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PINS Rides on Growing International Monetization: Can Momentum Continue?
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Key Takeaways
Pinterest's global revenues rose 18%, with Rest of World revenues jumping 38% year over year.
Pinterest's international ARPU is rising, led by 21% growth in Rest of World to $0.23.
AI-driven recommendations and new ad products aim to narrow the international monetization gap.
Pinterest Inc. (PINS - Free Report) is making progress in converting its expanding international user base into advertising revenues. Its recent financial results are showing momentum outside its core U.S. and Canada market. The company’s global revenue increased 18% year over year to $1.18 billion, while Europe revenues rose 12% to $213 million and Rest of World revenues jumped 38% to $87 million.
Europe ended the second quarter with 157 million monthly active users, up 8% year over year, while Rest of World MAUs reached 377 million, increasing 15%. However, monetization remains significantly strong in the United States and Canada. In the second quarter, PINS’ average revenue per user was $8.3 in the United States and Canada compared with $1.35 in Europe and 23 cents in Rest of World. Europe’s ARPU increased 4% year over year, while Rest of World ARPU advanced 21% compared to 14% growth in the United States and Canada. This indicates that Pinterest has room to generate substantial revenue from the international market.
Pinterest is increasingly using AI to connect user discovery with commercial activity. Its strong focus on personalized recommendations and improved advertising relevance will likely accelerate monetization. However, despite improving prospects, international monetization is still at an earlier stage. Forex volatility, macro uncertainties and other factors can lead to fluctuating spending from advertisers and impact Pinterest’s ARPU growth. With the new advertising product launches and disciplined international sales organization, the company is actively trying to narrow the gap between growing international engagement and revenue generation.
How Are Competitors Faring?
Pinterest faces competition from Snap, Inc. (SNAP - Free Report) and Reddit (RDDT - Free Report) in the social media space. Reddit has been swiftly expanding in the international market. In the second quarter of 2026, international revenues increased 84% year over year to $166.8 million, compared with 56% growth in the United States. International daily active uniques rose 28% to 77.1 million, while international weekly active uniques increased 35% to 317.4 million. International ARPU reached $2.26, up 31% year over year.
In the second quarter of 2026, Snap generated $353.8 million in Europe revenues, up 33% year over year, while Rest of World revenues reached $302.3 million, increasing 17%. Combined, these two markets contributed about 41% of Snap’s quarterly revenues. Snap’s international audience is also substantial, with 98 million daily active users in Europe and 303 million in Rest of World, compared with 92 million in North America.
PINS' Price Performance, Valuation & Estimates
Pinterest has declined 44% over the past year compared with the industry’s decrease of 4.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Pinterest trades at a forward price-to-sales ratio of 1.95, below the industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Pinterest’s earnings for 2026 has increased over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
PINS Rides on Growing International Monetization: Can Momentum Continue?
Key Takeaways
Pinterest Inc. (PINS - Free Report) is making progress in converting its expanding international user base into advertising revenues. Its recent financial results are showing momentum outside its core U.S. and Canada market. The company’s global revenue increased 18% year over year to $1.18 billion, while Europe revenues rose 12% to $213 million and Rest of World revenues jumped 38% to $87 million.
Europe ended the second quarter with 157 million monthly active users, up 8% year over year, while Rest of World MAUs reached 377 million, increasing 15%. However, monetization remains significantly strong in the United States and Canada. In the second quarter, PINS’ average revenue per user was $8.3 in the United States and Canada compared with $1.35 in Europe and 23 cents in Rest of World. Europe’s ARPU increased 4% year over year, while Rest of World ARPU advanced 21% compared to 14% growth in the United States and Canada. This indicates that Pinterest has room to generate substantial revenue from the international market.
Pinterest is increasingly using AI to connect user discovery with commercial activity. Its strong focus on personalized recommendations and improved advertising relevance will likely accelerate monetization. However, despite improving prospects, international monetization is still at an earlier stage. Forex volatility, macro uncertainties and other factors can lead to fluctuating spending from advertisers and impact Pinterest’s ARPU growth. With the new advertising product launches and disciplined international sales organization, the company is actively trying to narrow the gap between growing international engagement and revenue generation.
How Are Competitors Faring?
Pinterest faces competition from Snap, Inc. (SNAP - Free Report) and Reddit (RDDT - Free Report) in the social media space. Reddit has been swiftly expanding in the international market. In the second quarter of 2026, international revenues increased 84% year over year to $166.8 million, compared with 56% growth in the United States. International daily active uniques rose 28% to 77.1 million, while international weekly active uniques increased 35% to 317.4 million. International ARPU reached $2.26, up 31% year over year.
In the second quarter of 2026, Snap generated $353.8 million in Europe revenues, up 33% year over year, while Rest of World revenues reached $302.3 million, increasing 17%. Combined, these two markets contributed about 41% of Snap’s quarterly revenues. Snap’s international audience is also substantial, with 98 million daily active users in Europe and 303 million in Rest of World, compared with 92 million in North America.
PINS' Price Performance, Valuation & Estimates
Pinterest has declined 44% over the past year compared with the industry’s decrease of 4.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Pinterest trades at a forward price-to-sales ratio of 1.95, below the industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Pinterest’s earnings for 2026 has increased over the past 60 days.
Image Source: Zacks Investment Research
Pinterest currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.