Operator: Thank you. The next question will be from the line of Mark Mahaney with Evercore. Your line is now open.
Mark Mahaney: Thanks. I wanted to ask about the Q1 outlook. And is there a way to peel back the different drivers of this acceleration between kind of the core product improvements than the Amazon, maybe the Google contribution coming in? And then, I guess, other things like the extra day in the quarter, like if you were to peel apart those, maybe you can’t quantify, but directionally, which of those has the biggest impact on driving the acceleration, which is a second, which is third? How would you triage those? Thank you.
William Ready: Thanks for the question, Mark. As we talked about at our Investor Day, we’ve got multiple ways to win here. We’ve talked about driving better lower funnel performance. We are driving forward on that, performing quite well on that front. We talked about international in 3P. We see those contributing quite nicely as well. And so it is very much a multipronged approach, and we see really solid performance across each of those very much in line with the plans we laid out at our Investor Day. So, in the same way that we talked about multiple ways to win at Investor Day. We see progress on every single one of those fronts, and we see it as a balanced approach, and we continue to see that way as we look into Q1 and next year.
Mark Mahaney: Thank you, Bill.
Operator: Thank you. The next question will be from the line of Ron Josey with Citigroup. Your line is now open.
Ron Josey: Great. Thanks for taking the question. Bill, I wanted to ask maybe bigger picture. You talked about larger retail advertising, just to allocate advertisers allocating more performance budgets to the Pinterest as you evolve from experimental. Just talk to us about the process here to get to more performance ad budgets to be that line item and how this fits in your commentary on working with agencies and incentives? And then a quick follow-up on just Mark’s call, just Mark’s question, just there, Julia. Any insights on just Easter adding extra — with Easter being earlier this year and/or the extra day in the quarter? Thank you.
William Ready: Thanks for the question, Ron. So as we’ve talked about before, we’ve been on a major transformation from a primarily brand ad-driven platform a couple of years ago to a performance-driven platform today. And we shared at Investor Day two thirds of our revenue now coming from the lower funnel. So we are well down that path on that transformation. At the same time, we are continuing to launch major improvements to our performance ad product and we’re on an adoption curve there. So for example, we launched Mobile deep links to GA sort of middle of the year last year. And then we are still seeing more and more retailers not only adopt that, but then shift budget to us as a result of that. With direct links, we launched that as we were right into the holiday shopping season when most of the retailers are sort of hunkered down and that really making major shifts.
So we’re able to deliver that without the advertiser doing work, and we doubled the number of clicks we sent to advertisers year-on-year. And as we’re going into Q1, we’re seeing that now start to show up in budget allocations moving to us. But we think we have a lot more of that to go. And to give you a little bit more sense of this, if you looked at our lower funnel performance tools, things like conversion API, mobile deep links, direct links, clean rooms. At the start of last year, we had roughly 2% of our revenue coming from those who have at least three of those lower funnel tools. By Investor Day, that was 13% of our revenue coming from those that had at least three of those lower funnel tools. By the end of the year, it was 23% of our revenue coming from those who had at least three of those lower funnel tools.
So that gives you a sense for how we’re making strong progress, but also to my comments around how there is a lot more of the value capture still in front of us from products that we have already launched that we know are performing well. And of course, we are continuing to innovate there as well. So a lot more to come on that.
Julia Donnelly: And then maybe I’ll just add to that. As Bill was talking about, we’re seeing nice growth from retail, in particular, and that’s really kind of already capturing some of the value from some of the investments that we made over the course of 2023. One additional stat I’ll share, this is on an updated version of a stat that we had last year, which is that those who have adopted our API for conversions are actually seeing retailers who adopt our API for conversions are actually seeing year-over-year growth in the 30% range compared to non-adopters of our API for conversions who are declining mid-single digits. So another further data point to support the growth that we’re seeing and the budgets that are coming our way as we’re delivering sustained ROAS [ph] performance.
To your question on Q1 and kind of puts and takes in Q1. Just a reminder again that our acceleration that we’re guiding to in Q1 is off the back of a stable comp from last year. There are kind of small puts and takes and a small tailwind from timing of Easter or addition of leap day this year, but those are by no means the major driver. The major drivers are the strength that we’re seeing in the retail category tied to large advertisers, the emerging contribution from 3P and some of the other factors that we’ve discussed today on the call. So overall, this is us doing what we said we would do at Investor Day and delivering on some acceleration in capturing value from all of the investments that we’ve made over the last year, and we feel really good about the growth that we’re seeing, the sustainability of that growth and the progress that we’re making against those goals.
Ron Josey: Thank you, Julia. Thank you, Bill.
Julia Donnelly: Thank you.
William Ready: Thank you.
Operator: The next question will be from the line of Dan Salmon with New Street Research. Your line is now open.
Dan Salmon: Great. Thanks. Good afternoon, everyone. So maybe could we dig in a little bit more on your accelerating monthly active user growth this quarter. You talked about success with Gen Z, any additional quantification you could put around that would be great. And then maybe any color around other demographics, like, for example, men and then we can see the growth by region, obviously, but any particular countries that you would call out for where you’re seeing particular strength in our growth? Thank you.
William Ready: Certainly, on Gen Z, we’ve talked about it’s more than 40% of our user base now. And there’s multiple factors driving the improvement in users and engagement at its core. We’re helping users find more of what they’re interested in, on Pinterest, helping them take action on it and delivering a positive environment for them that they see as an oasis away from the toxicity of much of the rest of social media. This gets cited to us directly particularly by Gen Z users. And so we are carving out a unique space for ourselves that is quite different from the rest of social media that is more about users investing in themselves. Things are additive to their lives versus sort of viewing the lives of others or that where they feel like they have to perform for others.
And so it is a really unique and ownable space, and we’re seeing that really cut through with users and again, with advertisers as well to see it as a brand-safe environment. On geographies, as you mentioned, you can see the geographic growth there. The couple of things I’d mention are just on U-Can. We saw, again, another nice, really nice growth quarter there in our mature markets. I’ve been saying this for the last six quarters. Our mature market is much more about driving depth of engagement, and we feel really good about the depth of engagement that we’re driving, particularly actionability on to the platform. You see that reflected in the increase in clicks, where users are taking action on our platform, a big question 18 months ago. Users not only come here with intent, but they are taking action.
And internationally, the big question there has always been the monetization. And we have nice momentum there, but we have a lot more that we can do, and we’re quite excited about our first-party selling efforts, the things we can do with reseller partners and agencies. We’re making progress on those fronts and then bring 3P into the mix there with Google, particularly for those unmonetized and undermonetized markets. We think there’s a lot we can do that not only drives the monetization per user, but again, drive that actionability for the user that we think can help further enhance the user engagement for users in those international markets.
Julia Donnelly: Only other thing I’d add, Dan, to your question on sort of the acceleration that we’ve seen in MAU growth, which were proud of. As Bill mentioned, it is also carrying through in terms of depth of engagement. And so were continuing to see our mobile app MAU growth accelerate even faster than our total MAU growth. And as we look at total impressions, which is one of the drivers of ad impressions, but total impressions that continues to grow even faster than our MAU growth as well. So continue to see nice trends there consistent with some of the longer-term trends we shared at Investor Day.
Dan Salmon: Very helpful. Thank you.
Operator: Thank you. The next question will be from the line of Kenneth Gawrelski with Wells Fargo. Your line is now open.
Kenneth Gawrelski: Thank you, very much. Just two, if I may, real quickly. First, on revenue mix and thinking about 4Q versus 1Q, you talked about the headwinds from the food and beverage category in 4Q continuing into 1Q, but yet you did guide to an acceleration. Should we think about that as — is there a mix component to that, meaning heavier brand adds or heavy brand in 4Q versus 1Q? Or is that all just all DR acceleration and the 3P kicking in? And then second, please, I just hope maybe if you could walk us through a little bit. And you talked about this, Bill, about the value capture versus value creation. Looking at those impressions plus 33 in the fourth quarter, which is really impressive. As you think about throughout ’24, not a 1Q question, but throughout ’24, do you see that your Pinterest’s ability to close that gap over time in terms of see advertising revenue relative to those impression growth?
