Pinterest's quarterly sales increased 18% in the second quarter, driven by growing traction with Gen Z, the social media company announced. Both sales and record monthly active users surpassed Wall Street's expectations.

Despite the sales growth, Pinterest reported a second-quarter loss of $46.7 million, or 8 cents a share. This was attributed to increased costs, including a restructuring charge.

Gen Z users now constitute Pinterest's largest and fastest-growing demographic, accounting for over half of its user base. The company also highlighted the impact of artificial intelligence, which is being leveraged to enhance user personalization, improve advertiser performance, and create future monetization opportunities, according to CEO Bill Ready.