Pinterest (NYSE:PINS) surged more than 17% intra-day today after unveiling an upbeat revenue forecast for the first quarter, signaling that its artificial intelligence-driven strategy is driving user engagement and advertiser demand.

The company expects Q1 revenue between $837 million and $852 million, surpassing analysts’ consensus of $835.9 million. The strong outlook reflects Pinterest’s success in leveraging AI-powered tools to enhance advertising effectiveness, attract marketers, and increase platform engagement.

User growth reached a record high, with global monthly active users (MAUs) climbing 11% year-over-year to 553 million, exceeding expectations of 545.8 million. The platform’s average revenue per user (ARPU) also saw solid gains, rising 6% globally to $2.12, with the U.S. and Canada leading the charge with a 12% jump to $9.00.

Pinterest’s push into shoppable content and Gen Z engagement has further strengthened its appeal to advertisers, making the platform more actionable for both users and brands. With momentum building, the company appears well-positioned to capitalize on AI-driven personalization and e-commerce opportunities in the coming quarters.