• Revenue: $3.65 billion for full-year 2024, representing 19% growth.
• Q4 Revenue: $1.154 billion, up 18% year over year.
• Adjusted EBITDA: Over $1 billion for 2024, a roughly 50% increase year over year.
• Adjusted EBITDA Margin: 41% in Q4, an increase of 320 basis points from the previous year.
• Net Income: Achieved GAAP profitability for the first time since 2021.
• Monthly Active Users (MAUs): 553 million globally, growing 11% year over year.
• US and Canada MAUs: 101 million, growing 4% year over year.
• Europe MAUs: 145 million, growing 7% year over year.
• Rest of World MAUs: 307 million, growing 15% year over year.
• Ad Impressions: Grew 43% in Q4.
• Ad Pricing: Declined 18% year over year in Q4.
• Free Cash Flow: $940 million for full-year 2024, a 55% increase.
• Cash and Marketable Securities: $2.5 billion at the end of Q4.
• Share Repurchases: $600 million for full-year 2024, reducing fully diluted share count by approximately 1.7%.
• Q1 2025 Revenue Guidance: $837 million to $852 million, representing 13% to 15% growth year over year.
• Q1 2025 Adjusted EBITDA Guidance: $155 million to $170 million.

• Warning! GuruFocus has detected 4 Warning Signs with EXPE.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pinterest Inc (NYSE:PINS) achieved record high global users, surpassing 550 million MAUs globally, with significant growth in the U.S. and Canada.
• The company reported its first $1 billion revenue quarter in Q4 2024, with an 18% revenue growth year-over-year.
• Pinterest Inc (NYSE:PINS) delivered over $1 billion in adjusted EBITDA, marking a roughly 50% increase, showcasing profitable growth.
• The company has successfully integrated AI into its platform, enhancing user experience and advertising performance, leading to a 90% increase in clicks to advertisers.
• Pinterest Inc (NYSE:PINS) achieved GAAP profitability on a net income basis for the first time since 2021, highlighting financial stability.

Negative Points

• The food and beverage subsector of CPG experienced softness, impacting overall growth, and the headwind is not fully behind the company.
• Ad pricing declined by 18% year-over-year due to increased ad impression growth and a mix shift in the auction.
• Despite strong growth, the company faces challenges in further improving the DAU to MAU ratio, particularly in mature markets.
• The company does not accept political advertising, which limited potential revenue growth during election-related spending periods.
• While third-party partnerships have been beneficial, the need for such demand is reduced as first-party business grows, potentially limiting future revenue streams from these partnerships.

Q & A Highlights

Q: Bill, what are your key takeaways from 2024, and what are the biggest strategic priorities for 2025? A: 2024 was transformative, doubling our revenue growth rate to 19% and achieving record user engagement. For 2025, we aim to grow our user base, deepen engagement, and enhance ad performance through lower funnel product innovation. We will also continue to explore new demand sources and optimize our ad platform. - William Ready, CEO

Q: Can you discuss the impact of AI and machine learning on Pinterest's platform improvements for 2025? A: AI is integral to our platform, enhancing user experiences and ad performance. We've switched to GPU serving for better model performance and integrated LLM tech for features like guided search. AI also aids in coding, with 15% of our code base AI-generated. These advancements drive user engagement and advertising success. - William Ready, CEO

Q: What are the advertising trends and factors influencing the Q1 2025 revenue outlook? A: We expect 15% to 17% revenue growth in Q1, driven by lower funnel tools and increased advertiser value capture. New ad formats and bidding capabilities are gaining traction. While food and beverage remains a challenge, we're seeing early signs of recovery. - Julia Donnelly, CFO

Q: How have third-party partnerships contributed to Pinterest's growth, and what is their expected impact in 2025? A: Third-party partnerships have helped fill auction gaps, enhancing platform shoppability. While first-party demand leads, third-party demand complements it. As first-party business grows, reliance on third-party demand decreases, but our capability to ingest diverse demand remains strong. - William Ready, CEO

Q: How should we think about the impact of new ad products and features over the next few years? A: Our ad innovations, like Performance Plus, have a compounding effect over time. These products are in early stages, with more benefits ahead. Performance Plus, for example, shows a 20% CPA improvement and easier campaign setup, indicating long-term growth potential. - William Ready, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.