Q3 Revenue of $763 million accelerated to 11%
year over year growth
Global Monthly Active Users reach 482 million,
a record high for the company
Pinterest, Inc. (NYSE: PINS) today announced financial results
for the quarter ended September 30, 2023.
- Q3 revenue grew 11% year over year to $763 million.
- Global Monthly Active Users (MAUs) increased 8% year over year
to 482 million.
- GAAP net income was $7 million for Q3. Adjusted EBITDA was $185
million for Q3.
- Total costs and expenses were $768 million.
“We continued to accelerate the business in Q3,” said Bill
Ready, CEO of Pinterest. “We are driving strong revenue
performance, robust global MAU growth, and substantial margin
expansion. As we lean into Pinterest’s unique differentiators as a
visual search, discovery, and shopping platform, we’re finding our
best product market fit in years. Our users are engaging deeply and
we’re delivering better results for advertisers through improved
measurement and innovation across the full funnel. We’re making
significant progress and are continuing to execute on the
opportunity ahead.”
Q3 2023 Financial Highlights
The following table summarizes our consolidated financial
results (in thousands, except percentages, unaudited):
Three Months Ended September
30,
% Change
2023
2022
Revenue
$
763,203
$
684,550
11
%
Net income (loss)
$
6,733
$
(65,181
)
110
%
Net income (loss) margin
1
%
(10
)%
Non-GAAP net income*
$
193,344
$
76,523
153
%
Adjusted EBITDA*
$
184,674
$
77,312
139
%
Adjusted EBITDA margin*
24
%
11
%
___________
* 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.
Q3 2023 Other Highlights
The following table sets forth our revenue, MAUs and average
revenue per user (ARPU) based on the geographic location of our
users (in millions, except ARPU and percentages, unaudited):
Three Months Ended September
30,
% Change
2023
2022
Revenue - Global
$
763
$
685
11
%
Revenue - U.S. and Canada
$
618
$
575
8
%
Revenue - Europe
$
114
$
86
33
%
Revenue - Rest of World
$
31
$
24
29
%
MAUs - Global
482
445
8
%
MAUs - U.S. and Canada
96
95
1
%
MAUs - Europe
128
120
7
%
MAUs - Rest of World
258
230
12
%
ARPU - Global
$
1.61
$
1.56
3
%
ARPU - U.S. and Canada
$
6.46
$
6.13
5
%
ARPU - Europe
$
0.91
$
0.72
26
%
ARPU - Rest of World
$
0.12
$
0.11
16
%
Guidance
For Q4 2023, we expect revenue to grow in the 11-13% range year
over year. We expect Q4 2023 Non-GAAP operating expenses* to
decline in the 9-13% range year over year. Please note that our
operating expense guidance does not include cost of revenue.
We intend to provide further details 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.
Webcast and conference call information
A live audio webcast of our third 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. 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; 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;
risks associated with government actions, laws and regulations that
could restrict access to our products or impair our business;
litigation, regulatory actions 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
September 30, 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 October 30, 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.
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,
restructuring charges and non-cash charitable contributions.
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
these measures 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 these measures 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 these
non-GAAP measures 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 rather than 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.
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.
PINTEREST, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except par
value)
(unaudited)
September 30,
December 31,
2023
2022
ASSETS
Current assets:
Cash and cash equivalents
$
1,168,419
$
1,611,063
Marketable securities
1,162,260
1,087,164
Accounts receivable, net of allowances of
$9,554 and $12,672 as of September 30, 2023 and December 31, 2022,
respectively
624,223
681,532
Prepaid expenses and other current
assets
84,365
74,918
Total current assets
3,039,267
3,454,677
Property and equipment, net
26,998
59,575
Operating lease right-of-use assets
105,300
206,253
Goodwill and intangible assets, net
119,302
124,822
Other assets
13,715
17,403
Total assets
$
3,304,582
$
3,862,730
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
71,490
$
87,920
Accrued expenses and other current
liabilities
232,855
292,611
Total current liabilities
304,345
380,531
Operating lease liabilities
170,860
178,694
Other liabilities
22,735
21,851
Total liabilities
497,940
581,076
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.00001 par value,
6,666,667 shares authorized, 585,737 and 593,918 shares issued and
outstanding as of September 30, 2023 and December 31, 2022,
respectively; Class B common stock, $0.00001 par value, 1,333,333
shares authorized, 87,902 and 89,284 shares issued and outstanding
as of September 30, 2023 and December 31, 2022, respectively
7
7
Additional paid-in capital
5,165,530
5,407,724
Accumulated other comprehensive loss
(7,449
)
(11,419
)
Accumulated deficit
(2,351,446
)
(2,114,658
)
Total stockholders’ equity
2,806,642
3,281,654
Total liabilities and stockholders’
equity
$
3,304,582
$
3,862,730
PINTEREST, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended September
30,
2023
2022
Revenue
$
763,203
$
684,550
Costs and expenses:
Cost of revenue
170,998
182,603
Research and development
264,698
254,684
Sales and marketing
225,929
229,873
General and administrative
106,577
86,765
Total costs and expenses
768,202
753,925
Loss from operations
(4,999
)
(69,375
)
Interest income (expense), net
26,691
8,928
Other income (expense), net
(4,596
)
(9,726
)
Income (loss) before provision for
(benefit from) income taxes
17,096
(70,173
)
Provision for (benefit from) income
taxes
10,363
(4,992
)
Net income (loss)
$
6,733
$
(65,181
)
Net income (loss) per share:
Basic
$
0.01
$
(0.10
)
Diluted
$
0.01
$
(0.10
)
Weighted-average shares used in computing
net income (loss) per share:
Basic
669,261
669,171
Diluted
687,101
669,171
PINTEREST, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September
30,
2023
2022
Operating activities
Net loss
$
(236,788
)
$
(113,538
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
16,185
26,884
Share-based compensation
484,633
326,811
Non-cash charitable contributions
12,890
—
Impairment and abandonment charges for
leases and leasehold improvements
117,315
—
Other
(15,470
)
10,731
Changes in assets and liabilities:
Accounts receivable
59,303
144,083
Prepaid expenses and other assets
(2,308
)
(37,960
)
Operating lease right-of-use assets
43,785
39,140
Accounts payable
(16,711
)
71,603
Accrued expenses and other liabilities
(54,780
)
(17,852
)
Operating lease liabilities
(53,373
)
(38,990
)
Net cash provided by operating
activities
354,681
410,912
Investing activities
Purchases of property and equipment and
intangible assets
(3,780
)
(27,931
)
Purchases of marketable securities
(1,065,445
)
(688,146
)
Sales of marketable securities
31,709
4,168
Maturities of marketable securities
978,804
735,819
Acquisition of business, net of cash
acquired
—
(86,059
)
Net cash used in investing activities
(58,712
)
(62,149
)
Financing activities
Proceeds from exercise of stock options,
net
4,664
4,807
Repurchases of Class A common stock
(500,000
)
—
Shares repurchased for tax withholdings on
release of restricted stock units and restricted stock awards
(243,926
)
(98,357
)
Net cash used in financing activities
(739,262
)
(93,550
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
648
(3,558
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(442,645
)
251,655
Cash, cash equivalents and restricted
cash, beginning of period
1,617,660
1,427,064
Cash, cash equivalents and restricted
cash, end of period
$
1,175,015
$
1,678,719
Supplemental cash flow
information
Operating lease right-of-use assets
obtained in exchange for operating lease liabilities
$
35,347
$
19,783
Reconciliation of cash, cash
equivalents and restricted cash to condensed consolidated balance
sheets
Cash and cash equivalents
$
1,168,419
$
1,671,320
Restricted cash included in prepaid
expenses and other current assets
2,542
1,869
Restricted cash included in other
assets
4,054
5,530
Total cash, cash equivalents and
restricted cash
$
1,175,015
$
1,678,719
PINTEREST, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL RESULTS
(in thousands)
(unaudited)
Three Months Ended September
30,
2023
2022
Share-based compensation by
function:
Cost of revenue
$
2,989
$
2,189
Research and development
112,879
89,669
Sales and marketing
25,857
23,294
General and administrative
30,156
21,006
Total share-based compensation
$
171,881
$
136,158
Amortization of acquired intangible
assets by function:
Cost of revenue
$
1,508
$
1,972
Sales and marketing
135
3,377
General and administrative
197
197
Total amortization of acquired intangible
assets
$
1,840
$
5,546
Reconciliation of total costs and
expenses to non-GAAP costs and expenses:
Total costs and expenses
$
768,202
$
753,925
Share-based compensation
(171,881
)
(136,158
)
Amortization of acquired intangible
assets
(1,840
)
(5,546
)
Non-cash charitable contributions
(12,890
)
—
Total non-GAAP costs and expenses
$
581,591
$
612,221
Reconciliation of net income (loss) to
Adjusted EBITDA:
Net income (loss)
$
6,733
$
(65,181
)
Depreciation and amortization
4,902
10,529
Share-based compensation
171,881
136,158
Interest income (expense), net
(26,691
)
(8,928
)
Other income (expense), net
4,596
9,726
Provision for (benefit from) income
taxes
10,363
(4,992
)
Non-cash charitable contributions
12,890
—
Adjusted EBITDA
$
184,674
$
77,312
PINTEREST, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL RESULTS
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended September
30,
2023
2022
Reconciliation of net income (loss) to
non-GAAP net income:
Net income (loss)
$
6,733
$
(65,181
)
Share-based compensation
171,881
136,158
Amortization of acquired intangible
assets
1,840
5,546
Non-cash charitable contributions
12,890
—
Non-GAAP net income
$
193,344
$
76,523
Basic weighted-average shares used in
computing net income (loss) per share
669,261
669,171
Weighted-average dilutive
securities(1)
17,840
23,631
Diluted weighted-average shares used in
computing non-GAAP net income per share
687,101
692,802
Non-GAAP net income per share
$
0.28
$
0.11
_____________
(1)
Gives effect to potential common stock
instruments such as stock options, unvested restricted stock units
and unvested restricted stock awards.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231030236556/en/
Press: Tessa Chen press@pinterest.com
Investor relations: Neil Doshi ir@pinterest.com
Pinterest (NYSE:PINS)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Pinterest (NYSE:PINS)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024