Pinterest, Inc.

Good day, ladies and gentlemen. Thank you for joining today's Pinterest third quarter 2025 earnings conference call. My name is Tia, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the call over to your host, Andrew Sundberg, Vice President of Investor Relations and Treasury. Please proceed.

Good afternoon and thank you for joining us. Welcome to Pinterest earnings call for the third quarter ended September 30th, 2025. My name is Andrew Sonberg and I'm vice president of investor relations and treasury for Pinterest. Joining me on today's call are Bill Reddy, Pinterest CEO, and Julia Donnelly, our CFO. This conference call is being webcast and we are also providing a slide presentation to accompany our commentary. please refer to our investor relations website at investor.pinterest.com to find today's presentation, webcast, and earnings press release. Some of the statements that we make today regarding our performance, operations, and outlook may be considered forward-looking, and such statements involve a number of assumptions, risks, and uncertainties that could cause actual results to differ materially. In addition, our results, trends, and outlook for Q4 2025 and beyond are preliminary and are not an assurance of future performance. We are making these forward-looking statements based on information available to us as of today, and we expressly disclaim any duty or obligation to update them later unless required by law. For more information about assumptions, risks, uncertainties, and other factors that could affect our results, please refer to our most recent Form 10-Q and Form 10-K, each filed with the SEC and available on our Investor Relations website. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures is included in today's earnings press release and presentation, which are distributed and available to the public through our investor relations website. Lastly, all growth rates discussed in today's prepared remarks should be considered year over year unless otherwise specified. And I'll now turn the call over to Bill.

Thanks, Andrew. Good afternoon, and thank you for joining our third quarter 2025 earnings call. Q3 marks another quarter of strong execution against our multi-year strategy and long-term financial targets. Over the past few years, we've transformed Pinterest from a platform of window shopping, where users often found that all the stores were closed, into an AI-powered visual-first shopping assistant. We are digitally replicating the joyful experiences of walking the bazaar or working with a great salesperson at your favorite boutique, while seamlessly enabling our users to take action. In an evolving competitive environment, Pinterest continues to distinguish itself as a destination for our users and a vital partner for our advertisers. To illustrate this point, nearly 85% of our users come directly to our mobile app, meaning we're not reliant on search engines or other third parties for traffic. We reach 600 million monthly active users in Q3, marking our ninth straight quarter of record high users with particular strength in Gen Z. Gen Z is our largest, fastest growing cohort, comprising over 50% of our user base, and represents the next generation of users and shoppers who are influential tastemakers, content creators, and a lucrative audience for advertisers to reach. This momentum is also evident in key markets, with our US and Canada MAUs reaching 103 million, the highest level on our platform in the last four and a half years. Importantly, 100% of our reported users are logged in, giving us valuable first-party intent signals that provide an unparalleled view into consumer tastes and preferences, which powers our recommendation engine and creates an even better user shopping experience. This combination of scale and intent continues to fuel our financial performance, with Q3 revenue growing 17% year over year to $1,049,000,000, proving our role as a trusted partner to brands and agencies across the world. Not only has our platform become a destination for shopping, we've also increasingly become a destination for search. In particular, visual search. Today, there are approximately 80 billion monthly queries across Pinterest, split across related items and other forms of visual search and traditional text-based searches. In Q3, all of these individual query types grew year over year on the platform. Overall queries per user also grew year over year. as we deepen engagement per user and users search more often on Pinterest. Related items and other forms of visual search are by far the largest source of queries and on our latest visual search features in particular, queries grew the fastest at 44% year over year in Q3. These trends help to highlight how our AI investments are elevating our visual search capabilities and the relevance of our shopping recommendations. As a result, we are driving more of our engagement towards visual search, an area where we have a distinct right to win and is aligned with the visual search, with the visual inspiration and discovery that our users have come to expect from Pinterest. At the same time that we found our best product market fit with users, we've also built a performance ads platform that is harnessing our users' commercial intent and AI-driven automation to to improve performance and simplify campaign creation for our advertisers. As a result, we've grown outbound clicks to advertisers by 40% year-over-year in Q3 and by more than five times over the last three years. We have also broken into performance budgets, including achieving 5% to 10% share of total ad spend for some of the world's largest, most sophisticated advertisers. Through continued product innovation, we see meaningful runway to expand our share of wallet with these large advertisers, while also growing with smaller mid-market advertisers through continued improvements to our AI-powered automation suite, Pinterest Performance Plus. International markets also remain significantly under-monetized, creating clear opportunities to increase monetization over the next several years across multiple growth levers. With these foundations in place, we see a clear path to sustainably grow our business and expand our market share. AI is the heart of the Pinterest experience, working continuously in the background to understand our users' evolving tastes and preferences. Unlike chat or search platforms that wait for users to type a prompt, our AI is proactive. It anticipates what users will love next, curating a fresh feed of personalized recommendations that are ready the moment they return, advancing their commercial journeys without the user having to ask, which is effectively the promise of agentic experiences. This is the magic of Pinterest. delivering a world of inspiration and individualized AI-assisted shopping for each user. In effect, this has made us an AI-powered shopping assistant for our 600 million monthly active users. Importantly, through this experience, we are acting as a true partner to our advertisers. We don't disintermediate their traffic. We provide our users a seamless journey from visual discovery directly to the advertisers' product checkout page, helping our advertisers gain a customer, not just a transaction. This entire ecosystem is built on our core competitive advantage, a deep understanding of user taste, intent, and product associations. Our AI is trained on billions of first party signals from hundreds of millions of people actively curating and buying, which builds our taste graph. This unique first party data then trains our AI to recommend deeply personalized and relevant content, often before users can even articulate what they're looking for. This creates a powerful feedback loop. As we provide more value to our users by surfacing what they are looking for, they engage more deeply, further enriching our data and strengthening our ability to recommend relevant content. This May, we launched a significant enhancement to visual discovery on Pinterest, our first ever multimodal search experience, starting with women's fashion. This upgraded feature allows users to refine searches with more precision than ever by using both image and text inputs. Powering this experience is a proprietary in-house multimodal model trained on Pinterest's vast and unique dataset, which is 30% more effective at identifying and recommending relevant content from our corpus compared to leading off-the-shelf models. Now, we're testing ways to expand multimodal search and bring AI to the foreground of the user experience with the launch of our new Pinterest Assistant. With Pinterest Assistant, we are fundamentally enhancing the discovery journey on Pinterest by transforming pure text-based search into a voice-activated conversational assistant. Now, users can move beyond simple keyword text inputs to describing open-ended, complex questions and commands like, what outfits might match this theme, and make these home decor ideas brighter and with a modern layout. Our AI technology surfaces real-time inspiration that takes these conversational descriptors, runs them through our AI, fine-tuned with our first-party signal, and surfaces shoppable products from our catalog. Additionally, by translating natural language queries into curated visual results, we are also able to capture more nuanced commercial intent, providing us valuable signal to drive further personalized recommendations. We just began a beta rollout of Pinterest Assistant to a small set of test users in the US. We're excited about the opportunities that multimodal search can unlock and will continue to test this product over the coming quarters seek user feedback, and expand access to a broader set of users over time. AI is also being integrated to help move users through their commercial journeys in ways that are unique to Pinterest. A recent example is with boards. As I've discussed in past quarters, boards are at the heart of a user's inspiration to action journey and a superpower of our platform. Hundreds of millions of our users actively save to 15 billion boards organizing every aspect of their lives and creating an intense signal found nowhere else in the Western world. Importantly, users who use boards are more likely to revisit, less likely to turn, and more likely to have deeper sessions. Now, we're using AI to make boards even more inspirational and shoppable, helping users move seamlessly from discovery to decision. In the coming weeks, we will be introducing new trends and brands to our UCAN users with a new feature called Boards Made for You. This feature brings timely curated collections of fresh and personalized content right into the home feed with the goal of driving more frequent visitation and curation and introducing relevant shopping recommendations. With a blend of AI-driven recommendations and expert human curation, we're delivering personalized boards that help users discover new trends for them, see what others with similar styles and interests are loving each day, and shop personalized weekly outfit ideas. As part of our Q4 holiday go-to-market efforts, we're also launching the Holiday Edit, consisting of hundreds of new, expert-curated gift guides spanning 17 categories, including fashion, home, food, beauty, travel, parenting, and technology. These shoppable boards feature gift ideas selected by celebrities in the know and Pinterest experts who understand exactly what to buy for every taste and budget. Through these initiatives, we're driving value for our users that they can only find on Pinterest, which in turn drives better engagement on the platform. Our commitment to enhancing the user's journey from inspiration to action creates a powerful, full funnel opportunity for advertisers. It allows them to connect with consumers at every stage, especially during the critical discovery phase where users have high commercial intent, but don't yet know exactly what they want to purchase. To that end, we recently launched a number of ad formats geared towards connecting users to shoppable products. For example, we recently launched Top of Search ads, now in beta, in all monetized markets. These ads appear directly within the top 10 search results and in related pins, ensuring that a brand's products are visible where shopping journeys most often begin and ahead of the competition. Since 45% of clicks occur in the top 10 search results, this placement is highly valuable. Our testing shows an average click-through rate of 29% higher for top of search ads compared to standard campaigns and a 32% higher likelihood of attracting new users who haven't seen or engaged with a brand's ads in the past. For example, Tractor Supply Company leveraged top of search ads and an A-B test saw a 129% increase in click-through rate versus their catalog benchmarks. Last quarter, I highlighted our significant opportunity to enable new seamless shopping experiences across various categories on our platform. As part of that effort, we announced our new partnership with Instacart, which enables Pinterest ads to become directly shoppable via Instacart, allowing users to complete a purchase in just a few clicks. In September, We further expanded this functionality, which brings actionability to CPG advertisers with the launch of Where to Buy links. Where to Buy links makes standard ads instantly shoppable by surfacing multiple in-stock retailer options for a single product directly from an ad, all while allowing advertisers to receive valuable purchase intent data. With one tap, shoppers can view retailer options and choose their preferred one to complete a purchase. In September, we also launched local inventory ads, where retailers can display real-time prices for in-stock items within a shopper's local store radius, adding a layer of convenience and actionability for users who want to know what's available nearby. These new ad formats are complemented by our ongoing focus on Pinterest Performance Plus, where we continue to drive adoption, increase functionality, enhance bidding capabilities through features like ROAS bidding, and subsequently drive increased advertiser spend. We're excited about the performance that Pinterest Performance Plus is delivering for advertisers, particularly Pinterest Performance Plus campaigns, our AI-powered suite of automated ad products designed to boost campaign performance by simplifying setup and optimizing delivery across objectives. Pinterest Performance Plus campaigns bundle a la carte features like P plus bidding, P plus targeting, and P plus budgets into one suite to help advertisers reach the right audience and drive better results with 50% fewer inputs related to set up a campaign. Just one year since launching into general availability, we're extremely pleased with our progress and the performance we're driving for advertisers. For example, retail advertisers that spent on Pinterest Performance Plus campaigns have on average seen a 24% higher conversion lift than those spending only on traditional campaigns. Additionally, Performance Plus campaigns are also helping us deepen performance across a wide range of advertiser segments. Last quarter, we talked about how our Pinterest Performance Plus campaigns were seeing a particularly strong product market fit amongst our mid-market enterprise and smaller advertisers, as these advertisers value automated and simplified ways to optimize their campaign performance on our platform. We continue to see highest adoption of this tool amongst our smaller and mid-market managed advertisers, who range from tens of millions to upwards of $100 million in annual gross merchandise value. As these advertisers adopt Performance Plus campaigns, we are seeing them spend more on the platform. Among our mid-market and smaller managed advertisers, Performance Plus campaign adopters exhibited, on average, a 12% higher monthly growth rate in spend on Pinterest post-adoption when compared to non-adopters. While this cohort of smaller and mid-market advertisers represents approximately 15% of our revenue today, we see significant opportunity to continue to to continue to increase our share of wallet with this segment of advertisers. We also continue to add new features and functionality to the Pinterest Performance Plus suite. In Q1 2025, we launched Performance Plus ROAS bidding, which provides more granular bidding functionality for advertisers and optimizes for conversion value, not just the volume of conversions. This is particularly impactful for advertisers that have a large catalog at varying price points. And while we are only two quarters into general availability of ROAS bidding, we're seeing promising early adoption. Globally, 22% of our lower funnel retail revenue now flows through ROAS bidding. And notably, as we drive adoption, we're increasingly seeing advertisers place bids against a greater portion of their catalog. In Q3, the number of unique shopping SKUs with a paid ad impression grew more than 100% year over year. And advertisers using ROAS bidding contributed the entirety of that growth. Lastly, we continue to enhance our Pinterest Performance Plus suite and be responsive to advertiser feedback. As an example, advertisers have requested additional transparency regarding the audiences their Performance Plus campaigns are reaching to supplement the performance metrics they already received. As a result, we recently launched enhanced new reporting functionality in Ads Manager, offering detailed audience breakdowns, including age, gender, and approximate location. In short, just over a year since launching Pinterest Performance+, I am proud of the value we've delivered for advertisers, with meaningful opportunities still ahead of us. Now I'll turn to our international opportunity. International monetization represents one of our largest, most durable growth vectors, and we're still in the very early innings. Today, we have roughly 500 million MAUs outside of UCAN, or 83% of our global users, evidence of our strong global awareness and product market fit with our users. However, these users represent just 25% of global revenue in Q3 2025. reflecting our historical modernization focus on UCAN. While we continue to see opportunities to drive growth in UCAN, this imbalance creates the upside we're now beginning to unlock as we scale proven playbooks across our Europe and rest of world regions and integrate more deeply with the advertising ecosystem in each of these regions. Our go-to-market approach is region specific. In Europe, We lead primarily with our first-party sales team to serve advertisers directly. We're also focused on strengthening our relationships with agencies who manage and deploy much of the digital advertising spend in this region and who we view as vital partners in the ecosystem, as well as integrating with marketing tech partners who help advertisers manage their creative and campaigns. In the rest of the world, we've deployed a hybrid model that blends our direct sales force and select markets, reseller partners in over 40 countries, and incremental third-party ad demand, allowing us to effectively scale growth in longer-tail markets that were previously unmonetized or significantly under-monetized. Critically, we're exporting what already works in UCAN while localizing the implementation. Our lower funnel playbook focuses on increasing uploads of product catalogs and driving adoption of shopping ad formats and privacy-centric measurement. We couple that with Pinterest Performance Plus to simplify campaign creation and improve outcomes for advertisers. The result is a consistent, measurable path for advertisers to see performance and scale their spend on Pinterest. As an example, Pandora, a leading European-based global jewelry retailer, leveraged many of Pinterest's best practices, including the adoption of Pinterest Performance Plus across 100% of their lower funnel spend in existing markets. which drove ROAS lifts across their campaigns. Additionally, Pandora adopted our conversion API, driving nearly a 36% increase in ROAS, and after implementing offline conversions, drove a 148% increase in ROAS across priority markets. International advertisers leaning into our shopping ad formats has been one of the clearest indications that our lower funnel playbook is resonating across the globe. Two years ago at our Investor Day in September 2023, shopping ads represented just 9% of international revenue. In Q3 2025, it reached 30%. In fact, Q3 shopping ad revenue in both Europe and the rest of the world grew over two times faster than the overall revenue growth of their respective regions. Despite this progress, we see significantly more opportunity to both activate and grow our share of wallet with international advertisers, particularly with the most sophisticated European and rest-of-world advertisers, where we are currently underpenetrated. It's still early, but we're making tangible progress narrowing our international monetization gap as measured by international ARPU relative to UCAN. Overall, I'm extremely proud of our team and the progress we are making across a number of initiatives. Pinterest is growing users across all the generations and geographies we track and has become a destination. Importantly, we're also growing quick queries, board creation, and clicks to advertisers faster than users, meaning we're deepening engagement per user across the dimensions we want, even as users have more alternatives than ever for search. With that, I'll turn the call over to Julia to share more details about our financial performance.