Pinterest, Inc. Q3 FY2025 earnings call

• User Growth: 600 million monthly active users, ninth straight quarter of record high users, with Gen Z comprising over 50% of the user base. U.S. and Canada MAUs reached 103 million, highest in 4.5 years. • AI Initiatives: AI is proactive, curating personalized recommendations. Launched multimodal search, Pinterest Assistant, 'Boards Made for You', and Holiday Edit. Enhanced boards with AI-driven recommendations and expert curation. • Ad Formats: Launched top-of-search ads, 'Where to Buy' links, local inventory ads. Pinterest Performance Plus driving adoption, with 24% higher conversion lift for retail advertisers using Performance Plus campaigns. • International: International monetization is underdeveloped but growing. Exporting UCan playbook to Europe and Rest of World, with shopping ads growing from 9% to 30% of international revenue in two years.

In Q3 2025, global revenue was $1.049 billion, up 17% year over year. Geographically, U.S. and Canada generated $786 million in revenue, growing 9%. Europe had $193 million, growing 41% on a reported basis or 34% on a constant currency basis. Rest of World was $70 million, growing 66% on a reported basis or 65% on a constant currency basis. Ad impressions grew 54% while ad pricing declined 24% year over year, driven by the mix shift to lower-priced international markets.

• Q4 2025 revenue expected to be in the range of $1.313 billion to $1.338 billion, 14% to 16% growth year over year. • Q4 2025 adjusted EBITDA expected to be in the range of $533 million to $558 million. • Continues to invest in R&D and sales force, with adjusted EBITDA margin expansion expected in the second half of 2025 but at a lower rate than 2025.

• Market uncertainty and tariffs impacting U.S. retailers' ad spend. • Competition in the digital ad space, including from other platforms and evolving AI technologies.

Q: Thoughts on agentic commerce, agent search, and Pinterest's opportunity given evolving landscape, and if UCan tariffs have normalized?

A: Bill Ready discussed Pinterest's AI-driven shopping assistant and proactive AI, while Julia Donnelly noted Q3 played out as expected with some pullback from U.S. retailers but confidence in long-term growth.

Q: Characterize digital ad environment in Q3 and Q4 building blocks?

A: Bill Ready mentioned strong Q3 revenue growth despite UCan retailer pullback, and opportunities with AI-based optimization and Performance Plus.

Q: Allowance for users to remove AI content and reasons?

A: Bill Ready stated GenAI content is a tailwind, giving users choice while recommender systems handle content quality, with GenAI content expanding but quality filters improving.

Q: Relationship with Magnite and new demand sources?

A: Bill Ready said third-party demand complements first-party, with early testing of audience value beyond Pinterest.

Q: SMB and mid-market opportunity with Performance Plus?

A: Bill Ready discussed 24% higher conversion lift for retail advertisers, 12% higher monthly growth rate for adopters, and ROAS bidding driving deeper catalog integration.

Q: Key investment priorities for 2026 and agentic commerce impact?

A: Julia Donnelly discussed ongoing investment in AI and performance ads, while Bill Ready noted catalog integrations and unique visual search differentiate Pinterest.

Q: Infrastructure diversification to other cloud platforms?

A: Bill Ready stated constant assessment of infrastructure options, benchmarking across providers.

Q: Deepening engagement per user and international growth runway?

A: Bill Ready said deepening engagement via more searches and clicks is a leading indicator, with international growth driven by exporting UCan playbook and shopping ad growth.