EX-99.1 2 q1-23xpressrelease.htm EX-99.1 Document

Exhibit 99.1
Pinterest Announces First Quarter 2023 Results
SAN FRANCISCO, Calif. - April 27, 2023 - Pinterest, Inc. (NYSE: PINS) today announced financial results for the quarter ended March 31, 2023.
•Q1 revenue grew 5% year over year to $603 million.
•Global Monthly Active Users (MAUs) increased 7% year over year to 463 million.
•GAAP net loss was $209 million for Q1. Adjusted EBITDA was $27 million for Q1.
•Total costs and expenses were $846 million, including $121 million of restructuring charges.
•We repurchased 2.8 million shares of our Class A common stock for $72 million. $428 million remains available for repurchases under our $500 million authorization.
“I’m proud of how our team is continuing to execute,” said Bill Ready, CEO of Pinterest. “In Q1, we grew our business globally through improved content relevance, shoppability, and by delivering strong results for our advertisers. Today, we’re taking meaningful steps towards expanding our ads business by opening up third-party ad demand on Pinterest, starting with Amazon as our first partner. Looking forward, we are excited to further leverage and satisfy the strong commercial intent of our users and deliver long-term shareholder value.”
Q1 2023 Financial Highlights
The following table summarizes our consolidated financial results (in thousands, except percentages, unaudited):
Three Months Ended March 31,% Change
20232022
Revenue$602,581 $574,885 5 %
Net loss$(208,579)$(5,281)(3,850)%
Non-GAAP net income*$57,704 $68,990 (16)%
Adjusted EBITDA*$26,969 $76,795 (65)%
Adjusted EBITDA margin*4 %13 %
* For more information on these non-GAAP financial measures, please see "―About non-GAAP financial measures" and the tables under "―Reconciliation of GAAP to non-GAAP financial results" included at the end of this release.
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Q1 2023 Other Highlights
The following table sets forth our revenue, MAUs and ARPU based on the geographic location of our users (in millions, except ARPU and percentages, unaudited):
Three Months Ended March 31,% Change
20232022
Revenue - Global$603 $575 5 %
Revenue - U.S. and Canada$486 $470 3 %
Revenue - Europe$93 $87 6 %
Revenue - Rest of World$24 $17 38 %
MAUs - Global4634337 %
MAUs - U.S. and Canada95941 %
MAUs - Europe1281207 %
MAUs - Rest of World2402209 %
ARPU - Global$1.32 $1.33 (1)%
ARPU - U.S. and Canada$5.11 $4.98 3 %
ARPU - Europe$0.74 $0.72 2 %
ARPU - Rest of World$0.10 $0.08 27 %

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Guidance
Our current expectation is that Q2 revenue will grow roughly in-line with the growth we saw in Q4 2022 and Q1 2023. We expect our Q2 non-GAAP operating expenses to grow low teens on a percentage basis quarter-over-quarter.*
We intend to provide further detail on our outlook during the conference call.
_____________
*We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP operating expenses or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense, which is impacted by, among other things, employee retention and decisions around future equity grants to employees. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results and, as such, we also believe that any reconciliations provided would imply a degree of precision that could be confusing or misleading to investors.


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Webcast and conference call information
A live audio webcast of our first quarter 2023 earnings release call will be available at investor.pinterestinc.com. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures and slide presentation are also available. We will not be publishing a letter to shareholders this quarter. A recording of the webcast will be available at investor.pinterestinc.com for 90 days.
We have used, and intend to continue to use, our investor relations website at investor.pinterestinc.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
Forward-looking statements
This press release may contain forward-looking statements within the meaning 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 industry that involve substantial risks and uncertainties, including, among other things, statements about our future operational and financial performance. Words such as "believe," "project," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "plan" and similar expressions are intended to identify forward-looking statements. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: general economic and political uncertainty in global markets and a worsening of global economic conditions or low levels of economic growth, including inflation, fear of recession, foreign exchange fluctuations and supply-chain issues as well as events such as Russia's invasion of Ukraine; our ability to provide useful and relevant content; our ability to attract and retain creators that create relevant and engaging content on our platform; risks associated with new products and changes to existing products as well as other new business initiatives; our ability to maintain and enhance our brand and reputation; compromises in security; our financial performance and fluctuations in operating results; our dependency on online application stores' and internet search engines’ methodologies and policies; discontinuation, disruptions or outages in authentication by third-party login providers; changes by third-party login providers that restrict our access or ability to identify users; competition; our ability to scale our business and revenue model; our reliance on advertising revenue and our ability to attract and retain advertisers and effectively measure advertising campaigns; our ability to effectively manage growth and expand and monetize our platform internationally; our lack of operating history and ability to sustain profitability; decisions that reduce short-term revenue or profitability or do not produce expected long-term benefits; the impact of the COVID-19 pandemic, including its impact on our business as well as on global and regional economies and economic activity; risks associated with government actions, laws and regulations that could restrict access to our products or impair our business; litigation and government inquiries; privacy, data and other regulatory concerns; real or perceived inaccuracies in metrics related to our business; disruption, degradation or interference with our hosting services and infrastructure; our ability to attract and retain personnel; and the dual class structure of our common stock and its effect of concentrating voting control with stockholders who held our capital stock prior to the completion of our initial public offering. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023, which is available on our investor relations website at investor.pinterestinc.com and on the SEC website at www.sec.gov. All information provided in this release and in the earnings materials is as of April 27, 2023. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
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About non-GAAP financial measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative), non-GAAP income from operations, non-GAAP net income, non-GAAP net income per share and constant currency revenue growth rates. The presentation of these financial measures is not intended to be considered in isolation, as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparative purposes. We compensate for these limitations by providing specific information regarding GAAP amounts excluded from these non-GAAP financial measures.
We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and restructuring charges. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue. Non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) and non-GAAP net income exclude amortization of acquired intangible assets, share-based compensation expense and restructuring charges. Non-GAAP income from operations is calculated by subtracting non-GAAP costs and expenses from revenue. Non-GAAP net income per share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding. We use Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share to evaluate our operating results and for financial and operational decision-making purposes. We believe these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses they exclude. We also believe Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We present Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share to assist potential investors in seeing our operating results through the eyes of management and because we believe these measures provide an additional tool for investors to use in comparing our operating results over multiple periods with other companies in our industry. There are a number of limitations related to the use of Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses, non-GAAP income from operations, non-GAAP net income and non-GAAP net income per share rather than net income (loss), net margin, total costs and expenses, income (loss) from operations, net income (loss) and net income (loss) per share, respectively, the nearest GAAP equivalents. For example, Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets, although these assets may have to be replaced in the future, and share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense and an important part of our compensation strategy.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the tables under "―Reconciliation of GAAP to non-GAAP financial results" included at the end of this release.
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Limitation of key metrics and other data
The numbers for our key metrics, which include our MAUs and ARPU, are calculated using internal company data based on the activity of user accounts. We define a monthly active user as an authenticated Pinterest user who visits our website, opens our mobile application or interacts with Pinterest through one of our browser or site extensions, such as the Save button, at least once during the 30-day period ending on the date of measurement. The number of MAUs do not include Shuffles users unless they would otherwise qualify as MAUs. Unless otherwise indicated, we present MAUs based on the number of MAUs measured on the last day of the current period. We measure monetization of our platform through our average revenue per user metric. We define ARPU as our total revenue in a given geography during a period divided by the average of the number of MAUs in that geography during the period. We calculate average MAUs based on the average of the number of MAUs measured on the last day of the current period and the last day prior to the beginning of the current period. We calculate ARPU by geography based on our estimate of the geography in which revenue-generating activities occur. We use these metrics to assess the growth and health of the overall business and believe that MAUs and ARPU best reflect our ability to attract, retain, engage and monetize our users, and thereby drive revenue. While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring usage of our products across large online and mobile populations around the world. In addition, we are continually seeking to improve our estimates of our user base, and such estimates may change due to improvements or changes in technology or our methodology.
Contact
Press:
Tessa Chen
press@pinterest.com
Investor relations:
Neil Doshi
ir@pinterest.com


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PINTEREST, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(unaudited)
March 31,December 31,
20232022
ASSETS
Current assets:
Cash and cash equivalents $1,651,242 $1,611,063 
Marketable securities 1,078,487 1,087,164 
Accounts receivable, net of allowances of $13,085 and $12,672 as of March 31, 2023 and December 31, 2022, respectively
487,964 681,532 
Prepaid expenses and other current assets 80,695 74,918 
Total current assets 3,298,388 3,454,677 
Property and equipment, net 30,272 59,575 
Operating lease right-of-use assets97,606 206,253 
Goodwill and intangible assets, net122,982 124,822 
Other assets17,174 17,403 
Total assets $3,566,422 $3,862,730 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $77,284 $87,920 
Accrued expenses and other current liabilities 244,639 292,611 
Total current liabilities 321,923 380,531 
Operating lease liabilities159,506 178,694 
Other liabilities25,254 21,851 
Total liabilities 506,683 581,076 
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.00001 par value, 6,666,667 shares authorized, 594,834 and 593,918 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively; Class B common stock, $0.00001 par value, 1,333,333 shares authorized, 89,323 and 89,284 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively
7 7 
Additional paid-in capital 5,390,101 5,407,724 
Accumulated other comprehensive loss (7,132)(11,419)
Accumulated deficit (2,323,237)(2,114,658)
Total stockholders’ equity 3,059,739 3,281,654 
Total liabilities and stockholders’ equity $3,566,422 $3,862,730 


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PINTEREST, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
20232022
Revenue$602,581 $574,885 
Costs and expenses:
Cost of revenue170,926 146,070 
Research and development266,346 195,548 
Sales and marketing201,131 173,953 
General and administrative207,864 62,979 
Total costs and expenses846,267 578,550 
Loss from operations(243,686)(3,665)
Interest income (expense), net24,901 712 
Other income (expense), net322 (1,200)
Loss before provision for (benefit from) income taxes(218,463)(4,153)
Provision for (benefit from) income taxes(9,884)1,128 
Net loss$(208,579)$(5,281)
Net loss per share, basic and diluted$(0.31)$(0.01)
Weighted-average shares used in computing net loss per share, basic and diluted681,140 656,899 
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PINTEREST, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended March 31,
20232022
Operating activities
Net loss$(208,579)$(5,281)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization6,212 7,220 
Share-based compensation143,122 73,240 
Impairment and abandonment charges for leases and leasehold improvements112,934 — 
Other(1,346)2,978 
Changes in assets and liabilities:
Accounts receivable192,523 180,203 
Prepaid expenses and other assets(5,773)(8,285)
Operating lease right-of-use assets25,163 12,394 
Accounts payable(11,031)(4,638)
Accrued expenses and other liabilities(43,659)(31,620)
Operating lease liabilities(26,109)(12,822)
Net cash provided by operating activities183,457 213,389 
Investing activities
Purchases of property and equipment and intangible assets(1,990)(6,902)
Purchases of marketable securities(331,608)(155,181)
Sales of marketable securities29,271 4,168 
Maturities of marketable securities318,490 207,319 
Net cash provided by investing activities14,163 49,404 
Financing activities
Proceeds from exercise of stock options, net
2,400 1,036 
Repurchases of Class A common stock(69,476)— 
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards(91,508)— 
Net cash (used in) provided by financing activities(158,584)1,036 
Effect of exchange rate changes on cash, cash equivalents and restricted cash1,142 333 
Net increase in cash, cash equivalents and restricted cash40,178 264,162 
Cash, cash equivalents and restricted cash, beginning of period1,617,660 1,427,064 
Cash, cash equivalents and restricted cash, end of period$1,657,838 $1,691,226 
Supplemental cash flow information
Repurchases of Class A common stock in accrued expenses and other current liabilities$2,161 $— 
Operating lease right-of-use assets obtained in exchange for operating lease liabilities$803 $7,085 
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets
Cash and cash equivalents$1,651,242 $1,683,792 
Restricted cash included in prepaid expenses and other current assets2,243 1,137 
Restricted cash included in other assets4,353 6,297 
Total cash, cash equivalents and restricted cash$1,657,838 $1,691,226 
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PINTEREST, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands)
(unaudited)
Three Months Ended March 31,
20232022
Share-based compensation by function:
Cost of revenue$2,309 $1,194 
Research and development94,265 52,890 
Sales and marketing19,189 11,769 
General and administrative27,359 7,387 
Total share-based compensation$143,122 $73,240 
Amortization of acquired intangible assets by function:
Cost of revenue$1,508 $699 
Sales and marketing135 135 
General and administrative197 197 
Total amortization of acquired intangible assets$1,840 $1,031 
Restructuring charges by function:
Research and development$4,093 $— 
Sales and marketing2,677 — 
General and administrative114,551 — 
Total restructuring charges$121,321 $— 
Reconciliation of total costs and expenses to non-GAAP costs and expenses:
Total costs and expenses$846,267 $578,550 
Share-based compensation(143,122)(73,240)
Amortization of acquired intangible assets
(1,840)(1,031)
Restructuring charges(121,321)— 
Total non-GAAP costs and expenses$579,984 $504,279 
Reconciliation of net loss to Adjusted EBITDA:
Net loss$(208,579)$(5,281)
Depreciation and amortization
6,212 7,220 
Share-based compensation143,122 73,240 
Interest income (expense), net(24,901)(712)
Other income (expense), net(322)1,200 
Provision for (benefit from) income taxes(9,884)1,128 
Restructuring charges121,321 — 
Adjusted EBITDA
$26,969 $76,795 






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PINTEREST, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended March 31,
20232022
Reconciliation of net loss to non-GAAP net income:
Net loss$(208,579)$(5,281)
Share-based compensation143,122 73,240 
Amortization of acquired intangible assets1,840 1,031 
Restructuring charges121,321 — 
Non-GAAP net income$57,704 $68,990 
Basic weighted-average shares used in computing net loss per share
681,140 656,899 
Weighted-average dilutive securities(1)
18,731 29,160 
Diluted weighted-average shares used in computing non-GAAP net income per share
699,871 686,059 
Non-GAAP net income per share
$0.08 $0.10 
(1)Gives effect to potential common stock instruments such as stock options, unvested restricted stock units and unvested restricted stock awards.
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