Pinterest reports record user growth amid monetization challenges

Pinterest has reached a new milestone of 661 million monthly active users, representing a 10% increase. The platform's user base is increasingly driven by Generation Z, who now make up 57% of its total audience.

Despite this growth in reach, the company faces difficulties in monetization. Third-quarter revenue rose 12% to $1.17 billion, which fell short of management's expectations. The average revenue per user globally increased by only 1% to $1.80.

The international advertising market has been particularly weak. In Europe, while active users grew by 7% to 161 million, revenue stagnated at $193 million. The average revenue per user in the region declined by 7% to $1.21, a trend attributed to regulatory changes affecting cross-border merchants and their subsequent reduction in advertising spend.