Pinterest (PINS) investor relations material

Strategic priorities and platform evolution

• Consistent execution on a strategy to make the platform a shopping destination using visual search, curation, and AI, resulting in eight consecutive quarters of record user growth, with Gen Z now over 50% of the user base.

• AI-driven recommendations and visual search are central, with proprietary models outperforming off-the-shelf solutions by 34% in shopping relevancy.

• The platform is positioned as a unique visual search leader, especially for shopping, addressing the 'I'll know it when I see it' problem and attracting 39% of Gen Z as their starting point for searches.

• Expansion into new commercial categories like financial services, autos, and travel is underway, leveraging visual-first experiences.

• International growth is strong, with user growth rates outpacing North America and a focus on adapting the last-mile experience for local markets.

AI, user engagement, and monetization

• AI is used to personalize shopping recommendations, leveraging a unique curation signal from hundreds of millions of users, growing the taste graph by 75% in two years.

• Engagement is deepening, with query and visual search growth outpacing user growth, and ad clicks growing even faster.

• Performance Plus and automation tools have halved campaign creation time, supporting a shift from brand to performance advertising, now comprising over 90% of large retailer spend.

• Monetization is expanding from large advertisers to mid-market and SMBs, with international markets representing a major future revenue opportunity.

• Partnerships with agencies, resellers, and third parties are used to efficiently scale in international and smaller markets, while first-party sales remain a focus in larger markets.

Competitive landscape and future outlook

• The platform is not aiming to compete in general-purpose search but is focused on owning the visual search space for shopping, a rapidly expanding and previously undigitized market.

• AI-enabled shopping assistance is already in place, with users preferring to remain involved in their shopping journeys rather than fully delegating to agents.

• The unique curation signal is seen as a sustainable competitive advantage, enabling better recommendations and a flywheel effect that drives user and advertiser growth.

• The company expects multi-year growth driven by AI, international expansion, and deepening engagement, with a focus on profitable growth and margin expansion.

• Agencies are expected to remain important partners, with AI enhancing rather than replacing their role in the ecosystem.