PINTEREST, INC. Q4 FY2024 earnings call

• AI Integration: Deeply integrated into user experience and advertising. Taste graph with billions of connections grew 75% over 2 years, enhancing recommendations. Leveraged ML to increase context window on user actions, boosting saves and clicks. AI-powered whole page optimization for ad load, doubled ad relevance on search surface. Used AI for employee productivity (coding assistance, 15% of code base AI-generated). Performance Plus, a lower funnel ad product, uses AI for better performance and automated campaign setup. • User and Engagement Wins: 2024 saw record global users (over 550M MAUs) and 100M UCAN. Q4 had 553M MAUs, up 11%. Weekly active to monthly active ratio at 62% (all-time high). Holiday shopping efforts drove deeper sessions and high click-through rates on gift guides. • Monetization: 2024 revenue grew 19% to $3.65B. Q4 was first $1B revenue quarter, up 18%. Focus on lower funnel performance engine, with initiatives like mobile deep linking, direct links, privacy-centric measurement, promotion ads, and Performance Plus. Third-party demand partnerships scaled in 2024. • Pinterest Predicts: Identified 20 emerging trends for 2025, with 80% accuracy over 5 years. Used by advertisers to align with trends, e.g., Marriott Bonvoy partnered on peak travel trend.

In Q4 2024, Pinterest's global revenue was $1.154 billion, up 18% on reported and constant currency basis. By region: US and Canada generated $900 million, growing 6%; Europe had $196 million, growing 21% reported/20% constant currency; rest of world was $58 million, growing 44% reported/53% constant currency. Revenue strength came from lower funnel consideration objective (clicks) and broad-based strength in retail, with emerging verticals like tech and financial services also strong, though food and beverage subsector of CPG was soft. Revenue contribution by region: US and Canada ~78% of Q4 revenue, Europe ~17%, rest of world ~5%.

• Q1 2025 revenue expected to be $837M-$852M, 13%-15% YOY growth or 15%-17% constant currency (factors in foreign exchange headwind and lapping Easter timing in 2024). • Q1 2025 adjusted EBITDA expected to be $155M-$170M. • Anticipate margin expansion in 2025 but at a lower rate than 2024's 510 basis points expansion, due to continuing investments in AI and product initiatives.

Q: MAU growth outlook and DAU to MAU ratio improvement?

A: No specific MAU guidance, but positive trajectory due to AI-driven recommendations, curation, and actionability. DAU to MAU ratio at all-time highs, with deep engagement in mature markets continuing to drive growth.