William Ready: Yes. Thanks, Ross. Yes. We feel great about our competitive positioning. We think we have a unique and distinct use case for our users. And we have strong commercial intent and we’re now delivering more and more of that performance for advertisers. And we see those advertisers shifting budget to us and notably, moving us into those performance budgets, those always on budgets versus the experimental area that Pinterest historically played in. And I’d say what’s fueling that, again, is the uniqueness of the use case we solve for our users. But also as you think about the way that AI plays out, I do think this first wave of AI or some of the first conversations in AI were about, value accruing to the model creators and those who have like the largest general purpose models.
I think it’s also the case that there’s a distinct set of value creation around both fit for purpose models and taking unique signal, applying it to those larger models. And you see us doing both. We have taken off the shelf larger models. We then train them on our unique user signal that lets us, you know, I talked about on prior quarters called 10 full percentage points improvement and user relevancy. So you see us doing those kinds of things. You also see us doing things with our own foundational models like really unique computer vision work where we have one of the largest image corpuses [ph] out there. We have really unique signal about how users associate those images, styling outfits and styling rooms and things like that. And that’s let us train fit for purpose models.
So we feel really good about our ability to compete both in terms of a unique space for the user, delivering great value for advertisers, leading them to shift share to us. And we think there’s more of that to go as they’re just now starting to measure and see that and shift budgets. And from an AI perspective, we feel really well positioned in terms of the uniqueness of the signal we get through the human curation on our platform. As we’re leaning into that, we’re seeing that accelerate as well through things like our collage format, which is driving three times the engagement, approximately three times the engagement of traditional pens. So we think that’s an entirely new content type on Pinterest that is unique to what people do on Pinterest, fueled by AI and has this flywheel effect of feeding us more and more granular signals that let us train our AI to do unique things that don’t occur on other platforms.
So all that to say, yes, we feel good. It’s a competitive space. It always will be. But we feel well positioned and I think reflected in our results
Operator: Thank you. Our next question today is from the line of Anthony Post [ph] of Bank of America of Merrill Lynch. Anthony your line is open. Please go ahead.
Unidentified Analyst: Great. Thank you. So we thought U.S. really accelerate this quarter and some of the international markets were strong, but decelerated. Can you talk about how much the drivers in the U.S. or kind of maybe unique to the U.S. and then if Amazon was above your expectations in the quarter. And then finally maybe as you think about some of these drivers whether it’s partnership or your own internal efforts, what — is there more to come internationally in the back half or next year? Thank you
William Ready: Yes on international, I’d say again more the opportunities in front of us than behind us. I talked about the Google 3P partnership is just getting going. So that wasn’t really a contributor in this quarter. We see more of that as we look ahead. I’d say stepping back more broadly the shopping improvements that we have made, the lower funnel improvements we have made. Of course, we started with our home market our largest market first, and we’re now taking more of those things international, and you can see [Technical Difficulty] Yes, I think about now back on so great. Thank you apologies for the technical glitch there So we see that those shopping improvements that we’ve made starting in the U.S. that now as we’re just starting to take them international that that’s resonating with users as well.
So when you look at our MAU acceleration we saw accelerated user growth in every geography that speaks to how broad based the product improvements are from a user perspective And then now we’re taking those advertiser tools and those markets [Indiscernible] shopability in the low funnel, both from a 1P perspective as well as just starting with our 3P and reseller efforts I talked about as well. So we see much more that opportunity international still in front of us.
Julia Donnelly: And maybe just to add to that Justin. So on the U.S. side as Bill was noting, we’re seeing really strong growth in our first party business particularly in retail, but also emerging contribution from third-party ad demand as you mentioned. And then maybe just to follow up on the international side as well. We do see currency headwind in Q1 that if you look on a constant currency basis Europe and rest of world growth was actually the same on a constant currency basis or stronger in Q1 relative to Q4. So I would take a keen eye towards the FX changes here which are changing in Q4, Q1 and also in Q2 as we call that when we talked about guidance for the second quarter.
Unidentified Analyst: Great. Thank you. That’s helpful.
Operator: Thank you. Our next question today is from the line of Doug Anmuth of JPMorgan. Doug your line is open. Please go ahead.
Doug Anmuth: Thanks for taking the questions. Just when you think about the progress in shopability and moving down the funnel, can you just talk about how that’s translating into growth in advertiser count and the degree to which you’re seeing a pickup in auction density. And then any early learnings from the third-party deals with Amazon and Google anything that surprised you thus far? Thanks.
William Ready: Great. Yes. Well, I would say, our growth and strength has been most pronounced in lower funnel particularly in U.S. retail and amongst the largest most sophisticated advertisers, but we do see that starting to broaden out as sort of other retailers adopt the ability to do privacy safe measurement. As I will see that flow through the models, we see that starting to flow through to a broader set of retailers as well. So we have, our business is less SMB centric, but we do see that our improvements in shopability are benefiting a broad swath of retailers from the largest all the way through to smaller retailers as well. So we think more the value capture today is occurring with the largest most sophisticated. There is faster to react but when we say there’s like a multi-core adoption curve on these things that will start to take us deeper and deeper into sort of midsize and smaller retailers as well.
So hope that helps give you a little bit of color on that part of it.
Doug Anmuth: And then on 3P fields this…
William Ready: Yes on the third party side of it, 3P is doing exactly what we expected it to do. And if you step back, when we introduced 3P about a year ago, we were excited to announce our first third-party partnership with Amazon ads then. And when we first introduced 3P, we talked about the opportunity for 3P to work in parallel with 1P to round out gaps in our auction, leading to greater relevancy and shopability for our users. And ultimately, improved monetization. And of course, we’ve also been investing heavily in our 1P business, even as we introduced the 3P opportunity. And we talked about how we believe that creating numerous ways to win, driving a balanced, durable top-line growth, where this would be a compliment for auction, that that was the approach we were taking.
And so, when we’ve talked about 3P efforts as a compliment, it’s not that we believe that we’re any less excited to see the long-term potential any less. It’s just we’re also seeing significant accelerating strength in our 1P business. So our 1P is rounding out those gaps in our auction, bringing much more auction density. And then 3P is contributing nicely to that as a compliment as well. So again, we see that playing out, as we had expected in terms of complimenting our 1P demand, bringing more density to the auction, creating greater shopability. It is broad-based because we see broad-based strength in retail, both 1st-party and 3P as an emerging contributor to that. And as I mentioned in my comments, we expect that where we are now on 3P is a base from which we’ll continue to grow as we optimize further and further with our partners and look forward to how we’ll bring in more demand to compliment our auction.
Hope that helps.
Doug Anmuth: Thank you, Bill.
William Ready: Thank you.
Operator: Thank you. And our final question today will be from the line of Mark Mahaney of Evercore ISI. Your line is open. Please go ahead.
Mark Mahaney: Hey, thanks. Two questions, please. You talked about, Bill, about adding potentially more partners beyond Amazon and Google. If you just put some expectations, set some expectations around there. It’s kind of hard to see any partners that could be as material as those. But maybe I’m not being creative enough and thinking about it. And then secondly, Julia, I know you quantify the impact in the March quarter from Leap Day and Easter Timing. Is it safe to assume that the emerging contribution from 3P would have been less than that? And that’s why you didn’t quantify it. Thank you.
William Ready: Yes, thanks, Mark. So again, we’re just getting going with our 3P efforts. Again, we feel that those are performing in line with our expectations from what we’ve talked about previously. We’re just starting on the international side. Google’s certainly a great first partner there, but we’re just getting going. And as we carry forward, we think about, we’re always looking at this as sort of a retail problem. You have the right products on the shelves when the user walks in. And so we’re always looking at where do we need more density? Where do we need more shoppable inventory to round out what the user is looking for? And we’ll continue to look at what are the best partners to round that out. As you noted, we’ve brought in some really great partners already.
We see really phenomenal momentum in our first-party business, which is always what you would hope to see first and foremost. But we’ll continue to look at how we round out those get-ups. And as I mentioned, we see opportunities to expand our current partnerships to multiple geographies versus the geographies that are in today. And we’re continuously evaluating additional partners that can complement the auction going forward. So obviously, I’m not going to comment on any new partner before we have a new partner signed up. We’re continuously evaluating those. And even though it’s been a nice, 3P has been a nice emerging contributor, we’re just getting going internationally. And we see a lot more opportunity to continue on that effort. And then I’ll give to Julia for your second question.
Julia Donnelly: So Mark on the second part of your question. So we’ve always said we’re not going to specifically break out 3P versus 1P for many reasons, one is that they go together in the same auction, and — compliment one another as we said. And so the reason I didn’t call it out not because of what you said or I would not make that assumption. The reason I didn’t call it out as I was trying to call in Q1 sort of specific unique seasonal factors that benefitted Q1 that would not continue into Q2. In comparison 3P is something that is benefitting Q1 and continuing to benefit Q2 and something that we see scaling and ramping throughout the year. So I would not draw any other conclusions.
