The news: Pinterest reported double-digit Q2 revenue growth above analyst expectations, with gains driven by AI integration, user engagement, and international momentum.

By the numbers:

• Revenues: $1.2 billion, +18% YoY
• Global MAUs: 640 million, +11% YoY
• Global ARPU: $1.86, +7% YoY

But despite a strong quarter, Pinterest’s stock fell in after hours trading on the back of its Q3 guidance, which forecast slower quarterly growth than expected.

Zooming in: Pinterest’s Q2 results point to a business gaining momentum from advertiser-facing AI tools, Gen Z traction, and strategic partnerships.

• Pinterest CEO Bill Ready said that “AI is at the heart of [Pinterest’s] momentum and is a clear accelerant for our business,” adding that AI has helped boost advertiser performance and opened up monetization opportunities.
• Pinterest highlighted Pinterest Assistant as a key Q2 growth driver; the tool is now available to most US users and offers personalized, AI-powered product research experiences.
• On the advertiser side, the company said it upgraded its performance ads platform in Q2 and noted plans to expand its AI bidding pilot in Q3. Pinterest also said it successfully scaled access to its Performance+ AI tool as part of a wider Q2 rollout.

While Pinterest’s user base is smaller than competitors like Instagram and TikTok, it still maintains strength with key Gen Z consumers.