Pinterest’s third-quarter revenue jumped 11% to $763 million in Q3, 2023.

Ad earnings surged as the platform’s global monthly active users increased by 8% year-on-year to 482 million.

The company credited its success in part to

• “Its ability to attract and retain advertisers and effectively measure advertising campaigns.”

Why we care. Advertisers interested in diversifying their ad spend may want to consider Pinterest as a potential investment, given its better-than-expected performance for advertisers. Its significant increase in global monthly active users also suggests the platform has a lot to offer advertisers in terms of reach.

Exceeding expectations. Pinterest had been projected by Wall Street analysts to reach 473 million global monthly active users, but the platform surpassed expectations by 9 million. Moreover, Pinterest outperformed projections for average revenue per user, achieving $1.61 compared to the anticipated $1.59.

Looking ahead: As the holiday season approaches, Pinterest has said that it is expecting growth of 11-13% in the final quarter of 2023. The company is also forecasting GAAP operating expenses to fall to 9-13% year-on-year.

What Pinterest is saying. Bill Ready, CEO of Pinterest, said:

• “We continued to accelerate the business in Q3. We are driving strong revenue performance, robust global MAU growth, and substantial margin expansion.”
• “As we lean into Pinterest’s unique differentiators as a visual search, discovery, and shopping platform, we’re finding our best product market fit in years.”
• “Our users are engaging deeply and we’re delivering better results for advertisers through improved measurement and innovation across the full funnel. We’re making significant progress and are continuing to execute on the opportunity ahead.”

Earnings report. You can read Pinterest’s full third quarter 2023 results report for more information.