Pinterest Searches Surpass ChatGPT Despite Earnings Miss

Despite a disappointing quarterly earnings report, Pinterest’s leadership is drawing attention to a surprising metric: its search volume. The platform now reportedly handles more monthly searches than the widely discussed AI tool ChatGPT. According to CEO Bill Ready, third-party data indicates Pinterest sees roughly 80 billion searches per month, edging out ChatGPT’s estimated 75 billion. This activity, Ready emphasized, is fundamentally different in nature. Over half of Pinterest’s searches are commercially oriented, compared to a minimal percentage for the chatbot. This positions Pinterest not just as a social network, but as a major global search destination with a user base actively planning purchases.

The company’s financial performance, however, tells a different story. For the fourth quarter, Pinterest fell short of Wall Street’s expectations for both revenue and earnings per share. Revenue reached $1.32 billion, just below the anticipated $1.33 billion, while earnings per share came in at 67 cents versus the projected 69 cents. Looking ahead, the company provided a first-quarter sales forecast that also missed analyst estimates. Leadership attributed the shortfall to reduced spending from larger advertisers, particularly in Europe, and disruptions in the home goods category due to new furniture tariffs. These challenges are expected to persist in the near term.

This earnings miss was particularly notable because it occurred alongside stronger-than-expected user growth. Monthly active users jumped 12% year-over-year to 619 million, surpassing the forecast of 613 million. The market reacted negatively to the financial results, with shares plummeting approximately 20% in after-hours trading. This disconnect highlights Pinterest’s enduring challenge: converting its massive, engaged audience into consistent advertising revenue. Users often visit the platform for inspiration and future planning rather than immediate purchasing, which can make its ad inventory less attractive to brands seeking clear commercial intent.

The rise of AI-powered shopping presents both a threat and an opportunity for Pinterest. Advertisers may increasingly funnel budgets toward platforms where user intent is explicitly commercial, such as chatbots fielding direct requests for product recommendations. When questioned about navigating this shift, Ready pointed to the company’s strengths in visual search, discovery, and personalization. He argued these features naturally guide users to relevant products as they browse, completing commercial journeys without the need for typed prompts. Ready also highlighted the improved checkout experience from Pinterest’s partnership with Amazon.

Addressing the potential for fully autonomous AI shopping, Ready suggested consumers are not yet ready to let an algorithm make purchases on their behalf. However, he expressed confidence that Pinterest would be well-positioned to adapt if and when that consumer behavior changes, describing the actual transaction as “one of the easiest parts of the commercial journey to solve.” The company’s path forward hinges on leveraging its unique search data and visual discovery to prove its value to advertisers, even as competitive pressures in the digital ad space intensify.

(Source: TechCrunch)