Pinterest, Inc.

Thank you so much for joining us today. Over 96% of text-based searches on our platform are unbranded. For instance, cool running shoes or new fall wardrobe ideas. This is a great moment for marketers to meet prospective customers when they have clear commercial intent but haven't yet decided what to buy. As users move from inspiration to a more specific decision, their needs evolve from discovery to research with questions like, do these shoes run true to size? Or can you compare these two brands? To handle this part of the commercial journey, we're bringing AI further into the foreground of the user experience with our AI conversational layer, Pinterest Assistant. This intelligence layer, which we made available to the vast majority of US users as of the end of July, helps our users answer those later stage research questions, enabling them to move from an idea to a finished plan or purchase entirely on Pinterest. Pinterest Assistant is now woven throughout the user experience. Users can engage with it where they already explore and plan with contextual entry points and prompt suggestions across the experience, and will be able to generate product comparisons, step-by-step instructions, and visual forward guidance. For example, someone planning a living room refresh can ask what styles work in their space, get help finding the right rug, and explore ways to pull it all together within their budget, all without leaving Pinterest. What makes Pinterest's intelligence differentiated is that it's built on our taste graph. Years of visual curation signals from user searches, saves, and boards, giving a deep understanding of products and style that is highly relevant to how people shop and to each individual's taste and interests. Notably, it's also visual first, consistent with the experience users expect from Pinterest. We are also beginning to introduce memory and conversational history, creating an even more personalized experience. Importantly, We are building this capability in a highly differentiated, effective, and cost efficient way. Our approach to model deployment includes our own compact fit for purpose models built for Pinterest specific use cases and suitable open source models post trained in our own environment within our secure cloud infrastructure. When we leverage open source models, such as with Pinterest Assistant, we are seeing superior performance for our use cases when compared to closed third party models because we are able to post-train open models on our highly unique data. With open models, we are achieving cost per transaction at less than 8% of the cost of comparable closed proprietary models. This gives us substantial headroom to deepen and extend these capabilities over time in a way that is differentiated, highly effective, and cost efficient. Stepping back, this is the next iteration of work we've been doing for years. taking the discovery and intent that already exists on Pinterest and making it even more actionable for users, helping them move seamlessly from dreaming to deciding, doing, and buying. With the launch of our AI conversational layer, we are taking the next step to enhance that actionability even further and making it even more seamless for our users to move through their entire commercial journey on Pinterest. This is what sets up the monetization story I'll turn to next. On the monetization side, AI is helping us improve advertiser performance across the funnel, from better targeting and bidding to more automated, creative, and stronger measurement. As we shared last quarter, advertisers using Pinterest Performance Plus campaigns see meaningfully better ROAS and grow spend faster than those who haven't adopted it yet. That uplift comes from automating more of the campaign setup, bidding, budgeting, targeting, and creative optimization that advertisers historically had to manage manually. While still giving them clear controls. As part of our efforts to serve a broader group of advertisers with Pinterest Performance Plus campaigns, this quarter we launched Smart Assembly to help more advertisers benefit from creative optimization tools. This is a new Pinterest Performance Plus creative capability for advertisers promoting brands, services, or content who do not have existing shopping product catalogs. Advertisers can upload multiple images and Pinterest automatically builds and serves the best performing ad for each impression. In early alpha testing, Smart Assembly delivered a 6% improvement in click-through rate on average, demonstrating that creative testing and diversification can meaningfully improve performance. Over time, our goal is for nearly every lower funnel campaign on Pinterest to start in an AI-powered best practice setup. with added controls for more complex buyers who need them. Our near-term roadmap, including a simpler campaign creation flow, more sophisticated bidding and more automated creative is designed to drive the next leg of Pinterest Performance Plus adoption, including among advertisers that require both performance and increased control. We're also investing in Business Assistant, our conversational AI collaborator for advertisers, which is currently in beta. Business Assistant combines an advertiser's business context with Pinterest platform insights to surface actionable recommendations, including relevant trends, top performing pins, and optimization opportunities. The goal is to help advertisers understand what is resonating on Pinterest, decide where to put the next dollar, and make Pinterest easier to use and scale, especially for advertisers that do not have large dedicated teams. At the same time, we are upgrading our bidding and measurement systems So we can do two things better. Help advertisers find the highest value impressions on Pinterest and prove that value through the metrics and measurement systems advertisers already use. With a small initial group of some of our largest and most sophisticated advertisers, we are continuing to pilot integration between their in-house measurement systems and our AI bidding systems, allowing us to optimize bidding toward their unique set of desired outcomes. That initial group is seeing strong performance partially contributing to our strong Q2 results. We are now expanding testing to a small number of additional advertisers over the course of the third quarter. The learnings are also informing broader bidding enhancements across the platform that can scale to many more advertisers. We are always working on making our core ad delivery engine better through adapting new and better signals and driving enhancements in our AI modeling work. This quarter, We have made our shopping ad delivery systems better at deciding which products to show, when to show them, and how to allocate budgets against the highest value advertiser opportunities. That includes improving product selection for advertisers with large catalogs and increasing the variety of relevant products users see. This package of changes are designed to improve lower funnel performance across both large enterprises and smaller advertisers. The early results are encouraging, helping drive stronger, more consistent ROAS. Finally, we are continuing to extend Pinterest's unique consumer intent signal and audience to connected TV through TV Scientific, and early advertiser reception continues to be strong. In 2027, we expect to fully integrate TV Scientific capabilities directly into Pinterest Performance Plus, turning Pinterest into a full-funnel search, social, and CTV platform performance solution and opening access to larger and incremental budget pools. We're pairing this progress across our ad platform with a more disciplined, performance-oriented sales and go-to-market motion, helping us better monetize the strong engagement and commercial intent on Pinterest. Early progress on sales and go-to-market transformation was reflected in our strong Q2 results, particularly in UCAN. Our focus on clear seller accountability, better packaging of commercial moments, and a tighter connection between product performance and advertiser conversations are supporting strong UCAN demand. We're also making progress on our mid-market and managed SMB go-to-market efforts, including restructuring account coverage teams and realigning incentives to better serve this cohort over time. We're now applying our UCAN playbook internationally, where we see significant opportunity to close the gap between engagement and revenue. We're earlier in this work, but our progress in UCAN gives us confidence in the opportunity. With new international leadership We're sharpening our global go-to-market approach and bringing more global discipline to how we drive performance selling internationally. We're also testing the expansion of third-party demand into Europe. Taken together, the product-led improvements across our ad platform and a more disciplined go-to-market engine are strengthening monetization and helping revenue better reflect the value of the engagement we're seeing on Pinterest. In closing, Q2 shows that we are making progress on the priorities that matter most. We are building an even more differentiated visual search discovery and shopping experience. AI is improving both the user experience and advertiser performance, and stronger go-to-market and measurement capabilities are helping revenue better reflect the engagement we see on Pinterest. We are still early on many of these initiatives, but the initial results indicate we are on the right path. As we build for the long term, we remain focused on making Pinterest a positive platform centered on time well spent. As the global conversation around online safety and youth well-being continues to grow, we believe that foundation matters more than ever. We will keep making deliberate choices that put user trust and well-being at the center of the experience, and we remain confident that building a positive platform and building a strong business reinforce each other. With that, I'll turn it over to Julia to walk through the Q2 financials and our outlook in more detail.

Thanks, Bill, and good afternoon, everyone. Today I'll be discussing our second quarter 2026 financial results and provide an update on our third quarter 2026 outlook. All financial metrics, except for revenue, will be discussed in non-GAAP terms unless otherwise specified, and all comparisons will be discussed on a year-over-year basis unless otherwise noted. Q2 is a strong quarter. We've transformed Pinterest into a scaled, AI-powered shopping destination for 106 million users in the U.S. and Canada and 640 million users globally. Importantly, we have a direct relationship with our users. 100% of our reported users are logged in and 85% come to Pinterest directly through our mobile app, meaning we are not heavily reliant on third parties for traffic. Revenue exceeded $1 billion for the fourth consecutive quarter, growing 18% year-over-year. This growth was led by strength in UCAN, our core market, where revenue growth accelerated to 18% year over year. This performance reflects a number of our initiatives coming together. First, our ongoing ad platform enhancements to improve return on ad spend and to advance our bidding and measurement capabilities are driving advertiser performance and spend. In addition, we are seeing the early results of our sales and go-to-market transformation take hold in UCAN, We're increased rigor and discipline in how we go to market are beginning to show up in our results. As we discussed entering 2026, we have more work to do so our revenue consistently reflects the strength of our user activity. While this will take some time to fully take hold, particularly internationally, our results in UCAN give us confidence that we are moving in the right direction. Now I'll move to the details of our second quarter results. We ended the quarter with 640 million global monthly active users, or MAUs, growing 11% and reaching another record high. We continue to demonstrate user growth across all of our geographic regions. In Q2, our US and Canada region had 106 million MAUs, growing 4%. Our Europe region had 157 million MAUs, growing 8%. And in the rest of world markets, we had 377 million MAUs, growing 15%. Shifting to revenue. In Q2, our global revenue was $1,180,000,000, up 18% or up 17% on a constant currency basis, with strength led by our conversion and consideration objectives. Across verticals, we continue to see strength in retail, as well as smaller but faster-growing emerging verticals on our platform, including financial services, travel, and health. Turning to our geographical breakouts for Q2, revenue in the U.S. and Canada was $880,000,000, growing 18%. Growth came from retail and emerging verticals, including financial services, travel, and health. In Europe, revenue was $213 million, growing 12% on a reported basis or 7% on a constant currency basis. Growth in Europe was driven by retail. Revenue from rest of world was $87 million, growing 38% on a reported basis or 32% on a constant currency basis. In Q2, overall ad impressions grew 16%. Moving to expenses. In Q2, cost of revenue was $245 million, up 25% year-over-year and up 6% versus Q1, driven by the full quarter impact from TV Scientific and our investment in additional GPU capacity. Our non-GAAP operating expense was $629 million, up 13%. The increase was primarily driven by sales and marketing due to our brand campaign and sales headcount investments, as well as R&D to support our AI and product initiatives. In Q2, we delivered $311 million in adjusted EBITDA with an adjusted EBITDA margin of 26%, up 130 basis points versus Q2 last year. The higher than expected adjusted EBITDA was driven by flow-through from higher revenue. We also delivered Q2 free cash flow of $270 million. On a trailing 12-month basis, we've generated nearly $1.3 billion of free cash flow, representing 94% free cash flow conversions. In Q2, we allocated $58 million towards share repurchases. Separately, we entered into a capped call transaction for a total consideration of $99 million, which protects against dilution from our previously issued convertible notes up to a price of $30.59 per share. As a reminder, year-to-date, we've repurchased over $2 billion of stock, retiring nearly 111 million shares. We ended the quarter with cash, cash equivalents, and marketable securities of $1.3 billion. Now I'll discuss our guidance for the third quarter. We expect Q3 revenue to be in the range of $1,190,000,000 to $1,210,000,000, representing 13% to 15% growth year over year. As we move from Q2 to Q3, there are a few sequential factors to keep in mind. First, based on current spot rates, we expect foreign exchange to be a modest headwind in Q3 after providing a one-point tailwind in Q2. Second, the shift of Prime Day from Q3 last year into Q2 this year resulted in an approximately half-point benefit to Q2 and will represent a roughly half-point headwind to Q3 as multiple brands and retailers increase their advertising spend around that moment. Lastly, in Q2, we saw a nearly one-point benefit from World Cup-related spend that will not repeat in Q3. Moving down the P&L, we expect Q3 adjusted EBITDA to be in the range of $335 million to $355 million. We anticipate Q3 non-GAAP cost of revenue expense to be roughly flat versus Q2 2026 due to the accelerated recognition of certain contractual benefits in Q3 associated with our recently executed multi-year infrastructure agreement. In Q3, within non-GAAP operating expense, our primary area of year-over-year investment will be sales and marketing and R&D to support our AI and product initiatives. As we saw in the first half of 2026, we continue to expect modest headwinds from cost of revenue as a percentage of revenue in the second half as a result of the investments in areas such as additional GPU capacity as well as the impact from the inclusion of TV Scientific. Given our first half revenue outperformance, we now expect full year 2026 adjusted EBITDA margins of approximately 30% versus our prior expectation of approximately 29%. In closing, I'm proud of our teams for yet another strong quarter of results as we execute against our strategic priorities. I'm encouraged by our performance in the first half of the year as we continue to deliver for our users and advertisers. With that, I'll hand it over to Bill for some final words.

Thanks, Julia. I want to thank our teams at Pinterest, Our advertising partners and all the people that come to Pinterest to find inspiration and take action. And with that, we can open up the call for questions.