Pinterest(PINS)2024-07-31 00:09Financial Data and Key Metrics - Q2 global MAUs reached a record high of 522 million, growing 12% YoY [5] - Q2 revenue was 180 million, with a 21% margin, up 600 basis points YoY [11] - Cash, cash equivalents, and marketable securities stood at 673 million, driven by retail and emerging categories like technology, autos, and financial services [36] - Europe revenue grew 25% YoY to 38 million, with strong growth in emerging markets [67] - Ad impressions grew 35% YoY, while ad pricing declined 11% YoY [67] Company Strategy and Industry Competition - The company is focusing on becoming a full-funnel ad platform, with significant investments in lower funnel offerings [23] - Over half of large advertisers are using multiple campaign objectives, leading to higher conversion rates [25] - The company is leveraging AI and automation tools like Performance+ to improve campaign performance and reduce advertiser workload [28][31] - Third-party demand partnerships are contributing to revenue growth, particularly in under-monetized markets [59][69] Management Commentary on Operating Environment and Future Outlook - Management highlighted the momentum in user growth and revenue, driven by strategic initiatives [10] - The company expects Q3 2024 revenue to be in the range of 900 million, representing 16% to 18% YoY growth [99] - Foreign exchange is expected to be a 1-point headwind in Q3 [100] - The company anticipates continued margin expansion in 2024, albeit at a more modest level than in 2023 [74][102] Other Important Information - The company does not accept political ads, which differentiates it from other platforms [109] - Pinterest is seeing broad-based user growth across all demographics and geographies, with Gen Z being the fastest-growing segment [134] - The company is making progress in monetizing international markets through third-party partnerships and resellers [120][147] Q&A Session Summary Question: Macro factors impacting Q3 growth - Management attributed the deceleration in Q3 growth to tougher comps and FX headwinds, partially offset by partner revenue and ad load increases [106][108] Question: User engagement trends and ad load - User engagement is improving, with deeper penetration among mobile app users and increased outbound clicks [113][140] - Ad load is increasing, with ads being seen as great content in commercial contexts [139] Question: Competitive positioning in the digital advertising ecosystem - Pinterest is seeing strength in retail due to lower funnel improvements, with more than doubled clicks to advertisers YoY for three consecutive quarters [85][86] Question: Performance+ rollout and adoption - Performance+ is expected to follow a multi-quarter adoption curve, similar to previous lower funnel launches [31][126] - Early testers of Performance+ have seen significant improvements in cost per action and click-through rates [89][126] Question: Third-party partnerships and monetization - Third-party demand partnerships are ramping up, with contributions from Amazon and Google, and are expected to continue growing [129][157] - Resellers are also contributing to monetization in international markets [130][147] Question: US user growth and engagement - In mature markets like the US, the focus is on deepening engagement rather than increasing user growth, with improvements in clicks and curation signals [161][162] Question: Lower eCPMs from third-party ads - Lower eCPMs in under-monetized markets are in line with expectations, and the company expects them to rise over time as demand increases [171]