Pinterest(US:PINS)2025-11-04 22:32Financial 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]