PINS Q3 2024 Earnings

Call Details

• Call Title: Pinterest, Inc. Q3 2024 Earnings Call
• Date: November 7, 2024 at 9:30 PM UTC
• Management Team:
  • Bill Ready (Chief Executive Officer)
  • Julia Brau Donnelly (Chief Financial Officer)
  • Andrew Somberg (Vice President, Investor Relations and Treasury)

Call Summary

Financial Performance

• Global revenue in Q3 was $898 million, up 18% on a reported and constant currency basis.
• Monthly active users were a record 537 million in Q3, growing 11% year over year.
• Adjusted EBITDA was $242 million with an adjusted EBITDA margin of 27%, representing approximately 280 basis points of margin expansion versus Q3 last year.
• Cost of revenue was $182 million, up 9% year over year, and non-GAAP operating expense was $478 million, up 15% year over year.
• Ad impressions grew 41% year over year while ad pricing declined 17% year over year due to mix shifts from monetizing under-monetized international markets.
• Regional revenue by geography was disclosed as U.S. & Canada $719 million up 16%, Europe $137 million up 20%, and Rest of World $42 million up 38% reported (45% constant currency).

AI & Technology Initiatives

• Pinterest's AI recommendation models generate over 400 million predictions per second to rank content for users.
• Fine-tuning off-the-shelf LLMs with Pinterest first-party data delivered a 300 basis point improvement in actionable engagement measured by clicks and saves versus an un-tuned model.
• Average ads relevance for top ad slots has more than doubled over the past two years.
• Performance Plus went to general availability on October 1st and reduced advertiser setup inputs by 50% while delivering on average a 10% better cost per action.
• Performance Plus Creative beta testing showed a 14% average increase in conversion rate and a 9% lower cost per action, and a cited retailer drove a 37% better click-through rate using the tool.
• ROAS bidding alpha tests showed most advertisers saw at least a 15% increase in return on ad spend, and ROAS bidding is expected to expand availability in Q1.