Pinterest (PINS) 6 Feb 232022 Q4 Earnings call transcript

Good afternoon. Thank you for attending today's Pinterest Inc. Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. My name is Hana and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. Instructions] [Operator

like Head conference go of now host to ahead. pass Doshi, Neil Investor to would over the your I Relations. Please

the Relations ended December Good us. XXXX. I'm the you thank Head XX, quarter Pinterest of Doshi, to Investor fourth year afternoon for Pinterest. earnings full for and Neil call for and Welcome joining

and me Morgenfeld, our Todd today CEO Pinterest and on Joining Operations. Financial the head Officer Ready Business call are Bill of Chief

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make number today differ may could we our and of performance, and outlook that Some results materially. the that and regarding be such operations, statements to uncertainties actual cause statements of forward-looking, considered involve a risks

of In for addition, are XXXX outlook future our and indication QX performance. trends, preliminary beyond results, and are an and not

these information later We of duty forward-looking us as disclaim on and them to update statements law. to based today by available we any required are unless making

risk filed refer more SEC section our XX-K or Investor website. the the information, of most please XX-Q Relations our factors For with available discussed on Forms in to and the recent

are and and which located we is Investor at in GAAP non-GAAP release present earnings both to measures. website and distributed included the financial to public During this through press reconciliation call, GAAP A -- will measures we available Relations non-GAAP today's of presentation, our investor.pinterestinc.com.

unless Lastly, all growth specified. otherwise should year-over-year rates prepared considered today's discussed in be remarks

I'll now call Bill. the turn And over to

experience QX deepening joining reinvested return and Neil. We and growth. call. Thanks core particular execution year thank to past engagement to our proud our earnings the in of in led a and for you team's user product over Hi I'm and our focus everyone that QX.

returns will business resulted advertisers. tech solutions to that and for we're we innovate getting that deliver have strong partners. new and shipped just our continue ad to users in and I built started. our and value We conviction And measurement improved

and We MAUs million, up sequentially both XXX global grew to year-over-year. in QX

our quarter. from of app grew and over users accelerating account XX% Canada app which mobile impressions global our last and US for XX% X%, Our mobile grew and revenue users

More engagement we importantly, on user significantly to than faster as per driving user monetization. demonstrating greater deepening continue focus grow sessions users, per

delivered we on of excluding guidance as roughly into retail from markets, growing with these large basis, FX constant line in range. funnel during X% platform holiday X% a advertisers mid-single-digit currency and or leaned our Strength QX, of season. In million the revenue came $XXX advertisers our full US the impact international

the well CPG who offset small However, US this as and advertisers, was faced headwinds strength macroeconomic partially from as the by environment. advertisers in mid-market

$X.X year the we or revenue For basis. on generated constant of full XX% billion, a growing X% currency

and with users execute quarter from pleased our value results to market, speak strategy the which later. in We long-term and softening our Todd headwinds ability remain despite advertisers. confident We're will our in this ad for to drive

We're also rigor have actions operational costs taken QX. increasing and in to control

on the us offices to our expansion we XXXX demonstrate the and cost path pace in such example, despite put strong flow. and volume sequentially, generating our some savings. slowed infrastructure on reduced which headcount engagement These we strong declined significantly of was that EBITDA smaller our flat For We meaningful our increases, quarter-over-quarter. future closed spend, of cash actions for hiring margin focus

strengthening per foundation our the of priorities: one, solid build we as product laser into monetization core and shopping two, four, strategic As brand-safe and positive focused growing we're operational improving and the therefore, in user; on four margin experience; platform. upon leadership the a three, engagement our we set expansion; integrating rigor XXXX, and

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pin images. long-term, actionable Pinterest video the playbook making also content we're same we the want applied make end, To Over that every shoppable. static to on we more using to

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end-market During Friday, XX% of grew period, for Black XX% in QX. accounted find on Pinterest, the Monday shopping consumers. revenue, Cyber ad are MDL merchants our helping which are and we People shopping

committed we're operational are to and shareholders. our rigor to delivering Third, driving value

we can off find we reduce cut steps took we expand challenging costs margins. are starting to EBITDA in an on started XXXX to environment While so in investment down expenses our that year, ways this early QX, and as macroeconomic continuing meaningfully to

I set us constraints As and a will for that our believe strong teams compelling I've more breed believer said deliver I'm experiences before, products long-term. that and creativity, growth sustainable up

Furthermore, Todd maintaining allocation shareholders. to I including the acquisitions broad for been and our business, strategy, returning have flexibility capital evaluating options in investing and for capital strategic

million, commence at operating from to to which program to cash will we're details up stock-based plan this Given the ongoing combined planning flow $XXX of program. dilution into we Todd our go balance cash robust on buyback with more mitigate to significant Pinterest today, buyback help quarter generation, execute our stock compensation. a

more be our platform create and in Pinterest our of environments place positive users, to tuning love. increasingly online they they look toxicity, is we're the bring is as on a it ever. this customers. but than And Internet. mission an Finally, business is one attract does I life intentionally brand-safe believe Pinterest's more are biggest is a our only for full inspiration differentiators Not the to everyone environment also of to help to we that inspirational an advertisers the that of important

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and communities. value feedback in I mentioned and the As call, input, communication, analyst I last with the investor our

As part details. on later timing plan additional in and an that, future Investor of this we'll to update year, the you and we Day host

a the to new our six-plus been Pinterest's years CFO. CFO for may Xst. to growth press and has in Todd from as opportunities while Todd Finally, you our we Morgenfeld, seen transition, of transition smooth Business July company is pursue release last ensuring a instrumental committed on the Head have will Operations, today, career over new and to search

navigate to employees, I'd years, pandemic, like moment our I dedication and the advertisers, helping over his IPO the made partnering our the process, revenue significant and Pinners, joined to last operations, the including business company's six-plus our our the company business leading functions, to a to take year. company me when has maturing our Todd recognize with last our contributions Todd advancing for shareholders.

we future in your Pinterest Todd, I So, your thank and be cheering to Everyone will partnership at leadership. you the intend for endeavors, loudest. be and cheering you for

contribute and the Thanks and to past I also opportunity I to Bill. Pinterest years. forward six watching thank appreciate to the team execute, the partnership. Board company and innovate, kind the for grow. continue the the want the words I look entire to over

will In my on our as And now will a financial QX and I'll QX performance revenue about unless otherwise financial unless outlook. otherwise I'll All be noted. specified. except results. preliminary today, be in reminder, terms for non-GAAP a metrics our remarks our talk comparisons discussed discuss basis year-over-year all discussed

In and experience preferences, XXXX, tastes advertisers more sites. that seamless we users' value stack delivering the personalized made improving resulted content, relevant in measurement and products to platform-wide increased solutions, through handoffs more through that ad innovations fit showing more user new innovation, merchant and to

our in we help pricing demand quarter. industry, platform, grew normalizes expect action in stack on XXXX deliver we in across though the including demand the Even the our as lowered softening fourth ad our revenue per to competitive the cost future. environment Furthermore, investments ad

partners. and As will improved continue optimization innovate spend for we page our new solutions, products investments to on like on believe these ad deep we mobile better measurement returns drive linking, whole

XX%. compound From As rate focused Bill users, existing allow on engagement to our to of over rate QX our episodic grew and a mentioned, time. growth while per revenue monthly our should our a us which growth at deepening with of grow users remain at XX%, revenue annual XXXX active we compound user grew QX annual XXXX,

continue to should to for to relevance of deliver opportunities to commercial more frequency the growth visitation, match advertisers and our of Pinterest make be action, robust intent Our users' shoppable improve solutions as intent. improve we satisfy our more advertising

active growing year personalization US During XX in the our to our Pinterest, return to the came X% monthly seasonal users that monthly of back ago to believe and users the quarter, XXX We million are global X% relevance levels. million, sequentially. primary investments year-over-year active and growth. Canada, and were In drivers

users XX% first noted most users to X% growth, and mobile we've returning application of active growth app revenue. are Canada mobile our XXXX. QX year and account for before, our users time this total our after As and over application for MAUs in impressions to monetizable US and mobile to accelerated the accelerated XX% of Global growth monthly

from faster accelerated the monthly grew sessions Canada and and users quarter. active US and global third significantly Furthermore, than

of In travel, men's verticals vehicles verticals as our addition, growth many some our in like fashion. core and well we as emerging saw of

advertisers Turning to markets to in we currency grew and our from positivity global reported on of also safety There as our sales when on during season, revenue awareness objective or basis. the foreign drive holiday continue into brand growth large a international our ad performance. X% a exchange or the solid for headwinds. from had brand basis financial lean Pinterest. on resilience QX X% to million retailers Strength looking and adjusting was $XXX spend, came constant

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CPG and resilience advertisers and CPG stemming of continue climate. advertisers, from the face of pockets SMB our partners to mid-market saw we US challenges some our macro current some While from many

and growing of terms from basis constant revenue million, $XX on a revenue $XXX on from a was on exchange reported by and X% revenue X% currency on constant region, our growing was XX% In US region million, a basis. X%. declining but headwinds. of was increase Canada Rest basis a Total revenue Total basis of reported XX% World an due to $XXX foreign million, Europe currency

XX%. EBITDA our adjusted that quarter $XXX EBITDA to will we an fourth profile in believe Adjusted we resources spaces. two about Most of and accounted against notably, recruiting strategy with and EBITDA included this reduce and includes the a our these our of well actions our our was smaller and figure less margin. beyond. for realignment our This staff utilized of expense shopping expense to reductions of of in margin closures profile. Turning QX actions XXXX EBITDA million office Collectively, several as points as for took some EBITDA percentage

of to were like some on actions expenses. color more expenses I'd also up provide how these million, operating impacted quarter-over-quarter. $XXX Total our XX%

drove G&A. accounted line for our with costs quarter-over-quarter, marketing I costs our quarter-over-quarter. our actions operating I referenced XX% the sales actions was XX% the rest These marketing sales the of across XX% actions were debt mentioned, as the grew well you If on spread expenses G&A that calls adjust grew past growth. during five points quarter-over-quarter. brand campaign XX% taxes described majority expenses growth associated that referenced Over and and grew vast in specifically, the for of of marketing expense. with driven the previously and our by More QX, expenses while that approximately growth, as guidance. The I've I bad increased and of

grown Excluding our all G&A sequentially. X% would these have items, of

marketable and securities. approximately we cash $X.X cash, Finally, in with equivalents the quarter billion ended

advertiser we signals As share remains have we based best macroeconomic around look the to our the experiencing ahead, on our volatile today. we demand, we're environment softer and while guide judgment want

nearly revenue QX. our our single-digit percentage from growth in grow For line revenue reported year-over-year. to is QX, Quarter-to-date, revenue growth the range trending we with in expect low

wider are a the bit we However, quarter, in similar believe the volatility market. the error to bars given last

exchange points US advertisers continue includes and we and macro mid-market our in one to medium also challenges small headwinds persist expect foreign guide about Our two of to as headwind, face environment. outsized to from and this they business

action, and made significant monetizable reducing supply cost these we've price-sensitive. per more remain While advertisers in up opening progress

For in operating range. double-digit sequential we decline a the the first percentage low expect non-GAAP quarter expense,

fourth a we're in not in brand first invest First, as did the to planning quarter in the quarter. we campaign marketing

of to in in net the are the we to reductions the expense Second, impact reflected took QX date related QX in and guidance. actions

actions in these year goal our of full additional resulted contribute believe margin within to quarters, to they costs While we these expansion. will returning

cadence As half year be will of you as you year, in think significant the business quarter about investment should in each we our XXXX. operating first the the the into expect the through lapping in the expense OpEx, of into meaningful second a deceleration half especially year-over-year growth we made as hiring we and move

guidance. generally know, active we provide On monthly as do not you users,

personalization encouraged users. top episodic growth, deepening are line and engagement that our on we're and to We MAU core focusing relevance back and our us investments in brought within

As Bill capital focused strategy. allocation mentioned earlier, providing value, long-term including our through shareholder we're on

a a portion will up an We important share commence Our of repurchasing compensation. employees, equity following of the it's fosters to intend this equity share million. of Directors program We this culture have Board and complete compensation repurchase repurchase offset as shares has months. XX as and our help believe of our overall it program over the to authorized to program with dilutive program $XXX this plan the ownership we quarter, to impact

in -- company of of employees to own operating shares on behalf hold taxes RSUs, the we, that dilution pays operational under implemented as last the mitigate for on Net to program cash reserve Settlement, an quarter the addition approach employees. the back to our company, in vested we repurchase year Our the cover a is which called where taxes second from

price variety a through of the grants could in Net the depending factors, of approximately including cash use amount to year. of a vest of stock on number the Settlement and XXXX, million that $XXX

advertising Pinterest to interest, come of can we with partners, to for the all that questions. thank And our people to it that, I Finally, teams and want find inspiration. our up open of

proceed. with The Instructions] [Operator is Goldman Please Sheridan Eric first question Sachs. Certainly. from

questions. taking probably you if Thank for two, Todd, best one call And much in congratulations you just Maybe endeavors. together, on earnings more sure first, of the wishing so have we'll I future future endeavors. can. I'm but luck

how question, you Maybe of long-term that versus you now we interplay the what managing advertising overall in side for the expect quarters? that low building on factors visibility managing perspective the towards coming the Can to seeing how on give on the and your should visibility obviously, through right build you're sort remains advertising want low us you're of those environment. the in first

and And XXXX, of then of what we prepared are sort remarks, sprinkled but environment lot the top think back for growth we second, maybe exit into and how, seeing? broader as you much. so Thanks priorities this that investment into XXXX guys about plays that against a again, you're how your should the

Eric. Thanks

of home something and So, sort larger especially we're gaining we if share along the in of I compared about, with we step actually of where X% a sophisticated back on revenue our peers. to typically share, growth your address broader write most outperforming are be there, gaining landscape of sort first, I'd more our say, questions lot wallet. And we're believe X% and where progressing our objectives to while wouldn't we're and to advertisers,

we about, as talked try us, front potential So, of in to frame out huge that I'll we potential. growth and have

unwind? and compete engine our with we had in user after came Could Could investors a could monetization video? the of scale? a we So, regain analysts when Pinterest short-form we questions. ago, world quarters build more at few And core to a share two pandemic I base

confident organization of do more above, we're employing in operational investments ever six to get all After across a I'm discipline over there. the that and our little can the we focusing than months,

percentages. year-over-year seeing and better return the growth? our mobile to also user engagement double-digit we on our And app to returned stickiest we're can first monetizable Yes. that, So, MAUs. than MAU We've is seeing overall growth in we're growth. growing question, most double-digit And that

users, sessions that fact really the and So, growth accelerating. growing than that the about good we and even growing faster sessions feel is are

its active That's weekly in highest see really last ratio will quarters talking and fact, which monthly clear we're that ever evidence we've the our as today, XX-K, been deepening XX%. that filed active couple you'll to at good there. of our user success In about finding level engagement is be for at

our peers in the with doing think compete compete in on where And can are we question as own we're our answering well, video? that a I in we -- all second a where short-form but peers can a question clear world terms. Second, on was, yes world our it

is of of is more more that to get of our supply serve video, needs is while quarter-on-quarter. Pinners is content on action. more than our than of Pinterest, on to content inspiration XX% on XX% our content Video the engaging from Our efficient finding seeing We're XX% engagement ways short-form growing. video. revenue And importantly, it's we're up

when think success video, that broadly, I of monetization about and stands been out. has we're open think think short-form So the in question good an we I unique seeing which which monetizing is really video, short-form

I to engine we've that in we of scale, so advancements at excited that's be couldn't us to a the And build allowed and ad our stack absolutely. made the further how point, a than tech consumer about shopping a question grow a in can of more monetizable north ad innovation mode of load is because commercial gains page XX%, opportunistically has intent. overall or which optimization, whole supply like engagement monetization when increases higher

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to environment, deliver we've value paying made while advertiser off. I we in remain demand-challenged are think the improvements a So

doesn't than overnight, our that's us relevant why faster of allowing the in us optimization supply with peer just relevance the in sets sure commercial engagement, have while than is. there like that, more innovations choppiness the that context, flip deepening have serve measurement coupled think deepening we're whole really us the great else of even setup you seeing we and we're progress page with ads advertisers, lot in making that see in a the for demand those growing we're And faster adoption are the many fighting engagement tools of discerning think growing that the platform even set. really we on we think to up I ads the as curve as early and near-term, well making we all performance with everybody medium to long-term, on through

you, Mr. Thank Sheridan

And point. one final then

top asked you Eric, think, also priorities. about I

making I these talked of I we're to of really engagement shoppable all I we these have sure I driving our think stack. as our making think many belabor the that points, as as so those. proceed those. -- I continue core on addressed on progress, experience to ad call, But won't in great about our we while improvements and of each well forward further

we're rigor, Those the a we're where product operational And around operational even We implementing we're have good operational really importantly, really finally, good to implemented continue journeys. proof rigor, seeing that. think in to going And from priorities. more seeing innovation. our good early be program results We're those we're then points. rigor, we've as

seeing multiple in constraints the the action. we're you. And so we creativity, good about around that feel comments on leading to made progress And times that. Thank really I've

Thank you, Mr. Sheridan.

Barclays. next Your Ross is question Sandler Please proceed. with from

Hey.

Just up levels. following investment the prior question priorities on on and

single XXXX? know but if have I it what to see improves we of planned for then -- something first based levels of is and higher the on of just than you visibility, expansion let's might in say half see ton that what margin low a we we in that So the talked investment don't kind the the half second Todd, year, revenue digits about

using of have an idea supplement partnership media you these direct question, a the third And parties. you ad from about demand guys other DSPs your and as bring retail then where Bill, ad second some networks and sales, to in talked

and about you something come didn't It could bit that So on more little just of up magnitude prior timing checklist. a like talk this?

a is implement do direct ad XXXX idea how that Thanks balance, the So partnership you a then more -- And that sales? of you event? if do with lot.

hit second to your question to lot. a Thanks give first it your then hit question. Todd first I'll Yes.

So we ad as for sourcing us. demand an definitely think about opportunity

that Our first on that our and is making that sales partnerships priority there. that is team always direct really be driving going progress we're feel to feel the good with latest be the winning motion. performance have how and our we're we the those our advertisers selling discerning first-party implemented about the tools about And good We and seeing advertisers sophisticated our most sales strongest. that really and

mentioned you demand opportunity we've And think done in underutilized third-party to an other that Networks. to And that with a platforms. those. lot there's we has those an demand we parties. Retail think already believe compared leveraging particularly our one third opportunity there's Media of do around But We here, augment lever been also more

will we explore. to so continue that something is And that

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revenue know to needs few the committed volatile get that and and about Ross, in from we're your picture a We demand talked the not too a line needed and on we some world year, margin we there. question, where understand perspective, expansion ago, generally on have levers top something to quarters be a to And are uncertainty it, that's margin costs. still outgrow a about meaningful basic to but

are that Ideally, supply demand normalizes to we given monetizable more better better. strategy and factors monetizable deep that And better opened optimization that those supply. whole up and as the working. hopefully grow lower all mobile are environment can Deepening engagement, the describes. tools page that We've at proving is measurement linking built ads utilize We've our tools, including Bill prices. working

So perspective. revenue upside I'm as a the confident demand some see normalizes, we'll -- we'll that picture from

part through of perspective, product we from expansion creates know more gross this little you hope for cost the quarter quarter-over-quarter the this that's of revenue bit current side. OpEx. continue margin another an But And that also That's a saw further and to a that there's equation through in which a declined after cost our to in of the invest year, standpoint more from infrastructure headroom optimizations meaningful discipline year. on

pretty the And hiring quarter. to as actions estate deliver of year. We've We took expansion. fourth other real to sure last continue in the levers, slowed on some to and our make evaluate like track significantly summer portfolio, we margin Bill things mentioned, more in actions including we we're taken already, that

from for posted guide will sense shoes modeling huge that on you unfold, your quarter year-over-year OpEx. fourth If a first year-over-year can probably growth I'm down the from quarter growth we thinking year the is step OpEx in my the how about that in the

of down down discretionary. a year, lapping rewards half first and and the back in headcount-related in year. would the and further of lapping programs, quarters creator lapping four the marketing unfolds made we we last then of including dial year each are You'll a that investments of in of because back because we're the And see half step campaigns our some which another lot lot the we're as we're step brand meaningful

from about think be growth, much, we modeling driving you of even post would support year means able through levels Operator, of course that next much the margin expansion. that growth a that should question. When low the OpEx perspective, to revenue that reduced much,

Nowak Sandler. question Mr. Thank with The Please Morgan you, next proceed. from Stanley. Brian is

taking I have for my Thanks questions. two.

of share wondering it's quantify at on of engaging if all around on users know anything of any sessions have a advertisers? about I first one, with any making with interaction and to just to way clicks transaction? made can but lot advertisers, you was users progress sort your you're you've or The advertisers early, you progress I more stats and early engagement. your the some just

into one, second are look of merchants of if behavior next or the and sort to Thanks. your that really I most the sort you putting you're over as going of e-commerce growth user are what in as of to Bill, growth at verticals platform, the the catalyze on you faster year? well And three guess, materially course the the important year two key inventory advertising think the

year-on-year conversions, Maybe but the on well giving buy mobile easier shopping, our is in linking XX% ad through shopping the first remarks, the connect for the as for growing mentioned to easier my question, deep we're ability place as progress I only with there, on seeing not to user solving capabilities.

linking. deep is of from so I coming the significant shopping And apps shared mobile how from revenue percentage

that only much that think not drive just mid-funnel. make engagement how our the is our funnel to I we at where early can we've also indicator full shoppable, of been content an more but much stronger historically do ability and to upper of

But conversion at board, the seen that low-funnel which third funnel, but about overall end the that of seeing mobile adopters that deep strong have performance. early had lower not of in a objective that revenue we're really adopted across things our of like the have linking, being we

our much that larger, linking is API performance have or tools by deep set our -- new is gives adopted of smaller right our a So, new now of conversion like capabilities new been and like part tools advertisers. of coming I a more future measurement mentioned early that of me in like of mobile from adoption our lot what confidence conversion sophisticated

we As compete adoption particularly curve, these that I lower-funnel move shopping-type on broadly, objectives, along we can actions, conversion bodes for and that objectives. well how more think

good I we So, those feel are really that on quite early as move indicators good adoption the curve, about.

women's large is think broad we are you categories things kinds where think apparel have we of. on definitely our ones places obvious Shopping also and asked of engagement, those that would opportunity. very some based fashion significant There platform. pretty which You about, are and about that

kinds things like and moment that other and meaningful engagement, are these have redesigns things well. weddings as home We user of behaviors large

fastest-growing also. behavior interesting in really mentioned like Z men's our emerging We Gen demographic. have Todd being things fashion, some growth and autos

like feel shopping we opportunity. broad-based is a So

see probably many would categories broad-based will you add While first, that platform. broad-based, quite that? there are we into than more some Todd, to on our we know lean it as may appreciate anything I don't

it I there's too. I think of a mean, way cutting Yes. different

said is Bill right. everything absolutely think I

just partnerships of is signed. we thinking of in terms joint way it these business other that about The

as it first XX% marketplace, large of couple cut first or about So by I category market quarters business saw ago I the think XXXX. you of of joint shopping in growth half of -- small if XXXX half talked versus opposed category seen to we've partnerships we of that retail versus a

And model advertisers. source experience, XX% the about here largest, stack we business the year-over-year full how working time We for ad ended the at of the was the on was partnerships. that most a in that sophisticated talked up the funnel confidence and joint year

up. that So we tick saw

so the And what seeing the success e-commerce on was brand specialty specialty platform. through of behavior. and from largest, are through from purchase Bill retailers expands that of sophisticated describing, most And some great consideration, the standpoint

some success of the more driven So these cycle through high resilience. lot larger a in confidence being there's by really been where players

Thank you, Bill.

Mr. you, Thank

Partners. next question from The Nowak. with Rich Greenfield is LightShed Please proceed.

mean, engagement. on around Bill, about deepening of us sort I is basis? you're like Pinterest to metrics, like you Thanks sort for how know give comments there people I that we -- that -- reporting is spent sort you're it metric think Hi. in the of mean, I taking -- DAU for But be haven't you question. does of solving daily to time should overview to a using only get your is the yet. feel gotten

guess I'm board? with spending And like guess Like if more engaging they curious what to video a user and it you And if back they for? are comes like the I'm solve sort I'm every do spend is leading time since guess user of Gen curious, question. is trying more these of more about solving know Because to have of you create what to Like lot number I video, you engaged you trying -- for we're a a someone end what made Pinterest, I sort trying all goal I are a boards? over what who understand, time? to long-winded that on sort a that's like video. understand Pinterest? Like you daily, touches hours, up creating I Pin, up comments took meaningfully Z learned what every X the Is gets unlock it week? ends of few far to

Rich. Yes. for Thanks question, the

when my be there's in earlier, As of usage. certainly, episodic versus frequent can moving usage in a to cases. opportunity the mentioned And think shopping become a think as or like kinds about something users cases I we Pinterest use use quarterly from more daily-type huge cases remarks monthly behavior, use that more you those

learning to get and progress a got over recommendations, a that. of machine using And better good seen to user so those has better around quarters on new use multiple you've opportunity find recommendations help some Pinterest. personalization provide the our And lot we've of the nudges And us using cases and to better to been that the evidence to really early to last AI them users. there's lot use think from good more we

we been a way to cases that cases. capabilities are on to in Again, people behind move again, our feel it's personalization our and lot of improvements driving engagement. daily and like we what's episodic weekly use are we're things that well the from And there. our want But AI use yes,

sessions XX%-plus, feel done. things like great means that. measures We are to and about by really of multiple engagement see no engagement But at we

think underscore is valuable gains, and around whole unlock, we've done that I can big page the a think the optimization other thing content that which that work to I it's the user. ads I mentioned this be demonstrating before,

If to you leaked would in of platform, here else. MAUs. would from growth that, grow intent what call couldn't there's so going businesses, the satisfy the occur their about much and think the monetization someplace we're levers But I than yes, somebody where more engagement

plugging but we then here take the action and of that's leaked So to more lot a monetization, get already as finding leaked things more lot ability are people a that engagement, on of also launched give of and then in progress optimization page come use that our to want we the to that to we've to QX. as us whole with reasons ability monetize made back more

more ways those ads helps satisfy their more a them is commercial user, in the showing we highly that relevant are actually good really us. very and in can context, that's serve that lot What a for monetizable intent lot ads, for

more a ad leaked our and to lot of leaked we platform me but that historically. lot that weekly, makes ad actually have good able is getting growth had that load more being about think load that more engagement, of I a what levers playing the then episodic yes, we've really prospects much So than usage, multiple that, daily feel relevant of to playing monthly, and much like from within long-term there, monetization bring to

over other the a at are unfolds that. intents. of I these So how commercial -- you our And beginning from of interactions, way think about while very about time. the think the potential if good I that lot that's I commercial highly in on we And ad thought indicators, we've places would see load the you early had of at monetization have these fraction that think a we're that there's

more demand questions way first up And ad bring will got a to to the supply tying demand, one there's lot be around how able that before bit So to make is more. third-party dynamically you you've need do user, for that grow things a can in the the We've to there. do for the into more of the back the sure that demand. a quite you actually serve for foundation we can a that's we advertiser. good us foundation set That's take in allow good load

forward. is lets supply serve going content With very the now our that ability engagement than a engagement, user to growing growing users, and us growing ad than unlock faster the platform in we have go and helpful that -- faster clearly the supply more potential to ad relevant lot in way that's a the is we supply think

to I've IPO, because people things we aspiration we thing Pinterest talked may the more drives other base. think -- that, I that years, with the on you know their bringing would only about add The an had back our so that life, last user -- few in back for over we to stickiness

because relevance address in a last lot engagement. deepening personalization invested We wanted year we and to

an You've the seen Bill Canada. growing with above. this high, the year-over-year weekly X% user of sessions up all-time mobile than user to US referenced globally, monthly ratio and active quarter growth at faster results XX% that the of application the at in MAUs, our all growing

So, personalization because we deepening relevance. in investing is working heavily story and engagement the were

our in we of revenue margin the year going experience based the that forward. cost last because that it signal. because use different cases climb? and first-party and on of next size last XXX in results which seeing gross to unique a gives did climbed new built year. Operator, that It Why climbed machine the financials foundation of engagement that power saw our the learning models You users deliver now to us our to question. We're figures, on times

Mr. with Greenfield. The Baird. Please from is proceed. Sebastian you, Colin next Thank question

follow-up above episodic what's in the users. seasonal around think, a see the sort is MAUs we in of I in trends? of early sort but you'd good you first, talked an saw where comments QX. and I afternoon just everybody. Todd, you the stages, about that time expect on Thanks the Maybe frame acceleration this know Great. could as

which regarding of impacting I these portion and you're the features Watch Bill, growth. stat like or then are around and And TV, mentioned a app, you how gaining on Pinterest monetization secondly, more visibility the ARPU? think monetization video curious

exactly Thanks. So, though. that I catch didn't was, quite what

Colin. Thanks Great.

of as greater seeing much engagement more shift from around already. we've reflected the why grow mentioned, The seeing Todd back, some progress we're faster frequent more come MAUs that's on made, just and reasons of usage, personalization, both think than So, part I you're giving I I to you that overall. episodic think to

You MAUs beyond the I asked more per than MAUs. revenue and the timeframe to overall rather focus to move a engagement Again, about point seasonal. for would user towards

not our to As we I that millions are hundreds on have us that come of an users prepared remarks, Pinterest MAU mentioned basis. come to my in episodic of in that count

engagement we the drive users And so we're how have. focused deeper much more do on we with

vanity can a not a or we they are, the well. good a imagine those chase monetize we users monetize need ones to it best as may other users as to MAUs You will If have we metric, the but where which where as to platform chase vanity most. the we view metric, defend be wanted would very that go our

users the have focused we where we're And more the compete are the with also we need that on much and most so know engagement in where deepening best to places monetization we opportunity.

the revenue And per there. go so more accelerating and on we I'd the towards point user engagement accelerating where your attention

was I around exciting the fantastic. -- the more outstrips work in was much And on video monetization a is expense to unit economics off work? short-form a do very I actually Pinterest, in in way question? as the a -- that that engagement on think Can is joining of than think I've open video, of you held it significant the video, But well and especially make held my money that prior is things an commonly our seen the that I -- increase the most one viewpoint this here a that place it's

puts we that's rather can lean-forward think we're with just the very on XX% video, than us revenue to video, we engagement much that in more place a platform, how monetization. of a think nature say think, make platform more right have lean-forward on monetize our a terms video balance more Because sure to do short-form there's platform, we license there. entertainment and that our to And have an both than lot a having users than of we than lot we And do short-form but from more and engagement of of driving of our of found different video. others many XX% I in

may the way web those that images, been of that has video utilities a on is to not others the question because to lean-back brought a short-form the have license in Pinterest. we utility user user I've before have may Pinterest, those that to can they do videos team not, new posing entertainment ways believe same we Pinterest existed So images mode. independent in others short-form in But bring to and existed the

lean-forward be and kinds content by the user have mode, users. these can things received intent in of our well we think more a shoppable much where We

And us so we make comes how that's video next that looking a big we're part is what at shoppable. for of

There's on AI strength lots vision. of and computer a about advancing. in our We how really talk great it's have team

a areas AI around One us. most generation core of the of is exciting for the And that's computer vision. competency next of

using early really to more And results some shoppable, computer make there. so video vision we're good and

has increase core visual new parameters vision our to in So billion-plus computer an has led relevance. X% shopping model X that over search

think we benefit do that doing helps. hope from we're in I but are these kinds how to lot quite we the gate balance there. come -- there's can So the monetize from think well that things we we of that a video, short-form more it that of think already to and driving well,

That does. Thanks, Todd.

Colin. Thanks,

Sebastian. ISI. is from Evercore Mark with next Mahaney Thank you, question The Please Mr. proceed.

that one than that they're Hey, thanks. starting different current users provide a interested they're -- sessions, there When on across more are about Is in? growing that faster that? look color more time That's spending categories Or users, the bit any categories? talk to is you more can little evidence within there question. sessions is you

growth in talked fiscal XXXX -- you in be know past, about in XXXX. terms slower would in non-GAAP about one, second the of talked I margin in just XXXX. Then than expansion meaningful the you OpEx

hoping qualitatively else there what of meaningful So about or more of hundred EBITDA like. margin expansion? could talk you. looks bps bit And does little would couple margin quantitatively Anything fiscal expansion Thank helpful. a I'm sort you XXXX really a mean be of

Mark. Thanks,

we're of a a consider be things. we We meaningful -- say when looking to at couple engagement with we what sessions, platform. So the

So on general. and just than bouncing, minute for you're more in a here but you're coming not

kind – mobile we historically. so people have are and those more those application our impressions on of mobile than And web-based users from opportunity quality engagements even what app largely and from seen from revenue sessions

number some verticals. there in core we're script, my seen, our But verticals, that of some of a engagement good seen are we've areas. as I across some seeing areas mentioned also cross-fertilization some where We've into new

I'm highly encouraged. So

the called out of into as travel, We're which that men's things started actually out about call. fashion, we was something use and a things calling may some seeing surprise the fact, as on I post-COVID. some of which come In like people diversification case to automotive, one out went is

not confidence toward use And our which case your so we're diversification core verticals, answer to us seeing also across use into in question, next the emerging diversification. some only case journey yes, gives lot a but some ones, of

On where a that stepping thought ago It's committed quarters meaningfully margin around growth. hundred margin, couple we to in the of could to we're quarter had we take be of that. and basis couple improvement, in points from we that going non-GAAP a said of fourth us of year-over-year down were the delivering terms

versus on a year-over-year basis low year-over-year the sequential by implied probably I is low growth XXs my from double-digit think OpEx growth in the XX% decline QX.

expect down in the big should You down in in quarter, quarter. big the quarter third another step step big down the second another and another step fourth

not from just year. complete on reset. So that it's a when the math a the what do year, this It's implies little you deceleration for

all going Okay. Thank Todd, you, best and wishing you the forwards.

Thank you.

you, Thank Lloyd is from of Please The Mahaney. UBS. proceed. Mr. Walmsley line next the question with

Thank can. you. Two questions, if I

comments other around, to like an DSPs. Media with monetize can be the as think other that How there likes do benchmark Like partnerships using up ad low opportunity on do coverage new can monetization back you guys around of going even or just certain pricing? billing drive would you so on geographies see helping categories, platforms a Retail you that earlier around you just share pure Networks helpful. in First, pricing? or Anything much that

just ads of to overall kind And some those content? said just is mix? of that some you those is XX% in Like the ad -- ads higher also is already then DR monetization, selling back would on Or great. SKU of you going working shared. think Appreciate rate creative function Thanks. Like there or Are of a be share brand? you that anything notion your match that the partners, XX% understand the on you monetize, you've better a I ads? But color to of that it video engagement. you cases, is click-through that media where can or us help selling get

right. for Thanks All the question.

you I the think partnerships, dimensions on I each of part mentioned are So mean, of the opportunity.

large, the But that If relevance. you as auctions platform, for an really really us about feel you smaller their team will our even great can use increased drive see demand a progress opportunity the third-party with has ad augment really I dense made. sources. sales platform, there's to

a to greater with relevance. in so smaller And that. auctions And in committed as driving as largest it's first-party the We're as has going player, are from should in a done continue our give to certainly, to you doing team third-party demand, can benefit sales to that, sources, augmenting invest do, demand well. that asset. ad we as absolutely we real which even If continuing great

-- a way up relevant ads page we foundation could be us relevant that for ads when around comment those which drive content, context engagement the is a think we made That is content laid -- truly ad has where earlier I user. about in how particularly an are One user in two-fold is where a think way it with I the commercial benefit. in we've whole to sets the integrated to bring the optimization. think

our have. kind then where it been. places us we of would fraction serve But you load the been ad in up intent a of ad expect other our from And has with ads it's loads what secondarily, and that take lets commercial more previously

networks these load, relevancy, retail will otherwise, be geographies with over opportunity, benefits increasing third-party of things that's coverage, improve we can time. potentially us ad So, or an that think gate about we opportunity. as But ad the are sources, think an augment naturally

measurement on think that is safe through pricing, moving to we've going to is hard and industry is I that made progress privacy ad And on final the a of things solutions. -- overstate ad then measurement one the I think here your rewiring cookies point and the whole from

adoption -- going launched through So, very API. are we And we've curve. while early provided there that on cleanroom We've indications efforts. are our that our positive, conversion are is the really rewiring, whole industry but our we early

we able better than And advertisers curve, move as we adoption along they've many realize performing what think better we than that far measure. we actually far think are been to

party, things do are multiple those And as for so the about going also but we're things bringing potential play is that partnership that there's to measurement that a across we real think different the Those ways are that, opportunity. first out. absolutely greater that industry, can

about cleanroom visibility with we of measurement, us we think what you've will did also with those pricing LiveRamp of value the seen as those talk And have of efforts our therefore, help into opportunities already, and and like help And creating them. forward better going Albertsons. we're some more we'll for that in kinds with have advertisers

it to about then Todd, good we're want broad-based level seeing you're to there's on quite more I'll But And on question the of if other generally. video. your we're to for. specificity asking video, on give breaking kind of you that engagement not down video share it anything

general No, I kind say That's be -- tends awareness that started. of an more it of we would opportunity. in where it to

have have think returns performance video decent advertising going real is, built people there. But seen before, it We full about the has Bill funnel through video I and opportunity experience, conversion. building forward takes talked as a

half Video super there's where to you advertising a mindset funnel a come can through given take the Pinterest think to in opportunity of than people more compelling unique full the shopping I the shop. way.

the about opportunity there. excited I'm So,

Operator-- you. Okay. Thank

Walmsley. Mr. Thank you,

Operator, out I time we're now. think of

participation. concludes Thank Thank for you call. today's you. your That

now your line. your -- You disconnect may time