and Canadian users still generate a relatively small amount of revenue. But Pinterest's top line grew just 4% in the fourth quarter, because non-U.S. The rest of world segment grew users to 231 million, and that segment generated 21% more revenue per user year over year. and Canada, but that might not cut it without user growth too. Average revenue per user also grow 6% year over year in the U.S. Management at Pinterest did tout strong engagement from Gen Z users, meaning those born since the late-mid 1990s, a core advertising demographic. Market saturation doesn't seem like a good excuse, because Meta grew Facebook's monthly active user counts from 263 million to 266 million in 2022 in the same market. The region's user count didn't grow in 2022, remaining flat at 95 million. The company's stagnating user growth in the United States and Canada is more concerning. Pinterest only grew global revenue per user 1% year over year last quarter, but advertising companies have experienced a widespread downturn in recent months, so that's understandable. Can management tap Pinterest's potential? However, potential means nothing unless it's realized, which is where key concerns regarding this business come in. This potential is what makes the stock so tempting. Hypothetically, monetizing users better could fuel a ton of revenue growth for Pinterest over the coming years. The average user in this geography generates $7.60 in revenue versus just $1.01 in Europe and $0.14 for the rest of the world.Ĭonsider that Meta Platforms generates $10.86 in revenue per worldwide user, dwarfing the $1.96 reported for global Pinterest users. Users in the United States and Canada represent most of the revenue Pinterest gets out of users.
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