Financial Data and Key Metrics Changes - Q3 2025 revenue reached $1.049 billion, growing 17% year-over-year, with a 16% increase on a constant currency basis [31][32] - Adjusted EBITDA for Q3 was $306 million, representing a margin of 29%, with a 170 basis point expansion year-over-year [34][35] - Free cash flow for Q3 was $318 million, indicating a strong cash-generative nature of the business [35] Business Line Data and Key Metrics Changes - Monthly active users (MAUs) reached 600 million, marking a 12% growth year-over-year, with significant strength in Gen Z users [5][30] - Revenue from the US and Canada was $786 million, growing 9%, while Europe saw revenue of $193 million, growing 41% [31] - Revenue from the rest of the world was $70 million, growing 66% year-over-year [31] Market Data and Key Metrics Changes - The US and Canada region had 103 million MAUs, growing 4%, while Europe had 150 million MAUs, growing 8% [30] - The rest of the world markets had 347 million MAUs, growing 16% [30] - Ad impressions grew 54% year-over-year, while ad pricing declined 24% due to a shift towards lower-priced international markets [32][33] Company Strategy and Development Direction - The company is transforming into an AI-powered visual-first shopping assistant, enhancing user engagement and advertiser partnerships [4][9] - There is a focus on expanding monetization in international markets, which currently represent only 25% of global revenue despite having 83% of global users [24][28] - The introduction of Pinterest Assistant aims to enhance user experience through voice-activated searches and personalized recommendations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid- to high-teens revenue growth targets over the medium and long term, despite challenges in the UCAN region [52][55] - The company is optimistic about the potential of AI-driven optimization and the adoption of Performance Plus campaigns among smaller and mid-market advertisers [60][62] - Management noted that the digital ad environment remains challenging, particularly for larger retailers navigating tariff-related margin pressures [59] Other Important Information - The company allocated $199 million towards share repurchases and $115 million for net share settlement of equity awards to mitigate dilution [36] - The Q4 revenue guidance is projected to be between $1,313 million and $1,338 million, representing a 14%-16% growth year-over-year [36][37] Q&A Session Summary Question: Future of e-commerce and Pinterest's strategy - Management highlighted the proactive nature of Pinterest's AI, which anticipates user preferences without explicit prompts, enhancing user engagement and shopping experiences [45][48] Question: Impact of tariffs on ad spend - Management confirmed that while there was a pullback in ad spend from some US retailers, there was a partial recovery in spending from Asia-based e-commerce players [51][52] Question: Digital ad environment and UCAN performance - Management noted consistent revenue growth despite challenges in the UCAN region, emphasizing the importance of AI-driven platforms for future optimization [59][60] Question: AI-generated content strategy - Management clarified that while they embrace AI-generated content, they prioritize content quality and user choice, allowing users to filter AI content [66][70] Question: Relationship with Magnite and new demand sources - Management stated that first-party ad demand remains the primary growth driver, with ongoing efforts to integrate third-party demand sources [73][74] Question: SMB and mid-market opportunities - Management expressed confidence in the Performance Plus campaigns, noting higher conversion rates and revenue growth among smaller and mid-market advertisers [78][79]

Financial Data and Key Metrics Changes - In Q3 2025, Pinterest reported revenue of $1.049 billion, representing a 17% year-over-year growth [6][30] - Adjusted EBITDA for Q3 was $306 million, with a margin of 29%, reflecting a 170 basis point expansion compared to the previous year [33] - Free cash flow for Q3 was $318 million, indicating a strong cash-generative nature of the business [33] Business Line Data and Key Metrics Changes - Outbound clicks to advertisers increased by 40% year-over-year in Q3, demonstrating enhanced engagement with advertisers [8] - The number of unique shopping SKUs with paid ad impressions grew over 100% year-over-year, driven by the adoption of ROAS bidding [23][52] - Pinterest Performance Plus campaigns have shown a 24% higher conversion lift compared to traditional campaigns, particularly benefiting smaller and mid-market advertisers [63] Market Data and Key Metrics Changes - Monthly active users (MAUs) reached 600 million, growing 12% year-over-year, with significant growth in the U.S. and Canada, Europe, and the rest of the world [5][29] - Revenue from the U.S. and Canada was $786 million, growing 9%, while Europe saw a 41% increase to $193 million, and the rest of the world grew 66% to $70 million [30] - International markets represented 25% of global revenue, indicating significant growth potential in these regions [25] Company Strategy and Development Direction - Pinterest is transforming into an AI-powered visual-first shopping assistant, enhancing user engagement and advertiser partnerships [4][10] - The company is focusing on expanding its share of wallet with mid-market and smaller advertisers while also increasing monetization in international markets [9][28] - New features like Pinterest Assistant and multimodal search are being developed to enhance user experience and drive engagement [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid- to high-teens revenue growth targets over the medium to long term, despite some ad spend moderation in the U.S. [46][49] - The company is optimistic about the potential of AI-driven optimization and the ongoing rollout of Performance Plus solutions [52][53] - Management noted that the digital ad environment remains challenging, particularly for larger retailers, but sees opportunities in emerging verticals and smaller advertisers [49][51] Other Important Information - Pinterest's international monetization is still in early stages, with significant room for growth as the company scales proven strategies from the U.S. [25][28] - The company is actively investing in AI and product innovation to enhance user experience and drive advertiser performance [33][36] Q&A Session All Questions and Answers Question: Future of e-commerce and Pinterest's strategy - Management highlighted Pinterest's proactive AI-driven approach, which anticipates user preferences and enhances engagement, positioning the platform uniquely in the e-commerce landscape [39][40] Question: Digital ad environment and UCAN performance - Management noted that despite a challenging ad environment, Pinterest achieved 17% revenue growth, driven by strong performance in emerging verticals and smaller advertisers [49][50] Question: Relationship with Magnite and new demand sources - Management clarified that first-party ad demand remains the primary growth driver, with ongoing efforts to integrate third-party demand sources [60][61] Question: SMB and mid-market opportunity - Management emphasized the significant potential in the SMB and mid-market segments, with Performance Plus campaigns driving higher conversion rates and revenue growth [63]

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]