PINS Q4 2024 Earnings

Call Details

• Call Title: Pinterest, Inc. Q4 2024 Earnings Call
• Date: February 6, 2025 9:30 PM UTC
• Management Team:
  • Andrew Somberg (Vice President of Investor Relations and Treasury)
  • Bill Ready (Chief Executive Officer)
  • Julia Brau Donnelly (Chief Financial Officer)

Call Summary

Financial Performance

• Q4 revenue was $1.154B, up 18% year over year on a reported and constant currency basis.
• Full year 2024 revenue was $3.65B, representing 19% growth versus 2023.
• Q4 adjusted EBITDA was $471M with an adjusted EBITDA margin of 41%, which was an increase of 320 basis points versus Q4 last year.
• Full year adjusted EBITDA exceeded $1.0B, representing roughly a 50% increase year over year and margin expansion of 510 basis points for 2024 versus 2023.
• Q4 ad impressions grew 43% year over year while ad pricing declined 18% year over year.
• Clicks to advertisers grew over 90% year over year in Q4, even after lapping initial direct links momentum from Q4 2023.
• Q4 cost of revenue was $191M, up 10% year over year, and non-GAAP operating expense in Q4 was $496M, up 12% year over year.
• Company reported GAAP net income profitability in 2024 for the first time since 2021 due in part to a $1.6B income tax benefit related to the release of a valuation allowance.

Guidance

• Q1 2025 revenue guidance is $837M to $852M, representing 13% to 15% growth year over year or 15% to 17% growth on a constant currency basis.
• Q1 2025 adjusted EBITDA guidance is $155M to $170M.
• Guidance assumes approximately a two-point foreign exchange headwind based on current spot rates and factors the effects of lapping leap day and earlier Easter timing in Q1 2024.
• The company will transition to providing adjusted EBITDA guidance going forward and will no longer provide an outlook for non-GAAP operating expenses.
• Q1 2025 non-GAAP cost of revenue is expected to be relatively consistent with Q4 2024.
• The company expects margin expansion in 2025 but at a slower rate than the 510 basis point expansion delivered in 2024.