Pinterest (PINS) 30 Oct 232023 Q3 Earnings call transcript

Good afternoon. Thank you for attending today's Pinterest Third Quarter 2023 Earnings Conference Call. My name is Hannah, and I will be your moderator for today's call. [Operator Instructions]

I would now like to pass the conference over to our host, Neil Doshi, Head of Investor Relations.

ahead. go may You

Pinterest. thank for joining September the Doshi, Relations I'm and Pinterest's XX, Welcome Earnings Neil for Investor of Call Third Head you afternoon, us. for to XXXX. Good Quarter ended

CEO; Joining me today Donnelly, the call CFO. and Ready, are our Julia Bill on Pinterest's

Now the harbor. cover I'll safe

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

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

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

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

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

over specified. And today's I'll all unless rates year-over-year should turn otherwise Bill. Lastly, be growth the considered remarks prepared in discussed call to now

strengthened all fundamentals. Neil, progress call. and We our third in accelerated for made QX thank Thanks, our And quarter you growth revenue great our joining XXXX earnings as we

ended the users on This a growth. the of was platform. Total to discovery surge search, constant XXX in third quarter efforts refocusing currency with visual revenue an $XXX monetization basis. peak exceeding a shopping deepening are Our represents quarter high as differentiators pandemic from our engagement We and monthly and period results. unique up million, all-time accelerating active XX% up yielding by reported Pinterest's million revenue the a users, row X% growing in on and

our first A management EBITDA an X,XXX of EBITDA margin disciplined to $XXX growth, XX%. Finally, we And allowed an with shared building in-depth quarter. Last person. of adjusted was see you Investor where from progress it, of event year for month, Investor you improvement expense Relations strong you in the the It our watch seen and hosted to Day, million revenue ago many us ever the haven't Pinterest's the basis great date strategy, coupled what point if view to we've deliver we're adjusted the of can and we future. on website. made

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those resulting users boards recommendation provide builds that off engine additional growth points the platform. more strong to on the in saving content with and pins of recommend AI from Our save of inspiration,

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XX% our So migrated strong lower far, of and seen have funnel results. Link we've Direct approximately to revenue

and penetration saw higher objectives XX% our our ads revenue. conversion we Link the of video end rates lower per click-through cost remaining of and XX% QX adopters. outbound lower for CPC links and roll to noted to Direct including CPC funnel outbound As decrease to a We 'XX plan click increase out objectives, by the from in Day, early Investor direct funnel eligible we at ads

bringing we been similarly ads the saw from links strong conversion direct to campaigns. with side, an will testing objectives, strength the platform, On video with video video given unlock very in And us for results seeing we especially important lower substantial for on CPC we're the funnel. the initial believe have be results driving as

home our in story formats year, These building interact this ads QX, Premier the Premier and Spotlight, launch such traction formats expanded search an from new the are strength funnel, and advertisers. brands quiz this tell to their feed, top brand continued and In of innovation, help the unit among we user ad the funnel ads. way. we on lower to good seeing showcase engaging our from to addition In as with Spotlight at we

feed we the For Xx funnel format completion This example, rate are home promote video Madelin video for driving Not campaign. average and drove their Canada on to leveraged concealer. versus Spotlight full the only higher outcomes search Premier both new a advertisers. high-impact

as towards ways. cookie-less We measure delivers a our to look the that uniquely future. privacy-safe in Pinterest are critical success, is This we value especially them also element helping a

our move from continue adoption for integrations. advertisers comes the to and for along curve Adoption two product. conversions for direct partner API product with implementation avenues, this We

strides to to organization. goal the in our continues getting for a integrate revenue with conversions, advertisers sales API force great with being sales coverage top-level across Our make

are that advertisers our We partners with plug of into. many integrating also

instance, enables improving frictionless Commerce us where conversions. For we API to Salesforce Commerce meet allows and conversion and Integrating QX, advertisers partners and Adobe adoption help partners of experience in with for are like several to more a visibility. they onboarded drive more Cloud

retailer Commerce API For saw PacSun a our our API installing here. are that progress Cloud seamlessly through increase for Investor during for Xx And popular our new in adopted conversion solid we app. Gen with rate. making conversions is a mentioned U.S.-based we PacSun, as leading Day, Z, example, After conversions, Salesforce attributed

XX% the at the conversion XX% August, from total for API of our solution of for start up Our accounted of as revenue year.

made as displaying commercial we step to And the ability match when modeling these to In addition for measure all intent, the to able ads while are the of Pinterest, user engaging advertisers simultaneously value right which most of that we're our flex right whom the the page the growing with also serve our ad up working helping time, long user they relevant, are at relevant better said additive we've on engagement to relevant. ads. performance whole towards to more right users function optimization, to year, improvements the feeds improving to show This we're ads, load experience. of into are and ads to platform. overall users fundamentally We've ad the who

larger. use our models use to QX, For enabled expanded that in to which GPU of serving example, monetization we XXXx us our were engine,

a ads As monetization contextually began and ads understand launches ad history our show to match user models, precisely click more on-platform link language queries we we're cost specifically, of and our models. our first-party signals, relevance. Improved improving search ads more to able In that density. are and improvements means us our Opening relevant match commercial to capabilities us per to use utilizing These relevant a in intent. to per large our were user to and users drove and we better result, to more to ad made intent users' metadata leveraging which longer Longer sales ads accelerate our preferences thus behaviors up tastes. in better as relevance user to to that platform turn show delivery first-party also are and will to to we auction On our user augmenting relevant. QX, ads efforts. history allow product in user and across tailored queries. predict visually model X think action improvements ad meaningful able about By and cost partners in third-party enables surface search by signals AI ad important we better ability

on As related we and We early mentioned improvement were in improvement and this and we this related are the our schedule pleased now first that U.S. ahead on search impact test XX% multi-quarter Amazon comments results with a on on to relevance early of implementation relevance XXXX. during early our search in in ramping Ads topic, our we items Investor XP in scale partnership in the are revenue over the this with as with testing this with Day, XXX% well. Consistent we being out U.S., likely is of our with most in noted partnership item a beginning roll prior A meaningful tests. surface is on

into laid potential integrating demand integrations additional has our platform future. partners groundwork the Our of work third-party in extensive upfront streamlined third-party more the for

margin which in again further cost through EBITDA Finally, strong quarter. this we're continuing and rigor to expansion drive discipline, EBITDA operational resulted

toward to quarter, expansion abundantly their and execution call our long-term margin turn clear. I'll work on our provide tracking further I'm who now teams are We results of to updates all goals. our this past Julia, are will mid- financials. for the of hard nicely which proud the over

growing and terms of Bill's basis Thanks, our quarter comparisons revenue discussing provide our on third quarter, differentiators in monthly ads user non-GAAP metrics, be that afternoon, our quarter year last XXX outlook. have revenue over platform EBITDA in everyone. the a All in acceleration clear new velocity our with be an preliminary It unless marked Today, am fourth and financial and with on users, I'll million are a reaching continued all-time specified results a resonating for and discussed resulted X% monthly execution, year-over-year update and significant active otherwise global product and is the Bill, and implemented great which business the year-over-year echo our high. except users be strategic margin will ended good adjusted quarter financial all noted. To shifts otherwise advertisers strong sentiment, of growth, active we accelerating alike. We expansion. team's unless by discussed I proud our will leaning the into

million In in year-over-year investments across AI had deploying X% are last our increasing paying X Our users, approximately shopability XX monthly Canada, we U.S. we million and engine the and recommendation and quarter. active users off. last versus added the were up markets, monthly trend In throughout Europe, we finished acceleration our an the quarter. continuing of monthly XX%, In users, quarter X%, with of up rest XXX million million, world XXXX. from acceleration users XXX active active up

and XX%, as emerging constant from Canada, and our strong seen million, Europe $XXX and categories million, funnel revenue We the on our a 'XX. basis. The QX across Total certain Now demonstrates travel, or was the such to XX% came lowest shopping awareness was by advertisers objectives services revenue retail verticals to like we revenue. growth strength further for experienced up emerging we and how financial growing restaurants. pricing basis. technology value across driven and Revenue at are of full growth since CPG, funnel. was Strength reported overall CPG, Strength and on a and accelerating currency ad is Rest format. revenue and $XXX $XX growing to trends. of in large lens constant XX% saw this auto ad basis. It U.S. million in constant we've through or agencies. We XX% revenue objectives, the quarter from at an currency a World from the look came conversion driving XX% In impressions $XXX ads was X%, increase revenue also million, on useful highest of including currency

load. impressions, impressions driven mentioned total and paid by and we organic at Investor our is both ad growth As ad Day,

load. we've declined total price in several simultaneously, ad increases to impressions last both with able trend quarter. Meanwhile, impressions growing in increases ads been demonstrating thereby increases continued this and and drive QX, that relevant the ad ads we from driven in both engagement. In XX%, the loads with quarters, in can of impressions ad synergistic this Over XX% be total

this ad XX% we QX. AI-fueled demand the decline quarter, remains as industry-wide platform from still improvement efficiencies stabilization pressure, as stack an saw under by on pricing the is drove last the in well While we driven

focus Cost Now and This and non-GAAP lower and is the expense $XXX down across cost QX. Overall, strong down deployment savings and amidst down even driven reflection was in operating to outperformed overall flat our X% This infrastructure, turn of efficiencies storage quarter-over-quarter. our revenue outside roughly engagement on expenses. growth expense as result our being of million, $XXX user realized spend quarter services. business. was versus million, and is due we let's expectations X% year-over-year management in and X% our on technology compute to and AI continued year-over-year a throughout additional

to a been by double-digit year quarter our the in XX in $X.X XX% cash We million EBITDA We percentage strong a cash, revenue revenue declined ago, $XXX our in operating securities. and by approximately at pleased have cost had growth a as revenue of year-over-year. Adjusted quarter, coming expenses up ended marketable strong drive versus the points decline ability even expenses. with or performance, year-over-year driven operating equivalents billion in efficiency and margin,

financial quarter. Now fourth for to preliminary provide I'd guidance like the

For of revenue the expect accelerating quarter XXXX. growth range, the grow throughout the we trajectory year-over-year in XX% to XXXX, to revenue continuing fourth XX%

account also revenue Our guidance a modest takes exchange into foreign impact.

P&L. the Moving down

QX a revenue the that revenue don't revenue guide total we we due runs the cost in seasonal see to we While typically of cost do want in of to of specifically, revenue higher quarter. as remind percentage everyone lower fourth

that note our revenue. guidance XX% decline expenses not brand QX X% year. the of QX campaign cost range large our in non-GAAP operating year-over-year lap we include marketing as Please to does to We expect last operating in expense

margins to course and margin of allowed of XXX XXXX. rigor the At has operational expansion adjusted us beginning this for over EBITDA full year, EBITDA this expand to points adjusted our the Finally, year. committed we growth meaningfully on basis of focus revenue year year-over-year

monthly confident our our progress costs, now year on to in based QX, ability tells on and QX significant which our in deliver an to adjusted points XXXX. To of basis achieve which us felt and approximately exceed margin XXX would continues growth of for see accelerating discipline, we and on call recently close, generation basis strong track expense EBITDA further expansion points. the expansion targets XXX roughly revenue to EBITDA year the we in expect Bill. margin we us all accelerating financial to story, longer-term user effective put progressed, over our cost management. to commitment turn full path performance the to doubled on As impressive we and growth, to controlling basis adjusted our put significant points on now the XXX Based provided. I'll active revenue again

made thank to our the that the questions. people across with just great We've past we and Julia. that, getting And teams our business partners to started. at our call to all I come find can for shop. Thanks, to and and progress the inspiration in want we're open year, up Pinterest, advertising Pinterest

the The of [Operator Sheridan Eric first question line is Instructions] from at Goldman Sachs.

proceed. may You

in investors terms advertising, the against those in direct dynamics Thanks of think XXXX? balance Bill, you headwinds as velocity the the elements macroeconomic to X, see advertising the for by headwinds exit out year of see revenue conditions. has response long-term margin mind the shopping brand when success? revenue a the of Maybe margin to Bill side, you about in How that should you some have the moving Day, the make set business industry tailwinds versus the would the potential, that some on Investor for the can building about short lot then at of the into from critical talked and the up can. medium characterize we has I Julie, to of XXXX been in details this prepared remarks. term and faced, if and you and investments potential the you dominated And

Eric. question, the for Thanks

stabilization And So there. in of an environment, terms been us, has ad seen strength. of particularly, retail the some broader for area we've

stabilization larger, sophisticated as in the our been funnel it's we've addition the performance ad And measurement. the at more solutions, lower been pronounced with in advertisers. broader most think to I and market, particularly that better improving

each with been that's in our results think I acceleration steady quarter. reflected

saw And in that results. you so QX our

in study You our of see to well it it that for acceleration. And part guide as around I'll over QX question. your the reflected Julia give other

Eric. Yes,

So so the question. for thanks much

about from we're started far for We think kind track back expansion that potential Maybe XXXX. delivering good year goal now we margin here. as expansion. so feel points points on triple with margin a expansion margin really So progress basis the for to to XXX stepping basis minute, a about made XXX the of we and we've in

low and we X range there steady said from we You're right get to XXs get the plan we at to in that to progression. Day, Investor percent with now a X years

margin planning discipline for year, and of are to still the combination acceleration led revenue We cost expansion. on that. This outperformance

are and about However, capturing of lot particularly and opportunity that of focus think of we and and bottom to profitability us, product in through a there investment sort investment R&D want flowing high opportunities in to ahead the the business line. as ROI, fund with the we balancing technology our staffing areas

given year expanding we be are XX% committed in the over we particular. margins So specific next XXX points than next X basis range to our guidance, to delivering up we expansion steadily as margin we remain that X do that expect but this to more And years. low will for not modest march we're year, further overall, that the

Sandler Please Barclays. with Ross from comes question next Our proceed.

is, that bring you that in increase that How colored the usage out load? Julia, has was we WPO do of coming do demand? you and change. I is see we following trend or of there versus dynamic? other what on of these increasing the sustainability the question think as the of charts bring on going section Amazon partners in more how third-party slide, future, much And growth the growth as playing was multiple Investor And a around the Bill For ad year Julia's from ad showed it bar to that back a just been load Day, of believe kind

Thanks, Ross.

more you it here when relevant have And half we discussed, we've for be mindset, they're as than commercial shop. the users great on Pinterest, the content a can say to in So and ads they user. use

seen course and last talked about strong Amazon we so the one you've think our third-party most over of the demand year. And improvement at things ads of progress this that third-party we've us And Day, we've the seen as when on Investor is we the so partnership out the about we're seen proving encouraging partnerships, far, bringing with the in relevance.

So XX% we XXX% on that saw And noted relevance Day into coming on we're at Investor items, we we're third-party a as related that search. improvement improvement from in related demand. seeing items

faster a improvements both. both So load driven can without in means see what multiple over the continued the the ad period than user, they made of grows growth, as that journey, is load And multiple we're we've been me growing we've -- is taken in of faster it the getting best seen even our context, being that user in relevant load a which analogs the multiyear be the at we've that as deepening ad it up, content a in point even right -- proof or multiyear have we of a by say dynamic the the just commercial of for all continue. to engager. use of users, our platform as ad doing today. per But the can there that when we're engagement grows at well that's ads -- the as highlight onto seen engagement turning you've I'd than And as relevant we've progress measures demand a also platforms. I

relevant as user point commercial we that ads as So finding I proof in the they're that's in the bring best context, that -- that's the think for content. right that engaging

Our next comes UBS. from with question Lloyd Walmsley

is faster the monetization, need expected Amazon big AI. outstanding the Amazon? on the in would the it get and First, partners? there early results. acceleration blocks then you then Remind is guys just with broadly and progressing that more of sounds to like XQ good other to what with from And us just partners scale coming any through than be you second on other generative And one partner

guys call data, interesting context user you like you're content, lot a that to out? of AI You for the generative side on interesting working have consumer-facing want on anything

Thanks for Great. the question.

with of Day. what our consistent made we end on an at there, just and see a Investor gave the is really talked Day, continued So we at And with the update to we the X we've weeks partnership, Amazon reminder, quarter we comments before as the about learning, Investor what see really merchant experience. good user with a bringing in and we're relevant iterating relevancy this we're valuable And and really on is focused progress. the creating We're testing, experience great breakthrough the on pleased we're That's and front. biggest demand. from what third-party demonstrating seeing increase that

just we bodes increase As related items, on that with for where I can really noted in XXX% in the well and prior question, XX% increase I search in relevance that. relevance go on

the are for. solve to biggest those So things

out, meaningful is early with been in the As most we've calling it 'XX. to revenue multi-quarter hit implementation a

question to on regard your with that's So Amazon.

us platform one just potential of third-party a on partner. around The not that multi-quarter were is this made we new other part of that the for generally, fitting your We've question what early part on implementation from partners. demand commented

XXXx go other So way additional And that on AI we sets that up serving talked to AI about we but sure expand places as technologies, we've increases 'XX. And quarter's generative up get have on language giving and as 'XX. a large such we really larger this the And us our well on us it's relevance, it talked right, partners generally to then in making AI expand we Investor -- us for partners great we really approximately sets source we've these point percentage to it where first has built at one XX relevance that well models, front, all Day. strength been in call been a to the into really of about use of increase models, think great into in we GPU significant focused us. go last

like from like a and terms for for their we've about in products mentioned but our content seeing related There's creative We're to the experience areas can things subtle then in core core just compelling creating maybe I early So in ads of These nice testing of would to on that's that the is That's there. do been results where guided in going experience. we studio see driving really are gains the excitement seen where those that items. make user elements ads, really experiences, percentage relevancy. users. with Those are advertisers points you unheard there. And more you XX% increase -- improvements to user, palpable just actually newer dynamic more relevancy XX XX% just more really there, great and just other that but engaging well. And a improvement advertisers engaging the improvements for basis say, happening of. basis finally, points see progress that you in kinds place as normally throughout search of approximately response things normally point. product a getting that approximately our we're

the so we the language models and there. making that good technologies And about large progress with we're feel really AI core and

from is Rich question Partners. Greenfield Our with next LightShed

percentage over tell about But I still and in and of it's the want terms a of talking been load you as multiples ads next the I'm few there's the is see to any and you that up? the sort from if impact to partners the ad does can has it last was it couple. your think business I advertiser [indiscernible] into And advertising the of over load better to just load about several ad How multiples think then do months benefits that to Pinterest terms lot course I you ad And ad mean of guess, things and does is to any how and load content an you your helpful I you engagement. were sort it Bill, One, called of Timo impacting in it I there's in room because and presence I benefit how that you year-over-year, of a run like, would year-over-year? is one the not much on Pinterest of of wondering said just follow to sort the got two, on using -- content terms been context. then of of targeting What had sort [ the, up, you what compounding noticed frame the ] be there of put that to framed just there lots as I've just years? sort way increase. has of it wondering, of quantify, you could way much you certainly be? engagement of say is a were positively imply go major both

for thanks question, Great, the Rich.

it a multiyear when all room will of I in have journey platform, users me would And have optimization, to proof other on run key a both wanting get to ability context on simply, mind a but relevant on of from to to the stated to to that there's means bring that all onto ability to runway paid had out a unlocks, ad the to have again, commercial performance to of funnel retailers demand get again the as get go would out the our commercial would than there's around there's of is that would the That room would think front which engage quite as more there. Over analogs think the through lot my relevant multiyear I to multiyear wanted confident analogs run in to journey, in load, strength as to as our your we and the in optimization were of us to our then those the we lot a advertisers, ago, be a We the question major the been whole the of all the the a to more third-party bring which go. period, a look TMO more But on particularly say us there's and retail would more I will all forward. And part here broad-based. first-party more That why in on my I inventory users just when in well context lower shop the look being more be feel at are that. ingest load seeing that nicely a that coming currently quarters progressed So more a in and getting as of platform. ad multiple load very ad say but that that. ], goodness really I able way in demand are relevant content support we [ X demand lot and users through rapidly whole proving those, in we half on points unlock lot well could ads look prospects our where think and page mind as shop, we have. they runway to can of use our that has of

at leading they retail, they've developments the have really most great largest, looked advertisers growing been our of seeing So retail revenue have rate advertisers advertisers, the larger, been been the our the largest our latest if faster in our sophisticated into you more and from product of growth across platform, strength than sophisticated each overall. results

has specific, or don't a in contributor to But they're has that. Timo exposed ] of contributing in not been very -- that any exporters So a nice given then Asian have nice concentrated growth. And generally and particularly strength one feel just will [ comment on but we e-commerce been I our retail sort to broad-based. leaning been

question. next Operator

from is with Stanley. Nowak Morgan Brian Next question

Great. I have X.

saves I was Can through some of in the sort the have fire. you key update The of we basket walk XQ? in growth. links overcome monetization one, quarter? context. sort the chart about think links fast versus of that fully sort growth of you at XXXX? then the the deep have the still of and showed rolling in different one, in think for you just those And how direct quickly impressions lot throughout DAU out you for of for versus in Can us engagement you was versus irons mile a it How the to great that as second up first you technological hurdles engagement that XX% the Day, grew and just gave up where XQ Analyst it

first Yes. to and the question. part Thanks, Brian, for your kick second of it Bill for over part the take maybe question. the I'll

see So trends we Day. at we Investor did engagement continue the that same trends showed

talked growth the we about call. So engagement strong on

total about of increasing. load also both growth increase We by talked ad increasing ad in driven XX% the being and impressions impressions

the engagement continues that monitor same QX Bill for Day, of metrics for now part. across basket on So and talked of about And trend the ongoing the we hold growth to Investor specifically. second

Yes.

really what's Brian, So of this implement solutions required going. is terms and area, our great here how lower funnel in actually to a that's

had had really XXX% straight results user a really experience rates, Pinterest, in which retail Links, of mobile app. a their users is the app. product into taking great may Deep there's mobile not and Mobile from conversion which in been, lift So has But lot on buying the and retailer's have experienced that

And mobile into rapidly. faster and drop similar And Direct that to links. very with the actually with able we're straight the so we're will Link purchase that experience a that website deploying a that deep mobile and/or deploy than or website, taking user even experience retailer's now we're product

our XX% links. been migrated of revenue direct revenue to we have our approximately of So has now lower funnel

that outbound click. XX% cost and phenomenal And decrease outbound in rate tremendous. has the creation so the value value That's been creation for We talked really click-through really of advertiser. about just higher XX% per

And so advertisers seeing that. have been

we of that the value that to thing shared sort they're of are advertisers the continuing to that I seeing. because measure the that QX, to we that in the all half some out other how into we and QX rolling progress and have note from as in And lets started of back comments that beginning even roll capturing we're that goodness still QX. The is into out our measurement

shift can the the in from and we're we I pleased creation budgets accelerated value that. of capturing they're result I'd from on seeing. So still they're think while what value advertiser, early with really the really say that for that, have the

that we and forward in So as a next I continue think deployment of QX tailwind there's the to lot year. into

ISI. Our Evercore with next question Mark Mahaney is from

geopolitical like in that? factors a growth in you growth The pronounced out secondly, I ROW anything ROW? call that, the X new world particular think of suggests little was most growth would seeing And a Any there? in that markets countries spend earlier or Are to the talked about then in there's Two that Is there questions, rest please. -- is something the pause MAUs bit there regions. other element quarter? ad in a of companies seeing have due you

first, second the Mark, your question take I'll the for questions. So thanks of part and

a I before the take the Gaza. and So moment tragic situation I to ground get want acknowledge just that, actually, to on Israel in to

situation with Pinterest that all While are employees doesn't have there. are truly affected thoughts there our definitely beyond the those words,

did has advertisers spend, relatively would brand performance more get the ads So quarter. brand temporarily worse, do and would situations. spending resilient. to And more advertisers this we'd the resulted were in geopolitical return. expect in Middle regard far geopolitical platform advertising the with broke we've those and impact so largely to a When geopolitical at materially minor East some be seen short-term impact. the out, that if resilient since advertisers on major our environment But situation, be conflict of risk been the react pause to But

given at of more a in story we lot we're side, spend way to So it skewed we've be story markets. that as platform back would these be we things broad-based a more advertisers users in engagement it's going results. so progress of And and mature to engagement what would a we've in not seen impact things more we're in talking look be the far, the a we're getting brand if to in need than to made funnel. But more than our next-gen markets impacted our you immune relevant where product be technology. lower deepening world, a meaningful as on we've to and about execute we've global of the lot seen relevancy is QX the see of are deepening account pull to of about A that. by taking good to These far, AI user. in the lower rest guidance. And we more we feel of today strength, continues recent our are and that everything math so mature then mature using factored where markets ability the what end quarter, which improvements manifest seen the But improvement into funnel, great know per into having then that bolstered

markets. As look even rest of you in happening growth you more see those world, to mile

question Anmuth from is Our JPMorgan. next from Doug

similar there? was in At talked you just commentary progress build that? automated just about on all. ad going XXXX, launching around how the could fully tool a the other That's any provide some is hoping to large Analyst Day, update I Perhaps an the you platforms. of

Thanks, Doug. the Appreciate question.

our with progress on that pleased really we're So front.

of If those to automated solution. fully you of components And think more we're now want a you'd about sort that there, out bringing in the see the together tools have comprehensive we into most that.

today. be So significant using is if automated you majority bidding we'd revenue. looked have a -- at -- are our bidding would now, It of using

us the results progress us them. campaign as for to go look then we giving and drive leave it us 'XX, give going targets, to we're As to ability forward we year, into creative through advertisers more to give basically be

And making really like there. progress we're so great we feel

so forward another factor that's we look as positive into 'XX. we think And

next the call. is Anthony Our with question has America. from Anthony Post from Bank of dropped

with Josey Citi. Ron from be will question next our So

there's just I picking about more improvements with say And cases, particularly, prior Direct we GA. overall off adoption July, to love left just when you're on in overall or sessions, heard use and hear launched go. that insights to linking to fully up XQ, in in Link engagement deep talked impact engagement And newer about the improves I cases? have now more use connected mobile they but launched please. I you X, think overall about in where rates Bill, just then talking you talk users how in search more

MDL helpful. be Direct Link on insights would any So and

Yes.

multi of sort this up picking on Journeys, on So they're session.

as real look see One you may were user sessions multi-session. chats a pain sort think shopping And That's of oftentimes, that This of browser I would time, a is manifest is of portion how of if you'd shopping, in appreciate core Pinterest, the a over fully of not experiences. once. is the the at journeys at things multi-session think open browser having pain XX or opened about point which to core XX Pinterest XX XX tabs point fact, strength as users of shoulder a that's commercial way that people that like this reflective of a are, significant solves. or these

And twice so rate, as platform saving core recent about our as users element we are cohorts being approximately of that. most saving talked cohorts a on as our being an at increasing engaged and past

it you experience like you with back do their shoes but and pick are really and taking the with As get are that and needs. only up coming with but give back Pinterest, about easier not us, the you jacket reasons relevant come more and the taking play they off to recommendations better you to things we're users and to well seeing the shopping come the more more go frequently style. if We're that that making where journeys and things for then back that, to for users your get left those go saved, example gave great recommendations save I us

would than of And platform, what a we our we that really forward but there, core do And Pinterest. feel a other go can it's on we to strength the different have about so with. But more results it's unique excited platforms. still lot fundamentally really users

seeing is still shopping. measure retailers And by that on that, then able reallocate deploy into work as then They that do to to Mobile we more Links retailers having and with to to work easily them particularly end. But their that and into we've Direct the Links, we're more. on work do more Direct more And need then great go deliver Deep our assign we're them to budgets. that to do news for been we're without a the will clicks, Link so advertisers, ability with and without differentiation through leaning getting

about value that the clicks they're a and is forward, in lift we as noted through in look seeing that XX% we for come advertisers. that their so And And -- creation tremendous that they're getting thinking front we're lot they're the still that we a value of even is very in models the rapidly us, for budget, measurement on of value advertiser. capture though creation moving and see

Our with is next Baird. question Colin from Sebastian

to rate A for curious versus provide allocation incremental higher across on I advertisers? the growth off, well. if QX secondly, date you first this, guess, budget the apologies from did in API platform, revenues I'm that revenues for me is existing an the from platform? you of conversions, on as the for much I but missed couple penetration at how And advertisers look then update when just new

Yes.

in certainly well in that. we've So advertisers retail seen coming larger, seeing our a results. advertisers first been question, your has new mix particularly at my strength, I on been in But broad-based. And the of have compelling comments, seen of noted they're nice as more prior actually we've the sophisticated as as core

those seeing cohort seeing sophisticated revenue our so most than There is are faster great And advertisers performance from a overall. us. growing

fact, growing them retail, large overall. than advertisers, sophisticated revenue rate all of faster In our growth our particularly seeing across in we're

financial well. lower So I are and helping just emerging driving comment categories services in travel also our that's as advertisers well think on well retailers. It's that To categories working large and some funnel for for bodes emerging how others. of performance-oriented value with to and really those bring like solutions

you contributor the well. particularly anybody there are our make say, to them larger driven on can as just happy. But the can sophisticated which if we has largest make coming happy, by advertisers new always And and platform advertisers, you to been about retail growth, so

coming that continue. the advertisers expect so only other platform will leaning or we of And in into trend that, more

on And of your Collin, to conversion. update sort then, second penetration about the for question API

simply gave we Investor did because just to not you that stat Day. all at we update last month So it

reminder said XX% of revenue So total that time, conversions has start app, the from up as that XX% a of at which we the there, adopted the of August, at just is for API year.

see nice progress So there. continuing to

Mark is question next Stifel. Kelley from Our with

I have X quick ones.

partnerships the one then of Does over with guess one. cookies And Chrome? to that I kind provider the tech picture? widely you and easier, of second are path make how a a third-party something the follow-up important just that's The partners kind first adopted? is rush that it partnering what's just last in first forward conversions. are those for to adoption That's terms bigger then that whether expansion? Is on the the on of one, that just Amazon a I it's of at international demand other time. you importance bring increase kind expect deprecated minute when of slowly on API on guess or

Thanks the questions, for Mark.

that. international. our around can some overall, international we can that resellers help definitely is with helpful. So on about in help and both comments particularly internationally, third parties this not significantly how on there's about we which of business We anything your demand how Day, accelerate and as international about our progress. we could first look third-party forward, working announcements third-party talked for with had we But think place question that think be around there, we've are specific Investor like internationally undermonetized around talked -- all a new XP have no

as that your efforts then ], browser we I like as stated, make we that, that and deprecating to that's 'XX monetization -- at the definitely been cookies. a adoption into think driving third-party curve we we're with the as there. point, the of more larger, things. advertisers on go progress go But and back under end further earlier by other be and contributor something look see we've to internationally. And as greater next on focusing given demand into So 'XX, seen, towards have browser our onto along into platform as is look that other we on And bring we internationally been things year these resellers providers major can the Cappy [ to has -- relevant sophisticated there'll desire ARPU

we into the will create go I think 'XX. for more that function forcing as industry

safe interested is So crystal need ball pertains know around less I future Pinterest that us some safe as a implement similar serve broadly boats forcing talked then tell a in different interested users users tools. But it in this, and face create the a we cookies measurement. we for privacy doesn't being as think able I than other boat are toward I thing relevant think don't on measurement platforms they're we simply, to anybody the but move as cookie around will ads else, function to about privacy the advertisers what the what future, industry just think better And in. we to stated and very Users follow implement think we to come do have Internet to in. they're Pinterest to very that

So our great by platform, relevant serve what our our to ads is a on signal. driven users ] to by users first [ ability do correctly

so the we And for delivering measurement even positioned it continue think we as I tools management the we're well as accelerate a quite yes, ads into as industry to future. And on users great adoption cookie of those side, less the we'll to pertains 'XX. prove we go move safe into relevant suspect then

Sandler. Next Champion Piper with from Tom question is

a Amazon, to in Julia, very discuss you, front if keep the in Is growth in there? base monitor the XP impact there partners on Anything or maybe to revenue managing additional partner existing call Bill, existing Europe in regulatory for curious on well? strong then advertiser advertiser or trade-off as to the outs And when or is layering Any sensitivity any ROI any any the just mind? on price there there future? major there to XQ. you could

on really increase seeing think the Thanks, sort Tom, a really meaningful for relevance surface, we've there. seen complex that. XP issue versus by XP, getting surface. we've channel kind there not And out, To in of and that's What I seen is of demand a we're through like of you're think the lot point that is evidenced new your questions. I coming that is really this

on You would seeing already weren't have new the if that wasn't relevancy the demand increases platform. you

there's the it's been for platform, that positive so why is up in engaged so it's which our it new been users. highlight relevant demand really making that's showing that is far So on so

synergistic certainly We something concern it watch particular So I'll attention pay these to. to... quite we've any then would think not over seen we one with there, things give another. And actually for and are

Yes.

on Tom, growth on European specifically. question sort your QX So in of

the some auto amplified verticals So vertical. such strong also we agencies. there and by emerging strong did this was also growth CPG from see technology from growth But with as and

talked European a the market specifically. historically, in agencies differential As play we've about, role

a reported currency to on basis. Some it constant of also, was year, in a an a both of be bit last fair, QX comp and little of easier

major that's on in also something the we that calling that's out think either. or impact worth and I our see so regulatory today And business no front expect

This was the last question for today's call.

now Bill I over to So will remarks. the Ready for call closing hand

to to Thanks call all all we of keeping for hope enjoy questions. this you again We the dialogue joining and and of look you your your forward for day. the rest going,

XXXX Call. your Conference Thank Pinterest today's Quarter concludes for participation. Earnings Third you That

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