Pinterest, Inc. Q4 FY2025 earnings call

• AI is core to Pinterest's transformation, with initiatives like OmniSage, PinFM, and Navigator 1 driving engagement and cost efficiency. • User growth: 619,000,000 global MAUs in Q4, up 12% year over year, with Gen Z representing over 50% of users. • Revenue challenges: Q4 revenue didn't reflect potential, impacted by tariffs on large retailers. • Sales and go-to-market transformation: Hiring Leigh Brown as CBO to broaden revenue mix with mid-market, SMB, and international advertisers. • Pinterest Performance Plus: Investing in bidding enhancements, measurement integrations, and new customer acquisition features. • Acquisition of TV Scientific: Leveraging connected TV performance advertising to monetize beyond Pinterest's own surfaces.

In Q4, global revenue was $1,319,000,000, up 14% year over year. US and Canada revenue was $979,000,000, growing 9%. Europe revenue was $245,000,000, growing 25% on a reported basis. Rest of World revenue was $96,000,000, growing 64% on a reported and constant currency basis. Ad impressions grew 41% while ad pricing declined 19% year over year. Cost of revenue was $221,000,000, up 15% year over year. Non-GAAP operating expenses were $562,000,000, up 13%. Adjusted EBITDA was $542,000,000 with a margin of 41%.

• Q1 2026 revenue expected to be in the range of $951,000,000 to $971,000,000, up 11% to 14% year over year. • Adjusted EBITDA expected to be in the range of $166,000,000 to $186,000,000. • 2026 adjusted EBITDA margin expected to be roughly in line with 2025 at ~30%, with ~100 basis point drag from TV Scientific acquisition. • Modest headwinds from cost of revenue as a percentage of revenue in 2026 due to AI investments.

• Tariff impacts on large retailers leading to ad spend pullbacks, affecting revenue. • Competition from AI chatbots for user engagement. • Execution risks in sales and go-to-market transformation, including near-term disruption during organizational changes.

Q: Can you just talk more about the drivers of 4Q revenue, including the home impact that you saw, then also how you are thinking about the 1Q guidance?

A: Julia Donnelly said Q4 revenue was impacted by large retailers pulling back ad spend due to tariffs, with a second-order effect on cross-border spend. Q1 guidance factors in headwinds and near-term disruption from restructuring.

Q: Bill, can you elaborate on how you and we are changing go-to-market team and basically, how is this new organization or reorganized team likely to drive wallet share in digital advertising for Pinterest?

A: Leigh Brown is driving a sales transformation to broaden revenue mix with mid-market, SMB, and international advertisers, with modest near-term disruption but long-term potential to capture growth opportunities.