Financial Data and Key Metrics Changes - Pinterest reported Q2 revenue of $998 million, representing a 17% year-over-year increase [29][30] - The company ended the quarter with 578 million monthly active users (MAUs), an 11% increase year-over-year [7][28] - Adjusted EBITDA for Q2 was $251 million, resulting in an adjusted EBITDA margin of 25%, an increase of approximately 310 basis points year-over-year [33][34] Business Line Data and Key Metrics Changes - Revenue from the U.S. and Canada was $745 million, growing 11% year-over-year, driven by strength in retail and financial services [30] - In Europe, revenue reached $191 million, growing 34% year-over-year, with retail being a significant contributor [31] - Revenue from the Rest of World was $63 million, growing 65% year-over-year, indicating strong performance in international markets [31] Market Data and Key Metrics Changes - Ad impressions grew by 55% in Q2, marking the twelfth consecutive quarter of growth since 2022 [31] - Ad pricing declined by 25% year-over-year, primarily due to a shift towards lower-priced international markets [32] - The U.S. and Canada region had 102 million MAUs, growing 5%, while Europe had 146 million MAUs, growing 7% [29] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance user engagement and ad performance, positioning itself as a leader in visual search [5][14] - Pinterest aims to deepen engagement and increase ad load with relevant ads, driving performance for advertisers through lower funnel product innovations [27][28] - The partnership with Instacart aims to enhance shopping experiences by allowing users to purchase ingredients directly from recipes on Pinterest [21][80] Management's Comments on Operating Environment and Future Outlook - Management noted a constructive environment for digital ads in Q2, with continued strength in retail and financial services [47][50] - The company anticipates Q3 revenue to be in the range of $1.033 billion to $1.053 billion, representing 15% to 17% growth year-over-year [34] - Management expressed confidence in the resilience of the business and the durability of revenue growth drivers [50][85] Other Important Information - Pinterest's taste graph has grown over 75% over the last two years, enhancing its ability to make relevant recommendations [12] - The company has invested heavily in AI tools to improve user representation and inclusivity on the platform [25] - Pinterest's ethos of positivity and belonging continues to differentiate it from competitors, attracting creators and advertisers [24][25] Q&A Session Summary Question: How has overall usage trends changed with Gen Z being 50% of users? - Management noted that user growth is strong across all demographics, with Gen Z accounting for over 50% of MAUs, and emphasized the platform's appeal as a search destination for this demographic [39][40] Question: How is the current demand state for digital ads characterized? - Management indicated a more constructive environment than previously expected, with continued strength in retail and financial services, despite some tariff-related impacts [47][50] Question: Can you discuss the adoption of Performance Plus? - Management reported notable early adoption from mid-market advertisers, with lower funnel revenue through Performance Plus campaigns more than doubling since last year [52][54] Question: What investments are being made to succeed in the new AI-driven search funnel? - Management highlighted that Pinterest has become an AI-enabled shopping assistant, focusing on enhancing user experience through AI and unique curation signals [59][60]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $855 million, reflecting a 16% year-over-year increase [5][34] - Adjusted EBITDA grew to $172 million, with an adjusted EBITDA margin of 20%, an increase of 300 basis points year-over-year [6][37] - The company ended the quarter with cash, cash equivalents, and marketable securities totaling $2.6 billion [37] Business Line Data and Key Metrics Changes - Monthly Active Users (MAUs) reached 570 million globally, representing a 10% growth year-over-year [5][32] - Revenue from the U.S. and Canada was $663 million, growing 12% [35] - Revenue from Europe was $147 million, growing 24% on a reported basis [35] - Revenue from the rest of the world was $45 million, growing 49% on a reported basis [36] Market Data and Key Metrics Changes - Ad impressions grew by 49% year-over-year, while ad pricing declined by 22% [36] - The international mix shift contributed to the decline in ad pricing, as ads were served in previously unmonetized markets [36][74] Company Strategy and Development Direction - The company aims to enhance user engagement through improved visual search capabilities and AI-driven personalization [8][12] - The strategy focuses on becoming a shopping destination, with 85% of MAUs accessing the mobile app [7] - The company is expanding its lower funnel ad offerings and enhancing the Performance Plus suite to drive advertiser value [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the effectiveness of product investments made over the past three years [38] - The company anticipates Q2 revenue in the range of $960 million to $980 million, representing 12% to 15% growth year-over-year [38] - Management noted that while there are pockets of spend impacted by tariffs, the fundamentals of the business remain strong [46][47] Other Important Information - The company is focusing on privacy-centric measurement tools and has entered partnerships to improve performance measurement [26][70] - The company reported that 25% of its code is now generated through AI, which has improved engineering velocity and productivity [32][88] Q&A Session Summary Question: Guidance for Q2 and pipeline observations - Management noted that trends remain healthy and that product investments are driving performance gains for advertisers [45][46] Question: Progress on Performance Plus and advertiser receptivity - Management highlighted that Performance Plus is driving strong performance and that 80% of campaigns outperform traditional campaigns [60][61] Question: Impact of macro volatility on ad spend - Management indicated that the full funnel approach is helping advertisers tie upper and lower funnel objectives, leading to better performance [78][80] Question: Update on emerging verticals and AI-generated code - Management discussed growth in financial services and other emerging verticals, emphasizing the platform's fit for advertisers during key life moments [85][88]