Gen Z Sparks Pinterest Consumer Growth

Los Angeles — Gen Z users are the reason for Pinterest's significant rise in consumer growth as the company’s recent earnings report was shared with CNBC earlier this month.

“Most noteworthy, It was our best user growth quarter in more than two years,” Pinterest CEO Bill Ready said. “Gen Z is our fastest-growing cohort, and they’re engaging more deeply than prior cohorts.”

Pinterest reported $708 million in revenue while the sales in the company’s second quarter have spiked 6% year after year.

Pinterest's purpose was originally to share or upload pictures and website links just like any social media platform so users could then save or “pin” your favorite images. After collecting multiple photos users could then create their Pinterest boards.

Ready is positive that his app is very unique compared to other social media apps being used. He mentions consumers are now eager and ready to shop through the app and he will soon implement more “shoppable content” to maintain their high engagement.

“More than half of the users on Pinterest say they’re to shop, but the actionability on Pintrest was low…As we’re bringing that shoppable content onto pinterest, we’re finding that it’s really driving great engagement,” Ready said.

The company now expects their third quarter sales to “grow in the high single digits range year over year, while its third quarter non-GAAP operating expenses would “grow in the low single digit range year over year.”

During quarter two they were able to build momentum with consumers and advertisers while advancing their speed of manufacturing. Ready stated that “over the past year, we’ve been laser-focused on our key differentiators and we’re seeing results…our focus on cost efficiencies we returned to adjusted margin expansion in quarter two.”

Sydney Wanguhu, (she/her) is from the Bay Area and is an LA-based journalist who covers entertainment and culture. Follow her on instagram: @sydneyy._

Edited by Nykeya Woods