(Reuters) -Pinterest ( PINS ) beat analysts' estimates for second-quarter revenue on Thursday, as increased marketing spend on the platform was fueled by its artificial intelligence-powered advertising tools.

However, shares of the company fell around 8.2% in extended trading. The stock has risen about 35% so far this year.

The social media platform's rapid growth among Gen Z users-who now represent more than half of its user base-combined with the AI-powered tools for personalized and automated campaigns, has made the platform attractive to advertisers.

Pinterest's ( PINS ) results follow Meta and Reddit's strong second quarter performance last week. In contrast, Snap reported its slowest quarterly revenue growth in over a year.

The company's focus on direct-response ads, designed to prompt specific actions like shopping, app downloads, or website visits, continued to drive ad demand.

"We've found our best product market fit ever by becoming a personalized shopping destination for users and an AI-powered performance platform for advertisers," CEO Bill Ready said in a statement.

Pinterest ( PINS ) has third-party ad deals with Google, Amazon.com and advertising platform Magnite.

Revenue for the second-quarter grew 17% to $998.2 million, beating analysts' average estimate of $974.8 million, according to data compiled by LSEG.

Global monthly active users on the platform rose 11% to 578 million, exceeding estimates of 553 million.

Pinterest ( PINS ) expects third quarter revenue to be between $1.03 billion and $1.05 billion, compared with estimates of $1.03 billion.