Revenue growth
US and Canada revenue grew 9% YoY in Q3 which was an improvement from the 7% growth rate in Q2. Revenue from Europe fell 4% on a reported basis but was up 8% on a constant currency basis. Rest of World revenue grew 36% on a reported basis and 41% on a constant currency basis.
For the fourth quarter of 2022, Pinterest expects revenue to grow in the mid-single digits on a year-over-year percentage basis.
User and ARPU growth
Pinterest saw a pickup in users and average revenue per user (ARPU). After witnessing declines throughout this year, the company finally saw global monthly average users (MAUs) increase to 445 million in Q3. Although this number was relatively flat on a YoY basis, it was up 3% sequentially. MAUs inched up by 1% in both Europe and Rest of World but dropped by 2% in US and Canada. MAUs increased across all regions on a sequential basis.
Pinterest saw its global ARPU increase 11% YoY to $1.56 in Q3 2022. US and Canada ARPU increased 15% to $6.13 while Rest of World ARPU rose 38% to $0.11. ARPU in Europe dropped 3% YoY. ARPU increased across all regions except Europe on a sequential basis as well.
Advertising
Pinterest has been working on providing personalized and curated content to its users to drive engagement. User curated content is unique to Pinterest and it is expected to help in presenting users with relevant and valuable suggestions and recommendations for their various needs. The company also helps retailers by sending more traffic and customers to their businesses.
These factors provide Pinterest with an advantage in advertising. The searches, saves and board curation on its platform provide advertisers with valuable insights for ad personalization and optimization. The company has also built its ad platforms so that advertisers can meet users at every stage of their purchasing journey. Pinterest is making ads more effective on its platform through insights-led selling and improved tools.