Pinterest just posted its 2022 Q4 and full-year earnings, showing a steady increase in both revenue and user growth, as it continues to further shape its various offers. Many have thought Pinterest to be out of the major Social Media leagues, following its steep decline in both traffic and usage during the onset of 2021. This newest resurgence could mark another key shift in usage and consumption behaviors.

A Small Lead

Starting with users, Pinterest added around 5 million more active users, most of whom hail from Europe, within the final measurement period of last year. That’s a positive sign for Pinterest, which, as mentioned previously, lost users in early 2021, partly due to the recession of the COVID-induced eCommerce boom. To be fair, much to their delight, during peak pandemic times, Pinterest also managed to post record high usage numbers.

Many analysts and businesses seemed convinced that the COVID boost to online shopping would hold, even beyond the pandemic. Such assumptions led companies like Amazon, Google, Meta, and Twitter to invest heavily in commerce solutions. However, many of the employees Pinterest hired were eventually culled in its most recent round of lay-offs. Apparently, once physical stores reopened, people went right back to how they used to shop; online shopping began to fade back into obscurity just as fast as it rose.

Pinterest has begun steadily building back up, with Idea Pins being a big winner, which present uploaded videos in a swipeable, full-screen display. The emphasis on this format has helped boost the platform’s appeal with younger audiences, with Pinterest reporting that Gen Z was the fastest-growing demographic on the platform, increasing double digits YoY. Pinterest also mentions that sessions continue to grow faster than MAUs, an indicator that it’s driving better engagement overall. Meanwhile, its overall video supply also increased by 30%, another marker of the popularity of Idea Pins.

Revenue-wise, Pinterest posted a 4% YoY increase, bringing in $877 million in Q4. Pinterest’s revenue also seems to be steadily climbing, however, its revenue split remains a bit concerning. For others, this might be an opportunity, with Pinterest still able to potentially eke out more revenue from regions outside of the North American market. To note, Pinterest is still developing, further expanding its ad and business offerings into new regions. So, while the potential is there, it’s the gap that’s really concerning here.

The Wrap

Pinterest remains focused on shopping, and highlighting relevant products to users, with its ever-evolving recommendation engine providing better content matches to more users on a daily basis. Pinterest is also investing in live-stream shopping, a trend that all platforms hope will catch on in Western markets. While local growth might tell a different story, it’s the overall growth that’s very interesting. The only real block now to wider Pinterest adoption is whether or not a marketer’s main customer base is already on the platform.

Sources

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