Pinterest Inc. (PINS) surged 15.87% in the after-hours trading session on Thursday after reporting solid fourth-quarter 2024 results and issuing an upbeat revenue outlook for the first quarter of 2025.

For the fourth quarter, the image-sharing platform reported adjusted earnings per share of $0.56, missing analysts' expectations of $0.65 but marking a 5.7% year-over-year increase. However, revenue jumped 17.2% to $1.15 billion, surpassing estimates of $1.14 billion.

The impressive revenue growth was driven by a robust holiday shopping season, resulting in global monthly active users reaching an all-time high of 553 million, up 11% year-over-year and exceeding analysts' forecast of 547.4 million.

What particularly excited investors was Pinterest's strong guidance for the current quarter. The company expects Q1 2025 revenue between $837 million and $852 million, exceeding analysts' estimates of $832.8 million. This positive outlook suggests that Pinterest's AI-powered advertising tools and growing Gen Z user base are attracting more advertisers to its platform.

Pinterest CEO Bill Ready highlighted the company's strategy is paying off, with the platform becoming more engaging and actionable for users and advertisers alike. The robust performance and upbeat guidance affirm Pinterest's ability to drive profitable growth and free cash flow amid increased competition in the social media space.