PINS Q3 2022 Earnings

Call Details

• Call Title: Pinterest, Inc. Q3 2022 Earnings Call
• Date: October 27, 2022 at 8:30 PM UTC
• Management Team:
  • Neil Doshi (Head of Investor Relations)
  • Bill Ready (Chief Executive Officer)
  • Todd Morgenfeld (Chief Financial Officer and Head of Business Operations)

Call Summary

Financial Performance

• Third quarter global revenue was $685M, up 10% year over year on a constant currency basis and up 8% on a reported basis.
• Adjusted EBITDA for Q3 was $77M with an adjusted EBITDA margin of 11% on a non-GAAP basis.
• Global monthly active users were 445M in Q3, flat year over year and up 12M, or 3%, sequentially.
• U.S. and Canada monthly active users were 95M, increasing 3% sequentially with an addition of 3M users.
• Total U.S. and Canada revenue was $575M, up 9% year over year, and U.S. and Canada ARPU was $6.13, up 15% year over year.
• Shopping ads revenue (promoted catalogs) grew 50% year over year, and attributed conversions grew over 20% year over year.
• Non-GAAP operating expenses were $434M in Q3, up 38% year over year and up 4% sequentially.
• Pinterest ended Q3 with approximately $2.67B in cash, cash equivalents, and marketable securities.

Guidance

• For Q4 2022, the company expects revenue to grow in the mid-single digits percentage range year over year.
• The Q4 revenue outlook includes approximately three percentage points of headwind from foreign exchange relative to year over year growth.
• The company noted October was trending roughly at the low end of the Q4 guidance range and the guide assumes a modest pickup in November and December.
• The company warned of a wider range of outcomes for Q4, including downside risk, due to volatile advertiser demand and the back-end weighted holiday seasonality.
• Company expects non-GAAP operating expenses to grow in the low double digits percentage range sequentially in Q4 due to shifting brand marketing into Q4.
• For full year 2022, non-GAAP OpEx is expected to grow around 35% year over year at the low end of the previously communicated range.
• The company reiterated commitment to meaningful margin expansion in 2023.