Pinterest, Inc. Q1 FY2022 Earnings Call

Good afternoon. Thank you for joining today's Pinterest First Quarter 2022 Earnings Call. My name is Bethany and I will be your moderator for this call. All lines will be muted throughout the presentation, but there will be an opportunity for questions and answers at the end. I would now like to hand the conference over to our host Neil Doshi, Head of Investor Relations at Pinterest. Please proceed.

Thanks, Bethany. Good afternoon and thank you for joining us. Welcome to Pinterest’s earnings call for the first quarter ended March 31, 2022. I’m Neil Doshi, Head of Investor Relations for Pinterest. Joining me today on the call are Ben Silbermann, Pinterest’s President and CEO; and Todd Morgenfeld, our Chief Financial Officer and Head of Business Operations. Now, I’ll cover the safe harbor. Some of the statements we make today regarding our performance, operations, and outlook, including the impact of the COVID-19 pandemic, may be considered forward-looking and such statements involve a number of risks and uncertainties that could cause actual results to differ materially. In addition, our results, trends, and outlook for Q2 2022 and beyond are preliminary and are not an indication of future performance. We are making these forward-looking statements based on information available to us as of today and we disclaim any duty to update them later unless required by law. For more information, please refer to the risk factors discussed in our most recent forms 10-Q or 10-K filed with the SEC and available on the Investor Relations section of our website. During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today’s earnings press release and letter to shareholders, which are distributed and available to the public through our Investor Relations website located at investor.pinterestinc.com. And now, I’ll turn the call over to Ben.

Hi, everyone. We appreciate you joining the call. We’ll open up with some comments and then take your questions. But just before we get started, I wanted to express on behalf of our entire company, that our hearts continue to go out to all those impacted by what’s happening in Ukraine. We have members of our team who lived in the region and are now thankfully safe. I’m proud of how our company came together to support humanitarian efforts for Ukrainians. We’ll continue to keep everyone affected in our thoughts during this unimaginable time. Turning to the business. A few minutes ago, we released our Q1 shareholder letter. Revenue was strong with 18% year-over-year growth to $575 million. This was due to strength from retail advertisers, our international business, and our managed small and medium-sized business advertisers, all of which offset the economic weakness we’re seeing in consumer packaged goods and in Europe because of the war. Meanwhile, we continue to face engagement headwinds. We had 433 million global monthly active users, down 9% compared to Q1 last year, a quarter that was driven by pandemic-influenced growth. We also felt the impacts of lower traffic from search and time spent by people on competitive platforms. We’re doing a number of things to improve the Pinner experience and tackle engagement headwinds head-on. In the near term, we’re applying sophisticated machine learning to every aspect of our platform. As a result, we’ve seen marked improvements in the relevance of home feed recommendations, the quality of search results, and engagement with notifications. All of these enhance the quality of our platform for Pinners, and are leading indicators of deeper user engagement. We also plan to launch a global brand awareness and comprehension marketing campaign starting in Q3. In the medium-term, we continue to invest in a rich content ecosystem with publishing tools that allow creators to publish rich lifestyle content on to Pinterest, and we’re also allowing people to take the content they find and create on Pinterest and share that inspiration with their friends, family, and followers across the Internet. To do this well, we’re also working to connect Pinners with the most inspirational creators and native content in dynamic formats like short-form video. As we’ve discussed in past calls, this investment has come at the cost of some monthly active users in the short term as we get the ecosystem off the ground. But we’re committed to this strategy because we believe it will drive engagement over time and because we believe that native content in video, in particular, is fundamental to helping people get inspiration and shop in the future. In 2021, I’m especially proud of our teams that laid the foundation for a native content ecosystem. It’s gaining traction. The number of video idea Pinners is up 15x year-over-year, and this content is resonating with more and more people as we continue to see that Pinners, who follow multiple creators, visit Pinterest more often compared to those who do not. We plan to continue building new publishing tools with the help of our new acquisition, VOCHI, so creators can make even better content, content that’s not only entertaining but helps us move our user base from inspiration all the way to action. We’re also expanding rewards to bring on more inspirational creators to Pinterest. Finally, we continue to invest in making Pinterest a shopping destination and we’ve taken some significant steps here. We launched the Pinterest API for shopping to help merchants and give Pinners real-time information about the products they see from pricing to availability. We also started beta testing Your Shop, which uses our unique ability to understand taste and preferences to deliver a personalized experience for each Pinner. This work is fundamental to our vision so users can not only come to Pinterest with the expectation of being inspired but also know that they can turn those inspirations into a reality with purchases. Across the board, we continue to make progress in helping Pinners go from the spark of inspiration through to buying, making, trying, and doing. We’re confident that our strategy will deliver great results for Pinners, creators, advertisers, merchants, and our business. And we remain excited about the enormous opportunity to help people live a life they truly love. With that, I’ll turn it over to Todd to give you more color on the business.

Thanks, Ben. I’ll share some further details on the trends that we saw in the first quarter and provide a preliminary outlook for Q2. Beginning this quarter, we’re providing additional disclosure around our revenue, our monthly active users or MAUs, and our average revenue per user or ARPU by presenting the U.S. and Canada, Europe, and rest of the world separately. As our international operations become a more meaningful part of our business, we want to provide additional detail in those regions. Please refer to our earnings presentation for the new geographic breakouts. As part of this change, we re-categorized the U.S. into the U.S. and Canada. Please note that there is little difference in historical year-over-year and sequential growth rates for the U.S. alone versus the U.S. and Canada together. We’re categorizing these two regions together going forward because they’re both relatively mature and they share a similar advertiser base. Furthermore, while we’ve provided U.S. monthly active users recognized revenue and ARPU for Q1, going forward, we plan to only report these metrics for the new combined U.S. and Canada. Turning to our financial performance. Q1 revenue grew 18% year-over-year to $575 million, in line with our guidance. Adjusted EBITDA came in at $77 million, with an adjusted EBITDA margin of 13%. Most of the details on our quarterly performance can be found in our shareholder letter, but I wanted to provide you with some additional specifics. As our international business has grown, we’re becoming more subject to currency fluctuations. Revenue growth from Europe was 27% year-over-year. On a constant currency basis, revenue growth in Europe would have been approximately 34% year-over-year. As we continued the distribution and placement of Idea Pins, we believe this negatively impacted our first quarter year-over-year revenue growth in the mid-single digits on a percentage basis, similar to the prior two quarters. This impact was factored into our guidance for the first quarter. Turning to expenses. We accelerated our non-GAAP operating expense growth in the first quarter to 31% year-over-year versus 27% year-over-year in the fourth quarter. However, sequentially, our non-GAAP operating expenses declined 1% due to pushing off creator-related spending, slower hiring than we anticipated, particularly in the Bay Area, and a few other favorable items. Before getting into some specific trends on user engagement in the quarter, I want to double-click on our strategy to combat engagement headwinds. As Ben mentioned, we’re looking at ways to drive more sustainable user acquisition and retention. For example, we’re making Pinterest more browsable without immediately requiring users to sign up when they land on the site. While this had a modest negative impact on global new user signups initially, we believe that removing barriers for longer browsing sessions can drive more activations over time. We also believe our investments in the core Pinner experience on home feed, search, and shopping can make Pinterest feel more personal and relevant in the near to medium term. And that our investments in creator-led native content and short-form videos can bend the curve on engagement in the long run. With respect to our Q1 engagement trends, it’s worth noting that our global mobile app MAUs, which account for a significant majority of our impressions and revenue, grew in the mid-single digits year-over-year. Mobile app MAUs in the U.S. and Canada were also relatively resilient, declining around 6% year-over-year versus down 31% year-over-year for web-based MAUs. Sequentially, U.S. and Canada mobile app MAUs were flat. Our younger Gen Z users were also a source of strength, growing mid-single digits year-over-year. Finally, shopping engagement remained relatively resilient with the number of Pinners engaging and shopping surfaces increasing year-over-year. Turning to our preliminary outlook for Q2. While we typically don’t provide MAU guidance, for the last three quarters, we’ve shared a quarter-to-date snapshot of MAUs in our earnings. As of April 25, U.S. and Canada MAUs were at 94 million and global MAUs were 432.9 million. We’ve provided intra-quarter data points on MAUs over the last few quarters because the lifting of pandemic lockdowns in 2021 disrupted our typical seasonal engagement patterns and limited visibility into quarterly MAU trends. Lockdowns began to lift for some geographies in mid-March 2021, which is when we began to see year-over-year engagement declines. Engagement continued to normalize toward pre-COVID levels throughout Q2 2021 as more geographies lifted COVID restrictions. We believe that the pandemic unwind will no longer create a year-over-year MAU headwind in the third quarter of this year, so we don’t plan on providing an intra-quarter update on MAUs going forward. As you think about MAUs for Q2, I’d like to provide you with some additional context. Q2 has historically been our seasonally weakest quarter for MAUs, given that people tend to be outside more, travel more, and engage in our core use cases less often. As a reminder, at the end of the quarter, we calculate MAUs based on a 30-day look back from the last month of each quarter. Since June is one of our weaker months for engagement in the U.S., a snapshot of MAUs on April 25 may not predict June MAUs. And finally, we continue to face year-over-year growth headwinds from the search algorithm change that happened in the fourth quarter of 2021, as well as potential new headwinds from future search algorithm updates, the timing of which are hard to predict. On the revenue side, we expect Q2 revenue to grow around 11% on a percentage basis year-over-year. Please note that our Q2 revenue guide takes into account a few considerations. First, it’s worth noting that we had a particularly strong Q2 last year with revenue growing 125% after a weak Q2 of 2020. Second, the macro environment remains challenging, including supply chain issues and inflation exacerbated by the conflict in Europe. It’s unclear how long these conditions will persist. Third, we continue to monitor the impact of higher customer acquisition costs. In general, we believe that higher pricing has multiple drivers including industry-wide dynamics and recent trends in our user base. In Q1, we observed that higher pricing lowered budget utilization for a subset of our U.S. small and medium-sized advertisers – small and medium-sized advertisers that are more price-sensitive. We believe that advertisers who value what makes Pinterest unique, namely our users' planning mindset, our positive platform, our insights-based media buying and our unique audience of commercial intent users, will find value on our platform using our automated bidding products. Finally, our investment in building a native content ecosystem will likely remain a mid-single digit headwind to revenue. However, we believe that this effort will both be engagement and revenue accretive over time. Finally, I want to touch on expenses. We expect the second quarter non-GAAP operating expenses to grow at 10% quarter-over-quarter as we push some of the spend from Q1 into Q2 and beyond. We plan to continue to scale our investments in our native content ecosystem, the core Pinner experience, and headcount across research and development and sales and marketing, but timing could be lumpy quarter to quarter. We also plan to push our Q2 brand marketing campaign to start towards the end of Q3 and into Q4 this year. For the full year, we plan to invest in our growth initiatives. Layering in some of the benefits and underspend for Q1 and recognizing that this is a competitive hiring environment, we are expecting non-GAAP operating expenses to grow in the range of 35% to 40% year-over-year. Thanks to our teams at Pinterest, our advertising partners, our creators, and all the people that come to Pinterest to find inspiration. And with that, we can open it up for questions.

Operator, we can open the call for questions.

Our first question comes from Ross Sandler with Barclays. Please go ahead.

Hi, guys. Two questions on the MAU trajectory. For Ben, I guess, why hasn’t search traffic recovered? And are we going to basically have to wait until you lap the negative effects from the fall of 2021 for that to start to pick up? And I guess just stepping back of all these initiatives you guys are working on, what are you most excited about that can help drive engagement over the long-term? And then the second one for Todd, just kind of nitpicky, but any additional color you can provide on both global and U.S. MAUs, like why they declined from the Feb 1 intra-quarter update you provided last quarter until the end of the quarter? Any color there would be helpful. Thank you.

I’ll get started, Ross, and then turn it over to Todd. We’ve discussed in the past that search has always been an important channel for us, especially in bringing in brand-new users, and for users that engage periodically, it brings them back into the service. So Google is often making changes to their algorithm. And entering Q1, we started with a lower baseline than we would have absent the algorithm updates in November 2021, when we had fewer resurrections from search in February and March that we typically see. Now this quarter, we chose to take a different strategy than we have in times of the past. Rather than playing a short game, we really invested in protecting our long-term opportunity in search. For example, when you visit Pinterest now compared to a few months ago, the experience is a lot more open, meaning you can explore the whole service, you can explore different pins without prompting you to sign up, and we allow you to dismiss that prompt. Todd mentioned that that caused some modest declines in MAUs in the short term, but we think it’s the right long-term strategy. It’s one that we’ve been testing internationally and results in higher activation rates and more sign-ups over the medium to long term. So we’re proactively investing in better relevance. And then the other question you asked is what are the other things that we’re doing that we’re excited about to drive long-term growth, and there are a few that I mentioned. The first one that I mentioned, which isn’t a brand new feature, but it’s the thing that Pinners fundamentally come to Pinterest for, is we continue to invest in the quality of the recommendations and search results, and I’m really proud of the team that they improved both in the last quarter. On the recommendation quality, we saw better engagement with native video content and better recommendations overall. And in search, we began to introduce new features such as structured search for things like recipes that will expand into new verticals. What we’re seeing from those is an increase in search query volume and a resulting increase in engagement. So think of that as improving the core. The second thing we’re doing is we continue to invest in bringing on more native content onto Pinterest. This has been a big investment for us over the last 12 to 18 months. I’m incredibly proud of the team. They stood up this entire ecosystem essentially from scratch. We’re starting to see really great traction there. There are significant increases in both the number of creators that are adding Idea Pins and the amount of video Idea Pins that are being consumed. We continue to see that Pinners who follow more of those creators visit more often. Now we’re building this ecosystem into a much larger population base. We described that as a headwind in the near term, but early signs are that we’re getting traction there. This is also strategically important because we think video as a format is fundamental to the way people get inspired and take action in the future. Finally, I’m sure we’ll talk about it more on the call, but we continue to invest in shopping. We talked a little bit about improving the quality of content, and we released the Pinterest API. We’ve begun beta testing Your Shop. Then finally, we’ll be testing and expanding the test of checkout. All of those bring more utility to the platform, which we think in turn are both revenue and engagement accretive investments. Todd?

Yes, Ross, I think the second part of your question was what happened to MAUs from the Feb 1 intra-quarter update we gave on the last earnings call through the end of the quarter. Just to kind of reset from Feb 1 to March 31st, the U.S. declined from 86.6 million monthly active users to 85.2 million, and global MAUs declined from 436.8 million to 433.3 million. In the U.S., the decline was really due to three things. One was, as we’ve talked about in the past, especially on the last call, lower traffic from search. Historically, we’ve seen new user sign-ups and resurrections typically tick up in the months of February and March, and we just didn’t see that happen in the first quarter. We think that was because of the impact of the search algorithm change from Q4. The second was Russia’s invasion of Ukraine, and we talked about this a little bit at the beginning of the COVID lockdowns. During periods where there are other large news events going on, people often turn away from inspiration and planning behavior toward real-time news updates that they find on other services. Lastly, we’ve talked a little bit about competition. The U.S. is our most mature market, and we see a lot of social media, entertainment, and news apps competing for user time spent. Globally, the decline was due to lower engagement in Russia, Ukraine, and other countries in Europe. Based on our estimates, that was about a 5 million global MAU impact. So had it not been for those events, we think our global MAUs would have been modestly up from the Feb 1 MAU number that we shared. Hopefully, that’s helpful.

Next question, operator.

Thank you. Our next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.

Thank you so much for taking the questions. Maybe two, if I can. First, you called out some of the macro volatility that we saw in results around the war in Eastern Europe. Any greater color you could give about the depth of pullback from advertising spend or how volatile it was as the quarter came to an end, and whether you’re still seeing sustained weakness as we move into Q2? That would be question number one. And then to the comment – and then Todd just brought it back again with respect to video-centric apps. Can you talk a little bit about what you are seeing as you think of it as a direct correlation of people spending more time on video-centric maybe versus your engagement? And how do you think your product roadmap positions you better competitively vis-à-vis those video-centric products over the medium term? Thanks.

So Eric, I can take the first part, and I’ll probably ask Ben to step in on the second part of the video-centric apps question. But in terms of demand and volatility, it definitely wasn’t helpful to us in terms of monthly active users. As I talked about, we had probably a 5 million monthly active user impact. It also had knock-on effects to advertising spend around the world, but in particular, in Europe. I don’t know when that conflict will resolve, but it’s definitely a period of uncertainty that’s not helpful. We’ve seen, in addition, a fair amount of weakness that we’ve called out over time in the consumer packaged goods, or CPG space, driven we think by supply chain pressures and inflation, as I called out. So the combination of those things has not been good for brand building in this environment. But we hope that once that resolves and we start to see some of the supply chain issues abate, that we’ll see a recovery in some of that demand.

Yes, Eric, to your second question on competition in video, we called out competition just because there is a tremendous amount of options for consumers on the phone at any given time. We look at the same data that all externals do. That said, we think that what we’ve heard from Pinners and what we see is that we have a pretty differentiated use case. I mean that’s the use case of actually using Pinterest to plan, get ready for major events, and then eventually to make considered purchases. That’s quite different from an entertainment and news use case. Now, the way you characterized the question was kind of video versus not, we think video is going to be a fundamental medium for all kinds of activities like entertainment, news, and education. That’s why we’ve made this investment in building out a native content ecosystem. This was a long bet that we started 18 months ago, but if you were to fast forward to the future, we think Pinterest will undoubtedly be a more engaging and richer surface. If you can shop with video, if you can get new ideas that are part of video. A lot of our core use cases are already seeing the benefits from having more video content onboard. We’re going to continue to make that investment. We think that enhances the core value proposition of going from inspiration all the way to realization. That’s why we’ve gone long on that investment as a company.

Great. Thank you for the color.

Thank you, Mr. Sheridan. Our next question comes from the line of Mark Mahaney with Evercore ISI. Please go ahead.

Okay. Thank you. I just want to ask one question about shopping. That data point you provide about the number of Pinners engaging and shopping services is growing year-over-year. That seems to be – things seem to be going in the right direction for you. How long is the path to getting to the kind of shopping experience that you’ve envisioned that you’d like to see on Pinterest, and what are the remaining things you need to do to create that experience? Thank you.

Yes. Thanks for the question, Mark. I’ve been really proud of the team for continuing to make progress in shopping. We’ve talked about this three-pronged strategy. The first has been improving the quality of inventory. So the journey that we’ve been on started with a verified merchant program, it expanded to letting people upload catalogs and then multi-feed. This quarter, we expanded that to include a Pinterest API for shopping as well as a partnership with WooCommerce that gives millions of merchants the power to turn their product catalogs into shoppable product Pins. All of that is just this fundamental baseline investment that we need. But already this quarter, what you can see is if you start looking at the product pages, not only is the data up-to-date, but we’re keeping it up-to-date in real-time and that gives people confidence to purchase. The second part of that strategy is improving the discoverability of that. So we’ve talked in the past about surfacing shopping results and things like search, using computer vision technology to match products to all of the seen images. I think the next big milestone for us will be taking Your Shop, which is a personalized shopping surface out of beta, which is how it’s being tested today and into kind of the market in a more mainstream way. Finally, we continue to test seamless checkout with more and more merchants. We think that for long-considered items, people are less sensitive to having one-tap checkout. If it’s something you’ve been thinking about for months, but over the long run, we think this is going to be a fundamental expectation. That’s how we’re pursuing that strategy. I’m happy with the progress. We have a ways to go. I think there’s a company up in Seattle that’s been proving shopping experiences for literally decades. We think what Pinterest brings is the ability to discover products without necessarily knowing the exact name of that product and using your taste and preferences to connect you to products that help you get something done in real life.

Okay. Thanks, Ben.

Thank you, Mr. Mahaney. Our next question comes from the line of Rich Greenfield with LightShed. Please go ahead.

Hi, thanks for taking the questions. I got two. One, just sort of macro, obviously inflation, fears growing sort of recession Europe even U.S. sort of certainly growing concerns and e-commerce slowing. What are you seeing on the ground as you sort of push much more aggressively into shopping and make that experience better? How does retail spending outlook impact you as you look out, especially as you move into Q2 and even into, back to school in Q3? Then sort of just a big picture question on the creator side. You’re obviously doing a lot to create on-platform content that’s unique and you’ve obviously hired Malik and pushing into the creator economy. When you talk about competition, because I think you’ve mentioned it a couple of times already, is that mostly TikTok? Is that Instagram? Where are you seeing most of that competition? Is there any way to sort of isolate where you’re losing time spent mostly to in that sort of work for time?

So Rich, I can take the first part of your question on market dynamics, inflation, recession, supply chain, all of that stuff as it relates to the retail outlook, and then maybe Ben can weigh in on the creator side. First of all, we saw particular strength last quarter in the retail advertising market; we saw more pressure on CPG advertisers due to supply chain pressures, inflation, etc. I would imagine that based on what we’re seeing, that that will continue. The reason I have confidence that it will continue is that our progress in signing joint business partnerships, which I think we’ve described in the past as JBPs, but they’re not contracts to spend; they’re indications of intent to spend, the number of those large deals we signed in particular with retailers grew 35% in terms of raw number year-over-year in the first quarter. The dollar amounts indicated by those agreements grew 55% year-over-year in the first quarter. So that suggests not only strength last quarter in the retail segment, which showed up in the results, but also an indication of willingness to continue to spend.

Yes, Rich. I think the way that I interpreted your question is, if you’re losing time spent, where is it going? We don’t have exact fidelity into where people are spending their time, but obviously the story of the last couple of years in terms of time shift has been the rise of TikTok as a major place that people are spending their time. Now on Pinterest's end, what we’re really trying to establish for creators is a place where they can publish content and they’re rewarded for that content’s ability to inspire action rather than the raw entertainment value of that. That’s going to have to be reflected in how we provide incentives for creators, but also how we rank content on Pinterest. The reason that a feed on Pinterest feels different than a feed on a social network or an entertainment network is that the content is ranked, taking into account how useful that idea will be to getting something done in the future. As we think about things like creator rewards and roll out new ad formats like Idea Pins, that’s the sort of central thesis behind it. This aligns with our overall central thesis where this isn’t a platform to talk to your friends or keep up with the news; it’s a platform for you to articulate things that you want to do in your life, for us to help you visualize what that end state looks like, and for us to provide you with the planning tools and shopping tools to turn that vision into reality. We think creators can play a positive role all the way across that inspiration to realization journey.

Thanks very much.

Thank you, Mr. Greenfield. The next question comes from the line of Justin Post with Bank of America. Please go ahead.

Great. Thank you. A couple, Todd, you’ve given a lot of metrics suggesting users are somewhat stabilizing, especially on mobile. When does that mobile crossover happen, or are you trying to signal that we’re nearing the bottom, maybe this summer? And then second, just on the onsite shopping test, are you seeing better conversion or better monetization of usage when people do onsite shopping? Thank you.

So, Justin, I think the question you’re trying to get at is really around guidance. I want to be careful that we’re not providing guidance. There are a few things to note around that. In my opening remarks, I called out the second quarter as our weakest quarter; typically, as people head to summer, they spend more time outside and less time on Pinterest because they’re doing instead of planning. It was interesting to note in Google’s call yesterday that travel searches in the first quarter were above Q1 2019 pre-pandemic levels, suggesting that we may see that even more so in June going into the summer this year. I also want to remind folks of the way we calculate our MAUs. It’s based on a 30-day look back from the last day of the quarter. Our Q2 MAUs will be calculated based on June data, which is a seasonally weaker month for us as people start heading out for vacations. We’ve seen that trend historically, and we haven’t really gotten into a lot of seasonality within quarters because it's a little noisy, but we wanted to give people these intra-quarter updates over the last couple of years to just give you a sense of what we’re seeing in real time. The last point is that we’re still facing this year-over-year growth headwind from the search algorithm change that happened in the fourth quarter and the threat of potential new headwinds from future algorithm changes, which is hard for us to predict in terms of timing. The competition for time spent on competing video-centric platforms is something we pay close attention to.

Yes. Justin, I think your second question was how are we seeing shopping? We’ve known for a long time that Pinners have a lot of commercial intent, and they bring that intent to Pinterest. What we’ve seen is that as we remove barriers to people executing that intent by linking them to products, by ensuring those products are in stock, and that the prices are accurate, their purchasing behavior increases. Our core strategy has been around increasing that inventory, making the matching more efficient, and then eventually streamlining that conversion event at the end. Those first two are really fundamental. We think creators and social shopping can be a bonus on top of that by giving people more confidence in their ability to buy. We’ve seen some great early signs both with Pinterest TV and as well as with partnerships. We had one this quarter with Victor and Rolf, which was a new fragrance; we paired them up with a creator showing really good business results because at the end of the day, they provide Pinners with commercial intent the confidence they need to eventually make that purchase.

Great. Thank you, Ben. Thanks, Todd.

There are no other questions. Thank you. I would now pass it back to Ben Silbermann for any closing remarks.

I just wanted to thank everyone for the thoughtful questions. We look forward to keeping the dialogue open. I know it’s a busy afternoon for a lot of industries, so enjoy the rest of your day.

That concludes the Pinterest first quarter 2022 earnings call. I hope you all enjoy the rest of your day. You may now disconnect your lines.