PINS Q2 2024 Earnings

Call Details

• Call Title: Pinterest, Inc. Q2 2024 Earnings Call
• Date: July 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

• Q2 revenue was $854 million, up 21% year over year on both reported and constant currency basis.
• Q2 adjusted EBITDA was $180 million, representing a 21% adjusted EBITDA margin and up approximately 600 basis points versus Q2 last year.
• Q2 global MAUs were 522 million, up 12% year over year and a record high.
• Regional MAUs were 98 million in U.S. and Canada (up 3%), 136 million in Europe (up 9%), and 288 million in Rest of World (up 17%).
• Q2 revenue by region was $673 million in U.S. and Canada (up 19%), $143 million in Europe (up 25%), and $38 million in Rest of World (up 32% reported; up 36% constant currency).
• Ad impressions grew 35% year over year while ad pricing declined 11% year over year.
• Q2 cost of revenue was $180 million, up 9% year over year, and non-GAAP operating expense was $497 million, up 13% year over year.
• Cash, cash equivalents, and marketable securities totaled $2.7 billion at quarter end, and the company used approximately $120 million for net share settlement of equity awards plus $34 million on share repurchases in Q2.

Guidance

• Q3 2024 revenue guidance is $885 to $900 million, representing 16% to 18% year over year growth.
• Guidance reflects a one-point FX headwind at current spot rates versus the prior five quarters where FX was a tailwind.
• Q3 non-GAAP operating expense is expected to be $485 to $500 million, representing 17% to 20% year over year growth and excluding cost of revenue.
• Q3 non-GAAP cost of revenue is expected to be relatively consistent with Q2 as infrastructure optimizations deliver modest benefits.
• The guidance does not assume a material improvement in the food and beverage category or a significant revenue contribution from Performance Plus during Q3.
• Full year 2024 continues to anticipate year-over-year adjusted EBITDA margin expansion, but at a more modest level than the 660 basis point expansion in 2023.