• Revenue: $898 million, up 18% year-over-year.

• Adjusted EBITDA: $242 million with a margin of 27%, up approximately 280 basis points year-over-year.

• Monthly Active Users (MAUs): 537 million, growing 11% year-over-year.

• US and Canada Revenue: $719 million, growing 16% year-over-year.

• Europe Revenue: $137 million, growing 20% year-over-year.

• Rest of World Revenue: $42 million, growing 38% on a reported basis or 45% on a constant currency basis.

• Ad Impressions Growth: 41% year-over-year.

• Ad Pricing Decline: 17% year-over-year.

• Cash, Cash Equivalents, and Marketable Securities: $2.4 billion.

• Share Repurchases: $466 million in Q3, $500 million year-to-date.

• Q4 2024 Revenue Guidance: $1.125 billion to $1.145 billion, representing 15% to 17% growth year-over-year.

• Q4 Non-GAAP Operating Expenses Guidance: $495 million to $510 million, growing 11% to 14% year-over-year.

• Warning! GuruFocus has detected 2 Warning Signs with VTGN.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pinterest Inc (NYSE:PINS) reported a record high of 537 million monthly active users in Q3 2024, reflecting an 11% year-over-year growth.

• The company achieved an 18% year-over-year revenue growth in Q3 2024, driven by strong performance in lower funnel revenue.

• Pinterest Inc (NYSE:PINS) has successfully integrated AI into its platform, enhancing user engagement and ad relevance, leading to a 300 basis point improvement in actionable engagement.

• The company has expanded its third-party demand partnerships, including an extension of its relationship with Amazon Ads to Canada and Mexico.

• Pinterest Inc (NYSE:PINS) launched Performance+, an AI-driven advertising tool that simplifies campaign creation and improves cost per action by 10% on average.

Negative Points

• The food and beverage subsector of CPG continues to experience softness, impacting overall growth.

• Despite strong revenue growth, ad pricing declined by 17% year-over-year due to a mix shift from international markets.

• The adoption of new features like Performance+ is still in the early stages, with advertisers limiting budget shifts during the holiday peak period.

• Pinterest Inc (NYSE:PINS) faces macroeconomic headwinds, particularly in the food and beverage category, which affects revenue growth.

• The company is still in the early days of its international expansion efforts, which may take time to significantly impact revenue.

Q & A Highlights

Q: Could you discuss the Q4 guidance and any macroeconomic factors affecting it? A: Julia Donnelly, CFO: We are guiding Q4 revenue growth at 15% to 17%, similar to Q3. This reflects ongoing strength in lower funnel revenue growth and third-party demand partnerships. However, we continue to see softness in the food and beverage sector due to broader industry headwinds. Performance+ is still in early rollout, with more functionality expected in Q1 2025, which will further drive growth.