PINS Q3 2020 Earnings

Call Details

• Call Title: Pinterest, Inc. Q3 2020 Earnings Call
• Date: October 14, 2020 at 8:30 PM UTC
• Management Team:
  • Ben Silbermann (Chief Executive Officer)
  • Todd Morgenfeld (Chief Financial Officer and Head of Business Operations)
  • Jane Penner (Head of Investor Relations)

Call Summary

Financial Performance

• Monthly active users grew 37% year over year to $442 million during Q3 2020.
• Revenue grew over 58% year over year in Q3 2020 versus Q3 2019.
• Pinterest generated a positive 21% adjusted EBITDA margin in Q3 2020 on a non-GAAP basis.
• International revenue grew 145% year over year and represented 16% of total revenue in Q3 2020, up from 10% in the year-ago quarter.
• Headcount grew 19% year over year in Q3 2020.
• Pinterest reported that shopping-related engagement grew more than 85% year over year and that video uploads grew 7x year over year.

Guidance

• Pinterest provided an informal Q4 2020 revenue outlook of about 60% year over year growth.
• The company expects to modestly grow total non-GAAP operating expenses in Q4 2020 versus Q3 2020.
• Management stated that the incremental 4 million MAUs tied to iOS 14 wallpaper customizations are more likely to churn in Q4 2020.
• The company characterized visibility for Q4 2020 as limited due to two external unknowns: COVID-19 impacts on engagement and the sustainability of advertiser boycott tailwinds.
• Pinterest stated that Q4 advertiser demand is typically back-end loaded in the quarter and that this seasonality adds uncertainty to near-term guidance.
• Management said returns from recent investments may not be linear and that outcomes could vary into 2021 and beyond.