PINS - Earnings call transcript Q2 2020

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Operator

Good morning ladies and gentlemen. Thank you for standing by and welcome to the Pinterest Second Quarter Earnings Conference Call. At this time all participants are in a listen only mode. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to your speaker today, Jane Penner, Head of Investor Relations. ahead. go Please

Jane Penner

Good Welcome Julie. second thank for you ended Thank Pinterest’s morning, earnings us. to XX, the conference joining June you, XXXX. and call quarter for

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

Harbor. Now, Safe I’ll cover the

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

results, outlook may future In trends addition, preliminary indication are performance. QX, and our be of an and for XXXX not

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

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

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

Ben Silbermann

people priorities, business use some shoppable just strategic as But everyone. across Pinners discover opening four remarks, helping businesses happy acknowledge joining here the like lot and Pinterest the be Todd this our want cases, before the period world. but usual are the we then in usually and going giving scaling and ad business, most for making I for to as take more will business our your anything, feels and that U.S. to home do, questions. Thanks to results our be brief content, a into we'll and touching Hi, call making more this I inspiring morning. results Pinterest on which

and all First, is in us as a so including new how delivering for and at keep work, and workforce, this collaboration we here a to health and in operate people addition which learning COVID-XX, efficiency being we're global to of for making priority, going to threat distributed Pinners a We're there's can live advertisers. impacting keep how our climate, Pinterest.

transparent just calls business, what how right our most a are improving justice, of In These stakeholders. want this to all is on hard going addition, product top leading to issues of public of work also racial but companies here to a of that commitments you the focused in they historic I to our with look with increasing begin, as no made with by and we're do, We've especially from we're but do and I to of do not everything for one is at senior to U.S., in experiencing workforce, better, and moment know number the representation we're the can we Pinterest roles. diversity all we doing we're that what how exception. earning change drive be that's business. mind do in not our

to under active Pinterest Now cook quarter with QX, we like office and U.S. during new them XX%. growth as tab, new the More everything cases, to recipes million summer a of twice ended home activities global with grew as home who for on users, connect users to tools saw XX, the inspiration well strong came users In users These over the of at and business We year-over-year a as as to from looking results. users, they before. the from adjusted international from came both fast had particular, XX. representing ever to looking we as ideas in use growth pandemic, people today age our markets. for than strong to help XXX resurrected Pinterest different setups monthly to for kids. life

to of Pinterest’s another our one this content continue and way which discover more offers video, example We inspirational, is engaging to make dynamic also ideas. and

total QX, views, and include in which both XXX% over During organic video year-over-year, more the looking to space. paid, and we're daily grew do

than to so to more QX for our QX. shop we like reality. to find content. uploads also businesses we saw addition, by catalog XXX% Pinners to make We plans In boards to turn can connected new into from And increased easier built it they the Pinterest shoppable features Shop ability a and content, more from their from tab this

Todd. and all about what is relevant meant total, in is meaningful been has work So here for it more is this world, This decade. happening advertisers last lot because mind, progress helping And lives. in in a CFO, making inspiration that, to as the of the their and this our in everything business find we're share my overall our of in Pinterest for

Todd Morgenfeld

Starting the I provide outlook begin as QX we've in in each informal July, place. revenue want QX. as a June summary XX. in and showed acceleration with give of brief then with both and more sheltering growth April about into some in to an color well saw year-over-year the month for go sharp Ben. the improvement. improve growth, seen we May on trends revenue Thanks, month revenue, July we've I'll in quarter. improved we through to can was to-date rates revenue, XX% the the a to costs of immediate headlines advertiser seen and further aftermath detail. demand weakest of In

We year-over-year July. assumes shortly. growth mid-XXs so seen deceleration from rate expect we've in percent a the I'll far grow the growth revenue range about more in this strong this in QX, say will that

to-date advertising in what QX be First and of The starting significant those in as driving the that we're international but products into I'll We well. was for to pattern CPG, in markets, uncertainties May, June recovered outlook know ad our many U.S. of July. verticals the faster. both lockdowns demand. driven On recently unpack discuss across and formula is part what by the that lagged demand top in recover but of triggered economic by latter a to non-U.S. CPG This The and return macro markets showing the demand, activity the was and and the lot lockdowns eased. begun particular. of Pinterest demand a in as partial in particular initial has retail results, a to recover of we're momentum advertising bit saw recovery vertical seeing we've seen then we our and COVID-XX-related demand ad return and by then currently the characterized facing. softness latter with

Here's what telling our us. advertisers are

shopping ads First, medium-sized as are and world sales want easier our conversion auto ROI it The accountable advertisers, them. resilience investments we In these that are making has and especially of to we've bids performance a risk, at for group ads ability balance delivering working, their a a in marketers key This where are in driver emerged or advertisers sheets our our and bolstered hit goals. attract marketers OCPM are made optimization oriented to QX. for seeking their ads conversions.

In platform The shelter-in-place, insights are of intent increasingly we the understand to words to unlocks in attractive drive oriented to unprecedented commercial relationships people's be Head consumers. reports, really brand to baking quant Ford, mindset are thinking And our put because how people get with it leading demand dollars. with important. these is Sure, are vacations. commercial where moment they to received Media leading was bread, advertisers hostile our lot platform to market about We Pinterest and interesting the is at online now, the of showed share a behaviors happening feel of crafts July. in advertisers. Finally, and environment. very a come from is between of even users right places benefited to expect recipes, there behaviors, is using want the They the is where saying indicators for kids, this for platforms." at they're deploying early marketers political can cetera. look always during Pinterest et this on at informs behavior Second, on relative that from types advertisers something a in the that media, That's social In life if actually other not we new traffic insights Pinterest. really the many of thinking tend what space incredibly data, about, indicators, "I on you'd their U.S. example, the platforms. looking sales But report also advertisers conversation the of from changing

through roughly range earlier, July. mid-XXs As year-over-year quarter expect growth I the rate revenue the XX% in noted a in will deceleration grow we've seen that to-date percent QX, which year-over-year implies we from

Let for the One there's quarter uncertainty the following may me full unpack and be this. not of month reasons. significant representative

negative have demand. and of COVID-XX cases First, a impact likely any on lockdowns arising advertiser new would

Second, in embrace look our and as could demand. advertiser main different the QX learning. seasonal back-to-school will both U.S. moment this distance lower very engagement across schools year, This likely

how from last. advertisers media not we've July or will it's boycotting if Third, in clear, tailwind the long social experienced

conversion a Finally, product lowered stronger revenue was briefly XXXX, our change growth in August XXXX optimization relative to July and September revenue. when

slight a said of in this up expenses to we implementing the This from address year-over-year in to more harder we On second operating our our I cost for costs comparisons model it we originally year-over-year home quarter, larger reported the So work grow the to number. of will decline measures result and Q&A. quickly extent just before remainder than quarter. I opening call, for but was be expected. savings a want our also expected QX

X% use and that We across key sequentially headcount and continue ads expansion year-over-year shopping. our to content, XX% priorities during grew we diversification, invest the end, To of for strategic quarter. growth second case

pursue hope in We term and monitor questions. the company, to the to and to some grow environment. OpEx been turn has detail can continuing With take to informative to can I year-over-year begin helpful. to QX ever changing vision and it this we operator to while the long the and sequentially back that, I both of expect respond

Operator

of with from Walmsley first Please Thank you. the [Operator ahead. Your Bank. Lloyd Deutsche question Instructions] go comes line

Lloyd Walmsley

Great. for the Two if taking question. can. Thanks I

that First into Wondering matter shareholder functionality? shopping then, shopping existing And are are engagement, engaging new the for just specifically this differently letter the last maybe one. year year. how the users are how And than then, new the functionality? engaging with higher our in said drilling more just second you engaging with users users

advertisers you Any basis more advertisers is an are at CPC on running look percent what these and open budget through improving Thanks seeing a lot. bidding budgets? days? your you automatic seeing of spend increase for them ROIs, As sense

Ben Silbermann

don’t the to turn all I'll kind for then thanks Ben, on and engagement, budgets. user your I is of it about question. Why around question tackle This over first Todd those

engaging differently? are for they surfaces? of in especially the users So, new new the to shopping people that similar, So, are And particular, for of find time change. are question some in of cases broadly how that was we are engaging in the habits, Pinterest looking that with people how use the establishing are ways coming

more core home does and to our the cases use livable, making of personal many well-being themes. So, around be fitness continue

I the mentioned remarks, growth as age seeing that of folks and of in opening the strengths in Although, the particular we're XX. under are

only The early. and XX% second seeing users still up the only surfaces in And by We've shopping although was, part surfaces which these remains Xx new product those some question the also first-half we're in XXXX. of of seeing we're how And grown with shopping more with XXXX. to good have features. engaging engagement, the of shipped searches, engagement are it

And machine initial number catalog to that [ph]. right use from to we're that our relevant engagement and engagement saw highly up increase things with and technology vision have surfaces, Todd? gives learning shopping calls we're some doing shopping sequentially. but strategy sure of also inspiring sharp color make uploaded, to a uploaded and the computer is catalog, they're their merchants drive these we are that previous in in you feeds on products that two the products. matching make of make increase number As themes. the XXX% And I to filled sure the to then know, to who hope

Todd Morgenfeld

part on on question second Sure. the And with why auto of bid automatic bidding, we your matters. start

in automatic advertisers a Before strategy bidding, to their dynamic had constantly auction. bid manage

QX. now bid. during traffic through that we the a the lot Now them time objectives our progress about of is flowing CPC talked on of spending The it their were auto made topic or budget. while possible this advertisers bid about of auto tool objectives, through or lowest clicks auto aims CPC bid. get does last XX% revenue per the XX% going Cost at for We entire Click to most And and

existing high And better traffic per remained to And able cost clear so we're through and click click, more budget rates. basically, higher have efficient and utilizations generally deliver auto bid budgets for objectives.

of better other in and out on advertisers the and the better say is, return friction spend So, What I the bid, seeing for that a through taking where per campaign driving their example process soda, words, Do-It-Yourself, is click rates. are one HAMMER home efficient tooling. through for would of through kids. were we're cost XX% auto higher project more on XX% ARM science & baking They clicks

expect It's traffic would launch, we weeks these so addition over worth auto advertiser. said, meant able very early ago, good months are the is of in we're couple that's And ago, seeing In that today. a work traction bid there our sorts and and a deliver returns system. in few specific we're time to can the example noting, And to system how an OCPM objective for performance, objective this we better general, in more there as did the that's of the seeing auto budgets bid what too. would are we for be against a to for advertisers budget we that as good

Lloyd Walmsley

you. thank right, All

Operator

your go question Ross from of line Sandler Please Barclays. comes next And with ahead.

Ross Sandler

that that their Hey, mismatch Todd, Can retail had a pausing and just bit talk call, like before we think little budgets were last the biggest some demand color talked of had on versus thanks all normalized. how July your you advertisers, about a for like capacity and I they XQ.

in great like that as much are of coming from doing product some from does coming have you're those on this how your And these growth it so, there the that XQ, actually back seeing? based ad-stack? that a be where helpful possible guess, parse conversations product is half you're is you're within color then, rates boycott lot. in with we would to these just versus framing now from advertisers? folks all of July? that And high terms the initiatives any in And boycott issue stand? Is Like half having I Pinterest initiatives and that recovery well, Thanks it

Todd Morgenfeld

had grew about talked lot how the sold last store know omni those and essential business the pulled as exposure on omni we retail I closures of talked we a advertisers retailers the Sure. out. initially environment CPG, time, from a were retailers some back. of channel, we non-essential larger macro back channel about because suffering and and We lot were

pulling And so that for reasons. was a tough mix for us very when they back were different

I CPG lot would We have recovery, we've a with seen say, it seen there. and momentum some started of

the their retail but has and has more we've the diversify base about through formats, back into mid-market, reopened of remarks, measurement investments issues. to driving extent, retailers that growth. talked return resilience advertiser lagged figured made I've have essential strategic strategy and I in in the some to as as span the the and the our what product it tools, about quarter side, growth the and by our have chain come CPG, in out supply our and in On encouraged opening stores been improved

seen say, drive and in would I performance, in One that and macro the extends non-essential so CPG. you through things both talked the we've QX notably retail about essential and July. across that And more recovery is three

diversification conversion and business which the in talking touched to ads relevant been platform the in while, that of the the The been segment content strategic a is on more more exposed or about spirit our activities. made second we've and our for through in of all we've investments is product, driving mid-market

some boycotts. tailwind, be we sales. of while other year was strategic about but educate the an could especially political history. to one futures. seek contentious growth boycott opportunities, investments and most the to our and where Pinterest that the budgets their win cycles is. of today, optimistically to stemming envision service to Being the believe people It's products about boycotts, at of how made free that's come what and respite I half. lives how in the thing it's those given why And to advertisers ad to center their plan not opportunity say sustainable from boycott has And are we've platforms around majority also debates, advertising relevant speech a think drive last people as that and we what provide would different. third us is and really in do Pinterest creates the news in by and as a noted a been positive driven political clear a about The tailwind The been platforms their brands over particularly build advertisers And has July the you from demand,

we're for evidence significant more is. So, of choosing it's how or some in sustainable really seeing hard this trend reason to July, say us for advertisers Pinterest that

We how boycott, are time, the to boycott. those over due don't tracking in participating the spend on do spend have because come platforms of advertisers from much anyway, us that many spent advertisers incremental who would of spend but are we versus to both know

we the impact So really at precisely this quantify point. can't

Ross Sandler

That's super helpful. Thanks.

Operator

And Please from of next UBS. Sheridan go your question with comes Eric line ahead.

Eric Sheridan

the obviously, to on make Maybe And and that cycle the and be capitalizing One, far guidance just much through imply hard framed because and tease into the And frame Because, this. Thank what some commentary the if about where in does housekeeping on the over thinking starting to Todd, a your the investment one the see the from in to up I running those even to August it's guys to what for there the you headwind in to should part. versus international now And can. big Is just that? investments question. from topline? then With the from are way picture. QX, in the maybe if so the we IPO, we how long-term along mean and back just benefit trends outside, to in opportunity. respect following might medium we Ross' for conceptualize model? Trying out initiatives you're how the investments question. the company detail you any you against back go September? taking is One, heavy pretty July reposition leverage e-commerce needed two the to

understand it's what might much. Just, I think Thanks from or comp to the headwind tough that look so outside, like?

Todd Morgenfeld

Sure.

some from a about first, on this were So But, how we perspective. online. been questions more well want in strategic may think environment leverage talked lot back this a the that's around on And evolve Ben the go I as more I rightly color to will And noted, have as you I accelerated. shopping your model. in think

I'm going we to very the happy than entering even that prioritize we that which shopping historically, So, had year were oppression. more is we identified

shopping most and Our notably investments have user improving been experience. in e-commerce the

users platform noted So, that by their on From that organic activity find We're time and The shopping against. bring focused we'll convince we Pinterest. and want bringing helping are something a to is to from to catalog intense advertising new mostly advertisers the from that's early lot shopping ideas shopping them contribution an discovering knowing continue promote and contribution ingestion a been and experience allowing better to improving we the on conversion financial into that lives shopping mentioned, now high improve shopping, experience, for closer start users conversion people over new more growth they optimization and experience perspective, ads, sales them improve the shopping see find still on as and things as And enabled, accountable intent to new lives of early ROI Ben into surface by right which that our in online came products. days. that is world. their of ads revenue and

about So, contribution as year would driver I more it in a you're and beyond. the shopping of next near-term, wouldn't, thinking of a if think -- I being

of coverage the and investments lot over On building the English Europe, in outside the in support year the sales and related outside functions Europe. direct particular side, we international U.S., but of countries in more made speaking in out a of mostly last Western U.S. the plus Western

down. I the despite the been found revenues We quarter pretty last are headwinds. where in in shut that And that off COVID-XX XX%, nicely. those we think you've aggressively we leading markets the those international paying into all And seen grew our investments in industry have hiring results,

in making We will been we build would out. lot to where the business. continue say there's still that a those and that even I scaling markets investments opportunity of have

large time We we'll like over user that Latin in also bases growing also have unmonetized other in monetize. America,

there So, come model. a lot more in terms the to leverage of in

called I right know [ph], a opening lot did be lot will us weaker In much terms tried a from to year. want of fall. ago we It We got as headwind just out go like. of out in this this back-to-school we've point to the the than that know And into what -- look I a will there's the of now. We there's different. uncertainty the environment that we in decel COVID had comments front we around don't a year July

as sustainable we my be. is are the might see really that how know moderation there we will pointed getting spend from is boycott, in much So, that frankly, how that and some Ross growth. around expectation boycott out the the And we don't

mid-XXs capture in And we so that guidance. to all try the

Eric Sheridan

Great. for the Thanks color.

Operator

your And Please line question of Michael Pivotal. Levine the comes next with from go ahead.

Michael Levine

reason to this I Love part show the as hear stronger on know more, were the a the how acceleration this look any seeing talking front. just facilitate you're I this catalog further seasonally And we into is mean, getting even QX? to not think the shouldn't actually, much guys. much is Shopify of Congrats the feed is the how point to you little right shopping versus year, better into the you bit on traction product I guys upload? results, to there about mean,

Ben Silbermann

off. Michael. Thanks, start I can

Shopify, is the being to on then very one we're have by it like how shopping with So move very we driven the progress kind on the and Shopify, we how expect partnership. was of early partnerships in that that future? in we're and the of forward seeing do So, much question happy

of For upload those presence with up early I their it's a still are one is important set for haven't partnership partnerships it's a click catalog. us. several take Shopify that if this vision and who to Pinterest on would one And funnel back, that long-term really that a full allows read previously, to just days merchant to build to shopping step you experience. Pinterest's say a

So, top we want make now can to the then and through so way take that be people from purchased. very road. the of going I get can long-term right reality eventually moment a products the that's focused of the all funnel. inspiration idea, an inspiration middle the And mean they at to them identify when they and We're a first play that in

value want, buy been cycle, very as we his we just product. identify want we that amount we how progress, So, the really ways that they and don't alluded Pinners want to people the we to we're of products to they the of over really continue that's who Part should next buy. right, will in time couple inspiring an new quantifying the getting driven push shopping answer. think of and early the and over really short-term, to build COVID, consideration the acceleration journey building improving There're down. still then retailers to long-term go first, terms a of in surfaces for and inventory we're we both is quantification, Todd when an have early to they of the have we as we're But who But question previous believe in about that what also e-commerce a think proposition evolve. the keep lot of and Pinterest place. I inspiration And for expect tailwinds. by customers think in was, don't that There's that obviously how the macro have a

Operator

And go question comes ahead. Nowak next with Please Morgan Brian of from Stanley. your line

Brian Nowak

back wanted to my go question. guidance. XQ taking just for to Thanks I the

the lockdowns. with so you side when cases improving micro that e-commerce et and more and the with of factors a sort COVID the the advertisers, Why if one could of So, guess the business cetera. more of you're called out rising surging view be lockdown surge sort I are in in you much any you advertiser could contribution guide, what on reopening in impact of And understand maybe faster advertiser the then pace material COVID sort business? a in U.S.? assuming exposure. of or we have the are So of can Thanks. or the secondly,

Todd Morgenfeld

question, Thanks for the Brian.

in now, what clear I in mean, the One second uncertainty retailers, our that seeing chain we're we supply have and We so sold know. retail, spend March, don't don't on on issues. what their mid-March, that started close, we we was all, market that There's in is to a deceleration of things. the is end out of I four visibility So channel What don't. exactly really essential know much the rapid they and the saw through COVID-XX two omni have for retail in right first means they spend on platform were stores of because platform.

the now, need in sold effective and general I or they a and we know hearing are reopenings, of don't leash future demand. was were So, when not in wasn't but will out closed what in lockdowns, on the couldn't deliver stores what we're seeing fall cases prospect of is terms and useful were advertising potentially if store a it on store closures factor hold is budget shorter commitments less there What possibly more and retail right possibly have they something and in. in slower place from advertisers, just that coming. their uncertainty to economic we're rise activity,

dynamic to seeing lot environment. joint tend partnerships advertisers, in this large business traction still be the spend and commitments with a of more we're While, and signing flexible smaller, those more

which the like few of heightened that's clear -- feel the withdrawn of uncertainty, a months, And last our commitments, why some And about performance to the So, it's in about back just the moment. are do over we I we've out of beyond for to we've look in is in months. in communications, last doesn't us very our some in at seeing commitments business have is of uncertainty given to back over far moment, we're just and And what hearken trying updates partners. flexibility time spend of which because where be and very harder a of these been kind to couple lot environment retail prudent. monthly of the the from recent annual guidance, these we've disclosure because larger more dynamic and we long-term dialing this in what

Brian Nowak

Todd. Got helpful. it. Thanks, That's

Operator

Justin Post next question comes with of ahead. And the of line your go Bank Please America.

Justin Post

obviously from Do over questions. that strong the impact then on the for next monetization few on And people. be noticed least year? the maybe one XQ, then in still you? changes. And are to evolution, catalog value detail that? where your ads user over outlook in that Apple $XXX for as little you. up I last you IDFA mention that in early user Maybe how expect just that bit in Europe Great. experience? areas international year. you Are Are more any they explain look the didn't would you out show you like over a in for very would very Thank those locations? Where I And more high at A or are guess, helpful? million

Todd Morgenfeld

Justin. Thanks,

So, in there. three I heard questions

slowest international I and On was can helpful. growth. can first think quarter in markets grew that one on then our the catalogs geography every Ben in users, and perhaps pile XXX and XX% U.S. I Apple on if user one saw on growth I to XX%. obviously user growing and growth, take can start for I heard exceeded it's million U.S. non-U.S. region the We overall growth, our at IDFA the international

countries monetizable in outside seen we've where very monetization and speaking investments Western making good in we've it's been English heavy strong Europe, of our and the So, results. growth U.S.

probably seen across in rates highest the have historically, we Western We in would -- the would our next next which years. of are now. a expect us strong to months Europe. continue rapid that markets, region begin are monetize is unsurprising. in over be I English of and users exactly speaking we've our And But majority as growth the countries mature the And expect which be of least all monetizing growth exceptionally to couple said for today still seeing geographies. doing to we'll we able we that six our from U.S. significant be in growth Latin America, outside

Ben Silbermann

Great.

catalogs. about the questions, one second two IDFA heard I about and Justin, other

on for what a IDFA on opt-in decrease will conversions has iOS expect to ability apps. shared, So, Apple requirement new measure do we based from sharing IDFA our

result, like So and sources match. in continuing party our signal tag an increase we well first a as of investing to tools, year we're presence, build and enhanced alternative things started last investment strategy measurement as measurement as

We also content on ability commercial people partnership. primarily as platform leverage the engage signal have to with

So we a it's something theme investing spend. measurement advertisers and so for quarters, longer-term return really fits a on the can understand few been about have about talking it our that we've solutions eye their on into in

The in second question uploaded was been around on particular. shopping in we've we catalogs, and mentioned progress catalog as before, general excited extremely about in

or over So, half we half. quarter-on-quarter, mentioned a grew XXX% the that's XXx feeds catalog

very been a really progress from has encouraging. number, low starting but still Now, that's the

VMT Verified have there retention. healthy program, we're growth Merchant and also Program, seeing We and our both healthy our

a but we the because out to that give I continue invest these sure is think we're early make What getting they told they with And lot to we how them Pinterest was question are reason It causes inspired there might could Pinners about home catalog stores signs good, gym. inspiration think see idea. all the vision of setting say be there's to with to catalogs, your and do can into products what that in figure adjust is how want still we that and a experience. an have on so, out want great that work And what's we reality. dress second-half that backwards they image up of a users start we understand turn can that the to about I always want primarily experience. that an the are a us, And differently, video to or to

look into down is that They So, plan for future. about can envision people do reality. making today. that take the save the that is inspiration. as things the for the They to experience begin the board. to them of we engage actually They path place think feed they Pinterest they’re But, excited the we that

find the like, that We price the in is how we customer retailer the compare problem it. for doesn't and feel what with you them yet really backwards the looking she's for. what we right still page product that are products them. experience, believe So find a reach in know can see visit it. for and inside planning that the one fantastic shopping from to at to thing think lowest retailer's And that the but it's options we opportunity hard of you're to know to products the actually work I reach are catalog them a exactly items can show end-to-end do the to an of that's there. They who and is ways lowest within online. that that’s can scene, a of moment shipping, do big exactly They once is, you And for, looking their all inspiration for the key a there

Operator

Shmulik from And Mark the with Bernstein. go your ahead. comes line of Please next question

Mark Shmulik

Yes, hi. I question, the may. a couple Thanks for taking if

seems so it Millennials demos by like a growth call led Gen sounds user First, -- Z. and namely nontraditional the it strong like and core very lot

then, guys those an if you heard appreciated. would is demos? a But share there And like the share to signs How So like any objective are can color about of then engagement some colors be in warning can been? of of versus Thank grow approach organic trending headwinds users of internal efforts concentrated talking names specific a is can you to We've into the share so, much any July? on approach you this as are you. kind making? this has how And other you how bit reopen. about markets

Ben Silbermann

I Yes, start. can

did user their years platforms to mentioned, are so they strength Gen an of and under were folks that at and we it terms you usage, real XX see in point, back growth, Folks but tried earlier special that as strength. Z, caused In then two of coming areas old.

Now our approach to growth has typically focused on cases. use

when talk that really as lens our say make priorities, we core use to take. is useful strategic Pinterest and our reason users cases the as that’s the So possible, we for many we through want

we so care make we that it about about useful do how think more folks growing think cases And users, we in when about. use

cases For to crafts fashion, are the are for core different. Gen There focus focus art. are like there's Z, are few while use people some of same. little on that our a verticals There's things less home more some cooking and terms a then, on things still bit common in make TV, of of for their And looking example, livable. and more

today we and gamut taking an So, of now, we're we've cases, made the and to in really people the adoption the relevant right to to the some that use that are tab, of approach editorial run improve better which kind way recommendations. guides from things investments that think machine of learning

the they're cases. people more better as about I that's features core an like, launched Pinterest what date a add share add I'm tool to of deeper in, I'm mean, So, them planning those a just we you it interested And board, a tools. we to to think you how today. project to allowing making go use allowing guide case, adjacent to to can we've use

chime second We've obviously forward itself. in home for and of that's some little the question to it partly largely day-to-day COVID, we're everything because the might and can of rethinking be at talk and more, looking their the on worthwhile about a Todd is And folks they're from but about a maybe it July. with looking cooking growth, really rethink also because as how back acceleration to habits, step home inspiration people an home, bit think their seeing. seen in to that and take Now, engagement are it's we at are

might forward We're the fall look And to come such they at things number a perform, monitoring we into see number of the healthy past. they stats. seen in of compared we And of been the we've people pulled create, what that look actually we July. in engagement the users expected those really boards the as have so, lot the searches to

and And be so obviously an monitoring unprecedented that is this we'll situation.

still we above to they're well some Anything that pre-COVID settle going levels. pullback, expect We think but to add, Todd? out

Todd Morgenfeld

I overall -- thing be think would yes, because is last seasonally from perspective. weakest that I want the so that's quarter. QX point But right we've year. this the I to over thing audience, this had add our out one to tends conversation think I The to did

by QX -- QX, So quarter. our be to are to seasonally user growth far tends weakest

they and their for grow sequentially people they come in holiday we user of inside, year, typically planning. and growth offline. planning seen things have back left Ben people As mentioned, never And start homes are people do beginning their go to outside start then homes. their this as QX, back-to-school historically stronger And

forward we've would but people as user growth QX, over that and mentioned expect ads of growth couple the sequential new add about it's that years would going into would possible leave we've homes So, their very seen typically Ben of user unprecedented, the because in didn't typical that pull I number this have last into seen of QX, we MAU into QX. seen QX half

I exactly the user growth So, we're expect But, into dynamics last that QX, lower couple say the sequential that seeing, going very seen perform. these number given over difficult the how we've I cohorts half years. to would think, it's significantly probably

Operator

line Please from the question of Anmuth ahead. Morgan. go with comes your And next JP Douglas

Douglas Anmuth

you for taking some third volume density. what Thanks. And then how far? just that quarter related, maybe during Todd, around so you trends can into help how the you of so Thanks early terms questions. seeing saw and of could price us And advertiser translating you're some understand growth, inflected that's just then the XQ? in auction numbers in give the that's us overall color just or

Todd Morgenfeld

Great. Thanks, Doug.

our back I the objectives, focus the commercial value this conversion One, I'm been users OCPM going that the hearing shopping. to and and need of we've things. and go be accountable because this ads advertisers like think to environment, couple online mindset to in it's and on What important. theme, So planning ROI sales is

in emerging tools catalog agencies. investments option partnerships for advertisers platform. our tools and the now tag driving like bid, it more upload, Those So to things are auto

who revenue. measurements business accelerate, seen small benefit from number significantly our we've medium grow our So, half formats again of year-over-year tools, advertisers, and from mid-market of advertiser and those to investments, managed and advertisers nearly total of and now in growth spend terms

the was demand we're in June our or ad was because what May go than different XX% did XX% been OCPMs driven year. that impression it's and our into was in last experiencing built and Doug -- mostly been today. as We over April, traction see and we're grow seeing down with dynamic, mid-market. from In about pricing rolling through that auction different our effective by that think was, now enabled time healthy very QX strategy of saw So the the We're advertisers objectives, expect the account which QX, that's count terms showing density bringing we've measurement the picture of a drive in and that unfold about results, we talking performance and around returns, we solutions those out that more -- platform that's more frankly, that platform that excited positive translates we the on I've would in demand tools will been advertiser I people you the are the all and shopping bit QX. over laying more the oriented out. and to seeing by on conversion more which and in great advertisers a that optimization

Douglas Anmuth

what's Okay. Any XX%-ish to July? you take there comment to on happening in the growth

Todd Morgenfeld

it's Well, things. couple certainly of gotten a

return much the in performance a more of and option. And been demand both improvement made that our auto created objectives. objectives awareness conversion brand and have optimization that objectives seen definitely the clear, rolled product on out across for or objectives advertisers we bid seen traffic and we've has we've now So better. pressure has to And

point healthy picture So, April, and an July. The month been from in definitely around. way the a May inflection June it's through improved then think and every all dynamic I has

Douglas Anmuth

Great. Thank Todd. you,

Operator

question more for Goldman one Terry with And time we ahead. Heath coming go line from Please the of have Sachs.

Heath Terry

on I surely little would of under and at a appreciate share of side this and I there now priorities feet lie, an the was insights sort a of of of Great, extent sort if has sort give perspective year, him you're the can technology bit his us update has been well in search? specifically Jeremy those? seeing thanks. a point, what development could visual things, to the that you over his where wondering on of And you any

Ben Silbermann

Sure.

to So, a photo, vision take which on product, around technology. product, vision there's one relevance actually itself. computer sometimes a but invest is product we touches impression the core And in you that improves only the computer an which as lets it continue lens the

with when to about We and So talk to talk able being shopping, needs about we that match that. vision with helps images recommendations. It well. computer products, as

And so specifically. vision we computer and continue to broadly learning in make investments machine large more

areas foundations. our content of core to service In of a a sure look way That building the grow. And as the what really core to building to that reliable content. remains our that that we're looking the as know that our in rank focus, that be and get call to are technical inspire their goal, been user's the and we the organic advertising way transaction. a platforms continues alignment well efficient we an customers, all on between we inspired is there's about which and at something the more at, goal, fundamental scalable. terms continue But exists is life, Jeremy's those to opportunity as and advertisers And from we've the obviously the to get some is as real turn there's working well infrastructure, which also people as making unify making sure look, both scalable to a in things perspective that way we of see lot we mix, and a

Heath Terry

Great. Thanks, Ben.

Operator

remarks. call will Penner turn the back for to I Jane closing over now And

Jane Penner

everyone. our I'm some remarks. going earnings conference call. closing turn QX, XXXX Ben Thanks for the concludes over That to call

Ben Silbermann

a look thank as join And us. Thanks, want you Jane. day. with forward just appreciate the I great future. taking time your we Have for to we engaged questions. everyone stay Definitely, the in to always, to

Operator

This today's second Pinterest quarter earnings. conference for call concludes the

you. now disconnect. may Thank You

Pinterest (PINS) 31 Jul 202020 Q2 Earnings call transcript