Pinterest(US:PINS)2025-08-07 21:32Financial Data and Key Metrics Changes - The company reported Q2 revenue of $998 million, representing a 17% year-over-year increase [31][8] - 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 [35][27] - Free cash flow for Q2 was $197 million, with cash, cash equivalents, and marketable securities totaling $2.7 billion at the end of the quarter [35][36] Business Line Data and Key Metrics Changes - Monthly Active Users (MAUs) reached 578 million, an 11% increase year-over-year, marking a record high [8][30] - Ad impressions grew by 55% in Q2, marking the twelfth consecutive quarter of growth in ad impressions [33] - Revenue from the U.S. and Canada was $745 million, growing 11%, while Europe saw revenue of $191 million, growing 34% [32][30] Market Data and Key Metrics Changes - The U.S. and Canada region had 102 million MAUs, growing 5%, while Europe had 146 million MAUs, growing 7% [30] - The Rest of World market had 329 million MAUs, growing 14% [30] - Revenue from the Rest of World was $63 million, growing 65% on a reported basis [31] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance user engagement and ad performance, aiming to create a more personalized experience [6][14] - A strategic partnership with Instacart was announced to enable shoppable ads, particularly in the food and beverage category [21][81] - The company aims to continue expanding its lower funnel and performance ad strategies in international markets [70][28] Management's Comments on Operating Environment and Future Outlook - Management noted a constructive environment for digital ads in Q2, with strong performance in retail and financial services [49][48] - The company expects Q3 revenue to be in the range of $1.033 billion to $1.053 billion, representing 15% to 17% growth year-over-year [36][27] - Management expressed confidence in the resilience of the business and the durability of revenue growth drivers [52][28] Other Important Information - The company has seen a significant increase in Gen Z users, now accounting for over 50% of MAUs, which is driving engagement and search behavior [10][42] - The company is investing in R&D and sales capacity to support growth in AI and performance-based advertising [79][28] Q&A Session Summary Question: Overall usage trends with Gen Z - Management noted that user growth is strong across all demographics, with Gen Z increasingly using Pinterest as a search engine [42][44] Question: Current demand state for digital ads - Management indicated a more constructive environment than previously expected, with continued strength in retail and financial services [49][48] Question: Performance Plus adoption - Management reported notable early adoption from mid-market advertisers, with lower funnel revenue through Performance Plus campaigns more than doubling [54][55] Question: Investments in AI and search funnel changes - Management emphasized that Pinterest has become an AI-enabled shopping assistant, enhancing user experience and engagement [61][64] Question: International business dynamics - Management highlighted the narrowing gap between U.S. and international ARPU, with strong growth in Europe and Rest of World regions [70][69] Question: Investment priorities for the second half of the year - Management plans to focus on R&D investments in AI and sales capacity to support growth in emerging verticals [79][78]