Pinterest (PINS) Q2 2025 Earnings Call August 07, 2025 04:30 PM ET Company ParticipantsAndrew Somberg - VP - IR & TreasuryBill Ready - CEOJulia Donnelly - CFORon Josey - Managing DirectorEric Sheridan - Managing DirectorJustin Patterson - Managing DirectorBrian Nowak - Managing Director Justin post - Managing DirectorConference Call ParticipantsDouglas Anmuth - MD & Internet AnalystMark Shmulik - MD & Senior Analyst - US InternetRoss Sandler - Senior Research Analyst - InternetColin Sebastian - Senior Resea ...

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]