Pinterest, Inc. earnings

Management highlights

• AI driving user growth and engagement: Ten straight quarters of double-digit user growth due to AI investments. Taste graph captures visual intent. Penrec is a proprietary generative retrieval system improving search fulfillment and advertiser performance. Updates to search ranking model and Canvas AI image generation model. • Advertiser performance: Pinterest Performance Plus campaigns driving strong results, with ~30% of lower funnel revenue running through them. Adopters growing spend nearly twice as fast as non-adopters. Upgrading core ads models and pilot integrations with advertisers' measurement systems. • Global sales and go-to-market: Chief Business Officer Lee Brown making changes in leadership, coverage model, sales incentive structures, and incorporating AI adoption. Sharpening coverage, evolving sales incentives, and rolling out a globally consistent merchant playbook. • TV Scientific acquisition: Unlocking ability to extend Pinterest's intent signal to CTV campaigns, with early partners seeing positive results.

Guidance

• Q2 2026 revenue expected to be in range of $1,133,000,000 to $1,153,000,000, up 14%-16% year-over-year. • Adjusted EBITDA expected to be in range of $256 million to $276 million. • Expect modest headwinds from cost of revenue in 2026 due to investments like GPU capacity and TV Scientific. • Full-year 2026 adjusted EBITDA margin expected around 29%, with margin pressure moderating in second half.

Segment performance

In Q1 2026, Pinterest delivered over $1 billion in revenue, up 18% year-over-year. Global monthly active users were 631 million, growing 11%. Revenue breakdown: U.S. and Canada generated $750 million, up 13%; Europe had $186 million, up 27% on reported basis; rest of world was $72 million, up 59% on reported basis. Adjusted EBITDA was $207 million. Revenue contribution: UCAN region is a significant part, with 75% of revenue, and growth seen across regions.

Analyst Q&A

• Q: Doug Anmut from JP Morgan Chase asked about drivers of upside in 1Q, 2Q outlook, etc.

  A: Strong Q1 due to broadening revenue base and better performance from large retailers. Q2 guidance consistent on constant currency. UCAN growth expected to repeat, but international growth may moderate.

• Q: Eric Sheridan from Goldman Sachs asked about Lee Brown's focus.

  A: Lee focused on bringing accountability, consistency, operational rigor, and AI tooling to go-to-market. Near-term changes include leadership changes, AI tool adoption, and sharpening sales accountability.

• Q: Ross Sandler from Barclays asked about small and midsize accounts and large accounts.

  A: Large retailers were a headwind but saw some strength later. Rest of business accelerated. Impact from Middle East conflict small on dollar basis.

• Q: Colin Sebastian from Baird asked about adoption trends in mid-market and SMB.

  A: SMB refers to certain advertisers, Performance Plus ~1 year old, early adoption encouraging, still early in capturing opportunity.

• Q: Jason Helstein from Oppenheimer asked about AI chatbots and margins.

  A: Pinterest has unique visual search and discovery, specialization is strength. Long-term adjusted EBITDA margin targets 30%-34%.

• Q: Justin Patterson from KeyBank asked about core levers for deepening engagement and UCAN runway.

  A: AI driving personalization, Gen Z engagement, ongoing platform improvements.

• Q: Ron Josie from Citibank asked about sales force structure and shopping assistant.

  A: Sales force reorganized for different advertiser segments, Pinterest Assistant in beta, leveraging unique data and models.

• Q: Shweta Kajaria from Wolf Research asked about regulatory environment.

  A: Prioritizing online safety for younger folks, making accounts private for under-16s, supported phone-free schools, etc.

• Q: Brian Nowak from Morgan Stanley asked about attribution and innovation.

  A: Attribution modeling benefits from linking AI bidding to advertiser measurement, TV Scientific as innovation for CTV opportunities.