1 00:00:02,520 --> 00:00:07,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,320 --> 00:00:09,640 Speaker 2: Pinterest is ending the week on a high note, the 3 00:00:09,640 --> 00:00:14,120 Speaker 2: company's second quarter revenue topping guidance, easing investor concerns about 4 00:00:14,120 --> 00:00:18,360 Speaker 2: an advertising slowdown. Pinterest also saying that it's AI investments 5 00:00:18,400 --> 00:00:21,079 Speaker 2: are beginning to pay off. The CEO of the company, 6 00:00:21,120 --> 00:00:25,120 Speaker 2: Bill Ready, saying, our ability to leverage AI to personalize 7 00:00:25,160 --> 00:00:29,280 Speaker 2: our users experience is a key differentiator. It also makes 8 00:00:29,360 --> 00:00:32,599 Speaker 2: us a highly valuable partner to advertisers. He joins US 9 00:00:32,640 --> 00:00:37,400 Speaker 2: now along with Bloomberg Technologies. Caroline Hyde, Bill, thanks for 10 00:00:37,840 --> 00:00:41,240 Speaker 2: coming on the program. Really appreciate it. I'm fascinated by 11 00:00:42,479 --> 00:00:45,920 Speaker 2: really the sell through revenue that you can get, not 12 00:00:45,960 --> 00:00:50,360 Speaker 2: as much the advertising, but because of the way I 13 00:00:50,479 --> 00:00:52,440 Speaker 2: use the Internet, because of the way I want to 14 00:00:52,520 --> 00:00:55,960 Speaker 2: use Pinterest. I search for things that I want or need, 15 00:00:56,000 --> 00:00:59,360 Speaker 2: and I want to just click through and buy them. 16 00:00:59,040 --> 00:01:01,880 Speaker 2: How much are you to making that, you know, a 17 00:01:02,000 --> 00:01:03,240 Speaker 2: very profitable reality. 18 00:01:04,200 --> 00:01:06,240 Speaker 3: Yeah, I mean we've had a huge transformation in our 19 00:01:06,240 --> 00:01:08,240 Speaker 3: business over the last three years where we've really made 20 00:01:08,319 --> 00:01:11,880 Speaker 3: Pinterest a shopping destination for our users. And exactly to 21 00:01:11,920 --> 00:01:15,360 Speaker 3: your question, you know, Pinterest historically was great for window shopping, 22 00:01:15,480 --> 00:01:17,720 Speaker 3: but you really couldn't click or take action. Over the 23 00:01:17,840 --> 00:01:20,920 Speaker 3: last three years, we've really opened up those stores, so 24 00:01:20,959 --> 00:01:22,959 Speaker 3: it's not just window shopping. Now you can easily click 25 00:01:23,000 --> 00:01:25,960 Speaker 3: and purchase with some really seamless examples. You can link 26 00:01:25,959 --> 00:01:28,319 Speaker 3: your Amazon account, you can have a one click buying 27 00:01:28,360 --> 00:01:31,039 Speaker 3: experience right inside of our app. And there's a lot 28 00:01:31,080 --> 00:01:34,120 Speaker 3: that we're doing to really drive clicks and conversions and 29 00:01:34,200 --> 00:01:36,640 Speaker 3: sales for our advertisers. But for our users, it's just 30 00:01:36,760 --> 00:01:39,600 Speaker 3: really great shopping and seamless buying right on our platform. 31 00:01:39,959 --> 00:01:42,240 Speaker 1: And let's just talk about the resilience of those consumers, 32 00:01:42,280 --> 00:01:45,160 Speaker 1: the buying and indeed the advertisers bill because it's not 33 00:01:45,240 --> 00:01:47,920 Speaker 1: exactly a feeling of economic nirvana out there right now, 34 00:01:47,960 --> 00:01:50,720 Speaker 1: but still you're managing to give us a forecast unlike 35 00:01:51,120 --> 00:01:54,480 Speaker 1: rivals in the social media space. What gives you that clarity, 36 00:01:54,520 --> 00:01:56,720 Speaker 1: what gives you that resilience in the business. 37 00:01:57,160 --> 00:01:59,200 Speaker 3: Well, you know, back to what we've done for our 38 00:01:59,280 --> 00:02:02,480 Speaker 3: users in turning interest into a shopping destination pinteresses where 39 00:02:02,520 --> 00:02:04,680 Speaker 3: gen Z goes to shop. Gen Z is now our 40 00:02:04,760 --> 00:02:07,720 Speaker 3: largest fastest growing demographic, over forty percent of our users, 41 00:02:08,320 --> 00:02:10,920 Speaker 3: and you know they're coming here to shop. We're giving 42 00:02:10,919 --> 00:02:14,200 Speaker 3: them a great shopping destination. But you know that has 43 00:02:14,240 --> 00:02:17,840 Speaker 3: allowed us to deliver great performance for our advertisers. We've 44 00:02:17,880 --> 00:02:21,840 Speaker 3: delivered a performance advertising platform where advertisers can get clicks 45 00:02:21,880 --> 00:02:25,080 Speaker 3: and conversions and great performance. We're giving them AI enabled tools, 46 00:02:25,080 --> 00:02:26,680 Speaker 3: so it's easier than ever for them to go create 47 00:02:26,680 --> 00:02:30,600 Speaker 3: campaigns on Pinterest and see really great returns on that. 48 00:02:30,840 --> 00:02:32,560 Speaker 3: So that's the other side of the businesses that we've 49 00:02:32,560 --> 00:02:35,320 Speaker 3: made Pinterest a shopping destination. Eighty five percent of our 50 00:02:35,400 --> 00:02:38,680 Speaker 3: users come to us directly, and then we connect them 51 00:02:38,720 --> 00:02:40,880 Speaker 3: with advertisers and make it really easy for advertisers to 52 00:02:40,960 --> 00:02:42,960 Speaker 3: connect with those users in this moment where they're in 53 00:02:43,080 --> 00:02:45,760 Speaker 3: market looking for something to buy but haven't decided what 54 00:02:45,880 --> 00:02:48,520 Speaker 3: to buy. That's a great moment for those two to meet, 55 00:02:49,360 --> 00:02:52,120 Speaker 3: and we see that continue to accelerate. We're all time 56 00:02:52,200 --> 00:02:55,160 Speaker 3: highs on users and all time highs on depth of 57 00:02:55,200 --> 00:02:59,399 Speaker 3: engagement per user, really driven by AI and the personalization there, 58 00:02:59,440 --> 00:03:02,160 Speaker 3: and then how we're connecting shoppers and sellers. 59 00:03:02,280 --> 00:03:05,000 Speaker 1: So is that keeping the likes of Timu and Sin 60 00:03:05,120 --> 00:03:07,679 Speaker 1: who a lot of those gen zs are going to 61 00:03:08,000 --> 00:03:11,280 Speaker 1: buy on your platform? Is that sticking around because many 62 00:03:11,280 --> 00:03:14,200 Speaker 1: had worried because of the towers, because of the difficulty 63 00:03:14,280 --> 00:03:16,840 Speaker 1: accessing the US and consumer in terms of a price point, 64 00:03:17,040 --> 00:03:19,760 Speaker 1: what we'd see retrenchment in terms of ads from those companies. 65 00:03:19,919 --> 00:03:22,200 Speaker 3: Yeah, Well, we're a global platform, you know, or over 66 00:03:22,440 --> 00:03:25,720 Speaker 3: you know, five hundred and seventy million users. Eighty percent 67 00:03:25,720 --> 00:03:27,960 Speaker 3: of those are outside the US, and so we noted 68 00:03:27,960 --> 00:03:31,240 Speaker 3: as others that for Asian cross border sellers, you know, 69 00:03:31,280 --> 00:03:33,399 Speaker 3: that has slowed down coming into the US, as others 70 00:03:33,440 --> 00:03:36,320 Speaker 3: have noted as well. But we're seeing those sellers sell 71 00:03:36,360 --> 00:03:38,320 Speaker 3: more globally and we're helping them to connect to other 72 00:03:38,360 --> 00:03:42,200 Speaker 3: markets around the world. Here in the US. Consumers are resilient. 73 00:03:42,800 --> 00:03:45,040 Speaker 3: You know, there's lots of public spending information that says 74 00:03:45,080 --> 00:03:47,400 Speaker 3: that consumers are still shopping. We went through a major 75 00:03:47,400 --> 00:03:49,800 Speaker 3: supply chain disruption just a few years ago during the pandemic, 76 00:03:50,280 --> 00:03:52,280 Speaker 3: and you know, we all saw, you know, things are 77 00:03:52,280 --> 00:03:55,600 Speaker 3: out of stock and consumers found other ways to buy, 78 00:03:55,640 --> 00:03:57,680 Speaker 3: other things to buy, and we see that happening on 79 00:03:57,680 --> 00:04:01,360 Speaker 3: our platform. That while you have things like budget conscious searches, 80 00:04:01,480 --> 00:04:05,880 Speaker 3: like you know, budget friendly recipes or you know budget 81 00:04:05,920 --> 00:04:09,240 Speaker 3: you know party decorations, budget party favors, and those kinds 82 00:04:09,240 --> 00:04:11,200 Speaker 3: of things up to two hundred percent plus here on here. 83 00:04:11,840 --> 00:04:14,400 Speaker 3: People find substitute products, they find other ways to go 84 00:04:14,720 --> 00:04:17,960 Speaker 3: sort of bring delight into their life, and we're a 85 00:04:17,960 --> 00:04:19,440 Speaker 3: great place to help them do that in a great 86 00:04:19,440 --> 00:04:22,159 Speaker 3: place for advertisers to see these shifting consumer trends. 87 00:04:22,600 --> 00:04:25,120 Speaker 2: So I'm fascinated. Did you say eighty percent of your 88 00:04:25,200 --> 00:04:29,480 Speaker 2: users are outside of the US or the US approximately years? 89 00:04:29,839 --> 00:04:32,160 Speaker 3: Okay, so approximate a percent users outside US? 90 00:04:32,360 --> 00:04:38,039 Speaker 2: What's the mix of sales? So for US consumers, you know, 91 00:04:38,080 --> 00:04:42,080 Speaker 2: I'm looking at stuff all the time that's arrow leathers 92 00:04:42,120 --> 00:04:46,080 Speaker 2: in Scotland or the real McCoy's in Tokyo. So all 93 00:04:46,120 --> 00:04:48,479 Speaker 2: of the products that I'm looking for, for the most part, 94 00:04:49,080 --> 00:04:53,119 Speaker 2: except for Westco Boots in California, are coming from overseas. 95 00:04:53,400 --> 00:04:57,039 Speaker 2: What's the mix right now for US shoppers through Pinterest 96 00:04:57,440 --> 00:05:00,720 Speaker 2: on overseas products versus made in the US say stuff? 97 00:05:01,360 --> 00:05:03,840 Speaker 3: Well, I would say we'd track the market generally on 98 00:05:03,880 --> 00:05:06,960 Speaker 3: on that. But the opportunity for us with eighty percent 99 00:05:06,960 --> 00:05:08,880 Speaker 3: of the users be outside the US is that you know, 100 00:05:08,920 --> 00:05:11,039 Speaker 3: we have eighty percent of our users outside the US, 101 00:05:11,440 --> 00:05:13,960 Speaker 3: but rough only twenty percent of our revenue outside the US. 102 00:05:14,000 --> 00:05:16,080 Speaker 3: So the shopping playbook that we've created over the last 103 00:05:16,080 --> 00:05:19,400 Speaker 3: few years, that's really working in North America for US. 104 00:05:19,600 --> 00:05:21,720 Speaker 3: We're now exporting that to other markets and we're seeing 105 00:05:21,720 --> 00:05:24,799 Speaker 3: that shopping playbook really take hold in other markets as well. 106 00:05:25,200 --> 00:05:27,520 Speaker 3: So that's a big part of our forward looking opportunity. 107 00:05:27,839 --> 00:05:30,000 Speaker 3: And here in the US we continue to grow rapidly 108 00:05:30,440 --> 00:05:33,080 Speaker 3: as well, particularly you know on our depth of engagement, 109 00:05:33,320 --> 00:05:36,839 Speaker 3: really making Pinterest a shopping destination. And again, consumers are resilient. 110 00:05:37,160 --> 00:05:39,200 Speaker 3: You know, if some things aren't available to them, they're 111 00:05:39,200 --> 00:05:40,880 Speaker 3: going to be creative and find other ways to buy. 112 00:05:40,920 --> 00:05:43,440 Speaker 3: And you know, even if their pocket gets pinched. You know, 113 00:05:43,600 --> 00:05:46,880 Speaker 3: we are a place for intentional purpose purchases, not just 114 00:05:47,040 --> 00:05:51,160 Speaker 3: impulse purchases. So you know, we see highly considered purchases 115 00:05:51,200 --> 00:05:53,800 Speaker 3: on our platform. Our users are planful and so if 116 00:05:53,800 --> 00:05:54,920 Speaker 3: they go through a moment where they need to be 117 00:05:54,920 --> 00:05:56,400 Speaker 3: a little bit more thoughtful about what they buy, are 118 00:05:56,400 --> 00:05:58,640 Speaker 3: a little bit more creative about where to get it, 119 00:05:59,000 --> 00:06:01,200 Speaker 3: that's exactly what people do on our platform, and we 120 00:06:01,200 --> 00:06:02,719 Speaker 3: think that'll be a great moment for us to shine. 121 00:06:02,880 --> 00:06:05,719 Speaker 1: You talk about that depth of engagement and in many 122 00:06:05,720 --> 00:06:08,000 Speaker 1: ways that's driven by the AI investment you've made and 123 00:06:08,040 --> 00:06:10,880 Speaker 1: the fact that you're personalizing it. You call it a differentiator. 124 00:06:11,360 --> 00:06:13,920 Speaker 1: How is it differentiating you when we see meta also 125 00:06:14,000 --> 00:06:16,200 Speaker 1: plowing a lot of money into AI and offering that 126 00:06:16,200 --> 00:06:19,240 Speaker 1: to advertisers too, what's the secret source that you've had. 127 00:06:20,040 --> 00:06:22,800 Speaker 3: So for us? You know, the really uniquely on our 128 00:06:22,839 --> 00:06:25,200 Speaker 3: platform is that Pinterest is the only place in the 129 00:06:25,200 --> 00:06:29,440 Speaker 3: Western world where users not only shop, but they also curate. 130 00:06:29,640 --> 00:06:31,640 Speaker 3: So you know, you know, there's plenty of other places 131 00:06:31,680 --> 00:06:33,920 Speaker 3: through third party cookies and things like that that could 132 00:06:34,240 --> 00:06:36,479 Speaker 3: say they know everything you've bought and everything in your closet, 133 00:06:37,080 --> 00:06:38,840 Speaker 3: but they have no idea how you style that into 134 00:06:38,880 --> 00:06:41,919 Speaker 3: an outfit. They don't know your taste. On Pinterest, hundreds 135 00:06:41,960 --> 00:06:45,080 Speaker 3: millions of people every day are styling their outfits, deciding, 136 00:06:45,160 --> 00:06:46,839 Speaker 3: you know, what handbag to go with, what pair of 137 00:06:46,839 --> 00:06:49,599 Speaker 3: shoes with what dress, And so we learn people's taste. 138 00:06:49,640 --> 00:06:52,200 Speaker 3: I talked about on our call. Our taste graph has 139 00:06:52,240 --> 00:06:54,960 Speaker 3: grown by over seventy five percent over the last two years, 140 00:06:54,960 --> 00:06:58,359 Speaker 3: and that really unique signal lets us train AI to 141 00:06:58,440 --> 00:07:00,960 Speaker 3: be really really personal is the way that manifests for 142 00:07:01,000 --> 00:07:02,960 Speaker 3: our users. If you go ask a gens the user 143 00:07:02,960 --> 00:07:05,120 Speaker 3: why they go to Pinterest. What they'll say is Pinterest 144 00:07:05,240 --> 00:07:07,560 Speaker 3: just gets me. Well, that is the use of AI 145 00:07:08,080 --> 00:07:10,800 Speaker 3: trained on that really unique signal where we understand not 146 00:07:10,840 --> 00:07:13,720 Speaker 3: only their style and taste, but when somebody else bought 147 00:07:13,720 --> 00:07:16,000 Speaker 3: that same handbag, how did they put an outfit together 148 00:07:16,080 --> 00:07:19,559 Speaker 3: around that. That is really really great personalization, that's really 149 00:07:19,600 --> 00:07:22,840 Speaker 3: helpful to our user and again totally unique in that 150 00:07:23,080 --> 00:07:25,360 Speaker 3: signal that we have that we're able to do differentiated 151 00:07:25,400 --> 00:07:27,440 Speaker 3: things with AI because of that unique signal of the 152 00:07:27,760 --> 00:07:29,600 Speaker 3: from the curation that users do on our platform. 153 00:07:29,720 --> 00:07:32,600 Speaker 2: I'm wondering about partnerships. You mentioned recipes earlier, and that's 154 00:07:32,640 --> 00:07:35,400 Speaker 2: probably the main thing that I do on a daily 155 00:07:35,440 --> 00:07:38,400 Speaker 2: basis with Pinterest. I save recipes that I like there 156 00:07:38,440 --> 00:07:40,520 Speaker 2: and then I go to Pinterest when I'm ready to 157 00:07:40,520 --> 00:07:44,440 Speaker 2: cook them. Can you partner up with, for example, on Instacart, 158 00:07:44,600 --> 00:07:47,760 Speaker 2: to use your AI find all the ingredients I need 159 00:07:47,800 --> 00:07:49,760 Speaker 2: and then say, like, you know, click this button to 160 00:07:49,880 --> 00:07:51,840 Speaker 2: order all the stuff you need for this recipe. 161 00:07:52,960 --> 00:07:55,160 Speaker 3: You know, what we're seeing is that our visual search 162 00:07:55,240 --> 00:07:58,760 Speaker 3: technology is working across many many categories. Shopping has been 163 00:07:58,800 --> 00:08:00,760 Speaker 3: a first area of focus for us, but there are 164 00:08:00,800 --> 00:08:03,480 Speaker 3: many adjacent categories that works for and the way we 165 00:08:03,520 --> 00:08:07,960 Speaker 3: think about that is partnering closely with great retailers, great 166 00:08:07,960 --> 00:08:10,280 Speaker 3: brands to connect them directly to a customer. So I 167 00:08:10,280 --> 00:08:13,880 Speaker 3: think those opportunities continue to abound. And you know, in 168 00:08:13,960 --> 00:08:16,400 Speaker 3: terms of that visual search capability, one of the things 169 00:08:16,400 --> 00:08:18,680 Speaker 3: that we talked about on our call yesterday is we 170 00:08:18,840 --> 00:08:22,400 Speaker 3: just launched a new multimodal AI model for visual search 171 00:08:23,120 --> 00:08:26,760 Speaker 3: that outperforms off the shelf models by over thirty percent. 172 00:08:26,880 --> 00:08:28,640 Speaker 3: So just to make it really tangible how much better 173 00:08:28,720 --> 00:08:32,240 Speaker 3: those recommendations are because of that unique signal. Outperforming the 174 00:08:32,480 --> 00:08:34,160 Speaker 3: you know, the best off the shelf models by over 175 00:08:34,240 --> 00:08:37,880 Speaker 3: thirty percent gets to really just how unique our capabilities 176 00:08:37,920 --> 00:08:40,040 Speaker 3: are there. And that makes us a great partner for 177 00:08:40,120 --> 00:08:42,679 Speaker 3: many And you've seen us partner with Amazon, You've seen 178 00:08:42,760 --> 00:08:45,679 Speaker 3: us partner you know, with large retailers, and we're now 179 00:08:45,720 --> 00:08:48,200 Speaker 3: expanding that to more and more other great partners, and 180 00:08:48,240 --> 00:08:50,600 Speaker 3: so there are many more forward opportunities for us on that. 181 00:08:51,080 --> 00:08:53,640 Speaker 2: All right, Bill, thanks so much for joining us on 182 00:08:54,080 --> 00:08:55,720 Speaker 2: what must be a very busy day for you. Bill 183 00:08:55,760 --> 00:08:57,840 Speaker 2: ready there the CEO having Pinterest