Pinterest reports strong revenue growth
Pinterest reported fourth-quarter 2020 results, with strong user growth on the back on lockdown and Christmas activity.
The company’s total U.S. revenue jumped 67% year over year, to $582 million. Its international revenue was up 145% year over year, to $123 million. Pinterest said the increases in both groups were driven by a growth in average revenue per user. Pinterest said that its U.S. monthly active users came in at 98 million, an increase of 11% year over year. The company’s international user base also continued to rapidly expand, up 46% to 361 million.
The company said in its letter to investors that it continued to see users engage with its app amid the ongoing Covid-19 pandemic that’s left people at home and in need of entertainment. Pinterest said that its revenue growth was mostly driven by an earlier and sustained holiday season and product improvements in advertising. Pinterest added that its shopping ad revenue grew faster than its overall business and it saw a six-times increase in the number of businesses that used its shopping ads format.
“Our investments in ad tools and sales coverage continued to pay off, especially during a strong holiday season. Advertising demand was healthy across different advertiser sizes and verticals, with Retail demand further building off last quarter’s recovery,” the company said in its report.
Pinterest said it continues to see strong ad momentum in its international markets.
“International revenue more than doubled in Q4 from the prior year, speaking to how important Pinterest has become to advertisers reaching a global audience of Pinners. And we’re just getting started here: in 2021, we plan to expand our presence in existing international markets and are excited to enter new geographies in Latin America in the first half of the year,” the company said.
Aaron Goldman, CMO at Mediaocean, said: “Pinterest is very well-positioned in the advertising ecosystem as evidenced by Q4 revenue growth of 76% year-over-year. The platform benefits from the rise of social commerce without the controversy of social media. Every month 459 million Pinners around the world use the app for inspiration and brands are often just what they’re looking for. As such, Pinterest Shopping campaigns perform very well for advertisers, especially during the golden quarter in line with consumer trends. Pinterest is particularly strong when it comes to consumer packaged goods and retail – two categories that have been quite resilient throughout the pandemic.
Looking ahead, Pinterest is poised to capture further growth through international expansion as well as the post-COVID resurgence of non-endemic advertising categories like travel. For brands, the key to success on Pinterest is using the wealth of insights available through search on the platform and being agile with budget allocation to reach Pinners at key moments of decision-making as part of an omnichannel approach. “