Pinterest (PINS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 18% year-over-year, reaching up to $981 million, with record global MAUs between 518 and 537 million, up 11% year-over-year, led by 16% growth in Rest of World.

• Adjusted EBITDA rose 31% to $242 million, with margin expanding by 280 basis points to 27%.

• Net income surged to $31 million, a 354% increase year-over-year, with non-GAAP net income at $275 million.

• AI-powered recommendations, shoppability enhancements, and lower-funnel ad tools deepened user engagement and improved ad relevance, especially among Gen Z.

• Expanded global partnerships with Amazon and Google, and authorized a new $2 billion share repurchase program.

Financial highlights

• U.S. and Canada revenue was $719–$719.5 million (+16%), Europe $136.6–$137 million (+20%), Rest of World $42–$42.3 million (+38%).

• Global ARPU increased 5% to $1.70; U.S. and Canada ARPU up 13% to $7.31–$8.07; Europe ARPU up 10% to $1.00–$1.23; Rest of World ARPU up 18% to $0.14.

• Ad impressions grew 41%, while ad pricing declined 17% year-over-year due to international expansion.

• Ended Q3 with $2.4–$2.44 billion in cash, cash equivalents, and marketable securities.

• Total costs and expenses were $904 million; loss from operations was $5.9 million.

Outlook and guidance

• Q4 2024 revenue expected between $1.125–$1.145 billion, representing 15–17% year-over-year growth.

• Q4 non-GAAP operating expenses projected at $495–$510 million, up 11–14% year-over-year, mainly due to R&D investments in AI and product initiatives.

• Adjusted EBITDA margin expansion expected to continue, though at a more modest pace in the second half of 2024.

• Management anticipates a potential release of a significant portion of the U.S. deferred tax asset valuation allowance within twelve months.