PINS - Earnings call transcript Q1 2020

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Operator

Good evening. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Pinterest First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions] [Operator

Penner, Relations Jane Pinterest. of Head you. for Investor Thank

conference. You your may begin

Jane Penner

first XX, afternoon, Thank earnings to the Welcome you, conference ended and for you Brent. Good thank for XXXX. joining us. call quarter March Pinterest’s

Joining President Morgenfeld, CEO; our Ben and on me Financial and Officer. the today Chief are Silbermann, call our Todd

Safe the cover I’ll Now, Harbor.

involve Some and COVID-XX operations, statements and impact of number financial pandemic, And statements be a including actual we forward-looking. differ materially. today make and could that the risks performance of regarding business considered may uncertainties our of cause to the such that results

Our performance. and may for not future XXXX of indication results are QX be preliminary an

making as later update are available them forward-looking and information required duty on to of law. by to We unless us statements we these based today, disclaim any

refer For with XX-K or the Investor Relations our more Form discussed section available the risk filed recent most in on please of to information, our XX-Q the and SEC factors website.

will and letter the to is our are present earnings website through and included release During measures investor.pinterestinc.com. Relations this and at available press distributed both located in GAAP Investor measures. call, non-GAAP A shareholders, of to GAAP public we today’s non-GAAP reconciliation to financial which

turn over I’ll the And now, to Ben. call

Benjamin Silbermann

thank behalf for on Good the of we changed heroes a our tough did people time. Obviously, company, afternoon, lot all and through joining And are the helping entire thanks just since in out back our today. us world to want February. this has there last who I call

making Pinterest for in a current and this ensuring life how through business, It safe in manage person out to they health that sure people and is economic that and are the every adjust means healthy. every and reality. resource Like employees new also crisis, valuable as to starts with figuring work we’re

last right everyone more been to the it now. lives relevant is than that bringing our of inspiration we’ve mission has month-and-a-half, learned Over their never

engagement record-high new users weeks, from and existing users, we’ve users. Over seen the past resurrected

this past When we in Prior letters. quarter’s prioritized helping stay-at-home and users to began, The the gains investments COVID-XX, our find trend. product health driven accelerated of them information began reliable crisis safety during the COVID by in immediately shareholder we this that detailed the saw by mid-March significantly are pandemic. that orders

And to as recipes crisis, for by existing services. for Pinterest and ways home-schooling, discovered do deepened use practical for home. figuring for things gym start people or getting meals, from like their solutions challenges freezer-friendly how haircuts ideas equipment, the created researching to out they They uses also new of search home

Pinterest difficult is the We’re proud get this world that helping over people all time. through

our We’re impact economic adjust climate. advertisers during began to the as but strength with we’ve the they QX, continuation pandemic new this began with to a of also in quarter The seen March. working business

around world, Pinterest. or closed stores slowed advertising the many advertisers offline paused their As spending on

help that eventually lives, is For we’re their advertisers offering plan to XXXX to and ideas them valuable CMOs to consumers reactivate our sharing where insights them have looked decide paused, plan we’re their spend. Pinterest reaccelerate for how spend and those always and insights budgets. their help and

year. to continue in that awareness spend, performant area we’ve an highly advertisers seen a those the and invested campaigns For shift towards away over from ads, past we’ve heavily

significantly real year over as As ROI particularly objectives, with are same a today mix result, our has our they increased delivering shopping part than conversion ads much engagement value with product ago. optimization of shopping marketers These the to period. ads ads a are and surfaces bigger Pinners were accountable

long-term while to committed Finally, and to firmly advertisers Pinners we our strategies. working this help we’re crisis, remain current to

they to of vision advertisers. diverse ways inspiring lives, our much discover purchase let to users use surface in be of a the more value to our for We more things the continue Pinterest most create home to their and on help Internet’s content, base find Pinners to in easily invest to

sheet to of us a We benefit having the balance continue that outcomes. to have allows pursue these

As limited will future to annual the demands. Todd continue you remains but possible, business months. and That as the as things I evolve because transparency know, as visibility our case, guidance, advertiser we to we much have coming withdrew provide current in into

With our that, ready Q&A. we’ll for Brent, question. turn it we’re over to first

Operator

line with question Sandler of first Your comes from Ross Barclays. the

Your now open. line is

Ross Sandler

Hey, guys.

couple a questions. of Just

if your about you of the us advertiser CPG and broadly across just offline the what what XQ? stores category, have And seeing, tell you’re retail how e-commerce in is we is, companies seeing And versus revenue coming could can at in far you’re thus that digitally retailers First big presence? I thus retail far native XQ? much talk look from you guess,

And second the question you days letter mentioned and that dipped engagement. we’re the a is, usage you bit then the in little mentioned quarantine, just record now seeing of Ben, like early the in that

of given a of question guys XX% you are rate growth in rates the as and late things, a growing? are result growth lot guess, I So or MAU in accelerating relative international X% to April the and rate is, is growth a April into that XQ? record COVID since Thanks lot. means March U.S.

Benjamin Silbermann

then in Todd why Sure. about what of in retail some talk question seeing and QX we’re start Ross, CPG. engagement, with I will your don’t and on second outlook and

an letter, just steadily that a shareholder saw pandemic started, brand-new when engagement. rising dip initial and mentioned users. we as prepared, first the got saw saw across both we in We engagement as in then So, people the

So the roughly, engagement people saw were XX% that to new we of were from Pinterest.

users We and users. also growth significant existing saw amongst resurrected

of about engagement. Across look calls all saw we we at past increases. basket fronts, And different metrics, we’ve all those pretty saw across significant a we metrics. how talked in strong really So

more up XX% than were searches example, for So, year-over-year.

of longstanding are usage video, the also own board And which been New Pinner was creations, to indicate year-on-year. that up views on has we new XX%. which continue were a growth XX% their use for people that does boards, using strong up then Pinterest see cases, in trend.

probably are into look April, we As forward two aspects. there

for things look sustained typically to of expect spend same across at, a time creating look really searches there user just which be engagement, online. are strong. people that we would doing time, the indicators like early indicators things less use multiple that of the slowing At boards, as cases, people brand-new overall we those First, growth the

do expect It’s some retain we unprecedented So at rate. situation. that of not an to obviously same engagement, but the

we that So those we out. Board, make continuing excited will about to exactly Pinners that that we’re really seeing want the the to mete don’t we’ve across know we’re serve how and But forward. sure going been growth

to I turn Todd, over it you. can

Todd Morgenfeld

Yes, sure.

what into the heard through impact? couple seeing those And early I’ll there. I color little in Ross, update of the terms we’re QX One vertical And more part turn. questions in a what of So, seeing on of was April? in on take a was second an we’re bit

COVID-XX. So uncertain first, of by side environment, middle driven the a the revenue on course the April, through highly in obviously of still we’re

And so things what wanted the yet call we uncertainty know on actually because of was don’t market. know, of we rather amount we this than the to share project what we’ve that do experienced what in

through and started to in But sharp We we That QX had a revenue year-over-year early the and the of That had the very in in sharp into as through growth stabilization we we in early persisted strong course that growth stabilization noted deceleration latter month to the that February. April. began March, really persisted – through then trends in our in and a letter, earnest see half of persisted year-over-year May. start mid-March. deceleration revenue January

a I the And a you quantify what a April basis an remember a benefit. QX, our of revenue bit extra April, call a week of on bit of To year year in year-over-year we talked declined from that further, than ago, Easter here note about for want if Easter X%. is, the timing. around ago more as month month a the to reminder, little provided And

X% a a better normalized April. or in that noted on point experienced of or the probably the basis, month decline we So two we’re than

So that’s trends point. the April

On been impact market. across shouldn’t relatively of well. the that’s the across has too as not the uneven the And surprise, uneven be verticals vertical because where – of piece, the in a impact much pandemic has we’re verticals been

Our people advertisers appetite began those major beverage, early relatively the space, this things to and preparing that more of health and pick chain In better you the on. a think, retail, on to it’s color their even two for those, highlighted that in demand because had shelter I’ll their verticals, like had crisis, were food I experience difficulties impacts CPG those, CPG beauty in part But supply and place wanted you homes. bit in various spend.

the impact more retail, was In pronounced. a bit

omni-channel You spend, retail whereas closed might relatively pullback omni-channel faster. stores that a brands grew direct-to-consumer stores retailers that – on significant were imagine or had that had

we’ve as part revenue rest significantly grew fact, a In the the those not advertising cohort historically, our business. of of But advertisers, faster direct-to-consumer huge are our mix. than noted,

historically significantly impacted, noticed of some were that verticals, areas but relatively for constitute the impacted smaller exposure restaurants those like We’ve us. automotive most and also travel,

So of hopefully, recent gets to our and color two that some on the revenue trends exposure. points vertical your around

extra probably advertisers. The we noting you didn’t but add Ross, with that one sign there, only sometimes worth business these just have point, and would thing prospective we I it’s ask, that joint partnerships

indications year not than but covered year, over the of number those more the dollars spend, relative these the spend. of last agreements QX intent deals to to year-over-year. they’re we So those this of saw contracts course to grow doubled are and And by

to intent across our deals. persisted So base some where that to even those indication of a of that sign advertising has spend April, trend continued we’ve was good and through

what are involved of actively So there. obligation. I wouldn’t want to over-index contractual none major retailers a good means, those still because and that But we’re very with seeing deals intent on

Ross Sandler

Thanks lot, a guys.

Operator

question with RBC. comes Mark from next Mahaney Your

open. is line Your

Mark Mahaney

Thanks.

experience new of too me their know early users is cohorts? it Let The like is engagement questions. versus like, to is coming going try level prior are to what that on, their two be

would Secondly, in mix awareness would characterize you’ve how I versus advertisers? you performance your this asked of past, – but think, the you been

growth a that you non-GAAP a sorry, in growth a outlook When question. – OpEx do lower third QX, in very about you GAAP than the QX than I’m you Thank quick or mean lower on basis? And talk much.

Todd Morgenfeld

Great.

want Ben, you little engagement, the guidance. if and second talk the can brand to and performance and expense about know, take a I don’t two new I users and bit So on

Benjamin Silbermann

Sure.

we those across users, users. really see So similar to behavior on continue new new

to COVID-XX. And the so were they reasons a directly Pinterest were related were things lot to that coming of

interested meal home livable, things preparation, more home So garden. making and things like like in your

topics really And so those similar. look

that folks promising, a meaning mentioned they’re helped all from And as engagement earlier, be a the looks actions had predict would user. trends long-term taking whether of I those user past the in the that us

Now, the situation different. is

So see looks to we have like. what that to wait

to that The from, see noting that’s strength other users. is thing younger we worth continue especially

as take call, it’s a positive in really population that growth we’re last of but under into kind we’ve which this the users seeing the we’re rapid of that mentioned expanding we because are indication sign, a demographic. So an XX, in new

you about to want the talk mix performance OpEx? Todd, and

Todd Morgenfeld

yes. Yes,

of Mark, So, your second here. question couple pieces the of

formats, the bit brand/awareness is talked contribution. color in business go the we past And that, business, of we’ve little into are a what minority a terms just I’ll in a about majority and revenue On there. performance more

their in inspired intent. They’re When they to Pinterest, cases, our users or want to in ads the from being the we��ve invested that that And commercial idea many of we’ve business. with go our plan discovering real the something. way an in all coming the they funnel life mindset come to because to reason buying come a and something bring. ultimately, do But is they that full done users

worth spend accountable. know that ever is that, – more us ROI is, accountable. in long-term thing the We returns second trend it’s spend more advertisers The is ever advertising their noting that is advertising tell

invest build to been in so our very conversion-oriented ads for And as advertisers. measurable product important we for it’s value us

different around to saw continue rolled grew that course we and added I business, reflecting investing rest automation, see through on quarter growth our click to shopping conversion windows online the of innovation matching. our was one and for formats: in delivery some the We we bidding creative attributable April, our an further letter which against as in we’ve and against quicker on trends the objectives, spike we the unfolds; conversion year important that the products the we’re which automated activity and conversion tools and three that products ways: of optimization offline more the showing conversion will extend same measurement, budget, in think, than improved the work and better been out, traffic much had more into where attribution and to that we that and

performance So business. leading integration that all coupled been stronger tag work for we’ve with talking the that a sometime to about is

performance-heavy in be shopping in we quarter. So and your course of back continue performance terms versus improvements going And mix over business saw the majority product brand/awareness. significant our conversion question, the formats our we to of the optimization to or of is

made traffic impact The automated was flux – we that that business over bidding a in big of well, the course as automation the had improvements but on the our quarter.

So we’re hopefully, what question in seeing your on gets to that formats.

I’ll the probably two On didn’t I One, think piece, answer ask, OpEx growth you it’ll come up. but questions.

just revenue more the margin usage, tied our for engagement wanted number complexity. On depth to users, the really folks cost I their piece, that is of the to gross product and business the of of along with remind

isn’t engagement. revenue it doesn’t scale users and number of of scales with this – their our revenue, So cost the with

where exactly the through environment, picture at no trends in So between out is mixed. moment we gross wanted the engagement to there are the odd was more call this when daylight we’re the to our market viewing performance make way spiking margin year sure just demand

the opportunity of about to experience business. start use cases believe we focused our we’re of as focus continue shopping a opened of excited year: at a the our users, result inspiring the and staying diversifying more investment four the base. the front on in We investing of of are for that, in Pinterest big in as an on advertiser side, we and content, the On OpEx us long-term pillars that improved and potential

that long-term things. – in unchanged. invest we we in this business, we’ll the in to potential environment So one, think of that, investing we’re remains we reason believe the continue the is, those And

value. core will will the while to sheet that invest dial revolver. event travel, in to of prudently things in market marketing do pillars still the undrawn $XXX have it our $X.XX with we million And back this retooling the we cash billion believe drive allow We balance investments that and growth in environment, long-term spending us like strategic and

designed know, your of versus GAAP. comment. more non-GAAP So that a non-GAAP oh, That gets to if Mark, I yes, you to was don’t about asked – also be

Mark Mahaney

you Thank Okay. very much.

Operator

Your Mark next the from line of question Bernstein. comes with Shmulik

open. is line Your

Mark Shmulik

taking for thanks Hi, my Yes. question.

stop, that from would there? that’s I that from launched funnel of particular, just the helpful? a of know I’d Uptake, understand you’re working response you’ve a little in what love on. the anything you’re the shop recently, Any bit think little performance, to the initiatives back and very advertisers? I shop bit Pin. some seeing bottom about more traction search, like be

and towards secondly, resources which as resource helpful where as very think would share you of seems from to that others then be response shifting can internally, your we’ve allocation, resources Thank And about about heard well? skew performance. Anything to around direct you. you today, there’s demand on kind

Benjamin Silbermann

to past of guess, have kind outlined the three-part on a it we’ve I strategy. in we Sure. that shopping, start shopping calls

grow that, U.S. buoyed we’ve really we And we by Barrel, And in seen so about partner Canada, sequentially. want the to traditional generally as high-quality of as and with we’ve have catalog projects both the folks that’s which been by partnership like Trade. with as that to excited. available uploads lots shop both & brands, now against – of inventory, increase kind two is continue and And catalog Crate uploader, We’ve program. May emerging the the verified first XXX% is and well merchant our well retailers, omni-channel welcomed folks as Shopify,

about surfaces. specifically, that we really Then And building we that. the traction are with by shopping getting users? is first that part new measure of So strategy you these asked really

shop Some you boards, search. ones of shop from from the mentioned

retailers Xx, times. more XX% that shopping X.X about Pinners February, And increased end than had of traffic look increased and organic engaging content to by by has the with

advertisers value traffic. form and that then the that And happy seeing of so Pinners retailers are in are seeing we’re more and really

second part story And of then is together, question question shopping your with ties part some the first last really of performance-based more about that around of your products. your what the part of

almost like business and doubled to do includes a revenue QX, mentality. But conversion-oriented shopping to mix. lot support building investments we at than growing we’re of things measurement. It’s things faster the see overall of That rest performance-oriented more that and that the year-over-year and continue looking is

at That products. up and We more continue to parties means also from look automated tag third are Xx. to integrations tag integrations

around so, tools bidding and And automatic we Todd provided traffic mentioned that objectives.

excited or our objectives well. the to that really bring conversion OCPM We’re in to as future

a we’re wouldn’t current allocating how that’s has in environment. divergence from that’s But which so there, And really down say more huge especially I doubling conversion our resources. the strategy, like about enabling activity. been we’re

Operator

of America. Justin Your Post from Bank with next is question

Your line open. is

Justin Post

you. how about performance to higher how does but wondering said percentage quick Thank mostly you – to base, that Obviously, guess, spend Pinterest Great. I think questions. tied ad events? is performance it’s Just you two How that? events? correlate a the on

then a And nice XQ, in you and acceleration in which had I year also remember IPO, April robust around Easter. very was a last the

wondering at provided look that’s April. for you comps you. Thank at your if So affecting all as what you

Todd Morgenfeld

Yes.

But question – is continue called in ad events. little with a So event around I come we’ve out a that planning planning an What other moment. mindset to and on you of say experience we than to intend well that – would Pinterest, seasonal platforms. something in commercial spend perhaps different to the and well advance plan tied – first or advance of people a often

what strength your postponed we is that Thanksgiving, called about et we in that around moments think Year’s New seasonal a in of lot the like end-of-year this more things Day, through events may had like experience. specifically are question out cetera. game, big Day, referring We typically what holidays. I’m Halloween, I environment But be events Valentine’s QX, QX And than to

type of are this driven calendar. plan the that in And personal altered, so many environment, their for the can shape while and seasonal moments are by may be family people moments lives. those them There spending of some get of delayed of or

part really around The XX% of to strengths question on when a second that dynamics the the that basis. We called your we reaccelerated thought we to led our last referenced year. growth last two we of year-over-year revenue some QX was year saw that things accelerated out or we

last timing, and was of and Easter it Easter wrong. those on the was was a of on I of first the of was The XXst it ago, couple get April; may April; year, think on Xst years this dates I the But XXth. the year,

of a users, around, our they’re of so is my as part for Easter want moment And that Easter first as in the to advertisers that back front get holiday answer, moves the to planning many event. seasonal

that year, a around, has QX called QX or And out so last And I of a because year, than probably two much it right heavier it this holiday think, headwind for example. We we’re experiencing moves that moment QX a on that’s was and impact a different in year-to-year it growth performance. was now. ago, point

two or So while month to a of quantify tougher April, to Easter. probably and ago, we’re But X% in point related it more year we do may There that’s so here. related the didn’t to a to down be there’s even was IPO. want the that it

Justin Post

one maybe follow-up. And Great.

at like that I’m Easter, I planning wedding wondering events mean, personal events, affecting when activity? advertising Just how or just get-togethers be might around

Todd Morgenfeld

of some et cetera. deviate to new away themselves the events people from in dollars toward that home-school Those how things kids, travel planning the in extent, think seeing why to how seen to their mixed events, to amounts cook. and I that’s their we’re and spend spend. planning, Well, like activities exercise are how how we’ve for planning wedding are their home, teach follow To people

weeks folks in come initially people referenced reached planning of over little last shelter bit back One of place train all trying things and started themselves environment. broke the as in record a been that the because then to how we’ve dipped we new levels, to seen several operate were engagement and course when news were to the has this the to

around thing. home lot like segment And spend to weddings so be how in relative events. and in for other that or an and a some People opportunity those brands that for advertiser may figure to more a trying their there’s the travel like NordicTrack, great that’s out to exercise are

Justin Post

Thank you, Todd.

Operator

Walmsley Lloyd with Bank. Your Deutsche next question comes from

Your line is open.

Lloyd Walmsley

back you January down assuming month. Todd, a recent going Thanks. to But March of questions the XX%. bigger, involves is about and the it on guesstimate kind and mix implies trends called by February out of little grew eight, bit

So number does that right? sound

to business be? about could conversion be maybe you out performance And for back then could objectives, today automatic you of – going into that do how that how secondly, the and conversion the optimization? what Any budgets? improved as ultimately share meaningful think automated percent bidding, translating would And And is spend higher from helpful? targeting anything we there bidding that roll

Todd Morgenfeld

Yes.

bit accelerated and So doing, little you’re to day a because on in we had in in off we then take start of a the a material impact number math February, mid-XXs mid-March. factors March, kind – unfold growth February the of saw in was we saw early are but and that to the and involved in extra an there the really way low it in

your And I math your and off assumptions. you’re with too think don’t far so

and respect of conversion on significant our in product, budget say the per bidding even number significant We’ve positive to traffic a early seen in With We’ve auto – clicks objectives. a uptick know. it’s rate. to click-through I’d utilization, on a seen budget on of increase impact too optimization impact

because for optimization. conversion to tell, haven’t we early too it it’s But yet out rolled

know to rolled we’ll share. We much value deliver right to partners that until do thing utilization. are us and to out, budget the with we advertising help optimistic won’t and it’s our it’s But

Lloyd Walmsley

Okay. Thank you.

Operator

comes question Goldman Heath the Sachs. Terry next Your of line from with

open. Your line is

Heath Terry

that engaged was makeup area Great, gray a are of lot us performance understand there. wondering and your a and of of bit advertisers a thanks. in broad little there’s a the performance spectrum better. could sense give I Obviously, of if sort advertisers help us you

and environment spectrum the fall of might access remnant of looks of premium, to salespeople kind this of ones active the category terms seeing two particularly a of those kind fluctuate measurement third-party returns you most almost of – in consider sort into have would you’re there? where of that differentiation fall you give some us like what And performance of that if advertisers. But where size, terms to in performance could in what versus into – sense you’re which is seeing the more who be performance maybe Pinterest and in sort that categories, of the advertisers

Benjamin Silbermann

take and I Todd really out that advertisers cut well. chime seeing behave a performance differently. we’re Heath, as about can of in can Like the was how composition and that the

as know, we’ve started with large lot retailers. a of you off omni-channel So, we –

would I and pause is folks that, been their performance the objectives then first stores. what to say general. So are on we’ve average, objectives to on seen And those folks holding they they first in off tend reactivate, reactivate. when when closed do reactivate have most some brand spend They

So where And they’re a are but objectives, advertisers, salesperson. ROI using advertisers. going are, on of call, on, mid-market like what there. and kind on dedicated continue Then sophisticated they ton folks an they’re products effort of or those have I OCPM year that’s driving often don’t they’re been more and really accountability traffic will very all a

So is when really And and talk automation this bidding about scale. one. of that interfaces. investments been automatic help Todd This those was product year, of that very small really significant made year providing we’ve year about to pretty the provided has last example the a some we tools businesses, mobile folks about

mentioned, Todd and it’s also a example And budget saw increase get in a the with higher not because same do less clicks advertiser. only that like is, was the an that efficiency Kiehl’s significant XX% lot work. CTR. of doing they’re means the They it But reason you benefits

dedicated a be need their to salesperson don’t budgets. they So managing

We of a macroeconomic faster, would have don’t conversion. kind the when objectives to fact remnant the cost exited, return you per budgets have performance because But describe advertisers. that of and the both as decreased overall, many grown of And as it environment performance. brand what

the take contending You business take the good convert for value. to actually we more so as where want for really in a people those had people that sign can get same objectives, we future. And fewer

Heath Terry

buying that that minimum the of actually is, one maybe performance are and are guess, to are at of look kind when bid I’m your advertisers follow-up not a think percentage. you there. give expecting way another of buyers focused your advertising, of average out remnant primarily Great. I you of that’s to on – that mix the percentage What sort

the say that bid focused how of you But your there? advertisers, are And that’s when that? of minimum have you look available you performance inventory how mix at sort seen much would on

into attract that premium been advertisers my there able have with which you and to bid advertisers a how sort variety for of see has you’ve have a But that when more reasons. more you expected away performance from over As ago premium shifted ads TV, year for performance Apple mix, wouldn’t those ad been coming the time, minimum would that, I would say see advertisers? filled of I

Benjamin Silbermann

can many still folks an that Yes. is low-cost than per the It’s bid. pay very and ones? more and auction how I has no make actually nature mean, I wants many have to think minimum money how is. what I hear you acquisition like, getting of at Everyone very, higher one is demand

get the of grow a that more out we lot value number an lifetime to as there have that look, folks more ability and of of are acquisition. But advertisers,

prices get provide expect that, time, that And as so, job over we you as will is more as and our liquidity, to possible. much increase value

And so advertisers Board. learning improve for bidding other across efforts more the things targeting provide machine to and like automatic efficiency and

Heath Terry

very you Thank much. Great.

Operator

Your Stephen comes Suisse. Ju next Credit from question with

Your line open. is

Stephen Ju

very Okay. much. Thank you

sector despite your one what in we guess, be the users. preannouncement travel-related was of much wasn’t at the one of have revenue, there I interesting of time way cases of disclosure that, the to So the for understood points the main use

of holding what until But crisis? has now? less recover up headwind do being this presence we lack as sectors And from been can you. you them travel ended of the what advertisers onboard now, right to So for eventually back a these

to lined the merchants about And second, up letter, of on join hundreds you shopping. talk

does how take long Thank it typically into operational spending to with decision from to and interested Pinterest? once So party an and you. onboard standpoint, shopping start make the they

Benjamin Silbermann

large case as very that click And a first majority it on about is your last really use of travel. that a Stephen, was reason travel vast question I travel. because the think focused been hasn’t of the is is, as Yes. sector travel acquisition

Google So on Expedia building think advertising a and machine.

that I unlock early value is closer travel which do that the and bringing people a transaction. done to them closer down to we’ve way to of planning inspiration what in the and has then disproportionate and think many showed catching for verticals,

we a there’s optimizing is we’re when focus. first be is our not of to think that and of kind I why which events lot for. in a plans increasing activity for on will continues purchasing say core really We shopping a our the verticals, Pinterest that look shopping at opportunity conversion-driven travel big place

think about shopping, a decor, the all opportunity things like thesis lot apparel from a to of and huge efforts. ideas down way find people shopping really take the things, of the there’s to So and getting home that’s general

easier Board really is we’re get on progress. to how question second Your that much with program? the people it proud has say would shopping the And gotten I for of

the We’re benefit we’ve from people a always that evidence third-party in significant we’re integrations. catalogs, are But this friction also of their seen that, is of and increase that. number trying to remove one just uploading seeing from

retailer a that and site. Board, them is advertising uploaded midsized put catalog partnership like in e-commerce their a So where which begin they the on Canada. place gets and the option position that really get can not select, the right mentioned Shopify means in their platform live that of in easily. they measurement code get that’s a Shopify can and It’s they’re And using an the I U.S. can now before touching and that

anything of on only also removing there’s out and closed. to lot So that is site, have friction large measurement technically get through they particularly seamlessly touching them uploaded they priority term of our catalog a have wait to mode, and our be easier, work their stores kind for there for more not it for as complete first-party a getting company. strategic through and shelter the if advertisers. of We may make we to their do where not but long But people have always to many

Stephen Ju

you. Thank

Operator

comes question Anmuth with Your Doug next JPMorgan. from

line Your open. is

Doug Anmuth

taking for question. Thanks the

on performance discussion on wanted go performance-based back Just the to the advertising. to

ad of two environment. in that are seen this other slowdown a week the businesses some seen So that last majority we’ve performance-based in less have or

on just perhaps do the earlier you on in of in categories just that’s or nature the or number your a what verticals And the variation which Thanks. smaller based stage advertisers? advertisers perhaps So is deltas? your curious and view on think why lie

Benjamin Silbermann

I do that, advertisers it of Look, got. we’ve to has mix think with the that

they that And be some there impacted, as disproportionately are that less more are so, then by store disproportionately physical verticals the business, there or impacted even some verticals performance-based some are – on larger of one, impacted. depending size well the are kind may And sorry, closure. advertisers of as

that reason a the have the we about of part So long-term strategy increasing numbers.

different over So changes the But a particular or across varying we’re by vertical advertising place. advertising think this I relying in see that on we size any particular any time. of of going advertiser not by have driven mix you’re platforms to the lot nature

Doug Anmuth

Thanks, Ben.

Operator

next Your question from Research. Michael comes Pivotal with Levine

is open. Your line

Michael Levine

guys I is? be something PLA in guess, program, do feels pushback wondering announcing to mean, to I’m if you not When like a feed one shopping Google side. Just choose little it’s the of question on greater able things another advertisers is would it just I’m to could participate, key I curious people so, leverage because you bit loop. the close not what by their intrigued this cataloguing do participating guys the feed? further and I’m their the

Benjamin Silbermann

Yes.

question hear I that we was, the changed So what’s think the objection heard most over often? that time. that’s I

measurement catalog get by objection to on as how the that, more we’ve those retailers. initially, And of was, and brought we’ve So on is implemented? it more improved easy and

candidly, integrations space do giving and the time think of just well. to and the them larger radar retailers, the and for I some it’s their now getting advertisers those larger on that

folks, remember lot have they got of especially omni-channel of You the the to a their folks, like stores closed. all

And incremental time. so a of they’re not investing lot

then we up who trend of we player to people available. amount PLAs high-quality the and are inventory can a as take we that state. free inventory as that’s a a expansion them big a we’ve like connect But for actually browsing Google continue validation much want to of think Google, we strategy which pursing ride and in is to to of that making that been of welcome kind of the the kind while, And scale

Operator

further are questions time. this no There at

Jane Penner

and the call, hand back I’ll that In to to we’re close ready think, over case, I it Ben.

Benjamin Silbermann

again road. we to join continuing the to We Yes. a the just appreciate wanted questions the good to us. time everyone Have and for the look taking I down thank forward conversation day.

Pinterest (PINS) 5 May 202020 Q1 Earnings call transcript