Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: What specific areas contributed to the stronger-than-expected first quarter results?
A: CEO Bill Ready highlighted broad-based strength across multiple initiatives, including strong user engagement, deepening engagement, synergistic ad load, and monetization strength in the lower funnel driven by shopping ads and direct links. Notably, U.S. retail showed significant strength, and third-party partnerships also contributed to the acceleration.
Q: How does Pinterest plan to sustain 20% growth through more challenging comps in the second half of the year?
A: CFO Julia Donnelly mentioned that while tougher comps and uncertainties like third-party cookie deprecation exist, Pinterest's initiatives are expected to ramp throughout the year. This includes more value capture from direct links and contributions from third-party ad demand, which are anticipated to continue driving growth.
Q: What are the key investments Pinterest is focusing on for medium to long-term growth, and how does it compare competitively?
A: CEO Bill Ready emphasized investments in AI and unique user signal utilization, which improve user relevancy and ad performance. Pinterest's distinct positioning with high commercial intent users and advancements in AI for personalized content and ads are seen as competitive strengths.
Q: Can you elaborate on the adoption of direct links and the upcoming launch of dynamic campaign creation tools and ROAS bidding?
A: CEO Bill Ready explained that direct links now cover 97% of lower funnel revenue, with significant value capture still ahead. The upcoming tools like dynamic creative optimization and ROAS bidding are expected to simplify campaign setups and enhance ROI, further driving advertiser adoption and performance.
Q: How is Pinterest's strategy with third-party partnerships progressing, particularly with Amazon and Google?
A: CEO Bill Ready stated that third-party partnerships are performing as expected, complementing first-party demand and adding density to auctions. The focus is on optimizing these partnerships and potentially expanding them geographically.
Q: What impact do you see from the third-party partnerships on international growth, and what are the future plans?
A: CEO Bill Ready noted that while third-party efforts are just starting internationally, they are expected to grow and complement first-party initiatives. The focus will be on expanding these partnerships and introducing new ones to enhance auction density and relevancy in international markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
