The news: Pinterest’s audience is growing amid heightened engagement and expanded advertising capabilities.

Highlights from its Q3 earnings report:

• Monthly active users (MAUs) increased 10% YoY to 661 million, including 394 million in the US and Canada.
• Gen Z makes up 57% of Pinterest’s user base and is its most engaged cohort, with two-thirds coming specifically to shop, according to CEO Bill Ready.
• The platform surpassed 80 billion monthly searches in Q3, and about 70% of those search journeys start with a proactive recommendation before a user even starts typing.
• Visual search ads launched in September, alongside heightened competition for performance marketer dollars.
• Pinterest is starting a push to be a “meaningful participant in mobile app advertising,” per Ready, through features like App Promotion.

However, weaker-than-expected Q3 revenues and a soft forecast for Q4 sent shares down on Friday. The company reported $1.17 billion in revenues—which are “substantially all” generated by advertising—below analysts’ expectations of $1.21 billion, while guidance of $1.43 to $1.48 billion for Q4 also missed forecasts.