He's never had to do something like this before, puzzling out what someone's trying to say, but he figures he can give it his best shot. Let's see... something about... Meepets. Or Muppets, that's his best guess, because it's close enough to puppets and this individual certainly looks like a puppet to him, albeit a very strange one. Well, they can't all be crafted out of wood.

So Beaker's either trying to say what he is or what he does, then, and Pinocchio's almost positive there was another name in there somewhere, even if he can't quite figure out what it was. If there's someone else involved, it's far more likely he's talking about his job or something...

It might be a long shot, but he'll take a stab in the dark, anyways. Pinocchio can at least try and respond with something moderately relevant, given that his broad guesses are correct. He doesn't want the guy to feel like he's got no weight in this conversation just because he can't quite be perfectly understood. Besides, that last gesture is clearly an indication for him to offer some kind of answer to something.

"I used to perform in a puppet show, but I left after the owner locked me in a cage and stuff." But it's fine. "Then I ended up here, and I don't really do anything now 'cause nobody has to earn any money here. Oh, but I'm learning how to build robots!" That counts, right? It's more of a hobby or an education than a job, but still.