Pinterest Inc Q4 2024 Earnings Call Transcript

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

Question: Eric Sheridan - Goldman Sachs - Analyst : Thanks so much for taking the question and thanks for all the details in the prepared remarks. Bill, I want to know what your key takeaways are from '24 in terms of how the platform evolved? And maybe with the eye forward, what are the two or three biggest strategic priorities you're setting up to try to execute against based on those learnings in '24 as we proceed deeper into 2025? Thanks so much.

Question: John Blackledge - TD Securities - Analyst : Great. Thank you. On the 1Q '25 guidance, could you discuss the quarter-to-date advertising trends that you're seeing? And then what are kind of the puts and takes that got you to the 1Q '25 revenue outlook?

Question: Mark Kelley - Stifel - Analyst : Thank you very much. I wanted to ask you, and you touched on this a little bit in the prepared remarks, but looking back at last year, I guess, can you talk through the contribution from the third-party partnerships? I guess, would you characterize them as in line with expectations, better, maybe a little bit slower? And then how much can we expect those partnerships to contribute this year?

Question: Rich Greenfield - LightShed Partners - Analyst : Thanks for taking the question. Bill and Julia, in the release, there's the quote, People are coming to Pinterest more often. And obviously, Bill, you've talked a few times about the improvement in weekly to monthly -- weekly users relative to monthlies. But could you help us understand engagement a bit better? You've got US MAUs up 4%. Should we take your comments on WAU growing substantially faster than MAU to mean? Are WAUs growing high single digits? Double digits? Like any way to think about given the importance of the US market to revenues, just how to think about how fast that engagement metric has grown or any engagement metric within that is growing? And then you're at 101 million MAUs in the US and Canada, is that -- I don't want to put a timeframe, but is that long term 150 million? Is the ceiling 200 million? Like how do you think about the domestic TAM for your business?

Question: Shweta Khajuria - Wolfe Research - Analyst : Thanks for taking my question. I guess I have one on ad products and features. Bill, how should we think about contribution of all this product innovation that you have done and will do this year, as we think about one to three years out from Performance Plus to spotlight ads, new bidding capabilities, increasing ad load, deep linking, everything and what's to come? What are you most excited about in terms of the magnitude of the impact? And how should we think about when we see the impact from each of these different things through, call it, one to three years? How do you see it evolve?

Question: Ron Josey - Citigroup - Analyst : Great. Thanks for taking the question. Bill, maybe the quick follow-up to Shweta's just there. I really enjoyed your comment, not onetime launches, but compounding over multiple years. We're now a year in the direct link, maybe 1.5 or so, with outbound clicks growing 90%. I would love to hear how advertiser adoption of the direct link is going and the sales process is going, et cetera. And really how that's compounding to more advertisers just diverting more always on ad spend. And then maybe more tactically, with ROAS bidding set to launch, I think you said end of the quarter, I'd love to understand just the benefits and the real opportunity around ROAS. What do you think could -- or how do we think about what could happen here once launched?

Question: Jason Helfstein - Oppenheimer - Analyst : Thanks, guys, for taking the question. So in the quarter, you saw a sequential improvement in both US and Europe MAU. How should we think about MAU growth for this year? And then how are you thinking about further improvement in the DAU to MAU ratio after the improvement in '24?