How Pinterest ad revenue is 'accelerating': CEO

Pinterest (PINS) has boosted its advertising efforts with deals from tech giants like Amazon (AMZN) and Google (GOOG, GOOGL). The company has also utilized AI to improve personalized recommendations for its users.

Yahoo Finance's Brian Sozzi and Akiko Fujita are joined by Pinterest CEO Bill Ready at the Milken Global Institute Conference to discuss the impact of new deals from tech giants.

On the success of the deals with his company, Ready states that some of the increase ad revenue comes from: "It's really because of the actionability of the platform. That's through a combination of efforts. A lot of it is retailers coming to us directly, but then we've also, as you noted, augmented that first-party demand on our platform with third-party demand coming from Amazon...Google we added more recently... And so that is helping to bring more shoppable, actionable inventory on to the platform, but it really is a composite effect. What I would say, if you step back from it all, Pinterest is firing on all cylinders."

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This post was written by Nicholas Jacobino

Video transcript

Before I let you go tell me if I have this somewhat, right?So you have a deal with or a partnership with Amazon and Google?Do investors?Are they under appreciating how those two partnerships will change your cash flow and your earnings over the next few years?Well, what I would say is, you know, I I think you are seeing, you know, the acceleration in our ad business really cutting through with advertisers.First and foremost, do we perform for advertisers?We more than doubled the number of clicks we sent to advertisers in Q four and we did it again in Q one actually accelerate even further because of Amazon.It is really because the action ability that we're bringing to the platform and that's through a combination of efforts.A lot of it is retailers coming to us directly.But then we've also, as you noted, augmented that first party demand on our platform with third party demand coming from Amazon, uh who we've been working with for coming upon a year, Google, we added more recently the national market.And so that is helping to bring more stoppable actionable inventory on to the platform but it really is a composite effect.And what I would say is that when you step back from it, all, Pinterest is firing on all cylinders.If you look at the initiatives I laid out when I came in nearly two years ago that we went through our investor day last September, you know, our strength uh has been broad based, you know, we, we roughly doubled our revenue growth rate from Q four to Q one.We doubled it from H one to H two.Last year, we doubled again from Q four to Q one.And we've accelerated user growth in every geography with every generation.And so it is really all the initiatives we've laid out on action, ability and positivity, better performance for advertisers.All those initiatives are hitting and performing well.Uh And so the strength is broad based.