PINS Q2 2022 Earnings

Call Details

• Call Title: Pinterest, Inc. Q2 2022 Earnings Call
• Date: August 1, 2022 at 9:00 PM UTC
• Management Team:
  • Neil Doshi (Head of Investor Relations)
  • Ben Silbermann (Executive Chairman and Co-founder)
  • Bill Ready (Chief Executive Officer)
  • Todd Morgenfeld (Chief Financial Officer and Head of Business Operations)

Call Summary

Financial Performance

• Q2 revenue grew 9% year-over-year to $666 million and grew 10% year-over-year on a constant currency basis.
• Revenue grew 16% sequentially in Q2 and accelerated on a two-year basis at an annualized rate of 56% versus 45% in Q1.
• Adjusted EBITDA was $92 million, corresponding to an adjusted EBITDA margin of 14% in Q2.
• Monthly active users declined 5% year-over-year on a reported basis while global mobile app users grew 8% year-over-year.
• Web users declined approximately 30% year-over-year while mobile app users represented well over 80% of revenue and impressions.
• Non-GAAP operating expenses increased 16% sequentially driven by R&D hiring, creator-related marketing catch-up, and higher G&A payroll.
• Shopping ads revenue grew twice as fast as overall revenue year-over-year in Q2.
• Europe revenue grew 22% year-over-year on an adjusted basis after a 12-point headwind from U.S. dollar strength.

Guidance

• The company currently expects Q3 revenue to grow in the mid single digits year-over-year.
• Company commentary noted that July performance was slightly ahead of the range but that signals point to a slowdown toward the lower end of the guidance range.
• If economic conditions deteriorate further, revenue growth could land in the low single digits or below the guided mid-single-digit range for Q3.
• The Q3 guide incorporates a modestly greater foreign exchange headwind versus Q2.
• Higher CPAs related to platform-specific engagement dynamics are expected to disproportionately affect price-sensitive advertisers' ability to spend.
• IdeaPin distribution is expected to have a modest, low single-digit negative impact on revenue growth in Q3.
• For Q3, non-GAAP operating expenses are expected to grow in the low double digits sequentially due to a global brand campaign, creator investments, and hiring.
• There is no change to the full-year guide of non-GAAP operating expenses growing in the range of 35% to 40% year-over-year.