.
AI transformation has become the core of Pinterest's evolution. CEO Bill Ready explained that the company’s new mission is to "anticipate what users will like next," as reported by PYMNTS.
The platform no longer waits for users to type in search terms. Instead, Pinterest’s AI curates inspiration the moment users open the app.
Data from PYMNTS also shows that this strategy is paying off. The company processed 80 billion queries in Q3, a 44% increase from the previous year.
New features like multimodal search (combining text and images) and the Pinterest Assistant (a voice-activated assistant) are being tested to revolutionize how users discover products.
Monetization Gaining Traction, Especially Internationally
Pinterest’s focus on AI and shopping is starting to show financial results. PYMNTS’ report highlighted a 40% increase in outbound clicks to advertisers in Q3. This signals a strong trend where users aren’t just browsing; they’re acting on what they see.
While the U.S. and Canada remain the biggest revenue contributors, growth in international markets is accelerating rapidly. Seeking Alpha points out that ad revenue from shopping in Europe and the Rest of the World is growing twice as fast as the overall revenue growth in these regions.
Deeper integrations with other platforms also contribute to this success. Users with linked Amazon.com, Inc. (AMZN) accounts can now go directly from a buyable pin to the Amazon checkout page.
Challenges and Future Outlook
The journey hasn’t been without hurdles. Seeking Alpha notes a 24% decrease in ad pricing, which is largely attributed to a shift towards international markets where prices are still lower.
Additionally, there are external challenges. During a Q&A session with analysts from Citigroup Inc. (C) and The Goldman Sachs Group, Inc. (GS), management acknowledged certain pressures.
Some large U.S. retailers have reduced their advertising spend due to margin pressures related to new tariffs, which extend beyond just Pinterest.
Despite these obstacles, Pinterest remains optimistic. The company is projecting Q4 2025 revenue between $1.313 billion and $1.338 billion, indicating confidence in its AI strategy and signaling a 14% to 16% year-over-year growth.
Overall, Q3 2025 marks a successful execution of Pinterest’s AI-driven strategy. For both investors and users, Pinterest is proving that AI isn’t just a trend but the engine behind its new growth engine.
References:
- PYMNTS, Pinterest’s ‘AI Everywhere’ Strategy Drives User, Search Growth. Accessed November 5, 2025.
- Seeking Alpha, Pinterest outlines 14%-16% Q4 revenue growth as AI shopping tools drive user engagement. Accessed November 5, 2025.
- Featured Image: Pexels/indra project
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