Pinterest's ARPU Growth Story: AI-Powered Personalization Paying Off

Pinterest just proved why AI investments can move the needle. Q3 numbers show ARPU hitting $1.78 globally (vs $1.7 YoY), but here's where it gets interesting:

**Region Breakdown:**
- Europe: +31% YoY to $1.31 (retail demand solid)
- US/Canada: +5% YoY to $7.64 (retail, CPG, Telecom pushing growth)
- Rest of World: +44% YoY to $0.21 (emerging markets ramping up)

**The AI angle:** Visual search queries jumped 44% YoY. PINS' AI-powered shopping assistant is converting discovery into sales seamlessly. 600M active users, Gen Z leading the charge.

**Q4 projections look mixed:** Europe ARPU expected at $1.62 (+17.1% YoY), but US/Canada growth slows to +1.4% YoY at $9.13.

**Competitive pressure:** Reddit's ARPU grew 41% to $5.04 (US hit $9.04), Snap's modest 2% to $3.16. PINS valuation trades at 3.62x forward P/S vs industry average—relatively cheap, but stock down 12.8% YoY. Analysts turning cautious (Zacks Rank #4, Sell).

Bottom line: AI is working for Pinterest, but growth deceleration in mature markets is real.