In a recent interview with CNBC’s Jim Cramer, Pinterest CEO Bill Ready shed light on the factors driving the social media platform’s impressive growth and success. Over the past five years, Pinterest has transformed from a virtual pinboard to a dynamic hub for discovery and shopping, leveraging advanced AI and a positive commitment. The company’s stock has soared by over 20%, a testament to its innovative approach and expanding user base.

“Pinterest is stronger than ever,” Ready remarked. “We have just passed 500 million monthly active users and have seen seven straight quarters of accelerating user growth. What excites me most is that we are winning with our users, particularly with Gen Z, which now makes up more than 40% of our user base.” This demographic shift highlights Pinterest’s appeal to younger audiences seeking inspiration and positivity, starkly contrasting the often toxic environment of other social media platforms.

A New Era of Engagement

One of the key drivers of Pinterest’s success has been its focus on creating a positive user experience. “When I came into Pinterest, I set out to prove a business model for social media centered on positivity rather than engagement through conflict,” Ready explained. “We are winning by delivering positivity and actionable content, which is why users keep returning.” This approach has resonated particularly well with Gen Z, who see Pinterest as a refreshing alternative to other social media sites.

Moreover, Pinterest’s innovative use of AI has played a crucial role in enhancing user engagement. “We leaned heavily into next-gen AI about two years ago, and now we have models that are 100 times larger than before,” Ready said. “This has led to a significant lift in the relevancy of our recommendations, making the platform more engaging for users.” By continuously refining its AI capabilities, Pinterest ensures that users receive highly personalized and relevant content, further strengthening their loyalty to the platform.

Reflecting on Five Years of Growth

As Pinterest celebrates five years as a publicly traded company, CEO Bill Ready shared his reflections on the platform’s remarkable journey and its current success. “It’s been a remarkable journey for Pinterest, a decade plus after founding,” said Ready. “Pinterest is stronger than ever; we just passed 500 million monthly active users. We’ve put up seven straight quarters of accelerating user growth, which is a testament to our team’s hard work and our users’ engagement.”

Winning with Positivity

Ready emphasized the importance of user satisfaction and the platform’s commitment to positivity, which he believes sets Pinterest apart from other social media platforms. “The thing I love most is that at the core of it, we are winning with our users, particularly with Gen Z, which now makes up more than 40% of our users,” he said. “We’ve set out to prove a business model for social media centered on positivity rather than engagement through outrage. We’re winning by delivering positivity, and it’s resonating with our users.”

He also highlighted the company’s strategic decisions that have driven growth, such as investing in new technologies and expanding the platform’s capabilities. “When I came into Pinterest, one of the things I set out to do was to prove a business model for social media that focuses on delivering value and positivity rather than capitalizing on negativity and conflict,” Ready explained. “Coming up on two years in, we’ve not only accelerated user growth but also revenue growth, all while maintaining our commitment to a positive user experience.”

Cross-Generational and International Appeal

The growth has not been limited to a single demographic or region. “We’ve seen user growth across every generation and geography,” Ready noted. “Our largest user base is Gen Z, but we’ve also seen significant growth among millennials and even older generations. This cross-generational appeal is a strong indicator of Pinterest’s universal value proposition.”

Ready also pointed out the platform’s international success, which he believes holds significant potential for future growth. “Roughly 80% of our users are outside the U.S., yet less than 20% of our revenue comes from international markets,” he said. “This presents a huge opportunity for us as we continue to enhance our offerings and tailor them to different regions.”

As Pinterest continues to evolve, Ready remains optimistic about its future. “We see tremendous opportunities ahead, both in the U.S. and internationally. We’re just getting started with shopping and accelerating user growth across generations and geographies,” he concluded. “The next five years will be about building on this foundation, leveraging our unique strengths, and continuing to deliver value to our users and advertisers.”

Integrated Shopping: Bridging Discovery and Action

Pinterest’s recent success can be significantly attributed to its enhanced shopping capabilities, which seamlessly bridge the gap between discovery and action. CEO Bill Ready emphasized this shift, stating, “Historically, Pinterest has been a platform for digital window shopping. Now, we’re enabling users to take action on the things they find, turning inspiration into reality.”

This transformation is evident in the platform’s increased user engagement. “We more than doubled the number of clicks we send to advertisers in Q4,” Ready noted, highlighting how the platform has evolved to meet its users’ needs. The integration of shopping features has made Pinterest a go-to destination for Gen Z, who are increasingly looking for platforms that combine social media with tangible shopping opportunities.

Leveraging AI for Personalized Shopping

The integration of advanced AI technology has been a game-changer for Pinterest’s shopping experience. By leveraging AI, Pinterest can deliver highly personalized shopping recommendations, making the platform more attractive to both users and advertisers. “We’ve leaned heavily into next-gen AI over the past two years,” Ready explained. “Our models are now 100 times larger than before, leading to a 10 percentage point lift in the relevancy of our recommendations.”

This AI-driven approach enhances user experience and boosts the effectiveness of advertisements on the platform. “Ads on Pinterest are not just interruptions; they are part of the content,” Ready said. When users have commercial intent, the ads they see are highly relevant and less intrusive, creating a win-win situation for both users and advertisers.”

Expanding Global Reach

Pinterest’s efforts to bridge discovery and action are not confined to the U.S. market. With 80% of its users based outside the U.S., the platform sees significant potential for growth in international markets. “We have a huge opportunity internationally,” Ready mentioned. “The shopping features we’ve developed are just starting to roll out globally, and we expect to see substantial growth as we expand these capabilities.”

By focusing on both user engagement and advertiser satisfaction, Pinterest is well-positioned to capitalize on the growing trend of integrated shopping. As Ready summarized, “Our goal is to create a platform where inspiration meets action, and we’re seeing that vision come to life.”

AI and Personalized Recommendations

One of the driving forces behind Pinterest’s recent success is its robust AI infrastructure, which powers personalized recommendations for its users. By leveraging AI, Pinterest has been able to deliver a more tailored and engaging experience. Bill Ready, CEO of Pinterest, elaborated on this, saying, “Our AI models are now 100 times larger than they were two years ago, and this has significantly improved the relevancy of our recommendations.”

The impact of these enhancements is evident in user behavior. “We’ve seen a full ten percentage point lift in the relevancy of our recommendations,” Ready noted. This means users are not only seeing more of what they like but are also more likely to engage with the content. This heightened relevancy translates into increased user satisfaction and more meaningful interactions on the platform.

Driving User Engagement

The AI-driven personalization is particularly appealing to Pinterest’s diverse user base, especially Gen Z. “Gen Z values authenticity and relevance,” Ready said. “Our AI capabilities allow us to deliver highly personalized content that resonates with this demographic, making Pinterest an essential part of their daily routine.”

Pinterest’s unique ability to understand user preferences through AI extends beyond mere content suggestions. The platform’s AI analyzes user behavior to offer recommendations that align closely with individual tastes and shopping habits. “Our platform is not just about showing users what’s popular, but about predicting what they might love based on their unique interactions,” Ready added.

Creating a Unique User Experience

What sets Pinterest apart from other social media platforms is its ability to turn data into actionable insights. “Pinterest has always been about inspiration, but with our enhanced AI, we are turning inspiration into action,” Ready explained. Users can now easily transition from discovering new ideas to purchasing products that fit their preferences.

This seamless integration of discovery and action is a testament to Pinterest’s commitment to leveraging AI for user benefit. As Ready pointed out, “The combination of advanced AI and our unique user data allows us to provide a shopping experience that feels personal and intuitive.” This personalized approach not only enhances user satisfaction but also drives advertiser success, creating a symbiotic relationship that benefits the entire Pinterest ecosystem.

Positivity and User Engagement

A core element of Pinterest’s strategy under Bill Ready’s leadership has been fostering a positive user environment. Unlike other social media platforms that often thrive on controversial or negative content, Pinterest has consciously tried to promote positivity. “We are winning by delivering positivity,” Ready stated. “When I came into Pinterest, one of my primary goals was to create a business model for social media centered around positive engagement rather than outrage.”

This focus on positivity is resonating particularly well with Gen Z users. “Gen Z will tell you one of the biggest reasons they come to Pinterest is because it’s an oasis away from the toxicity found on other social media platforms,” Ready emphasized. This approach has not only driven user growth but has also enhanced user retention. By prioritizing positive content, Pinterest has created a safe and inspiring space for users to explore their interests.

Engaging Through Inspiration

Pinterest’s commitment to positivity extends to its content strategy, which emphasizes inspiration and creativity. “People come to Pinterest with intent and purpose,” Ready noted. “They’re looking for inspiration to plan their lives, whether it’s designing a room, planning a wedding, or finding new recipes.” This focus on purposeful content has helped Pinterest build a loyal user base that values the platform for its practical utility.

Ready also highlighted the impact of this strategy on user engagement. “Unlike other platforms where users might scroll mindlessly, Pinterest users are highly engaged and motivated,” he said. This high level of engagement is reflected in the platform’s user metrics, with seven straight quarters of accelerating user growth.

A Positive Business Model

The emphasis on positivity is not only beneficial for users but also for advertisers. “Ads can be great content when the user has commercial intent, as more than half of the users on Pinterest do,” Ready explained. By aligning advertisements with positive and inspiring content, Pinterest has created an advertising environment that feels less intrusive and more relevant to users.

This approach has proven to be effective in driving advertiser success. “We’ve more than doubled the number of clicks we send to advertisers,” Ready stated. By integrating advertisements seamlessly into the user experience, Pinterest has demonstrated that a positive approach to social media can be both user-friendly and commercially viable.

Looking Ahead: Opportunities and Challenges

As Pinterest continues to grow and evolve, it faces both exciting opportunities and significant challenges. One of the most promising opportunities lies in expanding its integrated shopping capabilities. “We are just getting started with our shopping features,” Ready said. “There’s a tremendous amount of potential to make Pinterest the go-to platform for discovering and purchasing products.” By enhancing its shopping tools and expanding its partnerships with retailers, Pinterest aims to solidify its position as a leading platform for social commerce.

However, growth comes with challenges, particularly in maintaining the platform’s unique positive environment. “As we scale, it’s crucial that we continue to prioritize positivity and inspiration,” Ready emphasized. We must ensure that as more users join Pinterest, the platform remains a safe and uplifting space.” This involves continuously improving content moderation and leveraging AI to identify and remove harmful content.

Expanding Internationally

Another significant opportunity for Pinterest is its international expansion. Currently, about 80% of Pinterest’s users are outside the United States, yet international monetization is still in its early stages. “There’s a huge opportunity for international growth,” Ready noted. “We’re starting to roll out our shopping features in new markets, and we see a lot of potential there.” By tailoring its approach to different regions and cultures, Pinterest hopes to capture a larger global market share.

In addition to expanding its user base, Pinterest is also looking to enhance its AI and machine learning capabilities. “We’ve made significant investments in AI to improve the relevance of our recommendations,” Ready said. “But there’s always more we can do to make the platform even more personalized and engaging.” Continued innovation in AI will be critical to Pinterest’s ability to deliver a personalized and positive user experience at scale.

Navigating the Competitive Landscape

As Pinterest grows, it must also navigate an increasingly competitive landscape. Social media giants like Facebook, Instagram, and TikTok are constantly evolving and introducing new features to retain users. “We’re aware of the competitive pressures,” Ready acknowledged. “But we believe that our focus on positivity and purposeful content sets us apart.” By staying true to its core values and continuously innovating, Pinterest aims to differentiate itself from its competitors.

Looking ahead, Pinterest is committed to building on its successes while addressing the challenges of growth. “We’re excited about the future,” Ready concluded. “There are many opportunities ahead, and we’re confident in our ability to navigate the challenges and continue delivering value to our users and advertisers.” As Pinterest moves forward, its focus on positivity, inspiration, and innovation will be key to sustaining its momentum and achieving long-term success.