Pinterest Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ross Sandler - Barclays Bank - Analyst : Great. Bill, just starting with like the guidance, 2Q looks pretty solid, all things considered, just a very modest decel. We know you have Easter in the second quarter this year, which may help a little bit. But just curious, what you're seeing in the pipeline? And are any of the kind of high tariff exposed categories in retail and CPG showing any softness thus far? How do you see this playing out throughout the year? Thanks a lot. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 8:30PM, PINS.N - Q1 2025 Pinterest Inc Earnings Call

Question: Eric Sheridan - Goldman Sachs - Analyst : Thank you so much for taking the question. Bill, it felt like last quarter and then building a momentum this quarter, there was a shift in you framing where the platform and its products were going in terms of things that were inside of your control. So leaving the macro aside for a minute, I know we'll talk a lot about on this call, but are the things in your control in terms of where you want to take the platform and how you want to evolve products, where do you think you are in that journey? And what is the receptivity across the advertising landscape to what you built so far? And how do you think about what might build as we get deeper into the year? Thanks so much.

Question: Brian Nowak - Morgan Stanley & Co. LLC - Analyst : Thanks for taking my question. I have two, please. The first one on Performance+. You've made a lot of progress driving adoption of that product with some of your larger advertisers. Is there any way you can talk with us about how to think about a rough percentage lift in same advertiser spend as you sort of rolled that tool out so far? And the second one, Bill, maybe a big-picture one. You continue to really rapid click growth to your advertisers. I remember last quarter, it was 90% plus growth and 100%, et cetera. What do you think is the biggest opportunity to sort of further close that gap between that rapid click growth you're selling to your advertisers versus your advertiser growth -- your advertising dollar growth? Thanks.

Question: Shweta Khajuria - Wolfe Research - Analyst : Okay. Thanks a lot for taking my question. We've seen some press reports about you testing with multiple partners. Can you please give us an update on your strategy for third-party demand? Thanks a lot.

Question: Ken Gawrelski - Wells Fargo Securities, LLC - Analyst : Thank you very much for the opportunity. Could we talk a little bit about the accelerating impression growth and the associated kind of price declines on a per impression basis? Could you talk -- I know that's a global number, and you referred to earlier some of the mix shift to international and adding, I think, you said eight additional territories. Could you talk a little bit about what you're seeing in UCAN, kind of your most mature area and you're most well developed. Could you talk about the trends there. What you're seeing from an impression basis? And also maybe potentially on the price per impression basis. Are you seeing -- are you starting to see some pricing leverage in UCAN? Thank you very much.

Question: John Blackledge - TD Securities - Analyst : Great. Thanks. Just any further color on the broader macro volatility impacting ad spend, particularly with the more brand-oriented advertisers? And is the introduction of Performance+ helping drive and kind of tie together that full-funnel campaign dynamic that you referenced earlier in the call? Thank you.

Question: Ron Josey - Citigroup - Analyst : Great. Thanks for taking the question. Maybe another one on -- two, please. And so the first one is just on advertising. Bill and Julia, we've been talking about strength in the emerging verticals for a few quarters now actually since Analyst Day, and before, we mentioned financial services. So I wanted to hear more about these additional verticals that Pinterest is seeing success in. Maybe talk about some of the use cases and why Pinterest is a good fit for these advertisers just given the focus on retail and commerce. And then, Julia, you highlighted in your comments, 25% of code is generated by AI. That's up 10 points in the quarter, I think you said. But would love to hear your comments on the benefit tier. Is it product -- I mean, everything, right, but benefits around product velocity, time to market, but also cost savings as well? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 8:30PM, PINS.N - Q1 2025 Pinterest Inc Earnings Call

Question: Rich Greenfield - LightShed Partners - Analyst : Hi. Thanks for taking the question. I was listening to a D2C marketing exec at Kitch on the [21] podcast recently. And the woman was talking about ROAS across various digital platforms. And she gave some specific commentary around Pinterest from her experience and for relationships in the business. And one of the things he sort of said was that it's a long game because when you talk about ROAS on Pinterest, it's a long game because consumers pin things and then they come back, and they do buy them, but they buy them later. I was wondering how you react to that comment from a marketer and how some of the changes you've been making to the product to make it easier to shop and more visible from a shopping standpoint. How that narrative may be changing or whether you disagree with it entirely? But I just would be curious how you react to it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 8:30PM, PINS.N - Q1 2025 Pinterest Inc Earnings Call

Question: Doug Anmuth - JPMorgan Chase & Co - Analyst : Thanks for taking the question. I just want to ask about capital allocation. You repurchased about $175 million of stock in 1Q and I think have $1.7 billion authorized. Can you just talk about how you're thinking about capital allocation strategy currently in light of valuation, but then also the current macro backdrop as well? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 08, 2025 / 8:30PM, PINS.N - Q1 2025 Pinterest Inc Earnings Call

Question: Justin Patterson - KeyCorp - Analyst : Great. Thank you very much. Bill, you've had great engagement gains over the past two years, but we're also now in a world where there's more uncertainty on how AI is impacting search. As a business that's had the intersection of search and social, could you expand a little bit more on how visual search and other product initiatives can keep that engagement going? Thank you.