Pinterest Inc (NYSE:PINS) shares surged 18% in after-hours trading after the image-sharing platform forecast first-quarter revenue would come in above market expectations.
It credited its AI-powered advertising tools, such as the Performance+ suite, for boosting ad spending.
The positive outlook followed a strong holiday season, with record-high global monthly active users reaching 553 million—exceeding the consensus figure of 545.8 million—and fourth-quarter revenue up 18% to $1.15 billion.
The company reported that its strategy was yielding results, with more users engaging on the platform and advertisers benefiting from improved targeting capabilities.
Pinterest’s third-party ad partnerships with Google and Amazon expanded, offering new revenue streams. The company expected first-quarter revenue of $837 million to $852 million, above analysts' $832.8 million estimate.