Pinterest Inc. PINS revealed significant advancement in its artificial intelligence capabilities alongside its first-ever billion-dollar revenue quarter, showcasing how the company’s tech investments are driving commercial success.
What Happened: During its fourth-quarter earnings call, Pinterest disclosed that its proprietary “Taste Graph” – the AI-powered system that maps relationships between user behavior, content, and products – has expanded its connections by 75% over the past two years.
This technological backbone appears to be paying off. The company reported fourth-quarter revenue of $1.15 billion, up 18% year-over-year, while monthly active users grew to 553 million, an 11% increase. The platform’s ability to convert user engagement into sales was evidenced by a 90% year-over-year increase in clicks to advertisers.
“Our Taste Graph contains many billions of connections,” CEO Bill Ready said during the earnings call. Unlike traditional social media algorithms, Pinterest’s system specifically leverages user curation and shopping intent signals to power recommendations.
Why It Matters: The company is also embracing AI in its development process, with 15% of its current codebase now generated through AI assistance tools. This adoption of AI for internal operations suggests Pinterest is finding efficiencies in both user-facing and backend applications.
Looking ahead, Pinterest projects the first quarter of 2025 revenue between $837 million and $852 million.
The platform’s unique position in combining visual discovery with shopping intent appears to be resonating with advertisers, as Ready noted that for some of their largest advertisers, lower-funnel revenue objectives now account for over 80% of spending.
Pinterest competes with Meta Platforms Inc META in visual discovery, social commerce, and digital ads, leveraging intent-driven shopping.
Price Action: Pinterest shares were up 18.49% at $39.80 in Thursday’s after-hours session at publication time, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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