PINS - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Pinterest Third Quarter Earnings Conference Call. At this time all participants are in a listen only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Jane Penner, Head of Investor Relations. you. Thank Madam. ahead, go Please

Jane Penner

afternoon and Pinterest’s ended us. to for XX, thank conference call you earnings quarter joining for XXXX. Welcome Good the September third

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

the I’ll cover Now, Safe Harbor.

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

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

We as later update making available them forward-looking and information required duty on to of law. by to are 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 the letter the to over is our are present earnings website to through and included release During measures investor.pinterestinc.com. Relations this and now, at available press And distributed both located in GAAP Investor measures. call, non-GAAP A shareholders, turn of to GAAP public we today's non-GAAP reconciliation I'll to financial Ben. which call

Ben Silbermann

joining Hi, By Thanks, seen We now, letter. you Jane. our today. appreciate everyone. many shareholder of you

focus shoppable. that's base, revenue million, content, we Pinterest and of at our comments users useful, as But XX% could year-on-year. investments with making small of our And strategic by quarter, $XXX to priorities we then most XX% places saying strong bringing going Todd's We're lot results. performance beginning a we're advertiser the with on Monthly follow we quarter. our executing over our brief active our for and serving QX more started that start some because automation unknowns, our the as it finally and that year, All and of inspirational it the and control. COVID-XX. grew this engaging making were we shoppable. we'll grew make open to on diversifying to Pinterest what the that and set happy finally this to able led additional medium of up year-over-year with easier in Pinterest advertisers, like seeing can. offer to sized progress details, So more a to just off, up presence questions number and international with like I'll Western in making paying Europe, growing more soon

launched also help audiences help we onto Overall, more of like products, Pinterest. lot. content merchant retailers customers of number beyond. even holiday more more reach tools season to to new suite and this We a a a tools traders and recently, new And new accomplished inspirational reach bring

still Now And to in quick team's a in because confident unknowns innovate change. I'm want a obviously, lot this of the the about our thank the ability of all there's future the resilience, With midst give their color hard an turn more about lie business excited to in Pinterest unpredictable the demonstrated over Apparently the team will our ahead. who that opportunities Todd? team it for Todd work give entire But you of to I I'll performance. and year. COVID-XX. to about that,

Todd Morgenfeld

the quarter trends for informal Thanks, as headlines we that begin QX. revenue during an and a with give into then into go can going outlook brief and well on Ben. summary want to provide the I'll more of as quick we I both color detail. to some costs saw third the

uplift experience positive remained updates. in a double adjusted Monthly again XX We XX% user all revenue active end digits. growing As iOS at also of Ben the to we mentioned, growth margin. we the user active quarter once major the related grew year-over-year, XX% with did a strong overall regions modest EBITDA monthly generated

in users for use case this We customized million backgrounds. drove inspiration single find an users estimate Pinterest to monthly turned Younger active to globally. particular incremental X

X in is MAUs a we QX are likely million digital expect use to wallpaper the churn more given Looking relatively case. these ahead, transient

Additionally, our primary QX, were QX. XX% saw momentum we of business around strength. advertising with drivers more year-over-year. revenue we growing expect its expected We to in maintain much than for demand this There in services three

to First, pay exceeded over expectations year in the then returns are coverage technology, the the past made our off. in we've investments QX. and sales And continuing

past expanded base, conversion invested advertiser to or in sales the help their continue pay we to and ads, in we've Europe off. bidding to diversify year, investments team engagement Over monetize also our and shopping, our there. auto optimization OCPM Western ads, These

bid Specifically, meaningful representing small in business the XX% revenue, year. QX, and grew their businesses. for now last to up a sized medium especially in QX strength year-over-year auto XX% of revenue total from was And international contributor of of XXX%

we’ll of we a merchants invest opportunistically pinners, from be believe us, ahead to advertisers. have returns best serve the not The investments and roadmap XXXX may ahead in but these opportunity to beyond. do Given we continue strong always enormous linear, and

have platform. environment our Second, both supportive Advertising paused we in macro and investments, improved demand own is spend returned advertisers large in beyond saw and QX. to very retailers brand overall, QX our the that

the the secular users, conversion to oriented because on-going in We been sized who advertisers has small the intent by accelerated Pinterest because commercial and crisis. shift and gravitated continued toward e-commerce strength the saw of that of also native, COVID of QX in medium our

Our lean features, new was to overall. with operating QX team able these efficiency high advertisers to and favorable into introduce conditions and in sales helping tools to

able also provide indicators which has increasingly leading understand this bolstered on to unique advertisers. demand been Advertisers outspend. consumer depend mindshare, the earns we're and by in insights these both the to that insights to of us effectiveness go-to-market environment, Our

we've Though, trend not will internet from particularly how marketers Third, continue prioritizing us still other over. who benefited U.S. And sustainable brand from election in to brand and after Advertisers this platforms. tell is QX. be, we that positivity are clear relative safety. benefit the to this is Pinterest safe consumer it's

well. Turning to to our informal here I color as some QX, outlook for want provide

QX that These will as investments ads, sales momentum in the QX into and are business. international the drivers persist continue impact our could holiday unknowns in automation of our and include by We There conversion coverage. expect driven also our positive shopping season. that trends the external many two

the COVID advertiser First, hard remains predict on to on well impact as engagement patterns, of the as situation user demand. both

disease may across differently, limited to into ad and on by it's holidays In hard will spread and to the COVID related on-going to seasonal addition will the is plan about engagement for how visibility changes. globe, marketers continued have further lockdowns QX impact know the to our and uncertainty likely these spend. respond Pinners uncertainty

social The second this media from began On in unknown the one hand, boycott that spend advertiser experienced is of the of in group Pinterest advertisers QX. accelerated July. tailwind we've on their

think particularly To wane of the of U.S. reasons. in But platform safe competitive wane brand positivity that long be behavior, we predict too. election Pinterest spend difficult after term some an term may somewhat hand, attractiveness a cycle is other it's advertiser positive season. election is advantage near to in the clear, just for over many may consumer a the On the November, so of

quarter. the out Finally, is given our play of how typically current is unknowns understanding of back advertiser will demand QX in limited both end these the loaded

on expenses. for opening it I up briefly to want touch before questions, Finally,

range maintaining in the quarter. more of distributed navigate In believe long hire to priorities we a point strategic environment headcount to company. a the the working pace year-over-year workforce this, we continue at future and more steps finer end backgrounds a We We similar investments the company on put term experiences. a a while for to To opportunity the give obligation remote a the took of lease us quarter. from during QX, last wider grew will to XX% people

quarter. expenses look we grow the QX, to to non-GAAP operating total As expect modestly to compared third we

priorities, will advertising, open continue people content, key engagement, to find to Pinterest, you our at invest We can all come our inspiration. and up strategic partners, it shopping. that Pinterest the Thank to questions. and that, the it, to with in we advertising for And open teams diversification, including

Operator

Thank question Instructions] of from RBC. the Mahaney comes [Operator you. lines from Your first Mark

line open. Your is

Mark Mahaney

you. thank Okay,

to shoppable. we how that would should to, financials just that what's that making about lead causes Pinterest rates? financial how try into that talk up the inflation Well, of from lot. Does something the that You company? perspective Ad more in Thanks is relay a do show in Could How or you a impact? see growth accelerated that? the

Todd Morgenfeld

last it's monitoring to to but find So been period perspective, way talked it then surfaces those growing get over we're over oriented and quicker we've do that over the catalogs right and majoring couple that items overall talked in And accelerate the financial Shopping today what business, a talked with last of into service. what improve we're we're then things the making. discoverability to monetize shopping is trying but now over couple like Pinterest, We'll be actually investments over life. the been the and success contributor not time content I driver we've but than is to talked calls shoppable products work. to in just That's a make Pinners about time, our And the think products for that expect a the partnerships of that building ingesting about of small those the time. primary the experience on and would to more high is bring that overall improve only inspiration, about about about inventory onto intent experience. is today. it the the the to designing Mark, the I mix. shopping we've consumer We've easier consumer and eventually their from focus that quarters impact shoppable we've leveraged been revenue revenue. thinking We've longer consistent

Mark Mahaney

Todd. you, Okay, thank

Operator

of from Your next Brian line comes from Morgan Stanley. question Nowak

open. Your line is

Brian Nowak

have Great. taking my for I question. two. Thanks

shopping still to one next talk and shopping about friction an us seen advertisers read your you is come XQ over the in advertising impact, the XXXX. The in if and you've launched mentioned you about you you course to for months? that existing And give I letter, of sort overall talk hope bidding about bidding points you the that about on September. more just curious September. XX high secondly, was some level, in talked sort what automated Thanks. the you the to the in first tools growing this Maybe what fact of business for a solve could early from in of the automated from roadmap, in talked us of also

Ben Silbermann

on are comments, are opening which working. but them the are, in advertisers and their I that telling us I'll now touched a on on that the in on make the ads are Sure. we've is number in working are first investments right of a in we worked to of pause quarter. large that one, it's to platform. think part And things There the hit for that it Pinterest, easier due the ads And made goals advertisers technology number

areas so And are that. there seeing two where really we're

work first this spot tag in making we're SMB health, accountable partnerships That the working, is especially the our has really ball, investments, segment, environment, performance those we've analysis to to growth And tag things sweet insights on that we're Pinterest better our the incredibly conversion the drive activity. we the a been which we've in work talked and part integration during on quarter. deliver impactful. segment, is conversion our tools growth measurable the call results sales, returns We've done conversion and in And insights, about sure significant drove are what particularly formats been a what The for online us. making around of hearing mid-market tool of the are our tool. like conversions tags seeing building

on and for is The second vision thing, this the you automation. touched

couple us a automate investments chipping to and We over traffic world started and XX with imagine quarters at format. percent And launched long content, or reality. take the course started the traffic is there time the us can ago, shopping, of our will this has you around and We goals mentioned, objectives, their their budget, revenue we're through launched in It vision our deliver You with that September now optimization But on bid a now months auto objectives running July. XX% through rest. we for And advertiser and the are at autobid. last over the as uptake, well. in as conversion brings that several we quick bid automatic of auto bid. plus of been an away auto in their CPC, this in -- and the

manual But So remarks, the in as don't -- know road will those it and their things. campaigns easier returns long of I making drive map think think we've linear that got I a opening around on for ahead. do returns be to mentioned us. term that board on much vision not something great management as will I advertisers the I we is the for

Brian Nowak

Great, thanks.

Operator

from question comes Walmsley of Deutsche next the Your Bank. Lloyd from line

line open. is Your

Lloyd Walmsley

Thanks got two don't you mind. questions, if

capacity the great. mentioned those then in spend bidding. you there and of previous size to durably more of kind or even more whether beyond through to clients OCPM retention the how you can limits First, anything COVID factors if engaged, budgets feel cohort users be much optimization, either are this in there's for here of otherwise just the Or is you the sense meaningfully? you like higher That of for the could just room secondly, you letter levels left a automated an kind share? XQ had can, anything kind pandemic for there. that talked cohorts, expanding unlock associated kind there's to enough be existing about you signal audience of would Do is, up budgets of shareholder And scale engagement with that share give budget wondering of

Ben Silbermann

worth I take we used the users we've last think are can question. across that heard year, far? now do people engage part What platform during at higher they a that do and tend level Pinterest COVID that there your to joint know metrics, What period, few engage same so we cohort I learned of they but is during the right of how that come how with what COVID and on is Lloyd. we the durables then Sure, about the basket at things that this that kind the are have that of know a time first the of joined sharing. was, folks

tends engagement when lockdown that are order are seen have orders in decrease lifted. we First and effect to increase when

in the but we And while we last family things parents or effect they're home lot net think office out so doing think a home the might even spending to And positive up We is talked school. be to time things at reimagine are way. instead where are believe people trying they've of a Thanksgiving seasonal more over, from home. holidays what some the or earnings often Christmas. at they'll setting done events, in years, when, that That a the about or home in about look applies that things there's like your are it having for like place, new for Halloween, what call of families just

service, our That's that that the observed high that intent the therefore, raises on that ads these the making term The increasing search search a of And obviously managed like relevance of of mid-sized small And second advertisers a but that think we've purpose. relevance is provide. by users for drivers to around come strategy more thing the long often more interest. that one and can easy is we of we features relevance. with businesses it is work why to is have we features serve use because it like feed. And the bar number than an for that opportunity, browser specific also offers home

your see early positive, I a will question, we of net that knowing quantitative and we think there exactly might be don't lot know But we we do erosion. trends upside. assume answer out, engagement So are have some the still to where that

Todd Morgenfeld

to bring on those advertisers, your be and is interests. the of around now the that advertisers spend more sized on the seeing against activity, intent right the most on see think the important sized advertisers being through capacity, for but existing what hit increasingly your But relevant medium kind budgets. we to related tactical which your, specifically, continue I medium Ben question, advertising opportunity small of on high deliver more definitely more platform to and an efficient about we're part point, overall, search on even is Lloyd, seeing and question second to it's things more on platform us

question be manual And So the and management to budgets limits those would budgets. to clearing we're for nature returns of campaign increasing, early advertising and partners, better on early would the automating about out that. we're and taking a returns but I better too existing it it's on seeing your answer to have where say clear specific

Lloyd Walmsley

Okay, thank you.

Operator

Your question from Barclays. next comes Ross of of line Sandler

Your line is open.

Ross Sandler

job on guys, quarter. nice Hey, the

adoption bidding that because be sets of that versus at and if look brand new of kind you you're know were we retail from then, a are features. out? the seems it are seeing really XQ. quarter recovery just new if XX% And advertisers the some possible. of I of rate, the stack of the a are Pinterest of in budget this that that Can you're is And stack, conditions? seeing macro cranking budget is seeing And right after auto of now feature the some that you Todd, rates to that parse tag higher third better? unlock overall these, even like How like XX%, using in So tools look growth ad lot But rates is much the ad CPG, and you in similarly, increasing environments helpful? Or before at there and because now. they're any growth also in don't in, color they July? range will run

Todd Morgenfeld

certain the equates we're say, amount a I demand parse. or Yes, I to the made. reality Y to We're brand I love a from hard from insights to disaggregate it's investments working. give we've would getting it’s the remainder, the able Ross, X mean, and to the really all Ads technology returning and perspective, safety combination getting of mean, on amounts in us that be above. are macro amounts

I effectively think to against It's been for count their we Brian's question, advertisers and bit but budgets for a driver and seen has desired medium on have it's their our that automate to retailers went channel our brands on-board and us. big through making just driving it this especially online the objectives been pause a story. QX. a sized been around easier retail, little brand conversion sales spending omni We've in especially significant advertisers and platform QX CPG, paused impact major in growth returning of and of a up, after component advertiser a larger advertisers the return the

We’re our lot is intensive like The interest trend. of is go in of where leading seeing that We're we're that seeing at insights really a advertisers. users bringing a without advertisers Halloween around Hershey notion is a the that going into translates resonating. commercial to our to as indicator demand home,

Welch’s had I back-to-school great gardening around think deliver to and the their powered help have around them mentioned Miracle-Gro campaign summer effective that and campaign. is we much with to creative much deliver Ben example conversations We able enabled before. management that another where by may more a celebrations home were we that to with them performance campaigns, trends insights delivered. more advertising advertising

to But advertisers. a due a those positivity trend that it's season. just as brand And contributing That's are really as concept, So sustained they a saw, their that post think I to differentiating what seeing be I want benefit growth build would are traction well. where brands, advertisers boycotts imagine insights around finally, and election the we lot then that hearing. causing especially that's the we're our to safety secular we're this and and July with of

and we're of mix the the media. brings Pinterest recovery, and to uniquely brand that social and that of technology, a macro safety positivity product it's deliver, world able the So and insights

Operator

next Sheridan Your Eric comes question from line UBS. from

Your open. line is

Eric Sheridan

to months, two a bit of seen investments a we versus in users, it turned to in Thanks when how side can. interviewed Thank investments forum about keep XX that Maybe to to younger and seem skewing or so there want little the and you ad the from cohort On be any come what and be user cohort on much for taking the if you've engagement engagement to side on engagement active that? that to international to of definitely, newer engaged sort you. the management out notification question of can from to the evolving, see talk both we've if monetization the expecting those during product users the just some of equation. to of an made sustain question. XX was I last And revenue, back doing the evolve opportunity on the should the company which sort yields earlier be our continues keep lot might international and of

Todd Morgenfeld

terms in revenue And presented those on hiring remarkable. still we believe are from there ground, English this on efforts those, markets of those from can to where to started international course out early has to this growth still quarter and year then the momentum early, and the have Thanks, second. over and the And too and now the staff XXX% a aggressively first speaking countries more we're the a being Europe, markets today. from by would more in U.S. in out from really staffing offices a then of say get international coverage driven I teams offices international, seeing XX% Eric, we're is our and outside We're of or And speak On can upside part staff in say quarter. of have lot beef English I investments about last to up results. half the even been we revenue would in U.S. we I those take of the investing speaking the handful Western XX% Europe year. outside seeing part. the Ben ago, we're year direct scaled as the world year revenue of Western probably countries of in ago, And those a the of

from an are relationships teams execution what building great I and advertisers results. a doing we're terrific so doing standpoint. good feel And with delivering very job The about

I of for those been that's remarkable. I opportunity see know, And beyond markets. a so And you us other lot

move we of region, we that begin the As the be U.S. existing in can into new across the next monetized there's And year. next few a I forward, of more to years regions we're America unfold. first our the doing and in outside think as Latin monetizing lot next half markets hoping

Ben Silbermann

And they're wear to tell we can in remarks get to that the Eric, age to answer hobbies something But Pinterest hasn't a XX users served the different, surge and get is place it’s with growing saw your inspiration. have a these future trend they XX of talk phones. rate When continuously. friends wonderful faster lot shown is on what where as people everything what joining over us their They opening keep to But It to users of excited second that users with iOS a a under release, to users, they chance couple they of for feel young we well at question. offers XX age young inspiration they is them touch particular plans. seen to can following customize which and that a of look follow we've they from celebrities. than of their a tools the have use might quarters something to

doing for we're was things. question what We're users in particular? doing these few a Your

for primary users organic and hub and video. priority young calls, in significant and inspiration get First, really paid increase about expect fantastic really is growth make viewership we've they the way we the Pinterest inspiring for In been video previous a company content. really top video a has talked is the to in seen both the of sure

Chinese capitalize to And new place. also iOS we on in videos for are we we'll it's stories publish This that take to see some quote whether accessible then widget, possible. quarter, their try And onto which to inspiring we relevant, tools launched things useful and to people lets make inspiration, it trend. have the experiments This we and directly people as integration put styles continue that to introduced can and an week, or how the that as phone. inspiring

we So that don't pay be close we do they that significant but under tend behavior, XX of we trendsetters. to divergence are see to cohort, attention they think

so see And we them can what monitor learn. closely we and

Eric Sheridan

so thanks Great, much.

Operator

the of comes next Pivotal Michael Your from question Levine from line Research.

Michael Levine

know efforts of traction. a this I unlock Shopify I'd that smarter, couple as before are you guys around versus And get your some mean, the the an big question were on-board really love allowing secondary to catalog is, that's like of to maybe you around have much seeing bit guess you things made that update shopping is questions the more hear Shopify, to learning ingestion? own? with you of I there I working internal guys are from partners shopping actually of regarding a how basically doing you're, to on

Ben Silbermann

to more. Sure, I add can Mike I free feel can, can start Todd and feel free -- to on

that our improving major reliable two for inventory a shopping products. goals. has One quarters several is strategy in really our row outlined we've of So,

big you have so mentioned catalog, on retail And made indeed really those a its do as we've their to impact. improvements ability to upload that really,

really also inventory, speed we've trustworthy retailers home and some improvements the uploading. those very, some is inspirational high pricing things has retailers. that been to make We've base, scheduling, Shopify This a quarter, we've with very part the accurate introduced about and things of it information. of quality like story. released all And are most to simpler, of Shopify of UI increased building

to audience one really on want Pinterest partner looking really tap. remove catalogue the their that retailers we're And for and that the from excited so inspiration. them upload with to be friction to really able with just are And to do it

want a of been something might room, into living with about on the surfaces. do building shopping of look. an a discoverability taking what than inventory, of second a then the Pinterest, the approach inventory. bit part little first those scene dedicated different they how And some a scene then And a is they call on a that And start backwards part we've people of products? improve have to kind Pinterest products. spearfishing. that's achieve we So strategy of the People And work of we

see So from been that's working inventory, can really might a inspirational of great go. Shopify been that's and some versions image, the And catalog then take inspiring long something on. way come and of or which that we're we to any that although have still going you that other well,

months, Over engaging XX%. surfaces; are number shopping with of their it's the six Pinners grown that than last more the

and be significantly. it that to So inspiration. when with really, that do just The last working ahead thing make And and launched think we're took internationalizing when very we really in purchase, that will then first you're trend in really to ultimately our And global. you I'd easily. go step that the start make U.K. balance can that QX really we we And add ready shopping is that sure we

Operator

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

Your is line open.

Mark Shmulik

for the brand certainly about lot yesterday call question. hi. shopping. kind press etcetera. I Yes, We've on Thanks a release out, pages, know of inspiration that led features, some called the of digital taking new talked this

older any the share they're how So a any lot would of they're product color product. of all the If Thank and very of know, loyalist some users, helpful. number are the you. longer changes the you the XX% how to you vintage the to on color know kind and shopping changes. but I engaging users can be think consumer we about adapting

Ben Silbermann

the for Thanks question, Mark.

that I there at two are think So looking of ways question.

features launching. years. years that been lot The and some for for, using we're the general us asking first features are the answer new the is of and engaging new building And is have our of we're in users users a our things

shopping. as is and then years it the wanted visual the looks investments our based a one really number and find ready great. video what's more So request I driving more in it, experience all see to and user become immersive and buy I'm web have something, people has Similarly, can't that's way to more I for it richer those.

while that search are use so And users seen. is observing our that very mention we've for like given storage things success new, did I we're one of we're some Pinterest based. the thing newer bins optimistic earlier more

still but things. actually So searching visual specific they're it's inspiration discovery, for and

deeply in search. more been was recent have there I if would cohort, particularly the so difference, in And say, cohorts more a COVID engaged the

with them, a how that this are a not parts And engaging may with had to so to but looking take service, users always lot yet they also we're amplify experience. of and and do we chance the think, areas have them share

Operator

Your from next Colin question one comes Sebastian from Baird. of

open. is line Your

Colin Sebastian

Appreciate thanks. right, All time. the

returning trends response. shopping rough as to the is to ad launch in a quick unseasonal some split appears maybe to questions of concurrent of and wondering to more direct follow of up the on brand expect otherwise earlier shopping a mean of in as some OCPM than guess, as the the might I And you brand few concerns between Does related an then here earlier the what what well the platform, advertisers delivery. action shopping and tools, With now formats Thanks. catalog year? holiday September, and getting year, be perhaps that and ads given normalized boost the start a it this around what ingestion. are or newer that October

Todd Morgenfeld

question. Colin. appreciate I Thanks, the

typically highlights advertisers all quarter and to, probably how out. in there's performance transaction moments is hard majority But, performance in finding they or I the We're and the going plays little We've powerful QX of back amount a mixed all one a ended that QX a through experience pretty play often back last versus and funnel back-to-school will across to December. inspiration think But through To performance. idea from and how something happened on loaded results that's oriented seen. general, aspects our back-to-school the the And optimization It a that. long little seeing the that we this had of across experiences, advertising. first platform different the things risk seasonal in and board we in really last quarter. unique year. happening toward And our bit the on quarter, little November point hear We just know way a is in of to out seeing has been I we're to it's mix. performance tough full rest shopping a being on bit environment, than at how we value and shopping you And of just in definitely And seeing is verticals new just awareness more this the the different about your month the and point and than up talked a we if of typically been from think the shopping spend. the of So seen versus advertising. brands remains a times, be way objectives the more slightly traffic adapt. the meaning dynamically what awareness in it end think fair earlier conversion brands, strength,

season and right bit around that QX us. and this flexibility planning unprecedented in bringing the for are even spend, a nature advertisers now, into the nimble cycles, So the dynamism is little

Colin Sebastian

Alright, Todd. thanks,

Operator

comes from question from JPMorgan. line Doug Your Anmuth next of

Your line is open.

Doug Anmuth

taking two. the thanks for have I question. Great,

to term leads be how just of where about this EBITDA. constrained terms I XX% Todd First, load get laid your to expenses be your more now over significantly do long to kind only are XQ be Thanks. on color and you're targets trend that believe in with out XQ you in I you to how know that think which you that then to that expenses, modestly than and XQ will could clarify in near-term and XX%. up higher thinking last constrained, ad just second, you more the are wrong said but could ad I am want load. year, you margins demand [Indiscernible] of versus some where And on supply time.

Todd Morgenfeld

Thanks, Doug.

of both the take – on So those. I’ll

of On contribution globally the impressions and from in quarter. mix [ph] point. a admin We the saw price

and thinking of That’s So impact was way the much of one performance. balanced on price about volume of more revenue terms your it question. in

the with we social content. is messaging this the by to a ads can public, on more overall, think delivered we're with started constrained I if media consistent which right where what platform And are when and went experience. the relevance is, message we at they're ads time attacks like or then advertising, feel is where right still the person

it's content commercial we that the us, do about for to speaks advertising intent how users. the interests mostly So of how do we our and deliver relevant

benefits of as density a One of high we're having example that shopping serve an intent equipped surfaces higher of advertising. to service better the is

items, aesthetic If welcome that if etcetera. that you're advertisements home -- matches to retailer your you you probably tastes, a find that trust are Pinterest an decor on from with you're

we're ad little the we advertisers basis. little guardrails like continue long surfaces, to globally serving we're, When closer make along and through a a person than the are I about are sure On there's we're get the think continue bit U.S. our high on at I our the margins, we right thinking about to larger. imagine, on we in them an on QX expenses. ad the platform, technology, of you revenue And basis. annualized ton can in So, we're is time. right of relative term where right a thought QX mode, were the ours, further globally, to lot room contribution there's in a seasonal if a can deliver amount quite, much annual a and shopping is a business the more to than U.S. to on upside, global probably But we intent small

of the As course will the we quarter year. go into QX for the typically company highest over the margin be that

grow invest of be world environment. going travel, There's that that last And our next marketing the quarter, environment year sorts that effective few think in months in calling that through this we expand a marketing to to out that those. revisit with $XX just we particular be current to tests they brand be QX. items have into we an And those that to But expenses will had can of we a deal haven't had spend marketing we in and that would the doing tune worth to this would ways won't the right next year. over things year like of was nearly modestly, probably million in when the spend one going margins expenses, some again. of events, deferred been this period did ago it's continue lot for looking even we we're You're in COVID this investments year we of in where in

but term our long So targets. margins higher, basis, the still on yes, below annualized can be be an we'll

Doug Anmuth

you. Thank helpful. very Understood,

Operator

Justin next comes of Bank The from Post question America. line of from

Your line is open.

Justin Post

A questions. couple of

understand outlook the in it First, strength QX, in about deceleration for Thank your if of say cooking has category or you Or, second, just that? you like the or somewhat outlook to like Could can based been conservative sounded broad progresses? something has as put quarter XX% Is you give you sustainability? And things like think home? that kind really half. in the us fair you. concentrated been help but an you're then back in some

Todd Morgenfeld

forward people like popular be they than been of beauty, cases take did We I a number looking events, engagement have some part the Things first can planning that, Predictively, home although, outdoor core of some kind interestingly, style. see the uptick question, in our were to past. to future. there Justin. as big verticals, see the of the less for use might in people that across started food, were we've

So how service, with massive that cohort category who and shifts cohort I COVID we of period the engagement sustainability during monitoring of particular. particularly the as joined a a the don't mentioned couple but in that times before, engagements users of we're closely, from see

Operator

Sanderson and Your next Rob [Indiscernible]. question from the from comes line

Your line is open.

Unidentified Analyst

us Can the what the then the days few more that? you year? and you was anything the also, at how forecasting through about from those you on QX, momentum. thanks benefit the growth? year guidance peak safety, Are a down spoke into visibility versus revenue your I etcetera. Yes, than and dynamic you your Or October fourth And for that loaded your impact on this several XX% of season end Congratulations that was this How taking with that the slowdown? that Positives back a looking having question. last you about brand you, the about, in thinking But unknowns quarter. slowed of year are there are any help of that sure for don't growing fewer reconcile think quarter? shopping about you. permanence part Thank having for ago? some days. you factors year that limit Not faster during the thoughts

Ben Silbermann

the over skipped seeing. second and very of the of end you, I we're back just asked then But part drivers seeing quarter and we that answer in think we the the can similar you And we Justin's we're the of lot I was And know to shopping I that same And question. both I saw we're think In that nature those. reality is QX a about days. general, of loaded momentum Thanks. about the talk in – QX. can one

working around I As product our investments automation. ads and technology conversions and in are before, are the mentioned working,

the see We then advertisers. We're to sustained that through it persisted, we'll are was be then you brand earnings CPG it investing upsides how for a the has to last appetite delivering, source to seeing kind call, really when and it past advertisers. phenomenon that's about the long about we're going or we've continue been be And time strengthen international on to July of seems know which a it know, be it's but persist. only out continued it would played the return if safety didn't into going QX, QX is this insights And talked lot we election? seeing a if talked been narrative persist a And in important of of it to we retail if for was been we've plays and persisted. nicely. It's of to that the it seeing post-election But strength something has out.

us saw of we'll, around next say, see celebrate plays moments, a an shopping the how be those quite right how it in into that QX quite those respond this we'll around in, a seeing those now. people how the advertisers are uncertainties we despite behavior drivers to that the a out. may Whether few lot we're weird QX here advertising them. for play are new we're weeks. election how hopefully impacts same changes, I'd environment risks How out that that cycle seasonal So COVID moments, hopefully through But out. play just and Those

really days about and it being year headwind talked a play last out way. shopping the didn't On that point. that We

year to I'm So it in other call the direction this is hesitant upside.

that I And out. little earlier And how plays official we've year. a maybe Black seen Friday the expect period the how it it and many, think year. see of many matter we'll that start would shopping the how I in do so between given are days this end doesn't that shopping behavior

Operator

next the Greenfield comes from LightShed of Rich line of Partners. question Your

Your line is open.

Rich Greenfield

thanks table CPMs that that Hi, recently. letter, kind of just offer, you more into in robust think and what stakes of you as stories that ads, sort to out and of for the of advertising then And can of platform. how But very of users more video terms you video about or talked you get sort of having kind about you video content done on have In content, work as younger think video rolled much. the about you early ads sort know around the video platform. into wanted play introduce growth how you and does content more the and expect talked video is the

just evolving people it you're think product? of in terms excites in are the you you more sort passing of know, the anything that of how uses sort was early or learnings in can it what mentioned letter, and doing you add with or I

Ben Silbermann

I Rich, [ph] question. question. the restore part of on can you second the second the that of missed part

Rich Greenfield

the new you people anything learnings what release of of Sorry, do doing it story But if early sort or on or mentioned what can you a etcetera? are in need pins with in to you go there's the you format. of terms encouraging change of detail wondering what into lot I like, kind see, rolled stories, as a out it you it mean, as

Ben Silbermann

Yes, I can start. can I

that we their what merchants heard for if getting ideal having tell an lot inspiration. format a of to is yes, really we've is richer So, think a And video are platform that think about excited I stories.

also seven apply uploaded videos side, does just organic we video we growth advertising growth Pinterest, the in a we're continue and number the that for uploaded strong So experience we've advertisers. made on to advertisers? year-on-year. And improve Well, in really really And had to strong video of the videos views. see, really experts to then seeing how to some investments

they of have last cover carousel. video a format, you that the in is example, I cream. on of that they a like we And For A wanted portion of our revenue ad a product there's ice video as on by campaign great served introduce And mine, see X% this a to lift just personal time, well [Indiscernible] now just applies up and not based kind to video example can two introduced that on Catalina. be of objectives favorite Nielsen but different And larger people as standard because quarter, really that taking as lines. performance extra over of And it video. brand, also great it's can with new sales, ads. carousel measured ran results in we kind was to format. again, great only they adspend And saw a because

So we're the format. And second point we to on that of out able really it, about innovate stories. you about part your question early, was correctly really begin to be video this is but excited

more your of videos to fitness video lot were to We that's bring things more routines. how for talent And produce content. seen exercise how where at DIY, how that a people story recipes. their on excited some like on And we mask. cook do how house some see recipes of cooking to I've people stories about, at called, We've a Home”, showing pins, a familiar people there starting restaurant also do tours, been and to to teaching we teaching “Chefs make to So have we videos Chefs lot and with own launched great campaign folks to we're people it. how create how see

from of one on So from last was came company we style. [Indiscernible] recently with on addition some hired Oprah, Roku also publishing, we we've Andre came added of in hires Salam mentioned but expertise that quarter, worked the the our more also who Disney, board. the who our the media In of Wishom, first to the the president

what on really and the there. eager We a find we're useful most people think we early And to to is platform. overall, we're most use think inspiration So video one. inspiring the opportunity deliver to learn big

Rich Greenfield

taking for question. lot Appreciate the a it. Thanks

Operator

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

Your open. line is

Heath Terry

Great, thanks.

technology into the just times, anecdotes you've either got that, on adspend got are improving because side of that including are pandemic, advertisers measurement return on to the couple the that, that's seeing that sure in deeper might you've on a recognizing, mentioned that trended on on that as just other bit prices in especially likely innovated and You've could letter, you degree. dig targeting the it's adspend to you're your you've more a be on if for advertisers qualitative, quantitative you time ways the to well. also, the or But through little that, return presumably willing I adspend, as and us. I'm over what wondering return up are as seeing. a improve platform, share advertisers that driving was

So that there any into you're helpful? trends seeing insight the be would

Ben Silbermann

across different returns variety a objectives. We've and may objectives. great given traffic of mean conversion pursuing I seen in also great I more But we've from Todd results can of start brand color. about seen we've here, see kind objectives. people or advertisers some add general examples

important understand looking three for what's better measurements value transactions. Pinterest, they're that make As that for. And brings come by is us Pinterest first I quarters improvements tools. measure often through been can guess, don't that to driven our people specifically And about last he making pointed out, and the they especially unique through really investments ability what party the we've talked know has conversion over some to to of that in sure we're people

make they they And purchase. actually before have might so a longer window, conversion a

set really really as then on -- anything we of the less tell to out that add on returns the figure both and And those to advertiser is making themselves And different great That seen to big focused best parameters. the just there? it the those to benefit that from They Todd, utilize about fronts. of so talked budget. we actually all way that customize before story objective, we've moment we helping on automation, was other purchase. and then those the people from the ultimate inspiration come benefit

Todd Morgenfeld

No, was great. you. that I that Thank was, thought

Heath Terry

Great. Thank you.

Operator

the Thank will now turn you. to back I Penner. Jane over call

Jane Penner

turn so back Thanks over I'm to can he going Ben actually call to close the everyone. it much, out. so

Ben Silbermann

for look joining your and forward We to And going. rest the the keeping please for the dialogue thanks Well, everyone interesting questions. of enjoy day. call your

Operator

call. conference participating. Thank this gentlemen, Ladies concludes and you today's for

disconnect. now may You

Pinterest (PINS) 28 Oct 202020 Q3 Earnings call transcript