Pinterest (NYSE:PINS) Q4 2025 Earnings call February 12, 2026 04:30 PM ET Company ParticipantsAndrew Somberg - VP of Investor Relations and TreasurerBill Ready - CEOBrian Nowak - Managing DirectorEric Sheridan - Managing DirectorJulia Donnelly - CFORon Josey - Managing DirectorConference Call ParticipantsColin Sebastian - Baird logo Managing Director and Senior Research Analyst for Internet and Digital MediaDoug Anmuth - Managing Director and Internet AnalystJustin Patterson - Managing Director and Equity R ...

Financial Data and Key Metrics Changes - In Q4 2025, global revenue reached $1.319 billion, reflecting a 14% year-over-year increase or 13% on a constant currency basis [32] - Adjusted EBITDA for Q4 was $542 million, with an Adjusted EBITDA margin of 41%, up 20 basis points year-over-year [34] - Free cash flow for the full year 2025 increased by 33% to $1.25 billion, representing a free cash flow conversion of 99% [35] Business Line Data and Key Metrics Changes - The U.S. and Canada region generated $979 million in revenue, growing 9%, while Europe saw revenue of $245 million, growing 25% [32][33] - Revenue from the Rest of World markets was $96 million, growing 64% [33] - Ad impressions grew by 41% in Q4, but ad pricing declined by 19% year-over-year due to a mix shift towards under-monetized international markets [33] Market Data and Key Metrics Changes - Global monthly active users (MAUs) reached 619 million, up 12% year-over-year, marking the tenth consecutive quarter of record-high users [31] - The U.S. and Canada region had 105 million MAUs, growing 4%, while Europe had 158 million MAUs, growing 9%, and the Rest of World markets had 356 million MAUs, growing 16% [31] Company Strategy and Development Direction - The company aims to broaden its revenue mix and accelerate sales transformation, focusing on mid-market and SMB advertisers [8][22] - AI is positioned at the core of the company's strategy, enhancing user experiences and optimizing internal operations [9][16] - The acquisition of tvScientific is intended to leverage high-intent audiences beyond Pinterest's own surfaces, expanding monetization opportunities [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with Q4 revenue performance, attributing it to external factors like tariffs affecting ad spend from large retailers [7][17] - The company is focused on improving monetization to reflect user engagement strength, with plans to enhance sales and go-to-market strategies [19][20] - Management remains optimistic about long-term growth potential, emphasizing the need for execution improvements to match user engagement with revenue [29][42] Other Important Information - The company has made significant progress in expanding its Taste Graph, which grew by nearly 40% in 2025, enhancing content relevance and recommendations [13] - Approximately 50% of new code is AI-generated, reflecting the company's commitment to leveraging AI for operational efficiency [16] Q&A Session Summary Question: Can you talk more about the drivers of Q4 revenue and the Q1 guidance? - Management noted that larger retail advertisers created a headwind in Q4 as they pulled back on ad spend, impacting revenue more significantly due to the current revenue mix [47] Question: How is the new go-to-market team likely to drive wallet share and digital advertising for Pinterest? - The new team is focused on broadening revenue, particularly across mid-market and SMB advertisers, and enhancing measurement and technical capabilities within the sales organization [53][56] Question: Can you discuss the necessary tech investment to broaden the advertiser base? - Management indicated that significant tech investment is required to deepen the advertiser base and enhance performance selling capabilities, particularly for SMBs [59][64]

Financial Data and Key Metrics Changes - Self-service bookings grew by 6%, marking the first growth in three years, a significant improvement from a negative 10% decline in year-over-year bookings in Q2 2023 [3][4] - Vimeo Enterprise revenue increased by 32%, with bookings up 13%, and quarterly revenue in this segment was more than double the level from two years ago [4] Business Line Data and Key Metrics Changes - The self-service segment showed a notable recovery with reduced revenue decline, while the Enterprise segment demonstrated strong growth in both revenue and bookings [4][5] - The company is focusing on adjusting KPIs to better reflect operational performance as the Enterprise business grows more complex [4] Market Data and Key Metrics Changes - The company is experiencing consistent macro conditions in the self-service business, with good retention rates, while some enterprise deals have slowed down due to macroeconomic factors [17][20] - The enterprise business is expected to have solid growth goals despite some deals slipping into Q2 [22] Company Strategy and Development Direction - The company is making calculated investments in critical areas to drive growth, with a commitment to achieving profitable growth in 2025 [5] - There is a strong focus on expanding average revenue per user (ARPU) and average order value (AOV) in the enterprise business, with an emphasis on building larger relationships with customers [22][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unpredictable economy but remains optimistic about the potential for cost savings for customers through their offerings [20] - The introduction of new leadership in the enterprise sales team is expected to enhance customer relationships and drive future growth [18][20] Other Important Information - The company is rolling out new AI features, including translation capabilities, which are generating interest among customers and are expected to contribute to revenue growth [29][31] - The company filed a recent proxy statement and announced new board member nominations, indicating ongoing governance changes [41] Q&A Session Summary Question: Impact of pricing changes on self-service business - Management noted that a price increase of up to 20% has led to lower churn rates and is expected to continue driving growth in self-service bookings [8][10] Question: Investment plans and financial guidance - The company has an appetite for up to $30 million in investments, with a focus on being responsible with spending and evaluating each project carefully [11][12] Question: Customer feedback on macroeconomic conditions - Management reported consistent macro conditions in self-service, while some enterprise deals have slowed down, but they remain optimistic about future growth [16][20] Question: AI features and customer interest - AI features, particularly translation capabilities, have seen significant interest, with plans for further rollout and monetization strategies [29][31] Question: Industry strength and softness - The company is seeing strong interest from marketing, education, and regulated industries, leveraging AI capabilities for compliance and discovery [38][39]