Pinterest's Q2 2025: Unraveling Key Contradictions in International Growth, User Engagement, and Advertising Demand

International growth and ARPU narrowing, visual search and user engagement, advertising demand and volatility, international revenue growth and strategic focus, and advertiser engagement and lower funnel product innovation are the key contradictions discussed in Pinterest's latest 2025Q2 earnings call.



User and Revenue Growth:
- Pinterest reported 578 million MAUs for Q2, marking an 11% year-over-year increase, and $998 million in revenue, up 17% year-over-year.
- Growth was driven by increased product velocity and execution against multiple growth strategies, leading to record high users and durable revenue growth.

AI and Visual Search Integration:
- Pinterest launched a new multimodal AI model for visual search, improving recommendations by 30% compared to off-the-shelf models.
- The integration of AI and visual search experiences is enhancing user engagement and relevance, contributing to increased user retention and monetization.

International Market Expansion:
- Pinterest saw 65% year-over-year revenue growth in the Rest of World region, with 329 million MAUs, up 14%.
- The growth in international markets is attributed to strategic partnerships and investments in AI, leading to increased ad adoption and revenue.

Performance Ad Platform and Mid-Market Expansion:
- The percentage of lower funnel revenue flowing through Pinterest Performance+ campaigns doubled since the end of last year.
- This expansion is driven by offerings of bidding, targeting, and creative tools for advertisers, particularly targeting mid-market and small businesses.