Pinterest, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Pinterest Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. If you require any further assistance, please press star 0. Thank you. I'll now turn the conference over to Doug Clark with Pinterest Investor Relations. You may begin.

Hi, and thank you. Good afternoon, and thanks, everyone, for joining us. Welcome to Pinterest's earnings call for the fourth quarter and full year ended December 31st, 2020. I'm Doug Clark from Investor Relations with Pinterest, and joining me today on the call are Ben Silverman, Pinterest president and CEO, and Todd Morgenfeld, our chief financial officer and head of business operations. Now I'll cover the safe harbor. Some of the statements that we make today regarding our performance, operations, and outlook, including the impact of the COVID-19 pandemic, may be considered forward-looking, and such statements involve a number of risks and uncertainties that could cause actual results to differ materially. In addition, our results, trends, and outlook for Q1 2021 are preliminary and not an indication of future performance. We are making these forward-looking statements based on information available to us as of today, and we disclaim any duty to update them later unless required by law. For more information, please refer to our risk factors discussed in our most recent forms 10Q and 10K filed with the SEC and available on the investor relations section of our website. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's earnings press release and letter to shareholders, which are distributed and available to the public through our investor relations website located at investor.pinterestinc.com. And now I'll turn the call over to Ben.

Hi, everyone. Thank you for joining us today. I hope you and your families are safe and healthy. Just a short while ago, we announced our results for Q4 in all of 2020. Since it's a new year, I'm going to spend a bit more time than usual reviewing our progress and looking forward with our strategic priorities. Todd is going to then follow up with more about the financials, and then we'll open it up for questions. I'll start by saying that I feel good about our progress in 2020. It was obviously a trying year for everyone because of the pandemic, as well as some of social and political unrest, and our company had to adapt quickly. I want to start by saying a huge thanks to our team for their resilience and dedication. As the results show, the hard work paid off. In Q4, monthly active users grew 37% year-over-year to $459 million. Revenue in the quarter grew 76% year-over-year to $706 million. And we were profitable on a non-cap basis for 2020. We're proud of this progress, and we're focused on continuing to deliver on our missions. Now, as I've told you before, our mission is to bring everyone the inspiration to create a life they love. And it's never felt more important than it is now. We hear this from folks all the time. People need a place to dream and be optimistic, away from politics and bad news. They need a space to focus on themselves based on what they want to do, not what other people will like. And businesses want to reach people early in the planning process before they decide what to buy for their lives. Even creators are telling us that they want a place to do more than just entertain. They want to be able to enrich other people's lives. And with that in mind, I want to share with you our four priorities for 2021 designed to advance our progress against that mission. The first priority is inspiring content. For us, everything starts with inspiration. It's why people come to our service. It's why businesses come to connect their products and services with the people who love them. And so we want to continuously evolve the way that we inspire our users. Historically, we've empowered pinners to bring their favorite content from the web onto Pinterest. Today, we continue to invest in emerging formats like video, which represents dynamic new ways to deliver inspiration, like how-to tutorials and incredible storytelling from brands. We're also now expanding our focus to bring the most inspirational people onto Pinterest, creators. Thanks to creators, pinners can learn recipes directly from great chefs, get home decor tips from interior decorators, or get style tips from incredible fashion designers. At the end of last year, we introduced Storypins to give creators a new way to publish short-form, multi-page content. And stories are different on Pinterest than other platforms. They're less about what somebody else did, and they're not as focused on entertainment. They're more about you, what the pinner could do to enrich their own lives. And we're seeing this happen across a number of categories. For example, in this year's whole letter, we highlighted a personal trainer, Dennis Dixon. Last year, he used story pins to show simple workout routines to do at home with ordinary things like a laundry bin. And his content has been viewed more than 10 million times, which is positive for his brand, and it's great for our parents. We're just getting started here. We've learned from our investments in both video and shopping on Pinterest that it takes time to reach scale and broad adoption, but it's ultimately worth it because it delivers a richer experience for pinners. The same can be true for our work with creators, and that's why we're committed to this for the long term. The second priority is deepening the pinner experience. Last year, we talked about making Pinterest more useful and introducing people to more use cases. We made progress. We improved the relevance of recommendations, We brought in more diverse content and with features like this day tab that offer inspiration relevant to that day. This year, we want to expand that focus. We want to make sure that whatever way a painter goes in their journey, they will have a first-class experience. This means new technology and products to improve how folks explore and find products they love with shopping tools, visualize and plan their futures with boards and new AR products, like eyeshadow try-on feature that we just launched, and collaborate with others on projects with features like dates and notes. Of course, story pins will be part of this too. And finally, we'll continue to focus on content safety so that pinners can do all of this in a positive environment, free from so much of the negativity you see in other places online. Our third priority is helping advertisers succeed. One unique aspect of Pinterest is that people often come to plan early, sometimes months ahead of time. And it's an opportunity for businesses to reach consumers before they've made their decisions. Unlike other services, where ads are sometimes seen as a distraction, ads on Pinterest can actually enhance the user experience because people come there with the intent to buy things for projects like remodeling a home or buying a new outfit. And relevant ads from businesses help them discover what they want. So making advertisers successful is critical to achieving our mission. That means continuing to invest in automation and tools to make it easier to advertise and meet goals. That means scaling our sales team significantly to bring on new advertisers, investing in content safety so their brands are showcased in a positive space, and finally offering more insights about future trends to help advertisers get the most value for their dollars. The fourth and final priority is shopping. To us, our mission isn't complete unless we help people create the life they dream about offline. And so often, being able to buy the ideas they see is what makes that action possible. Last year, we made progress in the shopping front. We made it easy to switch directly into shop mode from the search query, and we introduced new features from merchants, all of which led to a 6x increase in shopping advertisers on Pinterest in Q4. This year, we're planning to build on this momentum by continuing to help more businesses get their products on Pinterest and help pinners discover, evaluate, and buy products throughout their shopping experiences. Finally, we want to expand these features more globally so that no matter where you live, you can shop on Pinterest. So that's a brief look at the four priorities for the year ahead. We're excited about progress, but more excited about the opportunities ahead. And with that, I'll turn it over to Todd to expand on the financials.