00:00What's driving the growth?
00:02Thanks for having me on.
00:03So we're really encouraged by the growth on the platform.
00:07It's 11 straight quarters of record-high users,
00:1010 straight quarters of double-digit growth in users.
00:13And at the core of that is that we've really turned Pinterest
00:15into an AI-powered shopping assistant
00:18that is really, really winning with users,
00:22especially Gen Z, that's now more than half our platform
00:24and our fastest-growing demographic.
00:27Pinterest is where Gen Z goes to shop,
00:29and that's been really great for users,
00:31and increasingly advertisers are leaning into that,
00:34and you see that reflected in our results.
00:35So ad targeting improves, we can see more efficiency,
00:39but look, you're getting 80 billion monthly searches.
00:42You're, as you say, record-high users.
00:44What is the AI strategy here longer-term?
00:47Because already you're seeing the efficiency in a flywheel.
00:50That's right.
00:51So we've shared that we have more than 80 billion searches
00:54per month on the platform, which would have been unbelievable
00:58to say even a few years ago.
01:00And we've done that by really making it a visual-first platform.
01:04So much of shopping is a visual journey,
01:06and so we are really focused on that.
01:07And I think in the world of AI, you've had a lot of discussion
01:10around general-purpose winners,
01:11but you're also seeing specialization play out,
01:13and you're seeing that play out in sort of consumer versus enterprise.
01:16But even within consumer, there are a lot of different use cases,
01:18and we've been really focused on shopping and visual search and discovery,
01:21and we're using AI to power that really based off the curation signal on our platform,
01:26and we're seeing that really, really resonate with users.
01:30And of those 80 billion searches per month, more than half of them are commercial,
01:34which is a much more significant skew towards commerciality than most chatbots would have
01:39and that you would see in sort of, you know, historical general-purpose search.
01:42So it really has become a great shopping destination for our users.
01:46It's interesting. Those chatbots had been sort of some of the investor anxiety
01:50that this is where competition is coming from in visual search.
01:53It is Google. It is OpenAI and the others.
01:55But how dependent are you on other frenemies, shall we say, for the large language models?
02:01You're training your own, but how much are you using underlying models of others?
02:06That's right. So we primarily run our own compact fit-for-purpose models.
02:10I think this is one of the things that you will see over time is there's been so much discussion
02:14around AGI
02:16and general-purpose models, but they can be really expensive to run.
02:19And we've demonstrated that through our own compact fit-for-purpose models,
02:22as well as leveraging open source and retraining that off of our unique data set,
02:28that we're able to see comparable or better results at oftentimes less than 10% of the cost.
02:33And in terms of shopping, we've shared that we're able to get to 30% better relevancy of recommendations
02:39on shopping for our users than what we'd see from leading off-the-shelf proprietary models,
02:44which just really gets to the uniqueness of Pinterest as a shopping destination.
02:48And it's important to note that what makes our models so powerful,
02:52it's not just the models themselves. The AI doesn't have taste or style.
02:56Humans have taste and style. And so people come to Pinterest to figure out their taste,
03:00to figure out how they want to put outfits together, and we're able to learn from that
03:03and make better and better recommendations that are aligned to a user's taste.
03:06And the result of that is users say things like, well, Pinterest just gets me.
03:10And that's something that we think we're doing really uniquely here at Pinterest
03:13and where we just have totally different signal based on what our users do on the platform.
03:18And that's what lets us take much smaller but really fit-for-purpose models
03:23and deliver better results for users.
03:24It's not just signal on your platform, though. You've been doing M&A.
03:28Talk to us about TV Scientific and why you're going into performance-driven sort of TV ads.
03:34Yes. So we now objectively, 630 million-plus users in 80 billion searches a month,
03:41more than half of them being commercial, have one of the highest commercial intent platforms anywhere in the world.
03:45And so far, we've been making that a really great platform for advertisers to connect with users here on Pinterest.
03:52But we're also looking at how we can make it so that we can help those advertisers meet those users
03:57in other places.
03:58Connected TV being one of the fastest-growing areas of ad demand.
04:04It's projected to surpass linear TV in 2028.
04:08And we're able to help advertisers show more relevant ads that deliver better returns for advertisers on TV.
04:14And users get to see things that are actually helpful and useful to them.
04:17And we showed on this most recent call that when we add Pinterest audience data to TV Scientific's capabilities,
04:23the company that we acquired in Q1, we see a 65% improvement in the purchases that result from the
04:31ads that are shown,
04:32which is great for advertisers, but also just means, as a user, when you're watching connected TV, you actually see
04:36more things.
04:37You say, oh, that's actually a product that would be useful for me. And so it's a great thing for
04:40users, too.
04:41It's interesting. It almost feels like diversification briefly, Bill, but there's also this moment of Gen Z and teen bands.
04:49How do you see that as your role in social media right now, briefly?
04:53Yes. So we've talked about this before, and I've been very outspoken on this publicly.
04:58When I came into Pinterest as CEO nearly four years ago, I wanted to prove that there was a more
05:02positive business model possible in social media.
05:04And so youth online safety has been very out in front for us.
05:07We made Pinterest private only for users under 16 approximately three years ago.
05:12We're the first and still the only platform to do that.
05:15And so I have publicly advocated for the fact that social media as currently configured is not safe for users
05:22under 16.
05:22So we turned off social features three years ago, and we actually think it's quite an encouraging thing to see
05:27regulators around the world starting to really pay attention to that.
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