On Thursday, during its fourth-quarter earnings call, Pinterest Inc. (PINS  ) reported record engagement levels, with its weekly active to monthly active user (WAU-to-MAU) ratio hitting an all-time high of 62%, while advertiser clicks surged 90% year-over-year in the fourth quarter.

What Happened: During the call, CEO Bill Ready said that Pinterest's focus on actionability-which includes shopping features, curated boards, and collages-is paying off, particularly with Gen Z users.

Pinterest reported another quarter of all-time user highs, with the U.S. and Canada market alone reaching 101 million monthly active users.

While the company continues to grow its global user base, its strategy in mature markets like North America and Europe is focused on increasing engagement per user rather than just adding new users.

Advertiser engagement is seeing massive growth. Even after lapping the previous year's strong performance-where clicks were up more than 100%-advertiser interest remains strong, Ready said.

Why It Matters: Pinterest posted fourth-quarter revenue of $1.15 billion, surpassing the $1.14 billion estimate. Global monthly active users rose 11% to 553 million. Average revenue per user reached $2.12 worldwide and $9 in the U.S. and Canada.

Pinterest's annual average revenue per user (ARPU) saw steady growth across all regions in 2024. Global ARPU increased 8% year-over-year, reaching $6.94 compared to $6.44 in 2023.

In 2024, Meta Platforms, Inc.'s (META  ) average revenue per user rose to $49.63, up from $44.60 in 2023. The company's family of apps segment, driven mainly by advertising, generated over $162 billion in revenue, as per Statista.

Price Action: Pinterest's stock surged 18.49% after hours to $39.80. It ended Thursday at $33.59, gaining 0.87% during regular trading, according to Benzinga Pro. So far this year, the stock is up 9.84%.