Pinterest, Inc.

to let you know where we are today. As of Tuesday, November 2nd, U.S. monthly active users were approximately 89 million, and global monthly active users were approximately 447 million. While the quarter-to-date trend suggests some stabilization of monthly active users, the pandemic unwind has distorted our typical seasonal trends, as we saw in Q3, So it's hard to predict exactly how the quarter will play out from here. On the revenue side, we expect total revenue to grow in the high teens on a percentage basis year over year. Please note that our Q4 revenue guide takes into account a few considerations. First, the macro environment remains challenging. For our CPG advertisers, supply chain issues are still front and center, and they're not sure when things will improve. Also, it's possible that the macro and supply chain issues will affect other non-CPG verticals more in Q4 than they did during the third quarter. Second, we're facing tough year-over-year comps this quarter. In the year-ago quarter, our investments in ads automation meaningfully drove year-on-year revenue. We had a very strong Q4 2020 holiday season, and we attracted ad spend for being a positive platform during the social media boycott in the 2020 election. Third, we continue to monitor the impact that higher CPAs could have on our more price-sensitive advertisers. There are some exogenous factors that appear to be resulting in higher CPAs, including overall demand for digital ads from advertisers. On Pinterest specifically, if engagement declines continue, we'd eventually expect to see some constraints on our monetizable supply and in turn higher CPAs. This is not something we're seeing today, and we are monitoring this dynamic. At the same time, we're investing in a number of opportunities to monetize our existing supply and help advertisers achieve their goals. Finally, as we scale the distribution of idea pins, traffic will increasingly shift to relatively under-monetized surfaces, such as idea pin streams and our new vertical video watch tab. These new surfaces will likely remain under-monetized in the medium term as we optimize the user experience to drive engagement. This investment will likely be a modest headwind to revenue in the future quarters, as it was in Q3 and as reflected in our Q4 guide. However, we believe that idea pins will be both engagement and revenue accretive over time. Finally, I'd like to touch on expenses. We continue to invest in the growth of the business in accordance with our key strategic priorities of inspiring content, the pinner experience, advertiser success, and shopping. Our non-GAAP operating expenses in Q3 grew 26% year over year. We expect Q4 non-GAAP operating expenses to grow in the low-teens percentage basis quarter over quarter as we continue to ramp investments in our long-term strategic initiatives and invest in our brand marketing campaign in the fourth quarter. Thank you to our teams at Pinterest, our advertising partners, our creators, and all the people that come to Pinterest to find inspiration. And with that, we can open it up for questions.

Certainly. We will now begin the question and answer session. If you would like to ask a question, please press star followed by 1 on your touchtone keypad. If for any reason you would like to remove that question, please press star followed by 2. Again, to ask a question, please press star 1. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate in queue. The first question is from the line of Ross Sandler with Barclays. You may proceed.

Hey, guys. Two questions. I guess one for Ben. The new creator tools and idea pins and watch tab, just all the new creator activity, like when you look out, you know, two to three years, what kind of uptake do you think, uh this could get and what kind of impact on on overall engagement are we talking iterative or could it be material any thoughts on that um and just how it's going in the early you know early days here and then todd the um the 4q guide actually looks pretty decent if you look at it sequentially kind of low 30s quarter on quarter uh pretty good considering all the moving pieces right now um i guess Any more color on, like, what's outperforming? You go into 4Q, what's underperforming aside from CPG? And can we get an update, just high level, on how big the kind of big three are, retail, CPG, and all other, in terms of, like, percent of revenue? Thanks a lot.