PINS Q4 2023 Earnings

Call Details

• Call Title: Pinterest, Inc. Q4 2023 Earnings Call
• Date: February 8, 2024 at 9:30 PM UTC
• Management Team:
  • Bill Ready (Chief Executive Officer)
  • Julia Brau Donnelly (Chief Financial Officer)
  • Neil Doshi (Vice President, Investor Relations)

Call Summary

Financial Performance

• Global MAUs hit another all-time record of 498 million, growing 11% year-over-year.
• Q4 revenue was $981 million, growing 12% year-over-year and 11% on a constant currency basis.
• Q4 adjusted EBITDA was $365 million, representing a 37% adjusted EBITDA margin and up more than 1,400 basis points year-over-year.
• Full year 2023 revenue was $3.1 billion, growing 9% year-over-year.
• In U.S. and Canada, Q4 MAUs were 97 million, growing 2%, and Q4 revenue was $778 million, growing 8% year-over-year.
• Ad impressions accelerated to 33% growth in Q4 while ad pricing declined 16% year-over-year.

Guidance

• Q1 2024 revenue is guided to $690 to $705 million, representing 15% to 17% year-over-year growth.
• Q1 2024 non-GAAP operating expenses are guided to $450 to $465 million, implying 9% to 13% year-over-year growth.
• Non-GAAP cost of revenue is expected to be relatively consistent with Q4 2023 due to ongoing infrastructure optimization.
• The company expects adjusted EBITDA margin expansion in 2024 but at a more modest pace than the 660 basis points delivered in 2023.
• Long-term targets were reiterated as revenue CAGR in the mid to high teens and adjusted EBITDA margins expanding to the low 30% range in the next three to five years.
• The Q1 guide includes an emerging contribution from third-party ad demand and a modest foreign exchange headwind.