PINS — Pinterest, Inc.

Summary of Pinterest, Inc. Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Revenue: $1.08 billion, up 18% year-over-year, marking the third consecutive quarter of over $1 billion in revenue.
• Adjusted EBITDA: $207 million, with an adjusted EBITDA margin of 20%, up 40 basis points year-over-year.
• Monthly Active Users (MAUs): 631 million, growing 11% year-over-year.
• Free Cash Flow: $312 million, benefiting from seasonal trends in Q1.
• Stock Repurchase: Approximately $2 billion of stock repurchased year-to-date, reducing shares outstanding by 16%.

2. Strategic Updates and Business Highlights:

• Pinterest is focusing on enhancing its AI capabilities to improve user engagement and ad performance. The proprietary "taste graph" is central to personalizing user experiences.
• The launch of "PinRack," a generative retrieval system, improved search fulfillment and reduced costs for advertisers.
• The company is expanding its "Performance Plus" ad suite, which has seen 30% of lower-funnel revenue flowing through it, with adopters experiencing higher returns on ad spend (ROAS).
• Pinterest has acquired TV Scientific to enhance its connected TV (CTV) advertising capabilities, showing promising early results in audience reach and sales.

3. Forward Guidance and Outlook:

• For Q2 2026, Pinterest expects revenue between $1.133 billion and $1.153 billion, representing 14% to 16% growth year-over-year.
• Adjusted EBITDA for Q2 is projected to be between $256 million and $276 million.
• The company anticipates continued investment in sales and marketing, particularly for brand campaigns and AI initiatives.

4. Bad News, Challenges, or Points of Concern:

• Large retail advertisers remain a headwind, although performance improved later in Q1 due to AI-driven optimizations.
• The international segment is facing challenges due to leadership changes and difficult year-over-year comparisons, particularly in Europe and Rest of World markets.
• Ad impressions grew by 24%, but pricing declined by 5%, indicating potential pricing pressure.
• The company acknowledges that progress in diversifying its revenue base may not be linear, and the impact of macroeconomic factors, including geopolitical tensions, could affect performance.

5. Notable Q&A Insights:

• Management highlighted the importance of linking AI bidding systems to advertisers' measurement tools to capture more value from user engagement.
• There is optimism about the adoption of Performance Plus campaigns, particularly among mid-market and SMB advertisers, with significant room for growth.
• The company is taking a cautious approach to the rollout of its Pinterest Assistant, ensuring it enhances user experience without compromising advertiser relationships.
• Concerns about the competitive landscape were addressed, emphasizing Pinterest's unique position in visual search and discovery compared to general-purpose chatbots.
• The regulatory environment regarding online safety for younger users is seen as an opportunity, with Pinterest's proactive measures positioning it favorably.

Overall, Pinterest reported a strong Q1 performance with significant user growth and revenue increases, while also outlining strategic initiatives to enhance monetization and user engagement. However, challenges remain, particularly with large advertisers and international growth, which the company is actively addressing.