Business

Pinterest : Q122 Highlights – Form 8-K


Q122 Highlights

•Our Q1 income grew 18% yr over yr to $575 million. Strength got here from retail advertisers, our worldwide enterprise, and managed SMB advertisers.

•Our world Monthly Active Users (MAUs) decreased 9% yr over yr to 433 million. The year-over-year decline was primarily pushed by our lapping of pandemic-influenced progress within the year-ago quarter and decrease site visitors from search.

•Our GAAP web loss was $5 million for Q1, in comparison with GAAP web lack of $22 million within the yr in the past quarter. Our Adjusted EBITDA1 was $77 million for Q1.

•Beginning this quarter, we will probably be offering further disclosure round our income, MAUs and common income per consumer (ARPU), by presenting U.S. and Canada, Europe, and Rest of World individually.

Q122 Business Highlights

Before we dig into the small print of the quarter, it is price reiterating what we’re constructing at Pinterest and why it issues.

We stay centered on our mission: to convey everybody the inspiration to create a life they love. We endeavor to not solely make Pinterest the place to begin for inspiration of life’s tasks, however to assist individuals flip these inspirations right into a actuality. To that finish, we’re enhancing our merchandise throughout the whole inspiration-to-purchase journey.

The journey begins with inspiration, the place our current investments in native content material (and particularly video) are starting to yield outcomes. Search and planning typically observe inspiration, and we’re constructing a extra structured search expertise in addition to enhancing suggestions and personalization. The inspiration-to-purchase journey ought to culminate in a seamless buy. To this finish, we’re investing in making it easy to seek out the precise merchandise and to buy them simply. Advertisers and types are a vital a part of this journey, and we’re constructing instruments and codecs that assist them obtain their targets too.

In Q1 2022, we continued to expertise year-over-year engagement declines primarily attributable to pandemic-influenced progress within the year-ago quarter in addition to decrease search site visitors (largely pushed by Google’s algorithm change in November 2021). Time spent on aggressive video-centric client platforms stays a headwind, significantly in our extra mature markets. These declines had been most pronounced for our desktop internet and cell internet customers, with cell app customers displaying extra resilience. The decline in world MAUs from February 1 to March 31 was primarily attributable to Russia’s current invasion of Ukraine, and was significantly pronounced in Europe.

That stated, we imagine that buyers need optimistic environments devoted to serving to them go from the spark of inspiration by means of to planning and buying. With inspiring new video codecs, enhancements in core search and suggestions, and an ever enhancing purchasing expertise, we see great progress alternatives forward of us.

Pinner Experience

Inspiration

We started investing in a local content material ecosystem with an preliminary emphasis on video and our new format Idea Pins. Video is a basic medium for inspiration and planning, and we imagine Pinterest has a novel position to play.

We are making progress on this:

•In Q122, the variety of video Idea Pins grew 15x yr over yr. Going ahead, we plan to additional speed up our plans with improved publishing instruments powered by our 2021 acquisition of Vochi.

1 This non-GAAP monetary measure excludes share-based compensation (SBC), depreciation and amortization expense, curiosity revenue, curiosity expense and different revenue (expense), web, provision for (profit from) revenue taxes and non-cash charitable contributions. For extra data on this, please see “About non-GAAP financial measures.”

•The progress in Idea Pin stock has yielded extra engagement alerts, which has in flip helped us enhance native content material suggestions. As we’re capable of serve extra related content material to customers, we have seen over 25% progress within the save charge of Idea Pins quarter over quarter. We imagine saves are an vital sign for impressed engagement.

•Finally, we proceed to increase incentives to draw new Creators and publishers, reward current Creators, and help Creators economically by incentivizing them to stay on and spend money on making content material for Pinterest. We’ve seen stable progress within the variety of Pinners creating Idea Pins on the platform, which grew 17x in Q1, yr over yr.

Search and Planning

To make inspiration a actuality, many Pinners wish to slender down their concepts and/or make a plan. Accordingly, we’re evolving our search expertise to assist Pinners discover one of the best concepts by reintroducing our fashionable guided search function and increasing hair sample search to 9 new markets. We’ve additionally began testing search recommendations primarily based on related queries – for instance dietary restrictions for food-related searches. These modifications have led to larger question progress and question engagement in our experiments, and we plan to increase search suggestions to Home Decor, Fashion and different key verticals.

Shopping

We proceed to spend money on the Pinterest purchasing expertise. We launched the Pinterest API for Shopping, which is able to improve our product element pages by incorporating real-time pricing and product availability.

We’re on the trail to creating purchasing on Pinterest extra customized with the beta take a look at of Your Shop in Q1, a personalized purchasing web page powered by our taste-driven algorithm knowledgeable by Pinners’ distinctive preferences and kinds. Your Shop is presently being examined with a portion of our U.S. Pinners with plans to launch extra broadly later this yr. Finally, we proceed testing our seamless checkout expertise with extra retailers.

Pinterest for Business

Pinterest Presents

In Q1 we hosted our second annual world advertisements summit, Pinterest Presents, with almost 20,000 attendees from the U.S., Canada, UK, France, Germany and Australia. Our message was clear: Pinterest is completely different, as a result of it is the place individuals come to find new merchandise and plan life tasks at scale.

The occasion showcased new instruments and codecs that stretch this worth proposition, together with a brand new Pinterest Trends Tool (coming later this yr) to assist advertisers see Pinterest search knowledge in actual time and arrange by the viewers advertisers are focusing on to construct extra related, resonant campaigns. We additionally introduced new options resembling Idea Ads, that are multimedia storytelling advert models, and a paid partnership device that can be utilized by creators and advertisers who accomplice collectively for content material creation. These codecs ought to be typically accessible later this yr.

Providing worth for advertisers

We need Pinterest to be a spot the place any advertiser can convey their finances, their targets, and their inventive – and our advert platform will do the remainder.

We are making it simpler for advertisers to get began on Pinterest by opening up new applied sciences and launching new partnerships. In Q1, we launched the Pinterest API (v5). The Pinterest API (v5) permits builders to attach shortly and start constructing purposes to allow sooner creation of content material on Pinterest and to entry consumer, Pin and advertisements analytics. In addition, our WooCommerce partnership is now dwell, giving hundreds of thousands of retailers the facility to show their product catalogs into shoppable Product Pins with only a few clicks.

In order to make our advertisements market extra environment friendly, now we have continued to spend money on machine studying (ML) pushed improvements, and have deployed enhanced ML architectures to enhance our capability to foretell how customers have interaction with advertisements. We additionally improved our bidding algorithms to assist the pacing of advertiser spend and to extra successfully deploy advertiser budgets. Both of those modifications led to platform-wide lifts in conversion charge and a discount in CPAs in Q1.

Finally, we proceed to make strides on our first-party measurement suite and our capability to show worth to advertisers throughout the full-funnel of targets. For instance, we continued to make enhancements to the Pinterest API for Conversions that allows advertisers to ship conversions on to Pinterest by way of a server-to-server technique with out requiring a Pinterest tag.

Q122 Financial Highlights

Q1 income grew 18% yr over yr to $575 million. Strength got here from retail advertisers, our worldwide enterprise, and managed SMB advertisers, however was offset by continued weak spot amongst CPG and sure different advertisers, who had been impacted by macroeconomic and geopolitical components. Our world Monthly Active Users (MAUs) decreased 9% yr over yr to 433 million. The year-over-year decline was primarily pushed by our lapping of pandemic-influenced progress within the year-ago quarter and decrease site visitors from search engines like google. Our Q1 GAAP web loss was $5 million or (1)% of income. Non-GAAP web income2 was $69 million and our Adjusted EBITDA1 was $77 million or 13% of income.

Beginning this quarter, we’re updating the presentation of our key metrics by presenting U.S. and Canada, Europe and Rest of World individually. We imagine our revised presentation will present further particulars on the relative maturity of those areas we beforehand included inside International. Specifically, we wish to present further disclosure on Europe given the relative maturity of the area. As a outcome, we’re additionally presenting Canada with the U.S. given the relative maturity of our enterprise in Canada and the similarity of the U.S. and Canada promoting markets.

Users & Engagement

Global MAUs at quarter-end had been 433 million, declining 9% yr over yr. We imagine the year-over-year decline was primarily attributable to pandemic-influenced progress within the year-ago quarter in addition to decrease search site visitors (largely pushed by Google’s algorithm change in November 2021). Time spent on aggressive video-centric client platforms stays a headwind, significantly in our extra mature markets. These declines had been most pronounced for our desktop internet and cell internet customers. The decline in world MAUs from February 1, 2022 to March 31, 2022 was primarily attributable to Russia’s current invasion of Ukraine, and was significantly pronounced in Europe.

While these headwinds impacted our MAUs, we noticed pockets of power. First, world cell app MAUs grew mid-single digits yr over yr. These customers proceed to symbolize the overwhelming majority of our impressions and income. Second, we noticed continued power throughout the youthful demographic, with Gen Z customers rising mid-single digits yr over yr. Finally, purchasing engagement remained comparatively resilient, with the variety of Pinners participating in purchasing surfaces rising yr over yr.

By area:

•U.S. & Canada MAUs had been 94 million, a lower of 13% yr over yr compared to 109 million in the identical interval of the earlier yr.

◦U.S. MAUs had been 85 million, a lower of 13% yr over yr compared to the 98 million in the identical interval of the earlier yr. We don’t plan to interrupt out U.S. MAUs going ahead.

•Europe MAUs had been 120 million, a lower of 12% yr over yr compared to 136 million in the identical interval of the earlier yr.

•Rest of World MAUs had been 220 million, a lower of 6% yr over yr compared to 234 million in the identical interval of the earlier yr.

Revenue

Total income was $575 million, a rise of 18% yr over yr in comparison with Q1 2021. Q1 income progress was primarily pushed by robust demand from retail advertisers, progress in worldwide markets, and power from managed SMB advertisers. These developments had been offset by macro headwinds, together with provide chain points and different components, which continued to influence one among our largest segments, CPG advertisers, in addition to some mid-market advertisers. In Europe, Russia’s invasion of Ukraine compounded a tough macro surroundings, impacting a lot of our advertisers in that area.

2 This non-GAAP monetary measure excludes SBC, amortization of acquired intangible property and non-cash charitable contributions. For extra data on this, please see “About non-GAAP financial measures.”

By region3:

•Total U.S. and Canada income was $470 million, a rise of 15% yr over yr. U.S. and Canada income will increase had been pushed by ARPU.

◦U.S. income was $446 million, a rise of 14% yr over yr. We do not plan to interrupt out U.S. income (which relies on our estimate of the geographic location of our customers) going ahead.

•Total Europe income was $87 million, a rise of 27% yr over yr. Europe income will increase had been pushed by ARPU.

•Total Rest of World income was $17 million, a rise of 152% yr over yr. Rest of World income will increase had been pushed by ARPU.

ARPU

Global ARPU grew 28% year-over-year to $1.33, in comparison with $1.04 in Q1 2021. The growth in world ARPU was pushed primarily by promoting demand. We proceed to construct our gross sales protection, increase our advertiser base, enhance our shoppable content material and execute on our technique to supply related advertisements to our customers in areas exterior of the U.S. and Canada.

By area:

•U.S. and Canada ARPU was $4.98, a rise of 31% yr over yr.

◦U.S. ARPU was $5.21, a rise of 31% yr over yr. We don’t plan to interrupt out U.S. ARPU going ahead.

•Europe ARPU was $0.72, a rise of 40% yr over yr.

•Rest of World ARPU was $0.08, a rise of 164% yr over yr.

Expenses

Total prices and bills had been $579 million, together with $74 million of share-based compensation (SBC) and amortization of acquired intangible property. Our whole prices and bills grew 14% year-over-year attributable to headcount progress, offset by $20 million of non-cash charitable contributions made in 2021. Total non-GAAP prices and expenses2 had been $504 million, representing 88% of income in comparison with 84% of income within the year-ago quarter. Our non-GAAP prices and bills grew 24% year-over-year. The progress displays a rise in headcount. Our loss from operations totaled $4 million, or (1)% of income, in comparison with lack of $23 million and (5)% for a similar interval in 2021. Non-GAAP revenue from operations2 was $71 million, or 12% of income, in comparison with revenue of $77 million, or 16% for a similar interval in 2021.

Costs and bills

•Cost of income was $146 million or 25% of income, down from 28% within the year-ago quarter. Non-GAAP value of revenue4 was $144 million or 25% of income, down from 27% of income within the year-ago quarter. The lower as a share of income is because of larger total income, partially offset by a rise in infrastructure expense.

•Research and improvement bills had been $196 million, up 14% yr over yr. On a non-GAAP foundation, bills grew 24% yr over yr to $143 million. The enhance was due primarily to larger headcount.

•Sales and advertising bills had been $174 million, up 33% yr over yr. On a non-GAAP foundation, bills grew 37% yr over yr to $162 million. The enhance was due primarily to advertising bills and better headcount.

3 Revenue is geographically apportioned primarily based on our estimate of the geographic location of our customers once they carry out a revenue-generating exercise. U.S. and Canada, Europe and Rest of World might not sum to Global attributable to rounding. This allocation differs from our disclosure of income disaggregated by geography within the notes to our condensed consolidated monetary statements the place income is geographically apportioned primarily based on our clients’ billing addresses.

4 This non-GAAP monetary measure excludes SBC and amortization of acquired intangible property. For extra data on this, please see “About non-GAAP financial measures.”

•General and administrative bills had been $63 million, down 13% yr over yr. The lower was largely attributable to $20 million of non-cash charitable contributions made in 2021. On a non-GAAP foundation, bills grew 31% yr over yr to $55 million primarily attributable to taxes and different gadgets.

Net loss and Adjusted EBITDA

Net loss was $5 million or (1)% of income, in comparison with web lack of $22 million, or (4)% for a similar interval in 2021. Non-GAAP web income2 was $69 million, or 12% of income, in comparison with $79 million, or 16% for a similar interval in 2021.

Adjusted EBITDA1 was $77 million, or 13% of income, in comparison with the year-ago quarter Adjusted EBITDA of $84 million, or 17% of income.

Balance sheet and money flows

•We ended the quarter with roughly $2.68 billion in money, money equivalents and marketable securities.

•Net money supplied by working actions for the three months ended March 31, 2022 was $213 million, a decline from $271 million in the identical interval final yr.

Guidance

Our present expectation is that Q2 income will develop round 11% yr over yr. We anticipate our non-GAAP working bills to develop round 10% quarter-over-quarter in Q2. For the total yr, we anticipate non-GAAP working bills will develop between 35-40% year-over-year as we proceed to ramp up our investments in our native content material ecosystem, core Pinner expertise, purchasing, and headcount throughout analysis and improvement and gross sales and marketing5.

As of April 25, 2022, our U.S. and Canada MAUs had been 94.0 million, and our Global MAUs had been 432.9 million6.

We intend to supply additional element on our outlook in the course of the convention name.

Our key strategic priorities for 2022 are anchored in creator-led and inspirational content material, purchasing, Pinner expertise, and advertiser success. We plan to scale our native content material ecosystem, and we anticipate analysis and improvement efforts to proceed to give attention to purchasing, Pinner product, advert product and measurement investments. We additionally intend to develop our headcount additional to fund our strategic initiatives. We assume these investments will help long-term progress and proceed to construct the foundations for a scaled enterprise over time.

_____________

5We haven’t supplied the forward-looking GAAP equivalents for sure forward-looking non-GAAP working bills or a GAAP reconciliation on account of the uncertainty concerning, and the potential variability of, reconciling gadgets resembling share-based compensation expense. Accordingly, a reconciliation of those non-GAAP steering metrics to their corresponding GAAP equivalents isn’t accessible with out unreasonable effort. However, you will need to observe that materials modifications to reconciling gadgets might have a big impact on future GAAP outcomes and, as such, we additionally imagine that any reconciliations supplied would indicate a level of precision that could possibly be complicated or deceptive to traders.

6 Results, developments and outlook for the Q2 2022 interval to this point are preliminary, topic to alter, and might not be a sign of future efficiency.

Closing

We will host a Q&A webcast at 1:30pm Pacific time/ 4:30pm Eastern time at the moment to debate these outcomes and our outlook. A dwell webcast will probably be accessible on Pinterest’s Investor Relations web site at investor.pinterestinc.com. Thank you for taking the time to learn our letter, and we stay up for your questions on our name this afternoon.

Sincerely,

Ben Silbermann Todd Morgenfeld
Co-Founder, President and CEO CFO and Head of Business Operations

Forward-looking statements

This letter to shareholders might comprise forward-looking statements throughout the which means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, about us and our trade that contain substantial dangers and uncertainties, together with, amongst different issues, statements about our future operational and monetary efficiency. Words resembling “believe,” “project,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and comparable expressions are meant to determine forward-looking statements. These forward-looking statements are solely predictions and will differ materially from precise outcomes attributable to a wide range of components together with: the influence of the COVID-19 pandemic, together with its influence on our enterprise in addition to on world and regional economies and financial exercise; common financial and political uncertainty in world markets and a worsening of world financial situations or low ranges of financial progress, together with occasions resembling Russia’s current invasion of Ukraine; the influence of the COVID-19 pandemic on our deliberate investments, operations, bills, income, money movement, liquidity, customers and engagement; our capability to draw,retain and resurrect customers and preserve and develop their engagement ranges; our capability to supply helpful and related content material; our capability to draw and retain creators that create related and fascinating content material on our platform; dangers related to new merchandise and modifications to current merchandise in addition to different new enterprise initiatives; our capability to keep up and improve our model and status; compromises in safety; our monetary efficiency and fluctuations in working outcomes; our dependency on on-line utility shops’ and web search engines like google’ methodologies and insurance policies; discontinuation, disruptions or outages in authentication by third-party login suppliers; modifications by third-party login suppliers that prohibit our entry or capability to determine customers; competitors; our capability to scale our enterprise and income mannequin; our reliance on promoting income and our capability to draw and retain advertisers and successfully measure promoting campaigns; our capability to successfully handle progress and increase and monetize our platform internationally; our lack of working historical past and talent to maintain profitability; choices that cut back short-term income or profitability or don’t produce anticipated long-term advantages; dangers related to authorities actions, legal guidelines and laws that would prohibit entry to our merchandise or impair our enterprise; litigation and authorities inquiries; privateness, knowledge and different regulatory issues; actual or perceived inaccuracies in metrics associated to our enterprise; disruption, degradation or interference with our internet hosting providers and infrastructure; our capability to draw and retain personnel; and the twin class construction of our widespread inventory and its impact of concentrating voting management with stockholders who held our capital inventory previous to the completion of our preliminary public providing. These and different potential dangers and uncertainties that would trigger precise outcomes to vary from the outcomes predicted are extra absolutely detailed in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, which is accessible on our investor relations web site at investor.pinterestinc.com and on the SEC web site at www.sec.gov. All data supplied on this letter to shareholders and within the earnings supplies is as of April 27, 2022. Undue reliance shouldn’t be positioned on the forward-looking statements on this letter to shareholders, that are primarily based on data accessible to us on the date hereof. We undertake no responsibility to replace this data until required by regulation.

About non-GAAP monetary measures

To complement our condensed consolidated monetary statements, that are ready and introduced in accordance with typically accepted accounting rules within the United States (“GAAP”), we use the next non-GAAP monetary measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP prices and bills (together with non-GAAP value of income, analysis and improvement, gross sales and advertising, and common and administrative), non-GAAP revenue from operations, non-GAAP web revenue and non-GAAP web revenue per share. The presentation of those monetary measures isn’t meant to be thought of in isolation, as an alternative choice to or superior to the monetary data ready and introduced in accordance with GAAP. Investors are cautioned that there are materials limitations related to the usage of non-GAAP monetary measures as an analytical device. In addition, these measures could also be completely different from non-GAAP monetary measures utilized by different firms, limiting their usefulness for comparative functions. We compensate for these limitations by offering particular data concerning GAAP quantities excluded from these non-GAAP monetary measures.

We outline Adjusted EBITDA as web revenue (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, curiosity revenue, curiosity expense and different revenue (expense), web, provision for (profit from) revenue taxes and non-cash charitable contributions. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by income. Non-GAAP prices and bills (together with non-GAAP value of income, analysis and improvement, gross sales and advertising, and common and administrative) and non-GAAP web revenue exclude amortization of acquired intangible property, share-based compensation expense and non-cash charitable contributions. Non-GAAP revenue from operations is calculated by subtracting non-GAAP prices and bills from income. Non-GAAP web revenue per share is calculated by dividing non-GAAP web revenue by diluted weighted-average shares excellent. We use Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP prices and bills, non-GAAP revenue from operations, non-GAAP web revenue and non-GAAP web revenue per share to judge our working outcomes and for monetary and operational decision-making functions. We imagine Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP prices and bills, non-GAAP revenue from operations, non-GAAP web revenue and non-GAAP web revenue per share assist determine underlying developments in our enterprise that would in any other case be masked by the impact of the revenue and bills they exclude. We additionally imagine Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP prices and bills, non-GAAP revenue from operations, non-GAAP web revenue and non-GAAP web revenue per share present helpful details about our working outcomes, improve the general understanding of our previous efficiency and future prospects and permit for larger transparency with respect to key metrics we use for monetary and operational decision-making. We current Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP prices and bills, non-GAAP revenue from operations, non-GAAP web revenue and non-GAAP web revenue per share to help potential traders in seeing our working outcomes by means of the eyes of administration and since we imagine these measures present an extra device for traders to make use of in evaluating our working outcomes over a number of intervals with different firms in our trade. There are quite a few limitations associated to the usage of Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP prices and bills, non-GAAP revenue from operations, non-GAAP web revenue and non-GAAP web revenue per share somewhat than web revenue (loss), web margin, whole prices and bills, revenue (loss) from operations, web revenue (loss) and web revenue (loss) per share, respectively, the closest GAAP equivalents. For instance, Adjusted EBITDA excludes sure recurring, non-cash costs resembling depreciation of mounted property and amortization of acquired intangible property, though these property might have to get replaced sooner or later, and share-based compensation expense, which has been, and can proceed to be for the foreseeable future, a big recurring expense and an vital a part of our compensation technique.

For a reconciliation of those non-GAAP monetary measures to essentially the most instantly comparable GAAP monetary measures, please see the tables below “Reconciliation of GAAP to non-GAAP financial results” included on the finish of this letter.

Limitation of key metrics and different knowledge

The numbers for our key metrics, which embrace our MAUs and ARPU, are calculated utilizing inner firm knowledge primarily based on the exercise of consumer accounts. We outline a month-to-month lively consumer as an authenticated Pinterest consumer who visits our web site, opens our cell utility or interacts with Pinterest by means of one among our browser or website extensions, such because the Save button, not less than as soon as in the course of the 30-day interval ending on the date of measurement. Unless in any other case indicated, we current MAUs primarily based on the variety of MAUs measured on the final day of the present interval. We measure monetization of our platform by means of our common income per consumer metric. We outline ARPU as our whole income in a given geography throughout a interval divided by the common of the variety of MAUs in that geography in the course of the interval. We calculate common MAUs primarily based on the common of the variety of MAUs measured on the final day of the present interval and the final day previous to the start of the present interval. We calculate ARPU by geography primarily based on our estimate of the geography by which revenue-generating actions happen. We use these metrics to evaluate the expansion and well being of the general enterprise and imagine that MAUs and ARPU finest mirror our capability to draw, retain, have interaction and monetize our customers, and thereby drive income. While these numbers are primarily based on what we imagine to be affordable estimates of our consumer base for the relevant interval of measurement, there are inherent challenges in measuring utilization of our merchandise throughout giant on-line and cell populations world wide. In addition, we’re regularly looking for to enhance our estimates of our consumer base, and such estimates might change attributable to enhancements or modifications in our methodology.

PINTEREST, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in hundreds, besides par worth)

(unaudited)

March 31, December 31,
2022 2021
ASSETS
Current property:
Cash and money equivalents $ 1,683,792 $ 1,419,630
Marketable securities 994,346 1,060,488

Accounts receivable, web of allowances of $8,366 and $8,282 as of March 31, 2022 and December 31, 2021, respectively

473,031 653,355
Prepaid bills and different present property 56,183 48,090
Total present property 3,207,352 3,181,563
Property and gear, web 54,714 53,401
Operating lease right-of-use property 222,751 227,912
Goodwill and intangible property, web 60,084 61,115
Other property 13,289 13,247
Total property $ 3,558,190 $ 3,537,238
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 12,546 $ 17,675
Accrued bills and different present liabilities 213,019 242,131
Total present liabilities 225,565 259,806
Operating lease liabilities 202,569 209,181
Other liabilities 30,396 29,508
Total liabilities 458,530 498,495
Commitments and contingencies
Stockholders’ fairness:

Class A standard inventory, $0.00001 par worth, 6,666,667 shares licensed, 573,585 and 568,228 shares issued and excellent as of March 31, 2022 and December 31, 2021, respectively; Class B widespread inventory, $0.00001 par worth, 1,333,333 shares licensed, 88,669 and 88,644 shares issued and excellent as of March 31, 2022 and December 31, 2021, respectively

7 7
Additional paid-in capital 5,133,804 5,059,528
Accumulated different complete loss (10,259) (2,181)
Accumulated deficit (2,023,892) (2,018,611)
Total stockholders’ fairness 3,099,660 3,038,743
Total liabilities and stockholders’ fairness $ 3,558,190 $ 3,537,238

PINTEREST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in hundreds, besides per share quantities)

(unaudited)

Three Months Ended March 31,
2022 2021
Revenue $ 574,885 $ 485,230
Costs and bills:
Cost of income 146,070 133,470
Research and improvement 195,548 171,728
Sales and advertising 173,953 130,322
General and administrative 62,979 72,618
Total prices and bills 578,550 508,138
Loss from operations (3,665) (22,908)
Interest revenue 1,088 1,492
Interest expense and different revenue (expense), web (1,576) (1,563)
Loss earlier than provision for (profit from) revenue taxes (4,153) (22,979)
Provision for (profit from) revenue taxes 1,128 (1,305)
Net loss $ (5,281) $ (21,674)

Net loss per share, primary and diluted

$ (0.01) $ (0.03)

Weighted-average shares utilized in computing web loss per share, primary and diluted

656,899 628,593

PINTEREST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in hundreds)

(unaudited)

Three Months Ended March 31,
2022 2021
Operating actions
Net loss $ (5,281) $ (21,674)
Adjustments to reconcile web loss to web money supplied by working actions:
Depreciation and amortization 7,220 6,783
Share-based compensation 73,240 79,459
Non-cash charitable contributions 20,490
Other 2,978 2,029
Changes in property and liabilities:
Accounts receivable 180,203 176,564
Prepaid bills and different property (8,285) (91)
Operating lease right-of-use property 12,394 10,288
Accounts payable (4,638) (717)
Accrued bills and different liabilities (31,620) 8,298
Operating lease liabilities (12,822) (10,850)
Net money supplied by working actions 213,389 270,579
Investing actions
Purchases of property and gear and intangible property (6,902) (1,251)
Purchases of marketable securities (155,181) (263,170)
Sales of marketable securities 4,168 79,831
Maturities of marketable securities 207,319 149,532
Net money supplied by (utilized in) investing actions 49,404 (35,058)
Financing actions

Proceeds from train of inventory choices, web

1,036 9,344
Net money supplied by financing actions 1,036 9,344
Effect of trade charge modifications on money, money equivalents and restricted money 333 (355)
Net enhance in money, money equivalents and restricted money 264,162 244,510
Cash, money equivalents and restricted money, starting of interval 1,427,064 678,911
Cash, money equivalents and restricted money, finish of interval $ 1,691,226 $ 923,421
Supplemental money movement data
Accrued property and gear $ 3,462 $ 125
Operating lease right-of-use property obtained in trade for working lease liabilities $ 7,085 $ 630
Reconciliation of money, money equivalents and restricted money to condensed consolidated stability sheets
Cash and money equivalents $ 1,683,792 $ 913,740
Restricted money included in pay as you go bills and different present property 1,137 571
Restricted money included in different property 6,297 9,110
Total money, money equivalents and restricted money $ 1,691,226 $ 923,421

PINTEREST, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(in hundreds)

(unaudited)

Three Months Ended March 31,
2022 2021
Share-based compensation by perform:
Cost of income $ 1,194 $ 1,312
Research and improvement 52,890 56,475
Sales and advertising 11,769 11,891
General and administrative 7,387 9,781
Total share-based compensation $ 73,240 $ 79,459
Amortization of acquired intangible property by perform:
Cost of income $ 699 $ 94
Sales and advertising 135
General and administrative 197 158
Total amortization of acquired intangible property $ 1,031 $ 252
Reconciliation of whole prices and bills to non-GAAP prices and bills:
Total prices and bills $ 578,550 $ 508,138
Share-based compensation (73,240) (79,459)
Amortization of acquired intangible property (1,031) (252)
Non-cash charitable contributions (20,490)
Total non-GAAP prices and bills $ 504,279 $ 407,937
Reconciliation of web loss to Adjusted EBITDA:
Net loss $ (5,281) $ (21,674)
Depreciation and amortization 7,220 6,783
Share-based compensation 73,240 79,459
Interest revenue (1,088) (1,492)
Interest expense and different (revenue) expense, web 1,576 1,563
Provision for (profit from) revenue taxes 1,128 (1,305)
Non-cash charitable contributions 20,490

Adjusted EBITDA

$ 76,795 $ 83,824

PINTEREST, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(in hundreds, besides per share quantities)

(unaudited)

Three Months Ended March 31,
2022 2021
Reconciliation of web loss to non-GAAP web revenue:
Net loss $ (5,281) $ (21,674)
Share-based compensation 73,240 79,459
Amortization of acquired intangible property 1,031 252
Non-cash charitable contributions 20,490
Non-GAAP web revenue $ 68,990 $ 78,527
Basic weighted-average shares utilized in computing web loss per share 656,899 628,593

Weighted-average dilutive securities (1)

29,160 63,770
Diluted weighted-average shares utilized in computing non-GAAP web revenue per share 686,059 692,363
Non-GAAP web revenue per share $ 0.10 $ 0.11

(1)Gives impact to potential widespread inventory devices resembling inventory choices, unvested restricted inventory models and unvested restricted inventory awards.



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