PINS Q1 2022 Earnings

Call Details

• Call Title: Pinterest, Inc. Q1 2022 Earnings Call
• Date: April 27, 2022 at 8:30 PM UTC
• Management Team:
  • Neil Doshi (Head of Investor Relations)
  • Ben Silbermann (Pinterest President and CEO)
  • Todd Morgenfeld (Chief Financial Officer and Head of Business Operations)

Call Summary

Financial Performance

• Revenue for Q1 2022 was $575M, representing 18% year-over-year growth.
• Adjusted EBITDA for Q1 2022 was $77M, which equates to an adjusted EBITDA margin of 13%.
• Global monthly active users in Q1 were 433M, down 9% year over year versus the pandemic-inflated prior period.
• Global mobile app MAUs grew in the mid-single digits year over year, while US and Canada mobile app MAUs declined around 6% year over year.
• Web-based MAUs declined approximately 31% year over year in Q1.
• Non-GAAP operating expenses accelerated to 31% year-over-year growth in Q1 but declined 1% sequentially due to pushed creator spend and slower hiring.
• Headcount increased 27% year over year through Q1 2022.
• Video idea pins increased 15x year over year and distribution of idea pins negatively impacted near-term revenue growth by a mid-single-digit percentage.

Guidance

• Pinterest expects Q2 revenue to grow around 11% year over year based on current visibility.
• Q2 non-GAAP operating expenses are expected to grow approximately 10% quarter over quarter as some Q1 spend is pushed into Q2 and beyond.
• Full-year non-GAAP operating expenses are expected to grow in the range of 35% to 40% year over year.
• As of April 25, US and Canada MAUs were 94M and global MAUs were 432.9M, which the company will use as intra-quarter context but plans to stop routine inter-quarter MAU updates after Q3.
• Q2 is historically the seasonally weakest quarter for MAUs and June is a weaker month for engagement, which can materially affect quarter-end MAU calculations.
• The company continues to face a year-over-year MAU headwind from the Q4 2021 search algorithm change and warned that future search updates are difficult to predict.
• The company expects continued mid-single-digit revenue headwinds from investing in the native content ecosystem in the near term.