PINS - Earnings call transcript Q1 2021

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Operator

Good day, and thank you for standing by. Welcome to the Pinterest First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. a today, I'd Ms. without your to And for host Instructions] further like ado, welcome [Operator Jane Head Penner, of Investor Relations. Ma’am, yours. is the floor

Jane Penner

you, for call and Welcome Thank I'm Jane ended afternoon, for of XXXX. Good us. Investor Head joining Relations March thank XX, to the for you earnings Penner, first Pinterest. quarter Pinterest's Carl.

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

the cover harbor. safe I'll Now

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

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

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

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

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

Benjamin Silbermann

physical time humbling Leading around closed. and have I last that our time businesses I not of for their proud look everyone are the forward Like again. can also difficult customers am reach everyone today. we March through you, I am and a of to proud millions our for storefronts people thanks just when once partners together of start acknowledging fully to to the may their pandemic shared been of seeing and Jane, still at hundreds this time, deeply and I joining we've has to the Thanks end during to experience world everyone. Pinners. teams, pandemic be our and Pinterest look forward it. was the start want inspiration a Hello, with challenging of by and to help when commitment all that been the through we

Now But Todd are saying our we thinking into to is results, that I'll out going we come I today, a talk as quarter. start to begin go Pinterest financial want by strong how the this specifics pandemic. to about of and about regarding is

in making. the are investments excited our are strategy about We confident we and

Let some me details. offer more

are people more First, using and Pinterest ever plan their than inspire to lives before.

million Our XX% to globally users XXX than several Gen growth grew persistent quarters. a for monthly coming users trend that strong more from seen we've active with Z,

year-over-year. a than shop. Increasingly, grow XXx saw to but only We inspired, get more place see searches as Pinterest also not product people also to

easier advertising Pinterest businesses these by are is more to do. to on results the investments driven driven are business Advertisers being our appreciate our a seeing targeted generating business are people more new people expansion. international Well significantly coming place positive useful made and more grew products lives. what effective their inspiring there are by Pinners are use. small-to-mid-sized and to strong. than we Businesses make as for XX% for distraction year-over-year And Pinterest. further make get ideas Pinterest Second, advertisers We to where ads revenue they strong sales a rather the and

more every most feel working are their content. we and starts to in inspired aspect people that life, inspiring of the with giving help Third, people

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shows later in XXX% to excited launched revenue our At the also our for finally, are our inspiration an further business to end as Pinners from business us global number from integration destination of real. on important testing The making go advertising revenue. quarter, is Pinterest. has Pinterest XX nearly and ads making a milestone this this total countries growing Pinners And to to begin time, in continue year are Brazil our next for of to retailers seamless last help Shopify And Pinners for see easier expand XX% them build QX, We are of expanded we all business. as with international out year. XX% we shopping. real they over purchase. a were and transactions first We in it take shopping additional to total objectives shopping as And that with surfaces this the to sales Pinterest step, to We globally. we make of of with grown look revenue the of traction engaging on-platform

Pinterest did engagement note always things during a We the since orders lesson these been naturally of Pinterest. of has improvement, pandemic to our popular for collection us home, at seeing of to Pinterest time people recipe brought more strengths we've and home correlation many important on which but business, more XXXX. planning, in and our a it's stay-at-home are seen lot between began, in that and

As pandemic the user to this spending and of lockdowns we see are time on during engagement we world eased means signs in people began offline. Pinterest, mid-March, assume more some growth of and parts less were

it's to say as While the trend summer months, impossible how people continue. this act anticipate we we enter will

This XX Pinterest be engineering to is formats I creators. over impact vaccine their and now year naturally the while skin future. come or changes. like misery ideas to to we've combat also and steps the ad a enhancements by Code its about am a to with ranges our Finally, compare ideas talked To on policies, I'd Moderation be. the ensure Creator the solutions on continued online future content activity it’s we positivity year keeping inclusive keep landscape. that first-party Todd. in the mission. of place and tone our to ad find the about [indiscernible] life. has the to clear It won't mind. our faced going to over search investments close, news is challenging are the in people. new privacy for in Pinner and countries. pass a that search, of inspiring get designed other said, We've That advertisers more yourself to what new taking like the note in with Pinterest our note ads, in brands like and to industry be available efforts this still based COVID we upcoming advertising yet and positive focus read information, about our People products This days, your new far long-term the excited to inspired reflected positive were importance changes to excited now I'd how onset where affected like are even early for for effectiveness entire it reinforced new I'll to not privacy will place shop in Comment not and and it includes to targeting. content features year understand is is Personalization past come in Tools

Todd Morgenfeld

on outlook provide quarter the Thanks, the Ben. trends first share we preliminary and some further QX. details I'll a for saw in

summary with detail. and headlines, into Let's a of the more then we'll go quick start

Ben first revenue we strong user Year-over-year Monthly XX%. with of remains growth margins a EBITDA momentum. adjusted had all good quarter. As active again strong really with showing accelerated mentioned, once to growth XX% regions,

First quarter revenue drivers. growth was propelled two main by

value from First, small we in our advertisers are saw and ad of the products finding our increasingly ad automation conversion-focused and strong momentum stack. who mid-market managed

performed international XXX% business well, quarter. really first Second, the year-over-year in growing our

and ads sales these automation sound diversification continuing performance coverage. medium-sized drivers in investment IPO for growth Western highest and and Europe trends including of the we've Canada, in in We our the show years growth the expand are about base. talking seeing familiar to advertiser because in of products ago. of our Both our our been a The small quarter, our where we and of them advertiser since couple are probably growth first diversification, businesses,

our our dig As ads draw strategic is attention initiatives, philosophy of such as into worked then business, the international deliver This minute first, it's and Pinners these value playbook our well into for building initiative. content general, native we to a a shopping to well ecosystem, think to our newer In begin of scale for to your monetize. taking investments. to worth as I for lean rollout as kinds

but For properly U.S. in. in an there scaling expansion, the global ad We it users the gears in to well. we before U.S. international, working globally. blueprint the executed before worked a got were leaning we that This sales for support knew

And almost serving Latin in international first Mexico first just We Brazil today of comprised in the quarter. launched with and country, total coming countries in ads in May. we XX% are our American revenue XX revenue

uploads an still been For catalog from for financial shopping, and by shopping, This and engagement a time place we sales In in the the performance. the is fundamental discovery both shared inventory, getting of only scaled monetization. retailers building shopping strategy first Pinner also today, the have experience. first with Pinterest now ads for shopping dramatically then services has part for effective ad platform, to-date in really relatively we only the it's and into our serve rollout early on meaningful our infrastructure though we that monetizing prioritize and scaling leaning high-quality revenue very optimizing international organic Pinners Not experience days. before on we

a content ecosystem. We we the same are as running native playbook build

easier We content. content are by to journey delivering for optimal the at Pinners that achieve scale currently meaningful it make great very our distribute to It’s this value to in early mechanisms monetization drive creators to on learning or making focused point. and

to deliver ecosystem marketing R&D of looks may and to too exactly scale additional we understand to our We get in and like what and form to sales that we today. the investment, resources That best we value are are ground but currently and that monetize. to investing the content it's know harder Pinners, how confident lean early will off take

our the play out grow be in monthly and Ben basis. to have the quarters. year-over-year outlook tailwinds both MAU QX, percentage mid-teens active to flat that for growth Turning may active couple expect potential and preliminary global mentioned that U.S. users we about a QX. we users on for headwinds to In engagement over next of monthly and

We year-over-year XXX% expect to about in revenue grow QX.

to of QX think we investments comparisons, seeing guidance. coverage we March, continue. believe we are and expansion the easier the through should our continue into began Starting the and full-year, returns about end sales tools factored will ad and and which we and quarter momentum year-ago As revenue at is our from lap the first

want opening Before up also questions, on touch to for I expenses.

big in grew strategic the growth inspiring year-over-year. XX% to headcount of success, shopping. invest with content, the advertiser priorities the and our business quarter, in we continue In Pinner We of first experience, our accordance

teams it spend. Thank a we throughout campaign We OpEx our that and year. will as open sizable as launches reminder, find variable of brand to the and the in growth in be to in inspiration. investments with at And campaigns continue and growth to on and Pinterest we the to bolster the our a awareness to for partners ramp expect mid-teens comprehension you a can marketing all And drivers. QX Pinterest, non-GAAP increase to our long-term are advertising substantial in investing Those questions. up drive initiatives sequential basis come that, our percentage people in we

Jane Penner

are we question. first for Operator, ready our

Operator

first Instructions] line comes Our [Operator Barclays. Ross the from of question from Sandler

open. is line Your

Ross Sandler

about question a just Todd, guys. Hey, guidance. the

So MAU. in obviously would you flat robust second pretty revenue the is going got for sequential the quarter, said, but we've growth be down to U.S. and here be that

– and load ad at do user trade-off around any Thanks give couple the lot. the us and quarter given think we or room growth to the look the impression still growth? wiggle last within is can much eCPM how context So there you last massive increase And if a the revenue flat between you U.S.? quarters, growth

Todd Morgenfeld

the Thanks Ross. for question, Yes.

question So about the understand really revenue. and to user connection the growth

unprecedented the that we COVID. some that an of of So things, question. that the growth I'll this over going gets summer, through of into year. and kind from are unwinding had of COVID and go sequentially would year version we we forward I hopefully some engagement last through had say period we user by see to unwinding went last would couple the the but essence all around seasonality of the of the a we compounded pulled exacerbated typical the of the restrictions the It’s some that

it's comprehension our – native worth what talked designed about lot creators a also are and engagement. of as making investments noting, content I and to marketing, drive mentioned, long-term around in are Ben efforts We

don't to utilize believe more you investments But sales efficiently mindset pun and our It's planning noting engagement, behavior asked that unique Pinners I intended So about. it's our Pinterest, too. investments product I'm that We've bring worth really and that in coverage. and to working. commercial is that in made worth it's glad something to that this want noting

conversion get last a made especially We year CPMs go goals is time, advertisers there, bidding saw automate did that and conversion-led their we effective long-term talked the budget, a to last we before rest. vision in accountable scale the SMB automated unfold results, especially see course As through over their through objectives. we've shopping advertisers that that ads the over to have content, traffic, And and onboard we for higher lot and bring space. way our while easier we of it the we And long to ROI how and over across performance potential time. optimization their generate

of this automation We budget awareness which are across objectives the year, launch will similar instead better a for within over bidding groups, campaign ad that course just theme. working we delivery too. optimization, now called exercise on of automated continuing automation groups allows so And for ad

XX% that model. is accelerated that we up places the next of through So that has new in in revenue. Shopify engagement like We highlight, are partnered long-term on is an improved partnerships on half nearly trend our a through that We've And working. using the think But revenue, make around you managed as results this internationally Mexico efficiently question, like mix. Brazil automation to I wanted SMB utilizing your that's sure, significantly unique Pinterest is and focused nearly at what we with and the We've saw all our markets continues. we or percentage have expanded and I more growing is of our products strategy further internationally. now one investment which we've that coverage of posted our opening coverage, with

realized the impressions most despite growing And our ticked growing and first overall me CPM to driven in when down quarter or the in revenue load impressions, XX% growth boil thing quarter out it mostly XX%. especially to gains was ad the by the about our effective you in revenue ad year-over-year globally stood pricing that was and actually that performance effective our revenue in and U.S. CPMs, question down U.S. your products. So versus

the that right advertisers supply because and ads get are the we platform. the we your are to question? automated products So we’ve working we've automation using for – have efficiently on Does the utilizing more much – ad right with built that

Ross Sandler

helpful. Appreciate the super That's color. Yes.

Operator

of from Brian line the comes Stanley. Our Morgan from Nowak next question

open. is line Your

Brian Nowak

from about that some party could guess, design the have questions. as then case to that market make shopping want of on-platform that transactions second planning of sort maybe retain some or seeing retain are shelter-in. the about be this think that capitalize sort reopening as and reopens talk IDFA think of are home the even why benefit housing the Thanks post cases maybe further into better in to mitigate, my about of for around and how and sort two. could to uncertainty? advertisers world the I use first one invest one, travel taking a the you or as have on us and I sort to the world or platform of some of ask to just I you emphasizing on benefit the IDFA the or engagement manage reopens Yes, talk users changes, way are from that engagement. there you platform what to do through could of some for there engagement I better on these of And you not on that? users a us sort

Benjamin Silbermann

can I Brian, Sure. start off.

really Your first on seems are we of lot post-COVID. are there I what quite thinking could core resilient And a heard is how about about categories be question was users that like engagement. it and that

for the which said, to go Todd spend step thankfully, the that patterns world during that of it we time the want as up. people things, a some is spend COVID people back, lot way more new that. of and few got out Pinterest and creating their of you we couple more a observe that home see time away. taking of And spend there I'd time expect They beneficiary outside That in engagement a we stay-at-home one online. behaviors So was times their a life and that lot mentioned a more

have a seeing categories really in core the design, strong indicates in those good that we we're shopping in categories, things uptick the good evidenced engagement resilience. in categories, as lot data that think of core commercially behavior. particularly commercial still we going That's overall to And in First, early number strengths user is engagement that's fashion, interior than a thing. searches, of the surfaces, we’ve what seen the stickier overall. related as significant increase well And in shopping a be the and like

went what seen Pinterest. future. events, planning, you that but holidays, there be drivers away, rather during think go as time try online on big and of certain wedding over the communicate certain net we've could your it’s whether were Halloween, what historically mentioned, that engagement to pandemic. saw the tailwinds, Second, point, To the We kind we they than we but in

there in. just not and could we're tailwinds baking So them be

picture we flattish expect, the mentioned, do of in Todd so a that a over be paints but where And think long-term, to as U.S., there's all lot optimistic about. a growth we the

In that we're the to going efforts improving we're the that addition quality mentioned brand be to the experience first and now, the doing over our of campaign undertaking just long-term. constant we generally Pinner

how those pieces kind that's together. thinking of about So coming we're

going does Before question? on, of answer that kind your

Brian Nowak

Yes. That's perfect. Thanks.

Benjamin Silbermann

Okay.

are question on thoughts second heard when to I IDFA the particularly point of really little we what The help shopping that and about transaction. to get retailers near Pinterest that to was a closer have they're bit

part surfaces into and engagement an community the So things measurement on strategy But of amount this and about more a territory, on any obviously more search Pinners example, for first-party but it in significantly has put place for to point, solutions, our kind the new shopping we've we the engagement allow we've year. This that also year, shopping along. few of talking like shopping efforts Pinterest with search solutions. shopping to all increased to surfaces. as been overview, improve more been We pivot really This increased is users directly. than of have a that

which results that two; The checkout kind multi-feed, search the as to surfaces and will folks we're a was, products we’re step the high-quality friction. catalog our being be our shopping awhile are you easier we make able I really expanded that's one; for for with things with seamless to sequence good. in those pursuing journey amount like to inventory well and couple and our like as with early increased Shopify, it as strategy mean, to If that pivot to of that's Pinners of partnerships of and shopping as in next the search. get rewind the uploader, number quarters, well been of to going exemplified early testing pilots removing from increase

Operator

comes the Mark next line Our from question Mahaney. of

Your line is open.

Mark Mahaney

Thanks.

upcoming transactions. the about talked think potential on-platform I seamless for You

international had would of broad that So question – maybe methods guess somewhat that but I there wide are coverage, power and lot. while, Are – broad any just how U.S. get to models? the at other out the ongoing the are that new gap course, the be sales there closing does question be, what to it And that found to platforms And new types market. going open just more advertising opportunity Is it's for more see that in gap about about the can learnings new of with or some then and your would markets too Todd more you've a maybe for that of revenue more? there? ARPU but you've you secondly, early, line a self-serve help close it tools? that Thanks between

Todd Morgenfeld

Mark. Thanks,

in So questions two I heard there.

The that checkout, could over time trend new revenue was around native the drivers. first with models how that second and and look associated may around be ARPU was

year going what the opening when worth new to think had those get about really of and probably make So I inspiration what back – said was off excited last point, we model out on we we some I that find real comments we the they to pausing of know inspirational users then do to revenue it's our and items I new endeavor create come of Pinterest. investments. when action

we on the products make our right focused those shoppable inventory for on to and so platform getting users. And products discoverable of the

to that our Pinterest. on – that on they desire express work way users more that buy shopping that to to that were So users organic the through, uploads found and the was all product Through journeys to fulfill addressing go desire catalog work the serve request. able first what of some we buy natural on

that testing step native not the user over trying But make I we're say experience year sure so this that's to checkout. we're might committing we as the models. first. mentioned, And Ben next something would could be evaluate. new to later longer-term any at point in works revenue the And the

Second, ARPU the on opportunity.

onboard year generate think in goal their right was rest, over scale bringing allowing we've and in automating model ARPU and spend. track see growth. of advertisers of their goals, U.S. a last and coverage, and been serving to of the their a coverage market the especially internationally before base, from all having had what the in We've content, the that. to I the that made in our easily bringing and for results with them kind delivering great budget, record the That around advertiser invested automation and demand of and I exactly the we've mentioning driving investments against sales product long-term SMB recipe diversifying has their

how posted a now very rolling out. countries great our we're then refined and markets historically we markets. are a a in similar in last playbook. model of outside We've seen through U.S. international America. of with of international in in come We've works nearly Europe, as all revenue rolling And to but that think It's most English I international as in and mindset from about in Pinners coverage. that product very, growth mentioned, similar notably a our It's the too Germany quarter of XX% France speaking step are talked markets out I playbook platform of now built Western seeing in result traction. now we the ARPU that U.S. overall investments at and as are those early the a days, some in first and Latin XX%

got that over place we've think the against ahead. and opportunity I the to I'm and time. encouraged And down really so a of lot deliver by in the right is the progress team execution, we've to international super opportunity made

Mark Mahaney

Todd. Thank you,

Operator

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

open. Your line is

Lloyd Walmsley

Okay. does questions. on growth sound lot Thanks. guess, you're in conversions. first I stuff. the like related Two of It pretty seeing attributed a shopping

this in starting your to conversions, Pinterest for in more the get in beyond engagement And visibility growth users think throughout do as you conversions? more engage purchase getting credit the then simple can you you to closer beyond have into such past to maybe more or look kind So of talked intent measured simply simply of visibility ton are there the better of you runway But can runway kind platform depending about you beyond on price? long-term a do high drive there impressions without growing still anything doubling be the whether clicks to conversions. actions checkout? to one, the Kind of there of on commercial monetization curious, point see impressions that Is actions, you would really beyond funnel ad you keep pure great. share second as in than

Benjamin Silbermann

going that can through the yes. maybe to funnel the increasingly the the the of shop? has with are users first to I who platform Lloyd, Pinterest can we The start of the more to seen short kind and then really second answer question add more feel destination understood one. part in is Todd as I on adds And that, it was, do

kind a weren't they years a painpoint a plan lot able there rewind was little of the couple commercial a on we was to get to if the we was intent product easy platform. major Pinners But our about So of think way. purchase bit it strategy ago, and knew and of to for make then where

the has of of find The they the of products the the been number that's the amount XX before, could catalog the And of trailing uploads, worked months users high-quality inventory. inventory. with that that up XXx on thing begin of the last as increasing was step piece up-to-date improved in sort quality in the like of showing the then to And next content, when on first really things a second And increase leg we it's was shoppable metadata. they really mentioned stool. were so

there's when you pricing a up-to-date in that information the and that's and find use you product, Pinterest, see increasingly, So if improvement information, stock you'll continuous quality.

shopping Over might what the mode by on let mode to pivot half, then say real shopping beginning we've a into is I last traction where we call users and surfaces. seen in these from quarter engaging would inspiration

look, Some behavior And of or shopping a Others similar those higher feed a image off connected search. is large point. being either those like with go things surfaces think brand similar indicative strong able a related underneath products we a are really and of that by looking purchasing pen are similar of pivots into those We a then off price surfaces surfaces. intent. of noticed engagement to

that as And want the friction experience more to next are mentioned, out transaction. removing good foundational try really get we Todd that's thing is those test begin it now the So then pieces and broadly. something, we'll from roll to pilot, that laid, to the again

the engagement buy. short seeing a can But it we're hearing going seeing flip the It's where the an growth shopping from answer that's not the yes, journey in surfaces. we're think I get switch. longer inspired, in to on. be a can seeing Pinners, increasingly is we're not answer they that conversion So is only Pinners an are attributable We're also as but they place to

Todd Morgenfeld

only add that. thing to Lloyd, And would the really I

our we overall to that and Ben consideration user one And journey, from called activity and XX% but action funnel, that to out mouthful, summary experience as more retailers revenue. like the talk to from purchase from And to show of inspiration that and is a of user designed full experience through maps, our showing described. you was CMOs when an or those The that a advertiser, taking of ads coming advertising advertising the consideration the an that hear can of it's of the coupled revenue But we're we things But in up seen catalog-based that reason across is building user was about recently maps built we business ads conversion awareness important checkout we that our really with are baseline. to advertising that's because with conversion shopping community are funnel Pinterest and the add-to-cart or objectives. for awareness are But journey to ranging purchase. or well traffic as what ads, objectives think what value exactly I we've stat our purchase increased, of objectives lower a results. it's of objectives our objectives that is A retail XX% all around good toward. attributed users the now trend. has early seems it's increasingly as conversions lot with imagine optimization now experience

Lloyd Walmsley

you. Thank right. All

Operator

line Our comes next the of Post BofA. from from Justin question

is line open. Your

Justin Post

Great. think that you Maybe little U.S. about Ben for Thank Ben, a two one do like it and bit years? that things growth signs Todd. goods how off? one revisit expense market think driving you you? you And different for and you. the more then mature take in autos market, like Can or contribution. of it encourage you. you the really cost travel Thank Todd, next audience expense could guidance? charitable shopping include that the European quarter-over-quarter Any over Is I'm the Does could that just sold? the of or categories excludes attract user could assuming revisit guidance.

Benjamin Silbermann

So from? few we for sustained Thanks we a growth the more Justin. see and over particularly Gen engaging more. users there's quarters in said Pinterest are markets where mature do last What more coming with trend, question, Z that was the heard I

a while also interesting that's resounding, time investing mark is in there folks users have And into because that socializing it's to pretty and like what little more group millennials things looking now with historically bit interested that not was for differences. They some Pinterest and creativity. of has as is their hobbies we've and yet think that They're Z more on are I – explore And question are a their loves group category This whether users is Gen a attracted that I ideas are interests. looking their creative lot that's fashion. this seen get friends interest a older. decorating. themselves strong who of food. see category in are a exploring love also a think there answer there to We overlaps, the yes, really into and

that different imagery from about been inspirational a see it of so and spirit what a new, the we've to just media for moving opportunities both and but a little about just trend utility it and about I of as we of and Pinterest two And of the see growth is we that, stage new the Story Past life then kind a how really of it there. working experience do big same quality opportunity at improve lot reflects a of we're as Pins to videos. is. follows talking videos it to format, talking a but on bit and interactive spoke while about,

people consumption. So amount contribution ad reflected the watching that of enormous talked in we in disproportionate the time reflected think are in step increase revenue. been of that spending Story videos, are a That's for mean, the an I in last next quarters and we the it's to Pins couple of in video there's amount evolution.

their the people have they And the media. the it. platform, build engage that new where users, onto not users contribute letting entertainment, a loop closed not think more about can met about of It's and can We So community is different. can interests. publish back market around those a approaching something way directly that they that's but a that's in same that's in really Pinterest can

don't growth it's the while think the going engagement forecast we improve that's the so days, long-term, we that And something growth it's into because and platform. really to on early

Todd Morgenfeld

And the a Justin side, bit. break that I'll expense down on little

how that be was I charitable OpEx contribution question we're would the how there and versus revenue. there a then in cost about about of treated, think thinking and

from our making was be I growth cost forecast reminder, disconnected more OpEx business. clarity revenue we're our GAAP non-GAAP and it provide results, more to from growth more non-GAAP to seasonal performance. a much in It's We As complexity, in was our included than excluded scales order growth. so with to growth. in the excluded user tends referring and around but the of that's to user the our from and tied product We've operating the user contribution What revenue trends investments charitable now.

So we at about headcount as the growth – comprehension it first time to And the quarter. and we're stripping year-over-year rate contribution when increase we in an the in XX%. to charitable later mid-teens going non-GAAP impact OpEx, million from What growth where the was mentioned, campaigns that then rollout quarter reflects marketing I for is, QX. we start to OpEx, were last we of last reported referring talked that out reflects $XX in sequentially

Justin Post

Todd. Thanks Ben. Thanks Great.

Operator

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

Your line is open.

Richard Greenfield

got now bigger Thanks sense QX. earlier Ben, what two. you where about Hi. think How to Pins what us have up you and users when were for you available like for sense Pins, or of Story Todd. were the I to QX are today give I and to talking versus like? you then us you Story it them both you monetization taking more if sort just Pins looking a and are of even people opening end at in with question. And you of of a creators, were means where curious, could it as spent time Can doing Story it or both? many is any engaging sort either picture are give

call as Pinterest, that more get you units ad sort sort Internet. certainly to both to native of be lot connecting video ads just of Pinterest on your the you're I'd platform those. so what ad a on to and curious see As you more about to video content. but elsewhere to brands look are feel sort more creators, more with Pinterest really of brands thoughts I you Wondering start at on How and to of creators unique the units, seeing create Pinterest think way them versus giving we're would could of of you actually that of throughout creators begin something of natively be do with could a kind anywhere? the video be work and unique

Benjamin Silbermann

Rich. for Thanks question, Yes. the

Story side we first are impact time on what in audience and of side, an your is the still things and rollout do And know question like of in creator briefly its we're monetization. kind early Pins and So part about where spent the very of days. we on the

to number and And we've little has it small roughly across QX, but started small the Story slowly Pins reasons. visibility, it bit we're of doubled a So expanding just was of increased for off and a base. two substantially quarter-over-quarter, give

is lot a that Pinterest is is what of positivity. first in brand The anchored

set the the And so set a and for bar what is. to safety content we the tone for really platform wanted high

actually talking when even of promoting was look what but which around things and again reorganize or Story Things library small be and is to content of the of for trying norms So can used around before kitchen, might also that you to to how to breakfast They're publish they set the actionability, really build positivity, types of tone for our like it's the creators Code, future examples that and tone your and Pins a have agree that at to content. guidelines the [indiscernible] the about. like, that ideas things Creator and again. kind content, we're useful

that started Pinterest. trying a bit supply now to smaller, we're new of inside reason more although second we're The broadly we've that that really preparing expand is a little demand to marketplace build

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that to your and it. already add teaming seeing ad native anything into I where think we're inspiring second of Todd are sort really I'll of to But translate brands really does image. creators authentic And and was how up about create a more experiences? question examples let

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and directly some example. think an there's last We by audiences. building that's both new people call, provided so more the let but tools, and share love our we their by which then creators they may of up with do other great market opportunity products earnings matching examples kind in And in services a

Richard Greenfield

things tools about? rollout throughout those talking of Those expect to types would you're you Are XXXX?

Benjamin Silbermann

Yes. different ways Pinners that directly the year. you'll for engage see creators with to think throughout I

Richard Greenfield

Thank you.

Operator

Your Anmuth question from comes from the Douglas of line JPMorgan. next

Your line is open.

Douglas Anmuth

just you Thanks for taking just revisit how about of your on restrictions, slower U.S. U.S., the the in of to question. easing MAU talked you saw the growth wanted comments, I just more mid-March, moving engagement. and some lowered earlier

just question or seeing? engagement disconnected that was well is your Just the as pricing of fairly in the given higher in U.S. that you're from Thanks. right disconnected – just reflect now point growth it's did revenue revenue Ross' terms curious growth users in earlier fairly that,

Todd Morgenfeld

I We them talked about phenomena. different the I mean, question. fairly understand being as Yes.

But of as engagement I spoke monthly of perspective. think shopping oriented end had little very engagement bit active started unwinding Ben a from towards before, of people March lot the our a to resilient. and go I outside was we a think user

remarkable a don't with I yes, Pinners a shopping We've of had number surfaces. in be that want like misunderstood. to increase So the engaging

Our product XX-fold. up searches were

work internationally, the diversifying has addition, in upside done, in been a sales all and And of that the upside given to so which quarter upside. speaks dismiss. some more But rollout And into terms the to attributed automation coverage to not conversions funnel that's and the in something behavior. doubled in our of the continuing we mid-market, have of our our as we investments, lot product we've at that well,

pose. globally ended globally, is were consider a that happened. actually up ad load actually are and ad pricing you when to a just U.S. sense year-over-year basis think on you I down we was So think was the our quarter. impressions you that XX% pretty – effective that to CPMs the in XX% increasing we how our which realized, And about of in our fact give question globally interesting And up

Douglas Anmuth

are That's I of the just higher kind mean, been for helpful. you built seeing I density on you've in the would obviously but of as auction guess, to advertisers ROI, you platform? And I increases looking follow-up, number Okay. out suggest that the

Todd Morgenfeld

seeing definitely in advertiser are benefits of from diversification We a number ways.

of because across mindset I about think for that talked years. we've the to able We things base our they it And bring. mid-market, with verticals increasingly do been one of to our diversifying and the last feel we've couple advertiser into starts the Doug really increasingly-led users ads of that. want to content the by

benefits And efficient monetizable against comes to driver of so again built supply I to auction biggest but commercial I point think we've that's our density, that seen That's our that kind of the starts, of performance. users bring. would it more use also planning our when behavior mindset but where and it

Douglas Anmuth

it. Got

Okay. Thank you.

Operator

This Sebastian from our Colin question, will be Baird. last

open. Your line is

Colin Sebastian

the hoping engagements, on less which I represents Thanks. much platform, seeing on If a of in which could now – your trends, I of or to And on I advertiser users Gen or user growth a additional on off, couple as just you've or a comments Great. group follow-up the you context how context recent Z offset then activity. activity, are activity, in wanted couple which that around where bit of outside was generations? an of cohorts first Have any their as the expand well. guess, call. there's questions highlighted you times the

up. the advertisers that point the has engagement you're know of trends or seeing I because in want think, of been clarify users. Todd, in question that sequential with I some Thanks. growth to I you're that coming strong making spite just

Todd Morgenfeld

Sure, Colin.

slightly entirely. seeing from but So and for penetrated have categories we're part of continued few different starting user a They in than historical far base. we're row the with they're growth user growing our our base, being interests, Z, we've do mentioned quarters Gen that

is be of pronounced in our higher video, to products rate interest tend retention of home entertainment, in So Pins like Things content some Story activation decor. other tend with or cohorts. art, women's of to have tend more adopters historical over-representation interest rate. relative there's like fashion, to like there have native a they things there's to They higher they a early a less engaged and

a of the that So trends observing users. group few those we're are of with that

how that platform, making yet serve cater started how a specifically. We learn sure better, inspiration use our they bringing we to create while with can and see kind them consistent building they life to overall people still we're features haven't of love. But that excited to we're mission, them the

Benjamin Silbermann

the were activity, I on on from it comp. started We think in I XX% of and It perspective again Colin But QX know advertiser it's question worth try end had growth don't slightly It's was around is we versus really the then [XX%, just quarter we different with posted I'll probably earlier where And quarter ended longer. in shopping angle. or – X%] a easier this QX. season. was this maybe a remembering the longer one if a

the of in about us. – that doubled product I thought and of to it then are executed QX. that unusually strong our team that spend. number is versus seeing intent of year. business year-to-date one in a of of that basis business indications And partnerships, of avoidance it joint we're social we The our for other And go-to-market. which performance So platforms shopping on media proceeded well a benefited last activity But was terms joint number a in terms year-driven thinking on partnerships big way advertiser across really exceptionally was from we election and bit strong season global had

demand. that's So the help? Does that we're an advertising about thinking of how indicator

Colin Sebastian

It Yes. does help.

think advertisers flattening right there is that their or is follow that will also what trends I a question of looking to sequentially sequentially, down the are activity is if versus sort user now? related risk out

Todd Morgenfeld

been upward if think, trend. last steady over on couple of the a look back I you Well, years, we've

of you impact last compounded some the the X% north the period. forward U.S. users I we the think We're in we pulled of but still over into years. away grew COVID couple think, strip what – up if last probably year from

the relatively content longer-term And consistent participate with in. and of that's more experience And investments the I the a been exciting in think – terms to advertisers really be going and to compelling around for user these that trend formats users. are so ecosystem shopping native in experience in making the new we're

Colin Sebastian

All right. Thanks guys.

Todd Morgenfeld

Thanks.

Jane Penner

I question. last today. our for think call ends that That our was

so Thanks everyone. next And close much see so ready out. you We'll to we're quarter. it

Benjamin Silbermann

the questions. joining and Thanks rest for we care call again to of everyone all for your of safe Enjoy keep We'll themselves. the dialog you and going, day. just of the then until takes hope your stay

Operator

again you This for conference concludes call. today's participating. Thank

now may disconnect. You

Pinterest (PINS) 28 Apr 212021 Q1 Earnings call transcript