Pinterest, Inc.

Hello, everyone. Thank you for joining us and welcome to Pinterest first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Andrew Somburg, Vice President of Investor Relations and Treasury. Please go ahead.

Good afternoon, and thank you for joining us. Welcome to Pinterest earnings call for the first quarter ended March 31st, 2026. Joining me on today's call are Bill Reddy, Pinterest CEO, and Julia Donnelly, our CFO. The statement we make on this call reflects management's view as of today and will include forward-looking statements. Such statements involve a number of assumptions, risks, and uncertainties, and actual results may differ materially. We disclaim any obligation to update these statements. For information about assumptions, risks, uncertainties, and other factors that could affect our results, please refer to our earnings press releases and the periodic reports we file with the SEC and available on our investor relations website at investor.pinterest.com. 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 presentation, which are distributed and available to the public through our investor relations website. Lastly, all growth rates discussed today are on a year-over-year basis unless otherwise specified. And now I'll turn the call over to Bill.

Thanks, Andrew. Good afternoon, and thank you for joining our first quarter 2026 earnings call. We entered 2026 focused on delivering the next phase of growth at Pinterest, and our stronger than expected first quarter results reflect our early progress. We delivered more than $1 billion in revenue, up 18% year-over-year, and grew adjusted EBITDA to more than $207 million. Pinterest is a destination where our 631 million monthly active users, all of whom are logged in, come to discover what they want and go do it in the real world. That experience is powered by one of the largest image corpuses in the Western world and a powerful proprietary data set. Together, they allow us to solve a problem that text-based general purpose search was never built for. It's the classic, I'll know it when I see a problem. When a user knows what they want, but cannot quite describe it, an image can do what text cannot. That is where our AI and proprietary taste graph come in. By understanding not just what a user is searching for today, but who they are and how their interests are evolving, we have made Pinterest a highly personalized AI-powered shopping assistant. The result is more than 80 billion monthly searches on our platform. approximately half of which are commercial in nature, and a platform that continues to distinguish itself as both a destination for users and a vital partner for advertisers. That said, we remain clear-eyed about where we are in this journey. Users are growing, and engagement continues to deepen, globally and in UCAN, our highest engagement region. Improvements to shopping and actionability are at the heart of those trends. We have also built an ads platform that is delivering performance for advertisers. but we still have more work to do to ensure monetization more fully reflects the strength of that user activity. Our priorities remain clear. First, continue building a differentiated visual search discovery and shopping experience to drive sustained momentum with users. Second, keep AI at the core of everything we do from powering our user experiences and ad platform to optimizing our internal operations. And third, accelerate monetization through improved go-to-market and measurement capabilities, so our revenue more fully reflects the strength of our engagement. With that context, let me turn to how AI is driving user growth and engagement. Ten straight quarters of double-digit user growth are the direct result of multi-year investments in AI, improving personalization and curation within visual search and discovery. At the center of this is our taste graph. which captures visual intent and curation signal built on hundreds of billions of user interactions over a decade. Every search, click, and save gives our AI more signal about who a user is and what they care about, which allows us to deliver more relevant and personalized experiences across the platform. Higher relevance drives deeper engagement. Deeper engagement increases retention. And stronger retention brings users back with higher intent. Powering this flywheel is our deliberate approach to AI at Pinterest. We pair a world-class engineering team with the unique signal from our taste graph to build the models that deliver the best results for our specific use cases. In some cases, that means fit-for-purpose proprietary models that outperform leading third-party alternatives. In others, it means post-training suitable open-source models in our own environment within our cloud infrastructure that deliver comparable outcomes to third-party models, but at a fraction of the cost. Deploying these and other models across our platform have led to meaningful gains in user experience and advertiser performance over the last several years. And with ongoing model improvements, we see significant opportunity ahead to extend these models to more surfaces over time. An example of this is Penrec, our proprietary generative retrieval system, which is trained on user activity and our taste graph. Rather than building separate models optimized for each surface, Penrec is now a single model that generates personalized results for each user across all surfaces simultaneously, informed by the full depth of what we know about their tastes and interests. We initially launched this model on search and related surfaces in 2025, and subsequently extended it in Q1 to serve content globally, site-wide. This launch improved search fulfillment by approximately 180 basis points. It also drove a roughly 180 basis point reduction in CPA and CPC for advertisers. On our search surfaces, where over 72% of our impressions occur today across both visual and text-based searches, we continue to see searches grow as we improve the experience. In Q1, we updated our proprietary search ranking model, extending user context windows within search by 30-fold, similar to the expansion we previously made to our home feed ranking model. We now use up to 16,000 user actions over a two-year period to inform the search results shown to each user. This launch improves search fulfillment by approximately 70 basis points and saves by approximately 390 basis points. Our AI capabilities also extend into creative generation with Canvas, our in-house AI image generation model, trained exclusively on Pinterest data. Canvas allows us to build experiences that reflect the high bar for visual quality and aesthetics that users and advertisers expect from Pinterest, while operating at an order of magnitude lower cost than leading third-party models. It already supports Pinterest Performance Plus creative optimization, enabling advertisers to dynamically edit backgrounds and transform basic catalog images into high-performing lifestyle images. With the newest version of the model now supporting real-time, high-fidelity image editing, particularly in key verticals, we expect to expand Canvas to enable more creative experiences for users and advertisers in the months ahead. Our AI investments are also translating into better advertiser performance. As Pinterest Performance Plus, our AI-powered performance ad suite, continues to drive strong results for advertisers. In particular, we are focused on driving adoption of Pinterest Performance Plus campaigns, our automated bundle of bidding, budgeting, targeting, and creative features that reduces CPAs and CPCs while requiring half as many inputs to set up as a standard campaign. As we have said in the past, Pinterest Performance Plus will be a multi-year customer adoption and product cycle. Just over a year in, approximately 30% of lower funnel revenue is now running through Pinterest Performance Plus campaigns. but we are still early in capturing the full opportunity as adoption continues to expand and we continue to build out functionality of the suite. Advertisers using Pinterest Performance Plus campaigns continue to see higher ROAS and improvements in CPA and CPC compared with business as usual campaigns. And importantly, in Q1, adopters of Pinterest Performance Plus campaigns grew their lower funnel spend nearly twice the rate of non-adopters. we are now making it easier for advertisers to validate that performance using the metrics they value most. In Q1, we launched a native A-B testing tool in beta directly in Ads Manager, allowing advertisers to run structured KPI-driven tests comparing Pinterest Performance Plus campaigns to their existing ones. And we are starting to see strong early results. For example, Majerim, A leading fine jewelry brand ran a four-week A-B test comparing a dedicated Pinterest Performance Plus campaign to its business-as-usual approach. The Pinterest Performance Plus campaign delivered a 46% increase in ROAS and a 62% increase in conversions, which led Mejuri to adopt Pinterest Performance Plus campaigns more broadly. We are also continuously upgrading our core ads models. In Q1, we unified and retrained our shopping ROAS models to better predict and optimize for advertiser return on ad spend across multiple stages of our ad stack. In experimentation, these improvements drove ROAS gains of up to 11% and are an indication of what continued investment in our ads platform can unlock. As our ads platform gets better at driving outcomes, the next priority is ensuring advertisers can fully see and attribute the value we are generating for them. That means capturing more of the actions Pinterest drives and connecting that data more directly to the measurement tools and bidding systems advertisers use to evaluate and optimize their spend. For our largest and most sophisticated advertisers, we are continuing to pilot integrations with their proprietary in-house measurement systems, which enables our bidding systems to respond dynamically to their specific definition of a successful outcome, whether that is customer lifetime value, profit per order, or something else entirely. In early testing with one advertiser that prioritizes lifetime value, the advertiser cited a 15% to 20% improvement in lifetime value ROAS. These and other bidding optimizations help drive stronger performance in Q1, and we were encouraged to see some advertisers lean in further over the course of the quarter. We plan to expand this pilot to additional large sophisticated advertisers later this year. We also expect to deepen integrations with key third-party measurement partners later this year, giving a broader set of advertisers both the attribution clarity to see what Pinterest is driving and the bidding tools to act on those insights at scale. Whether an advertiser uses a first-party measurement system or a third-party partner, our goal is the same, to help them better understand the full value Pinterest is driving, while also helping us optimize our AI bidding systems toward the outcomes that matter most to them. And as we deepen our performance and measurement capabilities on Pinterest, we are also extending that performance to the biggest screen in the home through our acquisition of TV Scientific, which closed in Q1. With TV Scientific, we're unlocking the ability to extend Pinterest's unique consumer intent signal and audiences beyond our owned and operated properties to power high-performing CTV campaigns. We have already begun integrating Pinterest audiences and signals with TV Scientific's algorithms via TV Scientific's buying platform. The early results are encouraging. One early partner, a leading home furnishings omnichannel retailer, saw a nearly 190% increase in incremental audience reach. and a 159% increase in incremental sales after leveraging Pinterest's audience data in its CTV campaigns. These are early days, but they demonstrate what becomes possible when Pinterest's deep understanding of consumer intent meets the scale and reach of connected TV. Over time, we expect to integrate TV scientific capabilities directly into Pinterest Performance Plus, turning Pinterest into a full funnel search, social, and CTV performance solution that should open larger and incremental budget pools. As part of our efforts to accelerate the monetization of our platform, I will now turn to how we are strengthening our global sales and go-to-market organization. Since joining as our Chief Business Officer earlier this year, Lee Brown has been focused on making our monetization motion more durable and scalable so we are better positioned to capture the opportunity ahead. He is moving with urgency and has already begun making key changes, particularly in leadership across parts of our international and go-to-market organizations and how we drive accountability across the Salesforce and an accelerating adoption of internal AI tooling. For example, we have sharpened our coverage model to position sellers closer to the clients they serve with higher expectations for how they engage. And we are evolving our sales incentive structures to drive more accountability and give a sharper insight into execution across the organization. We are also incorporating internal AI adoption and advertiser conversion signal quality into how we measure performance. Our performance and measurement sales specialists, the technical sales teams supporting performance and measurement solutions, will soon have product activation and customer engagement targets. And we have rolled out a globally consistent merchant playbook, giving our teams a standardized, scalable way to bring Pinterest best practices to market across every region. Looking forward, our ongoing go-to-market work is organized around three broader themes. First, broadening our revenue base. During our last earnings call, I noted that we were seeing pressure from our largest retail advertisers. While it was encouraging to see that dynamic improving Q1 relative to our expectations, as Julia will describe a bit later, our conviction around broadening our revenue base has not changed. We continue to see meaningful upside over time by expanding our footprint across mid-market, enterprise, managed SMB, and international advertisers. Second, increasing the consistency of our global go-to-market execution. We have evolved from a primarily upper funnel sales force into a more full funnel and performance organization. The changes I just described are designed to translate that more reliably into advertiser outcomes and revenue at scale. Third, strengthening our measurement foundation. As measurement becomes an increasingly important part of performance selling, we are leveling up our technical expertise to ensure advertisers adopt our measurement solutions and can better understand the full value we are driving. As we said last quarter, some of these changes will take a couple of quarters to fully play through, and progress may not be perfectly linear. But we believe these changes are critical to broaden our revenue base and position us to execute more consistently against the large opportunity ahead. Ultimately, The reason we have conviction in this work is because Pinterest is doing something different, and that difference matters. What sets Pinterest apart is not just that we help people discover ideas. We help them act on those ideas in the real world. Consider a homeowner renovating their garage who knows they want their space to feel more functional but may not know where to start. On Pinterest, they can start with garage organization ideas. visually explore different layouts and styles, identify solutions like pegboards or modular storage, and ultimately find and shop the products that bring that vision to life. The same is true for a parent planning a child's first birthday party or a Gen Z user designing a manifestation board. In each case, Pinterest helps turn inspiration into action. That reflects the kind of experience we have been building for years. We have long focused on creating a more positive platform. one centered on time well spent, not just time spent. That foundation is becoming even more relevant as the broader online ecosystem faces increasing scrutiny around youth mental health, well-being, and online safety. We were the first major online platform to make accounts for users under 16 private only. We have also supported efforts like phone preschools and app store age verification while applying AI in ways that prioritize positivity. Our new brand campaign brings that differentiation to life for consumers. Launched earlier this month in the US and UK, the campaign marks a meaningful step up in how we are showing up in the market. It reaches Gen Z and millennial audiences across television, streaming, cinema, out of home, and digital channels through the end of the year. The message is simple and true to Pinterest. The best thing you can find online is a reason to live your life offline. In closing, As AI reshapes how people discover, plan, and shop, Pinterest is in a differentiated position. Our taste graph and rich curation signal give us a data foundation that is hard to replicate. We are pairing that foundation with product, measurement, and go-to-market improvements to better translate that deep engagement into more durable growth over time. And importantly, we're doing that in a way that stays true to what makes Pinterest distinct, helping people discover what they want and then go do it in the real world. I'm proud of our team's execution this quarter and excited about the work ahead. With that, I'll turn the call over to Julia to share more details about our financial performance.