PINS Q3 2023 Earnings

Call Details

• Call Title: Pinterest, Inc. Q3 2023 Earnings Call
• Date: October 30, 2023 at 8:30 PM UTC
• Management Team:
  • Neil Doshi (Head of Investor Relations)
  • Bill Ready (Chief Executive Officer)
  • Julia Brau Donnelly (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue was $763 million, up 11% on a reported and constant currency basis year over year.
• Global monthly active users reached 482 million, up 8% year over year and an all-time high.
• Adjusted EBITDA was $185 million, representing a 24% adjusted EBITDA margin and a 1,300 basis point year-over-year margin improvement.
• Cash, cash equivalents, and marketable securities totaled approximately $2.3 billion at quarter end.
• In the US and Canada, revenue was $618 million, up 8% year over year.
• Europe revenue was $114 million, up 33% year over year and up 25% on a constant currency basis.
• Rest of world revenue was $31 million, up 29% year over year and up 28% on a constant currency basis.
• Ad impressions grew 26% year over year while the price of ads declined 12% year over year, improving from a 20% decline in the prior quarter.

Guidance

• For Q4 2023, the company expects revenue growth in the 11% to 13% range year over year.
• The company expects Q4 non-GAAP operating expenses to decline in the 9% to 13% range year over year, excluding cost of revenue.
• The company expects continued adjusted EBITDA margin expansion in Q4 that would put full year 2023 on track for approximately 600 basis points of adjusted EBITDA margin expansion.
• Revenue guidance incorporates a modest foreign exchange impact.
• Cost of revenue is not guided specifically and is noted to typically run lower as a percentage of revenue in Q4 due to seasonality.
• No specific GAAP earnings guidance was provided on the call.