Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Let's dive deeper into Pinterest and those first quarter sales
Speaker 2: use the growth with Pinterest CEO Bill Ready, Bill terrific
Speaker 2: to have you on the program. The story seems quite clear,
Speaker 2: Pinterest pushing into shopping and Pinterest focusing on gen Z users. Right.
Speaker 2: My question to start, what is the relationship in the
Speaker 2: activity between the shopping and the gen Z users.
Speaker 1: Yeah, so you know, we're finding our best product market
Speaker 1: fit in years. We've hit an all time high with
Speaker 1: users more than half a billion users and as you noted,
Speaker 1: gen Z is our largest demographic. It's now more than
Speaker 1: forty percent of our platform, and it's our fastest growing
Speaker 1: demographic as well. And at the core of that growth
Speaker 1: with gen Z has been the rising actionability in the platform.
Speaker 1: Pinterestes where gen Z goes to shop, and as we've
Speaker 1: made Pinterest more actionable so that people who can get
Speaker 1: to more of the things they're finding out on Pinterest,
Speaker 1: we're seeing that work really well for users, where we've
Speaker 1: accelerated user growth for seven straight quarters now, but it's
Speaker 1: also cutting through for advertisers, where as you noted, revenue
Speaker 1: group twenty three percent this quarter, nearly doubling our revenue
Speaker 1: growth rate from last quarter, and so we're really seeing
Speaker 1: this be quite synergistic between users finding the things that
Speaker 1: they love on Pinterest and then advertisers finding this is
Speaker 1: a great place for them to meet users that are
Speaker 1: in market looking to shop and buy.
Speaker 3: And let's just talk about some of the synergies that
Speaker 3: you've managed to bring to bear with Amazon, with Google,
Speaker 3: with those ad partnerships. Bill, how much of that advertising
Speaker 3: optic is thanks to these third parties.
Speaker 1: Well, you know, on the shop ability front, you know,
Speaker 1: historically Pinterests has solved digital window shopping, but it's hard
Speaker 1: to get to the things that you found on Pinterest.
Speaker 1: We have opened the stores, and in doing that, we're
Speaker 1: seeing that retailers broadly are finding great performance on Pinterest.
Speaker 1: At the core of our revenue acceleration has been our
Speaker 1: strength in low funnel actionability users that are clicking and buying.
Speaker 1: We more than double the number of clicks we sent
Speaker 1: to advertisers in Q four, and we did it again
Speaker 1: in Q one. That is broad based, but we are
Speaker 1: seeing our best strength with the largest, most sophisticated retailers
Speaker 1: that provide really great buying experiences. We're quite pleased with that,
Speaker 1: and we also see that the third party demand that
Speaker 1: we've brought onto the platform is doing exactly what it
Speaker 1: was intended to do, which is rounding out gaps in
Speaker 1: our auction and bringing more great, shoppable, biable content onto
Speaker 1: pinterest so that when users find what they're looking for
Speaker 1: in Pinterest, they can easily click and buy it.
Speaker 2: This was a milestone quarter in the sense that global
Speaker 2: monthly uses past half a billion for the first time.
Speaker 2: You've put a lot of emphasis on gen Z, So
Speaker 2: look forward, what is the arc of user growth and
Speaker 2: what drives it? What brings in you users to your platform?
Speaker 1: Bill Yeah, So, as I mentioned, this is our seventh
Speaker 1: consecutive quarter of accelerating user growth. We've accelerated in every
Speaker 1: geography and with every generation that we track. Gen zs
Speaker 1: are fastest growing in our largest but you have millennials
Speaker 1: right behind that. So our improvement in the product has
Speaker 1: been broad based, and it is that actionability at the core.
Speaker 1: But I would say we are just getting going with that.
Speaker 1: We see much more building momentum in that as we
Speaker 1: look forward, and it's both the actionability as well as
Speaker 1: the positivity that we're bringing into it. We've made tremendous
Speaker 1: strides with AI, and AI is bringing more relevant recommendations
Speaker 1: for users so they can take action on more of
Speaker 1: what they find. But it's also the case that we're
Speaker 1: tuning AI for positivity. We're tuning it to help users
Speaker 1: feel better not just in finding what they're looking to
Speaker 1: shop and buy, but in making sure that we're bringing
Speaker 1: inspirational content to them. So we've done things like inclusive AI,
Speaker 1: where we have skin tone filters so people can filter
Speaker 1: for things that will reflect them and including diversity by
Speaker 1: default in our feeds. We introduce body type AI where
Speaker 1: people can select body types so that they can find
Speaker 1: more things that fit well for them. And so we
Speaker 1: want to make it so that every person on Pinterest
Speaker 1: can see themselves on Pinterest, and so that's really leading
Speaker 1: to great strides in both the relevance the representation and
Speaker 1: in just people feeling positive when they spend time on Pinterest.
Speaker 2: So last night on the Amazon Media called, Brian Ozowski
Speaker 2: was asked about Timu and she In in the context
Speaker 2: of competition with you guys a Pinterest a little bit different.
Speaker 2: Would you talk about Timu and she In as potential partners?
Speaker 2: Are you seeing any uplift from Chinese advertisers.
Speaker 1: So so APAC cross border has been a contributor to
Speaker 1: our growth, but it's a nice contributor, you know, it's
Speaker 1: not overwhelming, but it's a nice contributor. But as I
Speaker 1: mentioned before, our strength and retail has been broad based.
Speaker 1: Retailers of all sizes are finding strength on Pinterest, and
Speaker 1: it's because they're seeing that doubling of clicks that we
Speaker 1: sent to advertisers a year on year in Q four
Speaker 1: and again in Q one. And it's also because they're
Speaker 1: able to meet hard to find shoppers like gen Z
Speaker 1: on Pinterest, and they're meeting those shoppers in a really
Speaker 1: unique moment because users come to Pinterest when they have
Speaker 1: clear intent. More than half the users on the platform
Speaker 1: we're here to shop, but they haven't yet decided what
Speaker 1: to buy, so they're not necessarily searching for a specific
Speaker 1: brand or a specific item where maybe the decision's already made.
Speaker 1: They're coming here with much more general thoughts like cool
Speaker 1: outfits for spring, what to wear to Coachella, And those
Speaker 1: are great moments for advertisers to meet users because the
Speaker 1: user has clear intent but hasn't decided yet what to
Speaker 1: buy and again we're seeing that broad based across retailers.
Speaker 1: China cross border is a contributor, but it's broad based
Speaker 1: strength for retailers.
Speaker 3: Focusing a little bit more on China for a moment, Bill,
Speaker 3: I mean, this is a unique time in social media
Speaker 3: more broadly, because it looks as though one of a
Speaker 3: key social media player might be falling away. Do you
Speaker 3: think more gen Z will come to you because of
Speaker 3: TikTok actually being banned completely no longer existing in the US.
Speaker 1: Well, when you look at why we are doing so
Speaker 1: well with gen Z, it is because we are we
Speaker 1: are doing something very different than the rest of social media.
Speaker 1: For gen Z, most of social media has the user
Speaker 1: in a lean back entertainment mode. We have the user
Speaker 1: in a lean forward mode with intent and purpose and
Speaker 1: I mentioned tuning for positivity. Gen Z sees Pinterest as
Speaker 1: an oasis away from the toxicity they experience on much
Speaker 1: of the rest of social media. They know that social
Speaker 1: media has largely become comparative and performative. And if you
Speaker 1: go talk to gen Z about why they spend time
Speaker 1: on Pinterest, they'll say they go to other places on
Speaker 1: social media and see what others want them to be
Speaker 1: what others expect them to be, and then go to
Speaker 1: pinterest to discover what they want to be and invest
Speaker 1: in themselves with a small circle of friends. So that's
Speaker 1: already winning with gen Z, and we're not sitting around
Speaker 1: hoping for the demise of other platforms. We're just busy
Speaker 1: building something that makes people feel more positive is and
Speaker 1: to give them a great experience, and that's winning, particularly
Speaker 1: of gen z.
Speaker 3: Okay, So no clear ambition to capitalize in the uncertainty,
Speaker 3: but clearly seeing the flow of gen Z. What really
Speaker 3: always interests me, Bill is when you break down your
Speaker 3: numbers in terms of average users and where they are.
Speaker 3: You're so dominant in the rest of the world, do
Speaker 3: you see us as the area of growth? Do you
Speaker 3: see internationally more the area of growth. Where do you
Speaker 3: see the expansion?
Speaker 1: So it's a great question. As you noted, we have
Speaker 1: approximately eighty percent of our eighty percent or more of
Speaker 1: our use outside the US, but only approximately twenty percent
Speaker 1: of our revenue outside the US. So the improvements we've
Speaker 1: made from the user perspective have been broad based. As
Speaker 1: I mentioned, we've accelerated users across every geography. On the
Speaker 1: modernization side, we are much further along in the US
Speaker 1: and we are now starting to deploy those things internationally,
Speaker 1: and so we see international as a huge growth vector
Speaker 1: for US, both in terms of what we will bring
Speaker 1: to advertisers directly where we do first party selling, as
Speaker 1: well as where we're bringing in new sources of demand,
Speaker 1: either through third party demand like what we're doing with
Speaker 1: our Google partnership in international markets or what we're now
Speaker 1: doing with resellers in international markets where they can bring
Speaker 1: more local demand, which is going to be great for
Speaker 1: those advertisers, but also great for users that will find
Speaker 1: more shoppable content as more of those advertiser those international
Speaker 1: markets come onto our platform.
Speaker 3: Bill, great to catch up with you. Thanks for spending
Speaker 3: some time with us. Very funny pintra't ceo. Bill ready there,