Pinterest Inc PINS CEO Bill Ready said during the earnings call that the image-sharing company significantly slowed the pace of hiring and cut down on infrastructure spending as part of its cost control measures in the fourth quarter.
“We significantly slowed the pace of hiring such that our headcount was flat quarter-over-quarter. We reduced our infrastructure spend, which declined sequentially, despite strong engagement volume increases, and we closed some of our smaller offices for future cost savings," Ready said.
"These actions put us on the path to meaningful EBITDA margin expansion in 2023 and demonstrate our focus on generating strong cash flow."
Shares of Pinterest closed 1.53% higher but lost 2.26% in extended trading. The company’s fourth-quarter revenue increased 4% year-over-year to $877.21 million, which missed average analyst estimates of $886.44 million. The company said CFO Todd Morgenfeld will step down from his role to pursue new career opportunities in July.
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Integrating Shopping: Ready pointed out that one of the company’s strategic goals for 2023 includes integrating shopping into the core of the product experience.
“Based on surveys of our users, over 50% say they view Pinterest as a place to shop. Yet we haven't made it easy for them to shop historically as shoppable content was not integrated into core experiences,” he said.
Ready said the company is integrating the function across its home feed, search and related pins to show users relevant products.
“Over the long-term, we also want to make every pin shoppable. To that end, we're making video content on Pinterest more actionable using the same playbook we applied to static images,” he said.
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