Pinterest (PINS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 18% year-over-year to $898 million, with global MAUs reaching a record 537 million, up 11% year-over-year; Adjusted EBITDA rose 31% to $242 million with a 27% margin.

• Net income surged 354% year-over-year to $31 million, driven by increased user engagement, monetization, and AI-powered ad solutions.

• Lower funnel revenue and AI-driven ad products were the fastest-growing segments, especially among large and mid-tier retailers.

• Retail and emerging verticals performed strongly, while food and beverage advertising remained soft due to industry headwinds.

• A $34.7 million legal settlement was recorded in Q3, impacting GAAP results.

Financial highlights

• U.S. and Canada revenue grew 16% to $719 million, Europe up 20% to $137 million, and Rest of World up 38% to $42 million.

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

• Cost of revenue was $182 million (+9% YoY); non-GAAP operating expense was $478 million (+15% YoY); total costs and expenses were $904 million.

• Cash, cash equivalents, and marketable securities totaled $2.44 billion at quarter end.

• Net income for the nine months was $14.6 million, compared to a net loss of $236.8 million in the prior year period.

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.

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

• Lower funnel revenue and third-party demand partnerships expected to remain key growth drivers into 2025.

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