Pinterest Inc Q3 2024 Earnings Call Transcript

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

Question: Ross Sandler - Barclays Bank - Analyst : Great. Thanks guys. Maybe just starting with the macro. Julia, your guide for 4Q looks like a couple point decel at the midpoint. Could you just talk about what you're seeing quarter to date? Any impact from the shortened holiday window or any kind of category strength or weakness that we would flag here? And then just generally, how are things heading into 2025? Thanks a lot.

Question: Brian Nowak - Morgan Stanley & Co. LLC - Analyst : Thanks for taking my questions. I have two. The first one is, can you bill, can you sort of walk us through just kind of step back and say your most important 2025 ad innovation focal points? And perhaps how have new Gen-AI capabilities sort of change those over the course of the last year. And then the second one, I'll do a jump off either bill or Julia as you sort of think about the ad tech innovation areas are there where you really see the potential to just drive durably faster ad revenue growth, sort of, hopping into the 20%s or is it just sort of, it's more of a challenge to add that many dollars? Thanks.

Question: Ken Gawrelski - Wells Fargo Securities, LLC - Analyst : Thank you very much for the opportunity. On Performance+, could you talk to us about -- I know you just rolled out in GA, but could you talk about how we should think about the contribution to '25 growth? And over time, do you think that it builds throughout the year? Or how do you see clients adopting Performance+ in its contribution in '25? And then maybe to follow up just on the same matter. Do you see this as driving greater advertiser adoption or do you see it driving better conversions and therefore, better pricing on an impression level that has already been expanding pretty dramatically? I know it could have both impacts, but I'd love to hear your thoughts on one versus the other. Thank you.

Question: Ron Josey - Citigroup - Analyst : Great. Thanks for taking the question. Bill, I wanted to follow up on that question just now around engagement. But specifically, you mentioned, we've proven out Pinterest is a great place to shop. So I would love your thoughts on this engagement rate on the platform, aside from MAUs, but just engagement rates around shoppable engagement. And as you think about the benefits from AI, would you say we're in the early days here, that 300 basis points? And then a second question just on the lower funnel products and adoption. Without bound click continue to double here, help us understand just the process of adoption of these of these tools like direct link and CAPI, because it usually take two or three quarters? Or how do advertisers see this in terms of adoption now that we're several quarters in the launch? Thank you.

Question: Shweta Khajuria - Wolfe Research - Analyst : Thank you for taking my question. I have a question on ad load. So where do you think is a good normal level for ad load on Pinterest? And what in your opinion, are the biggest opportunities on the platform? How are you thinking about balancing engagement as you continue to increase ad load?

Question: Mark Mahaney - Evercore ISI Institutional Equities - Analyst : Okay. I was just going to ask about the Amazon and Google partnerships. And I apologize already covered this early on, but any update on how those are progressing? And especially if we look at the average revenue per user metrics, like is the greater monetization -- I think this is more Google than Amazon, but the greater monetization that we're sort of seeing in ROW in Europe, is that at all being impacted so far by Google? Or is it still too small to impact that?

Question: Richard Greenfield - LightShed Partners - Analyst : Hi. Thanks for taking the question. I guess, Bill, you made the comment about UCAN -- about deepening engagement. And I guess if we could just drill down a little bit on that. When you think about engagement, is total time spent, like if you were to look at an individual user, whether it's day, month, week, however, best to think about it, but is time spent per Pinterest user in UCAN growing on a year-over-year basis? And could you give us -- I think between the product enhancements and the AI that you spent a lot of time on during your prepared remarks talking to, everyone want to understand like what is happening to that in terms of total time spend per user. Because obviously that creates more inventory, which fuels our ad business. So any way to quantify or give us some direction on what deepening engagement actually means?

Question: Colin Sebastian - Robert W. Baird & Co. Incorporated - Analyst : Great. I have a couple of questions, if I could. I guess, first off, you guys have talked about the potential contributions to growth from new advertisers as well as increasing budget allocations from existing advertisers and you talked about the two tranches of large advertisers. But any way to break out the contributions from new advertisers this year in terms of the growth rate? And then as a follow-up on, I guess, Q4 and what it sort of implies for 2025. It looks like monetization rates were a little bit lower in Europe on a sequential basis. So just curious if there's anything geographically to call out that could be a headwind to Q4 growth. Thank you.

Question: Douglas Anmuth - JPMorgan Chase & Co - Analyst : Thanks for any questions. One for Bill, one for Julia. Bill, you've doubled clicked to advertisers for the past four straight quarters, and you talked about the shift from value creation to value capture. Just curious if there's any specific hurdles in your view that keep you from closing the gap more here? And then, Julia, on Rest of World advertiser spending, I think it was down slightly sequentially. Just wondering if there's any comments that you have there or in particular, related to APAC advertising spend (technical difficulty) --?

Question: Dan Salmon - New Street Research LLP - Analyst : Great, good evening everyone. Thank you for the question. Bill, I want to follow up on your third-party partnership strategy. You obviously talked about how you're expanding with Amazon. You've talked a lot about kind of the synergy in some of the emerging markets, you're working with the Google Platform, but also having the resellers in there. Just -- does it make sense for you to have more partners? Just curious how you think about that on both a short-term and long-term basis, maybe some that could bring you demand from different verticals you're underexposed to maybe in certain markets, just would love to get you thoughts on that. Thanks.