PINS Q1 2024 Earnings

Call Details

• Call Title: Pinterest, Inc. Q1 2024 Earnings Call
• Date: April 30, 2024 at 8:30 PM UTC
• Management Team:
  • Andrew Somberg (Vice President of Investor Relations and Treasury)
  • Bill Ready (Chief Executive Officer)
  • Julia Brau Donnelly (Chief Financial Officer)

Call Summary

Financial Performance

• Global MAUs reached 518 million, growing 12% year over year and accelerating for the seventh consecutive quarter.
• Q1 revenue was $740M, up 23% year over year and up 22% on a constant currency basis.
• Adjusted EBITDA was $113M, representing a 15% margin and improving nearly 1,100 basis points year over year.
• Ad impressions grew 38% year over year while ad pricing declined 11% year over year, an improvement from down 16% last quarter.
• Cost of revenue was $177M, up 6% year over year and up 2% versus Q4 due to infrastructure spend.
• Non-GAAP operating expense was $453M, up 10% year over year driven by headcount and incremental marketing.
• Cash, cash equivalents, and marketable securities totaled $2.8B at quarter end and the company used approximately $100M of cash for net share settlement of equity awards.

AI & Technology Initiatives

• Pinterest transitioned from CPU to GPU serving to enable models that are 100 times larger and to improve personalization and relevance.
• Recommendation models now incorporate proprietary signals from human curation to optimize for depth of engagement and outcomes such as saves, clicks, and conversions.
• Collages powered by computer vision and AI drive higher engagement, with users roughly three times more likely to save collage pins versus other pins.
• Gen Z comprises more than 40% of users and represents nearly 70% of collage creators, indicating product-market fit for AI-powered creative formats.
• Shop the Look was expanded to video pins in Q1 to surface shoppable carousels directly from video content.
• Planned product launches include dynamic creative optimization using generative AI and ROAS bidding to automatically optimize toward advertiser ROI.