Pinterest (PINS) 27 Apr 232023 Q1 Earnings call transcript

Hello, and welcome to the Pinterest First Quarter 2023 Earnings Conference Call. My name is Elliot and I'll be coordinating your call today. [Operator Instructions]

I would now like to hand over to Neil Doshi, Head of Investor Relations. The floor is yours. ahead. go Please

Relations afternoon to Good ended you joining of for XX, Thank earnings and call Welcome Investor Head Doshi, Pinterest's I'm quarter Pinterest. for us. XXXX. you. Neil thank for the March first

Ready, Joining Todd CEO; and of Morgenfeld, are Officer and Business Financial Pinterest's Operations. me Chief call on Head the Bill our

I'll the safe cover harbor. Now

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

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

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

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

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

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

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

deliver overall Canada quarter including spend a deepen sessions our testament user. our and similar engagement to our We last you, by measures to of and million UCAN ended priorities per than grow we time and to users, call. Furthermore, growth first you on experience driven QX in differentiators. Thank X%. mobile Neil, foundational core as all accelerated and users, focus with active earnings among Pinterest continue thank by the our growth and quarter XXX our was to quarter faster unique to XXXX global and for or joining users monthly we a and the continued strong work significantly app continue engagement, impressions, quarter U.S. strategic improvements up

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you we time, ad partnership monetization announced my third-party we release, and Amazon, demand believe strategic this improve the ad with discuss our over users. platform in content for which with later saw As a can, increased on in press multiyear remarks. I'll relevant shopability

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ad new equation only is of tools Building the monetization for formats part and success.

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As we the on platform. enhancing discoverable we’re easily also make products merchant and value shoppable, more

for six attributed In merchants we’ve the in nearly increase last to who a the XX% seen checkouts upload their catalogs months, platform.

is enhanced rigor, management instilling quarters, to of past in execute our ability culture on key expenses. priorities believe I’ve including As our strategic mentioned operational a discipline of I by

a Shortly after growth and last pace significantly all joined. our cost I actions at our to I have took of arrived company slow summer, steps that we hiring. not We’re since proven

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our by of as not part policies As offices real we several our reduced restructuring, downsizing work of of completely flexible or require estate footprint globe around this our levels the closing our capacity. do historical

align our takes in reduction early this demand talent in remain even improve. our priorities. top our the X% if better a in We further this made year, we against meaningful will longer his addition, to to Todd to workforce address remarks. committed February In margin expansion delivering strategic environment

users more in for which our grow and the investing advertisers. important As and also place we’re a making internet, is on we users engagement, Pinterest positive

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Sabrina Ellis go that to Officer. excited Pinterest. Sabrina want mission will a world be where wellbeing thank dedication Naveen our as our Chief for XX in years and also Pinterest of hand we’re joining hand. I Product is Gavini passionate to his inspiration about and Lastly, create service to

turn our the quarter to now over guidance. Todd call I’ll on to detail more in into go

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

Stepping time in investments adding user new been A the were Pinterest content, year, back, personalization this users since including reactivation and engagement and changed in on declining major and our our pricing improvements are last lot have engines relevance and has including contributors growth. was elevated. to then, core experience, platform our user video,

unlocked Additionally, ease engagement two quarters we management the platform. gains we on more load the and saw ad last supply pricing through over as

and building for mid, remains upper an and solutions. and progress through tools, Pinterest made ad advertising well new platform we’ve formats advertisers for long-term we’re as into significant challenging, funnel digital attractive measurement turn lower, to While as the

Turning monthly and growth active users We and year monthly growing across were users our two roughly active U.S. Europe, grew years. strongest a XXX X%, In XX X%, users the X%. came to all Canada, XX in growing XXX adding Pinterest, million, million QX, regions. growing to which compared monthly million ago active to users users. million in had In

in our active had markets, XXX world of million we users rest monthly X%. up And

and driving by measure time to base, In spent. engagement faster looking progress indicates grew of user users, investments our our In a that core impressions, on and as depth metrics QX, We our addition metrics good than these at users. such depth of our are more growing sessions, we’re this front. basket making which of new engagement with

$XXX of basis Turning X% revenue from exchange a on rates. impact X% the foreign grew excluding reported to our global approximately financial performance, QX and million

in growth strong as and of advertisers the on demonstrated advantage higher engagement objective quarter CPMs awareness platform. lower the Our took brand

by advertisers. demonstrate to to and growth resilient funnel conversion for our remained the International our measurement continue traction Revenue accounted was from nearly SMB of lower buoyed products. we and large objectives growth a of and revenue also from as XX% strong value total format contributor

Finally, autos. were are source express the harness that in solid these non-core verticals to and turning to platform. commercial our unique emerging intent categories a as Advertisers of from growth Pinterest verticals several such users with strength on our travel

into break utilizing leaned a guide. Airlines Southwest as activity search example, spring planning trends Pinterest For by on tool Pinterest the

featured destinations that flight Southwest on Pins exciting drove site. of searches their

and basis X%. basis of by basis. revenue and basis. on a Canada was XX% our a XX% $XXX on million, a currency $XX $XX was region Europe revenue or was world Total an Breaking from out growing region, reported X% U.S. XX% of And rest constant from revenue on increase a constant currency total million, on revenue million, reported growing

well shopping term. advertisers they the Pinterest, users We’re platform confident our that on ads with will for come conversion-based bode that shopping bring when mindset the our the in improvements intent-based and long to in coupled business

profile at efficiently Cost a expense declined we sequentially continued a decrease costs. infrastructure and year-over-year, than our our XX% manage quarter-over-quarter. EBITDA. our million two increase $XXX X% quarter, discuss million were for and for came to like reasons. guidance This lower $XXX revenue I’d and Operating expenses was to in the of as Now XX%

QX, QX the some from progress functions. further second, in year, expense shifted And First, control across into on our and made we investments we later business

the in adjusted million $XX EBITDA was of EBITDA margin with Adjusted quarter an X%.

announced As areas. resources in restructuring This end million non-cash. of is of at order of highest we approximately charge million in to $XXX a March our a reallocate mentioned, $XXX against resulted Bill which the our priority plan

of mentioned XXXX. progress Directors dilution On manage $XXX worth of made million compensation. a share allocation from Board last our help we We’ve as capital April over to program strategy, $XXX repurchase authorized quarter, up of to our stock-based shares million through repurchasing

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

as starting XX-day active in our Before users additional we look wanted monthly is day guidance, seasonally pronounced June. a tend I spend trends. This more our is QX from June. seasonality and financial context quarter to as active some to in us last for discuss our outside people back travel provide on monthly I the QX particularly user softest measure on time

of quarter. like expect recent we the In that updates the of some rate year-over-year will birthday moderate second in we collection mandatory addition, growth made the

However, product will that we engagement in improve users, and grow believe over drive invest continue to deeper experiences we supply time. monetizable

given marginally ads The while market QX We’ve continues demand. not environment. guidance. the seen have visibility be we revenue did our to uncertain, and QX, an still acceleration macroeconomic onto into than Now was better stabilization in growth

revenue result, last we be As with growth a we expect our of second quarter to year-over-year the growth over the first and the XXXX. two in of quarter roughly quarter XXXX saw the quarters consistent fourth

impact our foreign in guide. moderating, still QX, headwinds While which in expect are a small is reflected exchange we

to Moving non-GAAP operating our expense outlook.

grow to partially low shifting points our quarter-over-quarter, expect some from We operating QX to QX teams investments expenses due percentage to QX.

cost As our revenue. does include outlook the not a reminder, OpEx of

the expect stock-based second Finally, to granted in to increase as sequentially levels. awards merit employee so annual quarter, compensation compensation, be it will QX our from relates equity stock-based we

final call turn to Bill for over back some comments. the I’ll Now,

September. I’m of we’re us and at will to we’re strong execution deliver QX. first planning team’s Also, which excited environment to progress the Investor demand share I’m share investments making that about when proud the confident in our returns. Day, that gain appropriate for currently our we’re strategy long-term position to more our results

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

Sheridan today Thank from comes Goldman first from question you. [Operator Our Sachs. Eric Instructions]

is open. Your line

broader call. to initiatives two the you of your some those Can that the comments advertising, we advertising of the tailwinds I how and Thanks types is about like going of elements bit out the revenue be business XXXX, you to parse come us control of outside around just question. how looking headwinds the or quarters. thinking little in commentary letter next trying from to and response into out a potential much. outside the your or so or for verticals should over to want much so advertising on direct the Thank to tailwinds help brand build the versus been three environment and your for taking you’ve XXXX of back the impacting environment build

question. Eric. the Thanks, Appreciate

So feel on great first we made we’ve faster thing progress the the really than on revenue. and I’d everything say about industry we the we’ve seen, to grow quarter revenue. From continue

we still advertising we look to at performance relative there’s while So broader environment. the When the challenge in macro that. really feel good industry, some about our

clean we’re implementing a be those like As in there’s of better Pinterest. conversion are invest understood. they’re excited advertisers about as our we that what in down to measurement is performance and they from that, previously in getting happening rooms decompose, terms lot what they solutions and more consistently find API see double revenue, really what’s had seeing than our that they Pinterest that And

to an industry intent given well into platform performance engagement seeing curve measurement platform So for adoption we quite great increasing for supply with. our that bodes solutions, so that safe as that the high way the platform think we’re ad on on the and advertisers the our there’s connect and goes from better Pinterest leaning those privacy on users through

our bring whole digit ad where with load is growth range. north greater for And real can user only our quarter where to layers by optimization clearly solidly impressions growth. there’s the that I about is not engagement sort relevance growth. fact, we’ve we users one that’s talked double return then of ad the have of there growth highlights of X% compounding page that In to dynamic our at in compares think XX% But demonstrated aided user is we of before, the as being our

still it. has there, multiple of takes and there’s growth environment and demand puts so in layers while And the

well bodes all where we for consumer sit the visibility for challenge term, example, medium spending you a puts really in takes, have and that in the March. and for broadly long the February term. to down retail remains like And industry in I whole retail think near and and

we you acceleration we ad perform my performance, API we as in continue It’s gain what and than latest, from in and conversion things feel bit well to implemented an share in rooms, and relative like We others there when take our they’ve still macro. grown a space. best faster advertisers we’ve things really our the call kinds implementing things. mind, premature clean But those to of of share solutions, the those have including wallet hear like out

I think us that’s given the long challenge. to term, the near term a very over for a trend macro positive visibility, remains even medium though

the there. think I with partnership part your on the regard Amazon ad party and second demand question of third to

amount shared I’ve As the under platform. Pinterest, relative to I to calls, of we the significant on that of on platform amount is intent commercial intent relative on are still think prior a the monetized

And XX% revenue platform context not onto more so, commercial only content. can driving shows you a as growth, is be aiding we for relevant in good great a engagement. platform plus driving our mentioned the bring ad see increase This aiding And even impressions us, value, ads that I the while on it’s up users. advertiser ads

that opportunity back a think ads to look opportunity products the we bring the So Amazon brands aid products. from we when And on at third demand platform. of we more with coming consumer and buying bring great brands can experience significant platform they on breadth paired breaths shopability onto relevant greater to progress a in party see partner, first really a a and great our as

increases engagement our have We’ve and plus on year-on-year shoppable core merchants shopping. our in talked who as question feel about platform, brought are shopping attributed lot to success catalogs control. to in surfaces. back content We’ve better Finally, our I’ll say, seen we more shoppable pins just indicators of checkouts in for your We could about their us. XX% early of not uploading plus into on a our XX% on increase what’s

action. question to can So, taking take of the users window from we shopping

about very strong be couldn’t we of a that while progress curve, that’ll We have feel we’re and better making the there, adoption there. progress signs multi-year

the all Thanks so color. much for

Thanks, Eric.

Operator, question? our next

Our from Morgan next Nowak Stanley. comes Brian question from

Your line is open.

I Great. guys. taking Thanks two. my for questions, have

changing to talk AI way. we could material more us The first revenue window could shopping user one that that kind new experience long meaningful your about how in generative shoppable. of a on of help really I into and learning the margin pushing are more back a investment sort really goes machine and potential pressure about investments should a near-term you comment to lot made of the like and coming AI It think tools take being the lot seems impact guess have you gross the of that the P&L? to how and from and think about

And on then and Todd, just MAUs one users.

through the and guidance? are America sequentially, North thinking are those going and or Thanks. so how takes the the puts be to the we’re users expecting As up you users XQ through through commentary, you

Yes, thanks for the question, Brian.

we platform. is users improvements On our for the impact engagement NextGen really results. of here, it AI, on and things we’ve user those GPUs next look you we really significant When including made in signal it that made AI see unique driven like is have in relevancy applying at generation on the pairing but progress our by largely with the techniques and personalization

a bit in past. shared the this little Again, I’ve of commentary about think I

cloud think AI the be broadly to I primitives accessible going compute. of are generative via

products associates in be those AI our to about things as to really signals really unique the upon associations what are unique just a party going we’re us AI? like user, acting. have differentiators make training as unique train our through that AI intent on together which from our of And great conclusions that let are good signal signal we not really the and is which curation places activity product signal think like have only the happens platform. platform, I to around really boards The it’s unique upon ways but that that real on the first that

a AI user you there, look lot things. around is there’s the relevancy driving work that the in personalization of when in those at improvements So

what their provide part the – does be question into margin next the that already greater also for your gross as and them impacts but can around, things these as expense, on revenue we To linking Yes, additional see own, mean? measured us well. of we can

models larger using example, of for GPUs part stack. has So, and AI our progress our in been ad

example been as deployment larger we’ve AI of for relevant significantly tangible testing that a the models ads. more of So

Our In CPC click saw increase ad optimization, in through campaign of a a X% is rate. greater plus than world phenomenal. rate click the in through X% stack increase

And into for so we’re that. It’s heavily leaning been time. us a long core competency a for

AI’s So already, it the we’re shoppable I to we’ve And few relevancy. shoppable our started on into greater a the increase point, engagement and on leaning than last heavily as into product unique place into that the – main that these to that making we’ve and the hit again, core bring of signals helping progress lot XX% pins. those our of platform. we’re recommendations another where product, on seeing in to applying and points applying And content but a been us XX% it’s surfaces, shopability there.

year-on-year being like seeing in in buying of we’re shopping that significant ad plus our things improvements ad XX% the shopping And continuing XX% grow increase to revenue. experience revenue a driver mobile like delinking

when action? going proof are users really of window are only the they but they going for unique further users clear your platform. Are to – not with engage part powering our question. points part of really behind things proof how big really a strong, we’re other the particularly are points on signal going of the the that. to take on again, So scenes, I’ll those to AI give the shop, NextGen paired is it the Todd And

we to to investments one had couple looking from ago. at year. the expect were on return. weakest of that Bill’s in a probably obviously, quarter seasonally a would that, perspective, where infrastructure, but absolute start expect a infrastructure XX% this financial you’re invest is return while two more being quarters we’re a quarter infrastructure, talked the we our And at to in revenue. we’d see after the a getting declines in would the that expect And of spending margin about, sequential we’ll addition point, we or – dollars But softest revenue cost in dollars gross versus Bill seasonally Brian, more to Yes, QX year what have the we

Given the would see seasonality operating expect we line. leverage to some in that revenue, against

I was describing. that think financial interpretation the Bill of that's So the returns

about In and the quarter. to the at you're the of report asking look terms it's user XX-day every users terms way in is of remember, measure seasonality, back what of question a we our end important and

And year, of we'll the is people out quarter. in across look That of the softest so to quarter our quarter the June. in about, as second month where seen tend the this seasonally we've back be result second month and and that a

our our users QX to count been QX typically, has MAU So seasonally softest quarter.

have question. privacy base. year-over-year the quarter. a our that your – our are in we – soft good we answers centres will better think a In year-over-year for investments this addition growth leading user so a our them coupled over with And moderate a seasonally and to of industry around in that Hopefully, with user perspective, experience investments from the impact that, some year, company we're users product our product making long-term, some that

both. you thank Great,

you. Thank

question next Sandler from Our comes Barclays. Ross from

Your line is open.

Bill, a question Hi, quick the everybody. on the on to deal follow one. previous Amazon up

prior I Amazon. the me, including some given your that a role probably little you line on went guys folks surprised here, think with

a certain I you exclusivity what there can like which it said or walk us them Is product that what the of wasn't kind the the quick across basis, on to to And [indiscernible] The most ad the be helpful sense? U.S. Todd, momentum clarification of going there one? like the made going shopping given CPM that makes to exclusive. Or yes, a not, quarter it get decelerated through applied be think the then would the board? that setup first going all think macro. to So that in had be partnership on the previously was be a it Is And first on you here this on. portions about anything going types net call in the to tab follow-up be And of inventory ads, kind U.S. is one is then to is rev? I and there out geos just to? or this

the Ross. Appreciate Thanks, questions.

demand with future sources Amazon commented we'd in from that there pretty ad you platforms which would that is augment think see on of demand what ingest I've I multiple out you mature multiple parties, So we that third-party third-party deal, auction. imagine the have from different most would consistent in a state, consistently the

party, as on only commenting a Amazon can also great more and first saw brands not great consumer bring comprehensiveness partner because without onto but our opportunity a really other chose think buying with the shopability, experience. which platform, it's we we and more help paired any we So products to really

I we're also shopping as the progress with where lower and fantastic as well funnel funnel in making – there shopping conversion lower overall talked objectives. objectives we're strength about driving

So having is for helps buying great experience, on a a users, us great efforts advertisers. and shopping really we take think great for consumer forward step overall our

be first us There to like get for this contributor a a Amazon great other to I right, that in near quarter And in us. shared from want state, the as was have sure partner to make is nothing that term why partnership So term. multi is going really key the long it's in We precludes that we partners. we felt first a we'll implementation.

enhance really that in again, right get is the in relevance step. great about our our feel comprehensiveness, the to move the and medium this demand term. our making as This a third-party leveraging first to be broader And long that on to shopability. platform on we for so focused users a near-term, And we'll we sure

deal industry. the questions detailed think I how same other that can partners value in to across we continue great and the think might little more us but bit we with fantastic for for mutual that answer, I and the And can other overall detailed there's we some had Amazon. – that work be the You partner, feel on this be our a

the great advertiser means the So what users it again, partnership, onto our bringing platform. really feel in about just there, for not value but and progress

look a would Canada about year period. stack. back on little that two over basis, the And comp if a U.S. of a on Ross, it I we a And you at look Yes. bit had over harder growth, ago question year revenue

So you pretty around at XX%. it years, over we're look two at consistent if

what However, advertiser pockets outset within our at that, base. seeing about we're Bill in of the talked around this

advertisers insights-led those brand have safety, can capital, we performance who intent the adopted our against the have users value and and who For they commercial latest positivity value who see using can of our quality and that look selling performing the conversion We measurement headlines about but that and performing API. retail advertisers as in talked clean room exceptionally a talked well. solutions. We everyone Those at you about not offer is solutions. see lot are well,

So of of a mix there performance segments. these in some is

you. thank Okay,

Walmsley from comes question Lloyd UBS. from next Our

Your line open. is

to and bolts weeds drag going I'm partner understand monetization Thanks. investors about theme here, perhaps the you stick this, it. But with general to partnership into don't lot just and of basic and we talked the nuts Amazon who Bill. a the of

Amazon? will retail kind in Is their own perspective? advertisers' partnership Amazon budget all basic Pinterest? or work about it clicks Amazon media to people deploying more partnerships? elaborate practice? of can their back of you how help Amazon a drive the network to budget How it's at share the to extent the from how can explain just the and like level, kind of work to deploying kind other on a Anything is this Like also with you nuts bolts they'll of going work So

you think geographical there's and related migrate think of don't And of just you markets lot U.S., is is partnerships Are to of kind that's benefit a level where you but been yet, a a this a of U.S. these? reason our have these leverage already, to the second partnerships? lot this business other the have big outside the ad one markets other think like just the about you of partnerships. impulse we slow then one big digital of the guess can't and market has of that all been to the international kind and to to engagement share have of thinking like business I right to on benefits back these ad of get any there

question, Lloyd, there. to Yes. unpack the so lot Thanks for a

platform, real consumer on a also simultaneously drive revenue there's up to our the commercial that relative we're ad overall, that And the on, user quite platform to platform intent us nascent better on And more – point your before, – is our while platform. intent our monetized. So the this ads talked spot it's for under macro which very highly relevant in about opportunity nascent high I question, engagement driving your – macro a is a satisfy through help platform. commercial users

plus, still the we're you've optimization ad So page and like that our that to able on progress grow XX% load with positive while having seen whole engagement. fact

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thank All you. the deal. Congrats right. Well, on

you. Thank

Our Rich next Partners. question comes Greenfield from LightShed from

open. Your line is

have consumption, sort sort like talked you the and quarter the but of was but your actually of wondering to one, taking spent time think last as like the said content, sort power much XX% XX% your through I’m content got XXXX, importance how video about we revenue. I’ve think and the on think Hi, the platform, but you the how the like as thanks in of video how – you’re how of guess of content? spent increase about video, of curious something revenue, not about look is just to And video you for the remainder doing guess transition when time of driving the I of of video, that that Bill, I was question. XX% about may given of we video I of I’m changed, sort what you the you think consumption the it video video should

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Yes.

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Operator, right. next All question.

Sebastian Colin from from Baird. comes question next Our

is Your line open.

else you. questions think to obviously revenues, afternoon, first guys. off, curious a guess I monetization anything guys that’s Good as I with mentioned Thank and well. a guess couple the call and progress international as I showing if me acceleration huge Lloyd users good there’s for respect opportunity out mentioned, in there. to you and

a And then on questions guide increase. few getting we’re expense the QX for this sequential

unpack little parts I to moving might there. think be understand bit Todd more a helpful, it the

in then trend as the more for might baseline does Thanks. serve for Some the color the the rest of there be helpful. I expenses sequential the modeling year? think and timing shift the of that

Yes.

the well international users are thing say, engagement point, we user I’d great working to is On is doing for the first back to side, across what geography. deliver

So international. happening is geographies both our across user to return [indiscernible] and growth

user growth to across returning geographies, platform and feel that’s our more bringing onto the consistent that. of terms in supply so platform we And about great

that of there’s think could I to look the point places Europe of monetization in be at more there’s sight are opportunity that we Europe. And your places we monetization internationally. a monetization, on line fraction like when how you like particularly clear

see the you low. rates high, growth growth there are can the denominators but Our are rates,

with we the growth on denominator, of rates markets. we that’s indications as build we forward of high out a potential are think our even investments, as in us. small those But good build ad a international go think I those And out capabilities those lot

a And Our lot come. make there. sales progress to are there’s able go that effective teams we think to of more

us with and have growth and we we well. SMB as out international, on Finally advertisers international growing large called are there,

international for good balanced think opportunity mix where we So in a there’s us. of

or we’ve expense this the expenses remember had if we And then of couple Colin, driven were largely quarters, last increase headcount on you about that for – payroll guide, a on in talked back, year a based. big

a accelerated into the of QX. hiring first So had backfilled first lot going in attrition of we last of the we end half year, and the in quarter,

kind And Bill as rate we and then those of hiring in referenced then early and accelerated into then efforts we of as in opening QX end year comments, paused his QX. moved that last the the through of

out our last also half of expense spend QX. in that and historically nature a was marketing we the growth We had in have year a of that back that variable QX lot of drove called in lot

as of lapping a We’re of all those comments. result

and growth of lapping spend. then expense And payroll the implication the is as the that of marketing go half of in we’re into of year, The we lapping We’re a QX. all back QX lot we that variable will pick that a a QX for going which few quarter see up margin improvement and then will now drive will growth in next quarters. we’ve accelerate QX, and that deceleration the talking been year-over-year expense to about

a step I we'll sequential is in not especially of investments expect in to we that of the would of the revenue, expect course certainly decelerate to back and programs the a to couple we're we So over percentage that terms, know of as half see that and around that guide year. up dollar of that absolute dramatically would other grow timing lot marketing suggests the see but continue a expenses, making, see a

helpful, Very All right. thank you.

Morgan. J.P. Anmuth from comes next from Our Doug question

open. line Your is

about wanted to of rankings Thanks you can macro will just just recommendations and clear kind e-com? ad it just are going outlook. stab guess, to AI, you're understand, and users you really seeing it's omni-channel caution and related that, just monetization, on out Pinterest versus another Thanks. using part much the take parse but keeps AI, we're tools just to in perhaps of then then just And pure I And it notable questions. second, differences industry. AI that how – XQ how that of you I between any to generative advantage of forward? and across more think also how of take seeing so others XQ and from range for trying is the muted purely taking revenue as of acceleration little bit a the kind XQ in at

Yes.

about, think there feel I we're I great sort we puts the before, on lot seeing So takes on of macro, out that and are what as shared a but there. there's

than than industry, revenue I great about. great revenue that I – fact give things But of growing confidence we certainly that lot I think industry. that – think And we faster we're the as even that feel earlier, in of advertisers we're the that as have is us – change. the the digesting broader we're feel are hard fought. we number something as faster growing That's value good shared advertisers, a demonstrating those for

compare I are for business us, strengths think those of to others, maybe as us think kinds international, others, places for small that there like things. strengths are and are I that that international,

platforms major year-on-year portion multiple overall having year-on-year putting growth, limited, for But as But of up to But of solid as which still you those we've we even declines. we're some a we larger are got our smaller you of – at we've those look portion a business. us and like and smaller overall our They're seeing visibility is feel still even see are business. declines, accelerating growth do well. just feel visibility platforms like got though, when continue other

and that's it declining things is year-on-year. our We still bottom, don't think to and like premature a on feels you see that see when performance, relative of call limited consumer I I that just visibility spending changing. retail good have indication

of about. we view long-term, and the better our not So feel could medium

our users. supply In we'd were script, mentioned in as a of ago, sit the was constraints return his ago, today, priorities multiple Todd question, where we growth. fact, if that year-on-year quarters a – I to go we value user and strategic had back supply because were in Advertiser with We where have a platform. to constrained decline year year we

of fastest demographic. for see like, though that points shopping in the We great value platform year drive Z we're growing was better we're the them. are more And that, a with on implement We're Gen advertisers. ago for curve. on adoption clearly value delivering could behavior, measurement, more we on question our early growing proof the advertisers even a as they delivering strong very more that Shopping real

the better the that that can't calling been to we've things those there think to think I either add up still anybody be goes on beyond commentary our right? they're lot visibility and volatility else. constant, comparatives, I and have sort every them All executed demand expected progress year-on-your we with our, by would screaming, XX% poor predict continue or and with we in plus, demand one and will impressions normal of And strategic kinds and than But growth of be as of experiencing reflected when also and had well as outcomes puts calling things. those see for a is you evidenced others declines of wide takes, back ranges

just you can repeat Doug, second your question?

AI how of the Pinterest will kind AI, take platform? users on on Just generative of advantage tools

Yes.

that a convert are more more the and I will using lot at better seeing generative natural bring can in we're from recommendations, user. already, ways think for experiences that there's to better next product the think experiences, – what we And that's I with we AI better. that think, you're do feel we relevant this to looking that deliver AI, us ads shopability, are generation user better

seeing already in that platform. you're So the

those kinds collages a So highly we'll a platform, of in of generation that of recommendations, way opportunities making more that users shuffles. we're AI think doing that's lot them. There's great we about the feels we're next users bring that kinds visual behind a thinking lot a can on AI we we're to ways things. to have And of around given great way natural those that

there things going of benefits, more kind of questions already how we're there exchange that rush and good rights and to – are all be thoughtful of these from are finding where there's and image to There's lot But about of a of meaningful How that that technology make do to issues that's So seeing really do value we're still driving and going you us, a ways there's around you between sure can already head are that you you out not these first. about be methodical we're platforms to to that of this from leverage publishers? us. going and that make it. user stuff see kinds we're expect open great into sort methodical sure lot are

Great. Thank you.

one take last question. we'll Operator,

Tom Our final question comes from Piper Champion from Sandler.

Your line is open.

Good afternoon.

your mobile signal element the element you're Sounds addition maybe curious leverage to customer becomes an one plan, strong just Bill, the appreciate in figures I'm like to your team maybe if announcement, – mobile. announcement. you company that behavior you at that all. And into of curious curious location curious seeing second the another you're able tentative lean if or just the or growth on growth just And is feel then Thank assembling really Analyst the about thinking at and how Day a in and forward how boards. leadership

that This So over great on results. a delivering This consistently last you've have. quarters. us, team feel around your is team the team, seen question that's a that's is second the doing team great about winning. And the we that three

oftentimes And are so relay things these races.

somebody to places And in we've a leg so the great the next led brought the had leg augment in even where talent strong we've race, who's race. of of

again of here long question how of I if around, is transition. been thoughtful our the to a CFO to part there been how a strong the a so was the really legs Todd I'd do, And for couple given your opportunity and for which was in it's transition, already race thank race what good he's leg having of probably say, planning ran he's

progressing transition, on that don't engagement ability and quite a and managing our is in of going that from feel in as we as candidates Todd make terms sure have going process engaged news has we've confident while exceptional both new right great to to that so we're now, share of forward to how there number have seen there track, we well. been thoughtful well as talent And

Sabrina, who we the I race ran of you us be to multiple who fantastic in say is I also the prepared to well. mentioned, a as legs team, my really going to addition strong thank for he remarks, also even as Naveen, think

that part we So feel about. great

shared, on progress, our so engagement users. to I again, XX% part it, part of the And the of mobile your question, positive plus part as comes of mobile really first our of another and from app revenue

than [indiscernible] And growing international, in those much users faster and mobile overall. app for users both us

the So our most of engaged fastest, users engagement. depths opportunity us are growing greater and the giving that's to have

Without to fantastic So drive for there deeper and the commenting more. for app, that deeper future for kinds deliver greater on user things, the much progress our our value in on control And do having mobile of lets product engagement us sort and feels advertisers. great. what mobile destiny lets of feel about us we the progress those and announcements users

last we this the our for a you that, of with you Since members for Thank thank Thank forward all everybody look Very to to the all much you tenure partnership. fantastic our is and Pinterest. you. Thank team appreciate Todd. to the the conversation you, on again call. again, customers, you everyone questions. continuing call. Thank with Thank you here again, earnings at So

call today’s concluded. thank like your is Ladies and gentlemen, We'd you participation. now for

may your lines. You disconnect now