Like different on-line platforms, Pinterest reaped the advantages of an uptick in e-commerce promoting in the course of the vacation season.
The image-sharing platform noticed a 76 p.c year-over-year leap in fourth quarter income, to $706 million, the company said Thursday. Pinterest had 459 world million month-to-month energetic customers (MAUs) within the fourth quarter, up from 442 million in its third quarter.
Pinterest mentioned in its letter to investors that its income progress was largely pushed by a strong vacation season and product enhancements in promoting. It noticed a six-fold enhance within the variety of companies that used its buying adverts format in the course of the fourth quarter.
“We welcomed over 100 million extra month-to-month energetic customers to Pinterest in 2020, greater than another 12 months in our historical past,” CEO and co-founder Ben Silbermann mentioned in an announcement. Throughout a name with analysts Thursday, Silbermann mentioned the corporate was inspired by its progress amongst Gen Z shoppers, who he mentioned are well-served by different social media platforms, however come to Pinterest “as a result of they need areas the place they’ll discover their very own pursuits and hobbies.”
Pinterest noticed income within the US — its greatest market — rise 67 p.c within the fourth quarter, to $582 million.
“Our investments in advert instruments and gross sales protection continued to repay, particularly throughout a powerful vacation season. Promoting demand was wholesome throughout totally different advertiser sizes and verticals, with retail demand additional constructing off final quarter’s restoration,” the letter mentioned.
In response to an analyst query about Pinterest’s roadmap for serving to creators become profitable on the platform, Silbermann mentioned the corporate was bringing on creators identified for his or her means to show one thing reasonably than pure leisure. And Pinterest content material has a for much longer shelf life than different on-line platforms, he mentioned.
“[Pinterest] creators are in an atmosphere the place there’s a powerful search dynamic, extra like YouTube than different social areas that are typically extra ephemeral,” he mentioned. The corporate is also experimenting with issues like sponsored story pins, Silbermann added.
The corporate’s progress comes amid allegations of a toxic work environment; a bunch of shareholders is suing Silbermann and different prime Pinterest executives for “marginalizing ladies who dared to problem Pinterest’s White, male management clique,” and hurting the corporate’s popularity, the grievance alleges. A number of ladies sued the corporate final 12 months, alleging racial discrimination, and its former COO said she was underpaid in comparison with her male colleagues.
Pinterest shares were up greater than 10 p.c in after-market buying and selling Thursday.