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Pinterest's AI-Powered Ads Fuel Strong Q2 as Gen Z Flocks to Platform
7 Aug
Summary
- Pinterest's Q2 revenue beats estimates, driven by AI-powered ads
- Platform sees rapid growth among Gen Z users, now over 50% of user base
- Focus on direct-response ads continues to drive ad demand
As of August 8th, 2025, Pinterest has reported a strong second-quarter performance, beating analysts' revenue estimates. The social media platform's revenue grew 17% to $998.2 million, exceeding the expected $974.8 million.
This success is largely attributed to Pinterest's focus on AI-powered advertising tools, which have made the platform more appealing to advertisers. The company's CEO, Bill Ready, stated that they have found their "best product market fit ever" by becoming a "personalized shopping destination for users and an AI-powered performance platform for advertisers."
Additionally, Pinterest has seen a rapid influx of Gen Z users, who now represent more than half of its user base. This demographic shift, combined with the platform's AI-driven personalization capabilities, has driven increased marketing spend and ad demand.
In contrast to the broader slowdown in social media, Pinterest's results follow the strong Q2 performances of Meta and Reddit last week. The company's focus on direct-response ads, designed to prompt specific actions like shopping or app downloads, has continued to be a key driver of its success.
