Q3 2024 Pinterest Inc Earnings Call
and others. Thank you. Thank you.
Thank you all for joining us today for today's conference with Pinterest.
We are currently finalising preparations for today's third quarter earnings conference call, and we appreciate your patience.
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Speaker Change: and the rest of the team. Thank you. Thank you. Thank you. Thank you.
Brika: Thank you all for joining. I would like to welcome you all to the Pinterest third quarter 2024 earnings conference call. My name is Brika and I will be your moderator for today.
Brika: All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end.
Brika: I would now like to pass the conference over to your host, Andrew Sundberg, Vice President, Investor Relations and Treasury at Pinterest. Thank you. You may proceed, Andrew.
Andrew Sundberg: Good afternoon and thank you for joining us. Welcome to Pinterest Earnings Call for the third quarter and it's September 30th, 2024.
Andrew Sundberg: My name is Andrew Sarnberg and I am Vice President of Investor Relations and Treasury for Pinterest. Joining me on today's call are Bill Ready, Pinterest CEO, and Julia Donnelly, our CFO.
Andrew Sundberg: This conference call is being webcast and we are also providing a slide presentation to accompany our commentary. Please refer to our investor relations website at investor.pinterestinc.com to find today's presentation, webcast, and earnings press release.
Andrew Sundberg: Some of the statements that we make today regarding our performance, operations, and outlook may be considered forward-looking, and such statements involve a number of risks and uncertainties that could cause actual results to differ materially.
Andrew Sundberg: In addition, our results, trends, and outlook for Q4 2024 and beyond are preliminary and are not an assurance of future performance.
Andrew Sundberg: We are making these forward-looking statements based on information available to us as of today, and we expressly disclaim any duty or obligation to update them later unless required by law.
Andrew Sundberg: For more information about risks, uncertainties, and other factors that could affect our results, please refer to our most recent Form 10-Q or Form 10-K filed with the SEC and available on our Investor Relations website.
Andrew Sundberg: During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures is included in today's earnings press release and presentation, which are distributed and available to the public through our Investor Relations website.
Speaker Change: Lastly, all growth rates discussed in today's prepared remarks should be considered year over year unless otherwise specified. And now I'll turn the call over to Bill.
Bill Ready: Thanks, Andrew. Good afternoon, and thank you for joining our third quarter 2024 earnings call.
Bill Ready: One year ago at our Investor Day, we shared our business vision and outlined the strategic initiatives that we believe will drive long-term sustainable growth.
Bill Ready: These initiatives include, one, growing users and deepening engagement per user, two, making ads relevant content, which allows us to increase ad load and provide a better user experience simultaneously.
Bill Ready: 3. Executing on our lower funnel revenue opportunity, and finally, driving demand through third-party partners, resellers, and international markets as additional levers to growth.
Bill Ready: We stated that these initiatives, working in tandem, would result in a mid to high-teens revenue growth kegger and improving profitability, leading to adjusted EBITDA margins expanding to the low 30% range in the next three to five years.
Bill Ready: One year later, our operating results validate our continued execution against this strategy and commitment to delivering on the targets that we laid out at Investor Day.
Bill Ready: When we announced our three-to-five-year financial targets at Investor Day, we had just delivered Q2 2023 revenue growth of 6%.
Bill Ready: Since then, on a trailing 12-month basis, as of Q3 2024, we have accelerated revenue growth to 18% and expanded adjusted EBITDA margins by more than 800 basis points year-over-year.
Bill Ready: Q3 was further evidence of progress against our strategy, as we grew revenue 18% year-over-year.
Bill Ready: We've built out a full funnel ads platform with a particular focus on the lower funnel, which continues to be the fastest growing part of our business as advertisers are increasingly seeing Pinterest as a great place to connect with customers demonstrating high commercial intent.
Bill Ready: We're also building a fundamentally better product, focusing on the aspects of Pinterest that make us unique to our audience. The ability to find inspiration, curate, and shop all in one place.
Bill Ready: We are pleased to report monthly active users of 537 million in Q3, another record high, reflecting 11% year-over-year growth.
Bill Ready: Each quarter of record users provides further evidence that we found our best product market fit in years.
Bill Ready: Today, I'll focus my remarks on discussing themes that are driving progress against the strategy we laid out at Investor Day, starting with an overview about AI and its impact across our business, and moving on to a more specific quarterly update on users, engagement, and monetization.
Bill Ready: This vast data allows us to create a highly personalized and relevant recommendations introducing audiences to new brands products and emerging trends.
Bill Ready: We have distinctive and explicit expressions of intent like a user searching for and saving outfits to their vacation board.
Bill Ready: This provides us with real time insight into what inspires our users and what they're looking to purchase next and provides a holistic understanding of user taste based on their past behavior and other users with similar taste.
Bill Ready: So while other platforms may see what their users are looking to purchase today, we see what users are interested in purchasing days weeks and even months in advance.
Bill Ready: This is because the users who come to pinterest are often undecided, but refine their tastes over multi session commercial journey is before ultimately deciding what to do or buy.
Bill Ready: This signal creates a flywheel effect as users engage with our recommended content through curation actions like saving the boards and creating collages or through clicking in buying behavior, we gather Richard data.
Bill Ready: This data into our recommendation algorithms enables us to deliver even more personalized and relevant content and create a network of products associations. Unlike any other platform that allows us to effectively recommend content to users with similar tastes.
Bill Ready: Furthermore, in addition to utilizing our proprietary foundation models in areas, where we are differentiated such as computer vision. We are also leveraging our unique first party signal to fine tune off the shelf large language models for a variety of use cases around organic and ads content survey.
Bill Ready: This approach has led to phenomenal results, notably a 300 basis point improvement in actionable engagement measured by clicks and saves compared to using an off the shelf model not fine tuned with our data.
Bill Ready: Our unique user signals and deep understanding of individual interests and tastes also allow us to power monetization with highly relevant ads.
Bill Ready: And making the add useful content for users.
Bill Ready: We see this clearly across the platform, including on our search surface, where the average adds relevance for top AD slot has more than doubled over the past two years.
Bill Ready: This means when a user searches for commercial queries like holiday home decor or fall boots. They see more ads that are relevant to their query if they can easily shop.
Bill Ready: Our users come with commercial intent these ads do not interrupt their user journey, rather they enhance it we.
Bill Ready: We also leveraged AI to significantly enhance our ads ranking in delivery systems over the past 18 months.
Bill Ready: The compounding efficiency gains for our advertisers across the platform.
Bill Ready: Additionally, in moments of high intent, our AI powered whole page optimization enabled us to flex up AD load to serve more relevant ads to our users, allowing ad load and engagement to grow in tandem.
Bill Ready: All in all AI as a core competency at Penn Trust and at the center of the significant progress, we're making across our technology stack, which is enhancing the experience for users and advertisers alike.
Bill Ready: With that let's get into Q3, specifically and discuss our work to grow users and deepen engagement.
Bill Ready: In Q3, we continued to improve the user inspiration to action journey as.
Bill Ready: As a visual search and discovery platform users come to pinterest to explore their interests seek inspiration and browse items they may like to purchase.
Bill Ready: Kieran can save pins, and the boards and collages refining their taste and facilitating future shopping we've.
Bill Ready: We've enhanced the action ability of our platform by integrating shop ability into all major user experiences and leveraging our computer vision technology to make tens easily shop level.
Bill Ready: Users are taking notice of this change with 66% of weekly Gen Z Penn are saying <unk> is the first or one of the first services they used to shop up from 54% in the year prior.
Bill Ready: Through curation, we gained valuable insights into product context, enabling us to refine our recommendations and enhance the user experience.
Bill Ready: Boards and collages are integral to allowing users to curate their taste on pinterest.
Bill Ready: And we continue to make steady investments to improve these features.
Bill Ready: For example, we recently launched a suite of new collage features including collage, Remixing, which lets users collaborate build upon and use existing clauses as a starting point to express their own taste and creativity, thereby reducing the barrier to entry to create a collage.
Bill Ready: We're also bringing shopping recommendations to boards utilizing context from users own search and save history as well as our unique product associations to recommend items that might match their tastes and allow them to seamlessly move down the funnel from curation to action.
Bill Ready: At Investor Day, we also discussed the shifts we made to our shopping strategy, most notably shifting from a model that was trying to compete with retailers for the transaction to being an AD based model that has a deep partner to retailers.
Bill Ready: Go forward strategy is centered on expanding shop in more content refining recommendations through improved personalization and relevance and seamlessly connecting users and merchants.
Bill Ready: Over the past year, we have made significant progress in executing against this strategy with the goal of making our platform more actionable for users.
Bill Ready: Notably for the fourth consecutive quarter.
Bill Ready: More than doubled outbound clicks to advertisers year over year as we improve the overall action ability of the platform <unk>.
Bill Ready: Additionally to improve user understanding of which <unk>, we've added visual shopping indicators to product pins in the U S and launched filters like on sale to help users find products that match their budget and preferences.
Bill Ready: Finally, we are expanding the availability of our shopping features to a broader audience. We recently expanded shop, the look which helps users shop, what they see and lifestyle imagery to international markets.
Bill Ready: We also added ways to style a module that appears on close hubs for women's fashion pens showcasing inspiration on how to style the item in an outfit and complimentary shuttle products from our catalog.
Bill Ready: In summary, we are successfully executing the strategy, we shared at our Investor day to drive curation and action ability.
Bill Ready: As a result, we are seeing steady improvement across the basket of engagement metrics, we measure, including the ratio of our weekly active to monthly active users as well as an exciting increase in the mix of user sessions that include action ability like curation and outbound clicks.
Bill Ready: This increasing mix of intent based and lower funnel user actions is directly aligned with our efforts to make pinterest more solvable for users and a true full funnel platform for advertisers as well.
Speaker Change: Next I'd like to discuss how we are improving monetization by increasing <unk> value and performance for advertisers.
Speaker Change: We delivered strong revenue growth in Q3 up 18% year over year, driven primarily by strength in our lower funnel revenue for the third quarter in a row.
Speaker Change: As we've discussed before we've been in the process of transforming our advertising product to be a true performance platform, where advertisers can meet our users across the purchase funnel.
Speaker Change: While shopping has long been a core use case on pinterest advertisers historically lack the tools to effectively drive and measure performance on pinterest to.
Speaker Change: To address this we've rolled out multiple lower funnel products over the past 18 months, all of which compound on each other and become more powerful when used together.
Speaker Change: Our multi quarter lower funnel product rollout began in earnest with tools to drive a more seamless handoffs and.
Speaker Change: In mid 2023, we launched mobile deep linking enabling a one quick transition to an advertiser's mobile application, particularly beneficial for large retailers with deep consumer penetration of our mobile app.
Speaker Change: We followed this offering with the release of direct links are one click hand off to an advertiser's mobile or desktop website from pinterest.
Speaker Change: Combined M D L and direct links cover 100% of our lower funnel revenue today.
Speaker Change: And have significantly improved both the shopping experience on Pinterest and advertiser performance with Q3 being the fourth consecutive quarter, we've more than doubled the clicks to advertisers year over year.
Speaker Change: The success of these tools is evident in our strong lower funnel revenue growth over the last three quarters as advertisers increasingly allocate budget to us after seeing performance gains on our platform.
Speaker Change: We initially began to see value capture in the form of increasing budget allocation from our largest most sophisticated advertisers who benefited for mobile deep linking and Leverages advanced measurement tools to understand the increase in ROI, we were driving.
Speaker Change: With some of these large advertisers we've reached more than 5% of their total AD budgets or 10% plus of their digital ad budgets.
Speaker Change: While Pinterest was traditionally limited to smaller experimental budget pools, we are now taking share and performance budgets that tend to be larger and always on.
Speaker Change: For the past three quarters as more advertisers have implemented measurement tools to see the impact of direct links we started to see the next tranche of large retailers and those in the 1% to $30 billion sales range, followed suit and increase their spend.
Speaker Change: With both of these advertiser segments, we see more headroom to grow share of wallet into 2025 and beyond as advertisers see increasing gains due to the lower funnel campaigns through the continued benefits of MTL direct links shopping ads and resilient measurement.
Speaker Change: We also expect our new automation offering performance plus to propel an even greater portion of spend from these advertisers as we make campaigns easier to create and more performance compounding on the lower funnel improvements we've rolled out over the past 18 months.
Speaker Change: Diving deeper into automation after months of beta testing, we officially launched performance plus for general availability on October one.
Speaker Change: Performance plus brings together AI, driven budgeting bidding and targeting functionalities, while reducing the effort required from advertisers.
Speaker Change: Recognizing that giving up control can be challenging for certain marketers, we've gone through multiple levels of alpha and beta testing to validate the effectiveness of automated campaigns and simplifying the experience for markers and delivering superior ROI.
Speaker Change: The results are clear.
Speaker Change: Advertisers need 50% fewer inputs to set up a campaign and on average see a 10% better cost per action.
Speaker Change: Moreover, advertisers, who use performance plus for their shopping AD campaigns on average see a 20% plus cost per action improvement.
Speaker Change: While we're only five weeks into the general availability launch performance plus campaigns. We're pleased with the early signals from advertisers as they begin to adopt the automation suite.
Speaker Change: This is especially true for the smaller and medium sized advertisers who have historically struggled to build successful campaigns on pinterest.
Speaker Change: Beyond its initial suite of automation tools performance plus is expanding to include new creative and bidding features.
Speaker Change: Performance plus creative which also went into general availability in early October helps advertisers create and optimize their AD creatives across formats, including generative AI backgrounds on shopping ads.
Speaker Change: Beta testing has demonstrated a 14% average increase in conversion rate and a 9% lower cost per action for advertisers utilizing performance plus creative.
Speaker Change: For example, <unk> and online retailer known for its innovative washable rugs used performance plus creative to automate AD creation from their extensive product catalog and.
Speaker Change: In addition to the significant time and effort savings from automation, they drove a 37% better click through rate compared to the standard shopping campaigns.
Speaker Change: Our second key investment area is bidding with features designed to enable advertisers to bring more inventory onto pinterest and find value across a broader swath of their catalog.
Speaker Change: They're the largest advertisers we built in the optionality to bid at the item level of their product catalog. So advertisers can have more granular controls to bid at different price points.
Speaker Change: For the next tier of advertisers, we introduced performance plus rollout bidding, which automatically optimizes bids based on performance or customer value in order to maximize return on ad spend.
Speaker Change: While rollout bidding is currently in beta and our Alpha test most advertisers saw at least a 15% increase in return on AD spend by using performance plus rollout bidding.
Speaker Change: We expect performance plus realized bidding to exit beta testing and be more broadly available to all eligible advertisers in Q1.
Speaker Change: Underlying our lower funnel improvements are our efforts to implement our resilient measurement solutions conversions.
Speaker Change: Conversions API or copy remains our highest priority within the suite of measurement solutions.
Speaker Change: It enhances conversion visibility for advertisers and in turn can be used to tune and optimize their spend for future performance.
Speaker Change: We increased our Kathy coverage again this quarter and also introduce Kathy connect a lower touch adoption method for advertisers with fewer in house developing resources to further simplify the process.
Speaker Change: We are also promoting the adoption of other resilient solutions, depending on and advertisers a preference.
Speaker Change: For example, many of our large retail partners have implemented clean rooms, with us to improve their conversion visibility and measurement models.
Speaker Change: By providing a wider range of durable measurement solutions, we are aligning with advertisers' needs and meeting them, where they are as.
Speaker Change: As a result advertisers utilizing one or more of our privacy centric measurement tools now make up over half our total revenue or two thirds of our lower funnel revenue specifically.
Speaker Change: We continue to make progress across the lower funnel suite, one of our key investment areas in the business and look forward to sharing more progress in the quarters to come as this suite of solutions continues to rollout.
Speaker Change: Next I'll touch on our global partnership buffers, which are meant to filling gaps in our auction and expand our international presence. We've made great progress since we discussed these partnerships at our Investor day, a year ago.
Speaker Change: Starting with our third party demand partnerships, we announced in September that at the start to our international expansion, we expanded our relationship with Amazon ads from the U S to now include Canada, and Mexico as well.
Speaker Change: Next our Google partnership continues to grow as we test learn and expand to new regions, including both under monetized and previously and monetize markets.
Speaker Change: Both of these partnerships have continued to build sequentially throughout the year, and we expect that trajectory to persist into Q4.
Speaker Change: Turning to our reseller partnerships.
Speaker Change: Throughout this year, we have turned on multiple new partnerships to expand our sales coverage across our international footprint.
Speaker Change: Resellers complement our first party sales efforts and our third party demand partnerships and are now helping to drive revenue and over 30 under monetize markets.
Speaker Change: We expect these partnerships to ramp and our rest of world markets and a steady progression throughout the next few quarters.
Speaker Change: Finally, with the holiday season, right around the corner I'd be remiss not to discuss some of our most exciting launches to help users shop and help advertisers drive sales during the most important retail period of the year.
Speaker Change: For users, we're taking the work out of holiday shopping by introducing gift guides curated by celebrities brands publishers and pacemakers with shovel gift ideas available to users right in their feet.
Speaker Change: For advertisers, we've launched a suite of new tools powered by machine learning to better help advertisers highlight their holiday shopping discounts.
Speaker Change: The first tool as promotions, which allows advertisers to showcase promotions like free shipping site wide sales and buy one get one offers to users based on their taste and preferences.
Speaker Change: The test results have been promising for example, Spanx was an early adopter of our new promotions feature and site two X increase in click through rate on their recent campaign.
Speaker Change: Second we launched new deal add modules, making ads with special offers more visible to users with the carousel format, helping brands standout during sale moments.
Speaker Change: These enhancements help users easily find that perfect gift they've been looking for and helping advertisers connect with our high intent user base.
Speaker Change: Overall I am pleased with the progress we are making across a number of initiatives many of which were in the early stages of development at our Investor day, a year ago.
Speaker Change: And I'm, even more optimistic about what's ahead.
Speaker Change: With that I'll turn the call over to Julia to share more details about our financial performance.
Julia Donnelly: Thanks, Bill and good afternoon, everyone today I'll be discussing our third quarter 2024 financial results and provide an update on our preliminary fourth quarter 2020 outlook all financial metrics, except for revenue. We discussed are non-GAAP terms, unless otherwise specified and all comparisons will be discussed on a year over year basis unless otherwise.
Speaker Change: Noted.
Speaker Change: Let's start with our third quarter results.
Speaker Change: We ended the quarter with $537 million global monthly active users or MAA is growing 11% and reaching yet another record high.
Speaker Change: Additionally, we continue to demonstrate user growth across all of our reported geographies and <unk>.
Speaker Change: Q3, our U S and Canada region had $99 million and they use growing 3%, our Europe region had $139 million and they use growing 8% and in the rest of world markets, we had $300 million and they use growing 16%.
Speaker Change: Moving to revenue.
Speaker Change: In Q3, our global revenue was $898 million up 18% on a reported and constant currency basis. The.
Speaker Change: The revenue strength this quarter highlights how we are driving value for advertisers across the full funnel with strength coming from our lower funnel consideration and conversion objectives, which optimized for clicks and conversions.
Speaker Change: From a vertical perspective, we continued to see broad strength in retail. Additionally, emerging verticals like financial services automobiles and technology continue to be a source of strength.
Speaker Change: However, this growth was partially offset by ongoing softness within the food and beverage sub sector of CPG advertisers continue to navigate broader industry headwinds.
Speaker Change: Next as expected revenue from our third party demand partnerships continued to ramp in Q3 growing sequentially off the revenue base. We delivered in Q2 as it continues to complement our growing first party business.
Turning to our geographical breakout is for Q3 and the U S and Canada, we generated $719 million in revenue growing 16% strength came from retail and emerging categories, including financial services technology and automobiles.
Speaker Change: Europe revenue was $137 million growing 20% on both a reported and constant currency basis.
Speaker Change: In Europe was driven by retail.
Speaker Change: Revenue from rest of World was $42 million growing 38% on a reported basis or 45% on a constant currency basis.
Speaker Change: In Q3 AD impressions grew 41% will add pricing declined 17% year over year.
Speaker Change: Our efforts to begin serving ads and monetize international markets or previous gaps in our auction have been accretive to net revenue.
Speaker Change: However, as we started to call out last quarter. The ramp of these initiatives has also naturally led to an increase in AD impressions growth and downward pressure on overall global platform pricing due to this ongoing mix shift.
Speaker Change: Moving to expenses.
Speaker Change: Though year over year comparisons are becoming more challenging due to the due to the substantial margin expansion achieved in the second half of 2023, we continue to drive adjusted EBITDA margin expansion again in Q3 through effective expense discipline, while also allocating resources towards our highest ROI initiatives.
Speaker Change: Q3 cost of revenue was $182 million up 9% year over year and up 1% versus Q2.
Speaker Change: Due to increased infrastructure spend related to user and engagement growth, partially offset by our continued work to drive cost optimizations on our infrastructure spend.
Speaker Change: Our non-GAAP operating expense was $478 million up 15%. The increase was primarily due to R&D, where we are investing in head count growth with smaller increases in sales and marketing and G&A.
Speaker Change: Our revenue strength and expense discipline led to another strong quarter of adjusted EBITDA coming in at $242 million with an adjusted EBITDA margin of 27%. This was up approximately 280 basis points versus Q3 last year.
Speaker Change: Finally, we ended the quarter with cash cash equivalents in marketable securities of $2 4 billion in.
Speaker Change: In the quarter, we allocated $466 million towards share repurchases, bringing our year to date spend to $500 million for a total of $15 9 million shares. In addition, we have utilized $306 million of cash year to date on net share settlement of equity awards.
Speaker Change: Lastly, we have replenished our buyback capacity by authorizing a new $2 billion share repurchase program intended to be used over a multiyear period to mitigate dilution from stock based compensation or opportunistically buy back shares.
Speaker Change: Now I will discuss our preliminary guidance for the fourth quarter.
Speaker Change: We expect Q4 2020 for revenue to be in the range of 1.125 to 1.1 $45 billion, representing 15% to 17% growth year over year base.
Speaker Change: Based on current spot rates, we expect the impact of foreign exchange to be minimal.
Speaker Change: Turning now to our expense guidance.
Speaker Change: We expect Q4, non-GAAP operating expenses of $495 million to $510 million growing 11% to 14% year over year.
Speaker Change: Our operating expense guidance does not include cost of revenue. However, we anticipate a more modest level of year over year Q4, non-GAAP cost of revenue leverage versus the prior three quarters as we anniversary significant gains from our cost optimization work.
Speaker Change: The increase in non-GAAP operating expense year over year is driven by investment increases in R&D, where we continue to invest in head count for AI talent and other product initiatives supporting users and monetization.
Speaker Change: With our prior commentary, we expect year over year adjusted EBITDA margin expansion in both halves of 2024 at a more modest level in the second half as we anniversary the strengthening adjusted EBITA margins, we drove in the second half of 2023.
Speaker Change: Overall, we are pleased with our progress in 2024 toward our long term adjusted EBITDA margin targets.
Speaker Change: In closing I am pleased with our team's performance this quarter, which demonstrates ongoing progress against our strategic plans to grow users and engagement and continue to strengthen our full final offering for advertisers with that I'll hand, it over to bill for some final words.
Bill Ready: Thanks Julien.
Bill Ready: I want to thank our teams at Pinterest, our advertising partners and all the people that come to Pinterest to find inspiration in the shop and with that we can open the call up for questions.
Speaker Change: Thank you.
Speaker Change: We'll now begin the question and session.
Speaker Change: I would like to ask a question. Please press star followed by one on your telephone keypad.
Speaker Change: If you change your mind please Mr Qi.
Speaker Change: Please note that we do ask you to please limit yourself to one question and if you have any more you will have to be during the key.
Speaker Change: Yeah. The first question from Ross Sandler with Barclays. Please go ahead.
Speaker Change: Great. Thanks, guys, maybe just starting with the macro.
Julia Donnelly: Julia Your guide for <unk>, It looks like a couple of point detail at the midpoint.
Julia Donnelly: Could you just talk about what you're seeing quarter to date.
Speaker Change: Any impact from the shortened holiday window, or any kind of category strength or weakness.
Speaker Change: We would flag here and then just generally how are things heading into 2025, thanks a lot.
Speaker Change: Thanks Ross.
Speaker Change: So as you noted we're guiding Q4 at 15% to 17%, which is roughly similar to the 16% to 18% we guided for Q3 and obviously we came in at the high end of that range in Q3 2018.
Speaker Change: And that guidance for Q4 reflects the continuation of many of the factors that helped drive our growth in Q3 and really throughout this entire year lower funnel revenue growth has been the fastest growing part of our business for the past three quarters driven by the product innovation. We've had over the last 18 months and we expect that lower funnel strength to continue not just into Q4, but.
Speaker Change: Into 2025 and beyond.
Speaker Change: From third party demand partnerships also continues to ramp sequentially into Q4. However, we've also noted for the last few quarters that we were seeing softness among food and beverage advertisers, who are navigating broader headwinds within that category and we think this trend continues into Q4 as well.
Speaker Change: I would also call out that as expected performance pluses still in the early rollout phase with many advertisers limiting budget shifts and adoption of new features during holiday peak period, we ought to have more functionality on the com with performance plus with well as bidding feature expected to be released in Q1 next year, which is consistent with our prior commentary on the timeline.
Speaker Change: And just like our previous lower funnel product efforts like M. D. L direct links and copy we expect the adoption curve and value capture cycle to be more of a multi quarter beginning in 2025.
Speaker Change: Further compound the gains we are seeing in the lower funnel.
Speaker Change: Thank you.
Speaker Change: Hi.
Speaker Change: Ryan <unk> with Morgan Stanley. Your line is now open.
Speaker Change: Yeah.
Speaker Change: Thanks for taking my questions I have two.
Speaker Change: First of all I'm just can you bill can you sort of walk us through just kind of step back and say your most important 2025 AD innovation sogo focal points and perhaps how olive new Gen AI capabilities sort of change those over the course of the last year and then the second one.
Speaker Change: <unk> off either bill or Julia as you sort of think about the AD Tech innovation areas.
Speaker Change: Are there any where you really see the potential to drive durably faster AD revenue growth to review hopping into the Twenty's or is it just sort of it's more of a challenge to add that many.
Speaker Change: Thanks.
Speaker Change: Yes.
Speaker Change: Thanks, Brian.
Speaker Change: So first of all we feel really good about the levers we have to drive revenue growth and 2025.
Speaker Change: As we make further continued progress in building out the full funnel platform with a concerted focus on the lower funnel.
Speaker Change: If we look back at the initiatives that we outlined at our Investor day, those all continue to play out nicely.
Speaker Change: As I noted, we rolled out a number of lower funnel tools and solutions like mobile deep linking direct claims and Kathy.
Speaker Change: Privacy related measurement, they're leading to increase share of wallet and value capture, especially with our largest.
Speaker Change: Most sophisticated advertisers.
Speaker Change: And now increasingly with the next tranche of advertisers as well so we see more room to grow with both cohorts of advertisers in 2025.
And it's worth noting that for some of our largest advertisers lower funnel revenue objectives.
Speaker Change: Now account for over 80% of their spend with US which is up significantly over the last two years and significantly higher than the overall mix of lower funnel that.
Speaker Change: That we see across the business.
Speaker Change: Couple of things to note performance plus just went GA.
Speaker Change: With value capture still on the come as you go into 2025.
Speaker Change: Especially for mid sized accounts as performance plus really helps automate and expedite new campaign creation.
Speaker Change: Of course global partnerships.
Speaker Change: <unk> third party demand resellers are also an added contributor as we look into 2025.
Speaker Change: And then as we've noted in the last several quarters macro headwinds specifically within the food and beverage category.
Speaker Change: Are not unique to us, but we do have more concentration there and those are somewhat out of our control. So setting that aside we continue to feel good about our initiatives to grow the business into 2025 and beyond and it's worth noting.
Speaker Change: You asked about in your second question of getting to <unk>.
Speaker Change: In the twenties.
Speaker Change: If you exclude in food and beverage we grew revenue in the low 20% range in Q3, which really speaks to the strength in the rest of the business on the back of the initiatives that we're driving.
Speaker Change: So you're talking about durability.
Speaker Change: Mentioned in my prepared remarks.
Speaker Change: We're moving into those lower funnel performance budgets those those tend to be much larger than the external budgets, where we played before and much more durable and that is increasingly where we are gaining share. So we feel really good about and again. If you. If you were to exclude food and beverage where theres been a broader macro headwind, we just have a little more.
Speaker Change: To that because of the unique use cases on our platform.
Speaker Change: The rest of our business.
Speaker Change: Growing in the low 20% range in Q3, and then finally on engagement, we continue to be excited with the progress there.
Speaker Change: We're seeing an increasing mix of sessions that include lower funnel actions, that's really directly aligned with our efforts to improve action ability and we have more room to go as monetization per unit of intent is to a fraction of what it could be on the platform, but we've really proven out that pinterest is a shopping platform.
Speaker Change: And we've talked about winning with the next generation with Gen Z Pinterest, where gen Z goes to shop.
Speaker Change: It's increasing the case year over year as I shared in my prepared remarks, and we see that across the platform and so again.
Speaker Change: It's why we feel good about picking up share in those lower funnel objectives performance budgets.
Speaker Change: Retail being a source of strength those are all things that have been consistently part of our story and those those those efforts continue to compound on one another hopefully that helps.
Speaker Change: Thank you.
Speaker Change: Now have Ken <unk> with Wells Fargo. Please go ahead.
Speaker Change: Thank you very much for the opportunity.
Speaker Change: On performance plus could you talk to us about I know you just rolled out in <unk>, but could you talk about how we should think about.
Speaker Change: <unk> contribution to 'twenty five growth and over time do you think that it builds throughout the year or how do you see clients adopting performance plus its contribution in 'twenty five and then maybe to follow up just on the same matter do do you see this as driving greater advertiser adoption.
Speaker Change: And or do you see it driving better conversions, and therefore better pricing on an impression level that has already been expanding pretty dramatically.
Speaker Change: I know that it could have both have impacts, but I'd love to hear your thoughts on one versus the other thank you.
Speaker Change: Yeah. Thanks.
Speaker Change: Thanks for the question Ken.
Speaker Change: So we're feeling really good about the relative performance plus as you noted and I noted in my <unk>.
Speaker Change: The prepared remarks.
Speaker Change: That went to general availability just at the beginning of October.
Speaker Change: So we saw a really encouraging results from the beta testing and from our early deployment of that but it is early and these are always multi quarter adoption cycles and.
Speaker Change: I called out in my prepared remarks that a year ago at our Investor Day, We had just printed 6% revenue growth in the quarter before our Investor day, a year later, we've done 18% revenue growth on a trailing 12 months basis, that's really because of the things that we had launched then direct links mobile deep linking those early shopping efforts those paid.
Speaker Change: Pounding dividends over the coming year, and we think about performance plus similarly that as we go into next year that gives us a next leg of.
Speaker Change: Budget gains that we can make with advertisers.
Speaker Change: And some of the stats I called out.
Speaker Change: Those initial results, we're seeing 50% fewer inputs to set up a campaign. So to your question about getting to more clients that really helps us get to those sort of midsize on down advertisers were setting up campaigns finding performance had been a struggle for them.
Speaker Change: 50% fewer inputs to set up a campaign and a 20% plus.
Speaker Change: CPA improvement.
Speaker Change: For those and so that's going really well in terms of the performance that we're delivering and the reduction in effort, which should get us to a wider swath of advertisers.
Speaker Change: The creative side of that I mentioned, the ratable case study on the call as we're doing AI generated creative that makes products appear more visually compelling for users.
Speaker Change: We're seeing really great results there than the regular case study, a 37% better click through rate using performance plus creative compared to their standard shopping campaigns. So that gives you a sense of just how significant the benefits are there. So a lot more to come on that in 2025.
Speaker Change: Your question about so I address expanding to more advertisers, where we're going from there was a very largest event.
Speaker Change: Picking up steam for some time with US now to the next sort of $1 billion to $30 billion group.
Speaker Change: Performance plus either campaign creation gets us more of those advertisers, but the other part of your question of like can we get to more of their inventory more of the advertisers inventory. So this gets to how we grow share of wallet, even for our largest advertisers things that we've that we've done like <unk>.
Speaker Change: SKU level bidding and rollout bidding these help the advertiser.
At a more granular level and see performance across a much wider swath of their inventory, which should bring more advertising inventory onto the platform.
Speaker Change: And be another source of expansion as we go into next year, So that performance plus grow out bidding that I mentioned, that's still in beta with encouraging results in general available on that to come in Q1. So both of those things are all those things together really give us confidence that there is a lot more share of wallet.
Speaker Change: That we can gain and thats all of the back of the inherent commerciality of our users again, we've really proven out pinterest as a great place to shop. So it's early days, but we're really encouraged by what we're seeing there given.
Speaker Change: Given our strong performance among the beta advertisers and we do see incrementally there and early signs of budget shift.
Speaker Change: So while that broader adoption is more <unk>.
Speaker Change: That.
Speaker Change: They're encouraging even though advertisers don't make big shifts during the holiday shopping season.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: We now have one JV with Citigroup.
Bill Ready: Great. Thanks for taking the question Bill I wanted to follow up on on that question just now around engagement, but specifically you mentioned were proven out Pinterest is a great place to shop, So would love your thoughts on this engagement rates on the platform side.
Bill Ready: And that would be used for just engagement rates around shopper engagement and as you think about the benefits from AI would you say we're in the early days here that 300 basis points and then a second question just on the lower funnel products and adoption.
Speaker Change: With with outbound click continue to double here help us understand just the process of adoption of these tools. These tools like direct links and Cathy because it usually takes two or three quarters or how the advertisers see see this in terms of adoption now that we're several quarters in the launch thank you.
Speaker Change: Yeah. Thanks, Ron.
Speaker Change: So on the engage a question just to be really crystal clear about this the significant improvement in user growth and deepening engagement.
Speaker Change: <unk> has been a bright spot over the past two years those trends continue to be a really encouraging as we continue to deepen engagement, while also reaching record high monthly active users.
Speaker Change: You can see that really clearly.
Speaker Change: <unk> is in the steady improvement in our wild <unk> ratio in 2024, even as we bring in record amounts of new users oftentimes, bringing a lot of new use it can be dilutive to your engagement per user.
Speaker Change: But even as we bring on record amounts of new users are wowed a mile ratio continues to see steady improvement was just really gets too.
Speaker Change: How we're driving depth of engagement and how as we bring more relevant shop will content, including ads onto the platform that's driving further user engagement.
Speaker Change: When you unpack, what's driving engagement.
Speaker Change: Across the basket of activity that we look at we see that action ability, specifically sessions with curation and clicks are driving an increasing share of engagement.
Speaker Change: Really encouraging as it aligns with the shift of our business model towards the lower funnel and is a higher value activity both for the user and the advertiser compared to passive view time alone. So that's really encouraging and finally.
Speaker Change: Our most mature markets are our most engaged with engagement per Mou being highest in U can and continuing to grow.
Speaker Change: And that's consistent with our other developed markets. So.
Speaker Change: We're furthest along in our action ability efforts in these mature markets, but lots of opportunity as we take that further internationally, but these things do.
Speaker Change: Continue to build upon themselves and so you were asking about lower funnel adoption.
Speaker Change: We've called out many times these things are multi quarter adoption cycles for retailers, but it's also worth noting that in addition to the multi quarter adoption cycle.
Speaker Change: See compounding benefits to these things so we've talked about the flywheel effect of <unk>.
Speaker Change: As you've just come to the platform and curate and take action more that gives us rich signal.
Speaker Change: To make better and better relevant recommendations those more relevant recommendations bring users back to the platform more often and drive more shopping behavior that are there for advertisers.
Speaker Change: To meet those users and create monetization events for us. So we talked about this being the fourth quarter in a row or you're more than double the number of outbound clicks to advertisers.
Speaker Change: Every time, we get one of those clicks, that's a shopper that we helped find what they were looking for that fee just better signal back into what's relevant to bring them back to next time, but also gives us more opportunity to monetize in the future. So that flywheel effect, even beyond the adoption of the product features that flywheel effect of increasing engagement through relevancy.
Speaker Change: More shovel events for more advertisers, bringing more shovel content onto the platform more advertise skus those things all compound upon each other and so we think that well.
Speaker Change: While the adoption cycles are multi quarter, we think the compounding effects are durable and multi year. So hopefully that helps.
Speaker Change: We now have <unk>.
Speaker Change: Hi, Julia.
Speaker Change: Wolfe Research your line is open.
Speaker Change: Thank you for taking my question I have a question on AD load, So where do you think is a good normal levels.
Speaker Change: AD load on Pinterest.
Speaker Change: What are what are you in your opinion are the biggest opportunities.
The platform how are you thinking about balancing engagement as you continue to increase AD load. Thanks a lot.
Speaker Change: Yes. Thank you.
Speaker Change: Well I was.
Speaker Change: Just touching on a bit.
Speaker Change: Our engagement continue to deepen our route mile ratio continues to improve through 2024 and that really is driven by action ability at the core of the action ability has been shopper will ads.
Speaker Change: So to your question of Whats a normal ad load.
Speaker Change: I think we are still at a fraction of the monetization per unit of intent on our platform.
Speaker Change: That I've seen and analogs from past life. So I think theres a lot more headroom to go in the headroom on that is really driven by how much you can bring on the right relevant.
Speaker Change: <unk> healthy user complete their shopping journey and we see a lot more of that to go I talked about how performance plus is helping us bring on more retailers.
Speaker Change: Letting more retailers advertise how more granular bidding controls allow us to bring on more inventory from each of the retailers. So these things help drive even more shop ability on the platform.
Speaker Change: And the more we get the right relevant ads the more we can take the AD load higher and again from analog as I would have from past life.
Speaker Change: And you can see looking at other sort of highly commercial products.
Speaker Change: And particularly in search and places like that.
Speaker Change: There is a lot more headroom to go in terms of our AD loads can go we're always looking at making sure that is driving positive engagement and we see that our while to MAU ratio continues to improve really driven by that improved action ability on the platform and we've talked about things like whole page optimization, where we do that dynamically that we.
Speaker Change: We look at when the users in a commercial context, and we see there. We can if we can drive more relevant ads will bring more relevant to us because the user if theyre in a commercial context cares less about whether the.
Speaker Change: The pen is sponsored or non sponsored and more about what's the right product for them in that moment and as we continue to do better and better on that I talked about how our AD relevance has more than doubled over the last two years in our search results, that's letting us drive more and more relevant ads, where the ads are synergistic with engagement and again you see it in our increasing <unk>.
Speaker Change: Use NR, increasing depth of engagement per user I hope that's helpful.
Speaker Change: Thank you.
We have the next question from Mark Mahaney.
Speaker Change: <unk> ISI.
Speaker Change: Alrighty.
Speaker Change: Okay, I was just going to ask about the Amazon and Google partnerships and I apologize if you already covered this early on but.
Speaker Change: Any update on.
Speaker Change: How those are progressing and especially if we look at the average revenue per user metrics like is the greater monetization I think this is more Google and Amazon, but the greater monetization that were sort of seeing an R. O W. In Europe is that at all being impacted so far by Google or is it still too small to impact that thank you.
Speaker Change: Yeah. Thanks Mark.
Speaker Change: So we continue to build upon those partnerships, we see them continuing to improve sequentially quarter on quarter and build upon themselves.
Speaker Change: I noted in the call that.
Speaker Change: With Amazon, we're now expanding that to Canada, and Mexico. So we're starting to get the Amazon partnership International.
Speaker Change: And on our rest of World markets, we have both the Google relationship as well as resellers there.
Speaker Change: Would say.
Speaker Change: While we are pleased with our progress and we continue to see.
Speaker Change: Sequential results that are improving on that we're earlier days on the Google and international partnerships that we are on.
Speaker Change: Our Amazon third party relationship, but with each of those we talked about how we wanted to see them filling in gaps in the auction, we see them doing exactly what they were intended to do and continuing to build upon themselves.
Speaker Change: Even as we go into international markets.
Speaker Change: On.
Speaker Change: Some of your questions like how that's appearing.
Speaker Change: It is still relatively early days on that rest of world but.
Speaker Change: We've seen really encouraging progress there even though it's early days.
Speaker Change: Thank you.
Speaker Change: Your next question comes from.
Speaker Change: Screenshots.
Speaker Change: <unk> partners your line is open.
Speaker Change: Yeah.
Speaker Change: Hi, Thanks for taking the question.
Speaker Change: I guess.
Bill Ready: Bill you made the comment about you can about deepening engagement.
Speaker Change: I guess, if we could just drill down a little bit on that when you think about engagement is total time spent like if you were to look at individual user whether it's day month week, However, best to think about it but.
Speaker Change: Is time spent per pinterest user.
Speaker Change: Can growing on a year over year basis, and could you give us I think between the product enhancements in the AI that you spent a lot of time on during your prepared remarks talking to everyone's trying understand like what is happening to that in terms of total time spent per user because obviously that creates more inventory, which fuels rad business, so any way to quantify or.
Speaker Change: Give us some direction on.
Speaker Change: Deepening engagement actually mean.
Speaker Change: Yeah. Thanks Rich. So this is a really great question because one of the things that has been a fundamental shift in our business over the last two plus years is that we shifted from being.
Speaker Change: A couple of years ago, a platform that was chasing entertainment based use cases, where time spent would've been the right measure.
Speaker Change: We shifted from entertainment based use cases to really driving search related use cases searches two thirds of our business. So if you look at how our usage of breaks out as.
Speaker Change: Basically a third on home feed and then a third.
Speaker Change: On search and a third unrelated which is really just a purely visual search so two thirds of our business is search.
Speaker Change: And when you think about the right way to measure a search business you would never measure of search business on time spent in fact, the more time spent and search oftentimes means you did a worse job of getting us to the right answer so as we do things like.
Speaker Change: Getting the user more relevant results.
Speaker Change: The two times improvement in the relevancy of ads, the more than doubling clicks year on year for the fourth quarter in a row.
Speaker Change: And those are things to say, we're getting our users to things they were looking for in a better more compelling way than we were previously.
Speaker Change: <unk>.
Speaker Change: If you are looking at search you would never say like Oh.
Speaker Change: The user found the results on the first at the top of the first page instead of having to go to.
Speaker Change: Tab through four pages.
Speaker Change: I spent went downstream products worth like you would never think of it that way you would say Oh, it's a great thing that you've got to use the right answer faster. So we don't look at time spent but what we do look at are those measures of action ability and to the question of depth of engagement per user again, I think the best way to look at that is our is our improvement in the weekly active to monthly app.
Speaker Change: Ratios, because as we do a better and better job of making great relevant recommendations to our users helping them find the things. They are looking for in a faster more compelling way the more we see them coming back and that's reflected in that improving wow to MAU ratio, even as we bring on record levels of new users to the platform. So hope that gives you some sense ive talked.
Speaker Change: About.
Speaker Change: Clicks click.
Speaker Change: Clicks and save an action ability really being in our basket of measures. The things that are improving the most which is exactly what you'd want to see in a search driven business and a commercial and.
Speaker Change: Commercial context, I hope that's helpful.
Speaker Change: Thank you.
Speaker Change: Colin Sebastian with Baird.
Speaker Change: Yeah.
Speaker Change: Oh, great. Thanks have a couple of questions. If I could I guess I guess first off you guys have talked about the potential.
Speaker Change: Contributions to.
Speaker Change: Growth from new advertisers as well as increasing budget allocations from existing advertisers.
You talked about the two tranches of large advertisers, but any way to break out the contribution from new advertisers. This year in terms of the growth rate and then and then as a follow up on I guess Q4, and what it sort of implies for 2025, it looks like monetization rates were a little bit lower in Europe on a sequential basis. So just curious.
Speaker Change: If there's anything geographically to call out that.
Speaker Change: It could be a headwind to Q4 growth. Thank you.
Speaker Change: Thanks, Colin I'll take the first part and then I'll give the second part to Julia.
Julia Donnelly: On the new advertisers versus existing we've not broken that out.
Julia Donnelly: But.
Julia Donnelly: We are seeing growth in the total number of active advertisers and we're seeing really nice share of wallet gains, particularly with existing enterprise accounts.
Julia Donnelly: Both with the largest most sophisticated advertisers and that next tranche of mid tier advertiser's AD revenues in the 1% to $30 billion range.
Julia Donnelly: So I've talked about this adoption curve where.
Julia Donnelly: As we were looking to make the platform more shovel, we started with the largest most sophisticated advertisers those that can engage with us via API.
Julia Donnelly: And those that had a much broader swath of shovel inventory, that's really where we saw.
The largest most sophisticated advertisers leaning in first and we've gotten now to 10% plus of digital AD spend with a number of those that was the first wave of adoption and we continue to see more opportunity to gain share there and we see that happening as we give more granular controls around item level bidding in those kinds of things, but we are.
Julia Donnelly: As.
Julia Donnelly: As we've noted the last couple of quarters, we're seeing that broad now into the next tranche of advertisers.
Julia Donnelly: First in that 1% to $30 billion revenue range.
Julia Donnelly: And as we introduced tools like performance plus.
Julia Donnelly: That's making it so that is smaller and smaller advertisers can in a very simple way.
Julia Donnelly: The performance from our platform really as simple as give us your seed creative give us an objective and a budget and we will go to delivering great results and so we see that being a continuing trend as we roll out more and more of these AI driven.
Julia Donnelly: Advertising tools.
Colin: And then Colin to your second question on Europe, specifically.
Colin: Just call it in Europe, we saw really good growth in Q3 at 20%. This was down slightly versus 25% in Q2, but that's really on the back of a much tougher comp in Europe last year. We went our comp last year. It went from 12% to 33% from Q2 to Q3, so that that's really the primary driver there. Despite this tougher comp we're seeing really nice strength in retail.
Colin: In Europe, we expect that to continue.
Colin: We're also starting to see a mix shift in some of our cross border spend which is benefiting the European region. This quarter.
Colin: However, our general strength in retail in Europe is really broad based and not just driven by one particular advertisers. So we're feeling really strong about Europe in general.
Speaker Change: Thank you.
Speaker Change: Your next question comes from Doug Anmuth with Jpmorgan.
Speaker Change: Thanks for taking the questions one for bill on for Julia billion double click the advertisers for the past four straight quarters. When you talk about the shift from value creation value capture just curious if theres any specific hurdles in your view that keep you from closing the gap more here.
Speaker Change: Then giulia on rest of world advertisers spending I think it was down slightly sequentially.
Speaker Change: If there is any comments that you have there or in particular related to APAC.
Speaker Change: Good morning.
Speaker Change: Thanks, Doug on the first part of your question there.
Speaker Change: Sure.
Value creation value capture.
Speaker Change: Exactly as you noted we started out.
Speaker Change: Q4 of last year was with our first quarter, we were doubling the number of clicks to advertisers year on year and we said then that we had rolled that out in a way that they didn't have to do work to get it but they would have to do work to be able to measure it and they don't ship budgets until they measure it and so that has been a big focus throughout the year. This year is driving.
Speaker Change: Privacy resilient measurement across our Advertiser base I noted in my prepared remarks.
Speaker Change: We now see.
Speaker Change: More than half the revenue.
Speaker Change: On our platform with privacy resilient measurement and more than two thirds of our lower funnel revenue with privacy resilient matter and so we've continued to see the same trend that we've talked about before.
That more than doubling the number of clicks as we then come behind that and get the advertiser to implement measurement tools.
We see consistently that that leads to wallet share shift to us, particularly in those larger more durable.
Speaker Change: Performance budgets, so that trend continues and we feel really encouraged about the progress that we made this year on getting our our advertisers on the privacy resilient measurement doing a lot to meet them, where they are on their AD tools on clean rooms on those kinds of things. So while we've made tremendous progress there is still more of that value capture to go have noted that is half.
Speaker Change: Our revenue was on privacy resilient measurement two thirds of our lower funnel that means there is more of that to go and even for those that have implemented measurement.
Speaker Change: Now getting more of our our AI driven advertising tools as I noted in the performance plus remarks, so theres more of that value capture to come there.
Speaker Change: Through the automated bidding the automated campaign optimization all of those things will lead to more value capture as well so the raw material.
Speaker Change: At the end of the day in our business, we saw views clicks and conversions and eclipsing kind of conversions are far more valuable than the view the volume of increasing clicks and conversions has just been a tremendous bright spots. So that raw material continues to be really really encouraging.
Speaker Change: As we know come behind that and give better measurement better AI tools for campaign creation and optimization, we see that value capture happening, but there's still a lot more of that in front of us than behind us.
Speaker Change: And Doug then to the second part of your question on the rest of World part of our business, we're actually seeing good acceleration there quarter over quarter year over year, both on a constant and reported.
Speaker Change: Currency and reported basis, so that's where you're really starting to see the.
Speaker Change: Growth contribution from some of our ongoing partnerships with retailers that we're launching in early contribution from some of our third party demand partnerships internationally. So we're actually seeing good growth there.
Speaker Change: Thank you we have our final question on the lines.
Speaker Change: Dan Salmon with New Street Research. Please go ahead.
Speaker Change: Great Good evening everyone.
Speaker Change: Thank you for the question.
Speaker Change: So I wanted to follow up on your third party partnership strategy.
Speaker Change: You, obviously talked about how youre expanding with Amazon.
Speaker Change: You've talked a lot about kind of the synergy in some of the emerging markets. We are working with the Google platform, but also having the resellers in there.
Speaker Change: Does it make sense for you to have more partners.
Speaker Change: Just curious how you think about that.
Speaker Change: Both the short term and.
Speaker Change: And long term basis, maybe some of the converting the demand from different verticals youre under exposed to maybe in certain markets.
Speaker Change: We'd love to hear your thoughts on that thanks.
Speaker Change: Yes. Thank you for the question.
Speaker Change: As we've built this from her.
Speaker Change: Very first partnership that we were building our ability to ingest third party demand.
Speaker Change: The way that.
Speaker Change: Could allow for for many partners.
Speaker Change: And so we started with Amazon in the U S.
Speaker Change: But we always said we would have multiple we then went to Google on International we're now expanding Amazon beyond the U S.
Speaker Change: We're we're working with resellers.
Speaker Change: But we've always intended that we would work with multiple so while we don't have any.
Speaker Change: New partnerships that we're announcing at the moment, we've built a platform that way you've seen us expand it that way.
Speaker Change: And as I mentioned earlier like we are still.
Speaker Change: We are still significantly under monetize as a platform relative to the amount of commercial intent on the platform. So as we look at how we.
Bring more advertiser demand to meet that commercial intent.
Speaker Change: The trends of what we're doing first party.
Speaker Change: With things like all of our AI driven performance, we performance plus.
Speaker Change: The things that we're doing to bring that in through third party. The things we're doing to bring in through resellers.
Speaker Change: And certainly we expect that we'll have much more that we do there even though we don't have anything new that we're announcing at the moment. There that is our long term intent hopefully thats helpful.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: I would now like Johnny.
Speaker Change: Dale for some final remarks.
Johnny. Dale: Thank you all again for joining the call and for your questions. We look forward to keeping this dialogue going and we hope you all enjoy the rest of your day.
Speaker Change: Thank you all for joining the brain Trust third quarter 2024.
Speaker Change: That's cool.
Speaker Change: On today's go ahead now completed please enjoy the rest of your day and you may now disconnect.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yeah.