Q1 Revenue of $740 million, an increase of 23%,
nearly doubling growth rate from prior quarter
Record 518 million global monthly active users,
an increase of 12%
Pinterest, Inc. (NYSE: PINS) today announced financial results
for the quarter ended March 31, 2024.
- Q1 revenue grew 23% year over year to $740 million.
- Global Monthly Active Users ("MAUs") increased 12% year over
year to 518 million.
- GAAP net loss was $25 million for Q1. Adjusted EBITDA was $113
million for Q1.
- Total costs and expenses were $794 million.
“Q1 was a milestone quarter for Pinterest as we reached new
highs: surpassing half a billion monthly active users and reporting
23% revenue growth – our fastest user and revenue growth since
2021,” said Bill Ready, CEO of Pinterest. “Thanks to our
investments in AI and shoppability, we’re driving even greater
returns for advertisers and gaining access to performance budgets.
We’re executing with tremendous clarity and focus, shipping new
products and experiences that users want, and in doing so, we’re
finding our best product market fit in years.”
Q1 2024 Financial Highlights
The following table summarizes our consolidated financial
results (in thousands, except percentages, unaudited):
Three Months Ended March
31,
% Change
2024
2023
Revenue
$
739,983
$
602,581
23
%
Net loss
$
(24,812
)
$
(208,579
)
88
%
Net loss margin
(3
)%
(35
)%
Non-GAAP net income*
$
139,501
$
57,704
142
%
Adjusted EBITDA*
$
112,918
$
26,969
319
%
Adjusted EBITDA margin*
15
%
4
%
_______________
* 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.
Q1 2024 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 March
31,
% Change
2024
2023
Revenue - Global
$
740
$
603
23
%
Revenue - U.S. and Canada
$
592
$
486
22
%
Revenue - Europe
$
118
$
93
27
%
Revenue - Rest of World
$
30
$
24
25
%
MAUs - Global
518
463
12
%
MAUs - U.S. and Canada
98
95
3
%
MAUs - Europe
140
128
10
%
MAUs - Rest of World
279
240
16
%
ARPU - Global
$
1.46
$
1.32
10
%
ARPU - U.S. and Canada
$
6.05
$
5.11
19
%
ARPU - Europe
$
0.86
$
0.74
17
%
ARPU - Rest of World
$
0.11
$
0.10
8
%
Guidance
For Q2 2024, we expect revenue to be in the range of $835
million to $850 million, representing 18-20% growth year over year.
We expect Q2 2024 Non-GAAP operating expenses* to be in the range
of $490 million to $505 million, representing 11-15% growth 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 first quarter 2024 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 contains 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. Forward-looking statements can be identified by the
fact that they do not relate strictly to historical or current
facts and are often characterized by the use of words such as
"believes," "estimates," "expects," "projects," "may," "will,"
"can," "intends," "plans," "targets," "forecasts," "anticipates,"
or and similar expressions, or by discussions of strategy, plans or
intentions. Such forward-looking statements involve known and
unknown risks, uncertainties, assumptions and other important
factors that could cause our actual results, performance or
achievements, or industry results, to differ materially from
historical results or any future results, performance or
achievements expressed, suggested or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to, statements about: general economic
uncertainty in global markets and a worsening of global economic
conditions or low levels of economic growth, including inflation,
stress in the banking industry, foreign exchange fluctuations and
supply-chain issues; the effect of general economic and political
conditions; our financial performance, including revenue, cost and
expenses and cash flows; our ability to attract, retain and recover
users and maintain and grow their level of engagement; our ability
to provide content that is useful and relevant to users' personal
taste and interests; our ability to develop successful new products
or improve existing ones; our ability to maintain and enhance our
brand and reputation; potential harm caused by compromises in
security, including our cybersecurity protections and resources and
costs required to prevent, detect and remediate potential security
breaches; potential harm caused by changes in online application
stores or internet search engines' methodologies, particularly
search engine optimization methodologies and policies;
discontinuation, disruptions or outages in third-party single
sign-on access; our ability to compete effectively in our industry;
our ability to scale our business, including our monetization
efforts; our ability to attract and retain advertisers and scale
our revenue model; our ability to attract and retain creators and
publishers that create relevant and engaging content; our ability
to develop effective products and tools for advertisers, including
measurement tools; our ability to expand and monetize our platform
internationally; our ability to effectively manage the growth of
our business; our ability to continue to use and develop artificial
intelligence ("AI") as well as managing the challenges and risks
posed by AI; our ability to successfully manage our flexible work
model with a more distributed workforce; our lack of operating
history and ability to sustain profitability; decisions that reduce
short-term revenue or profitability or do not produce the long-term
benefits we expect; fluctuations in our operating results; our
ability to raise additional capital on favorable terms or at all;
our ability to realize anticipated benefits from mergers and
acquisitions, joint ventures, strategic partnerships and other
investments; our ability to protect our intellectual property; our
ability to receive, process, store, use and share data, and
compliance with laws and regulations related to data privacy and
content; current or potential litigation and regulatory actions
involving us; our ability to comply with modified or new laws and
regulations applying to our business, and potential harm to our
business as a result of those laws and regulations; real or
perceived inaccuracies in metrics related to our business;
disruption of, degradation in or interference with our use of
Amazon Web Services and our infrastructure; and our ability to
attract and retain personnel. 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, 2024, 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 30, 2024. 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 loss adjusted to exclude
depreciation and amortization expense, share-based compensation
expense, interest income (expense), net, other income (expense),
net, 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
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 non-GAAP financial measures 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 MAU 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 ARPU 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)
March 31,
December 31,
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,632,149
$
1,361,936
Marketable securities
1,144,260
1,149,148
Accounts receivable, net of allowances of
$9,001 and $10,635 as of March 31, 2024 and December 31, 2023,
respectively
563,865
763,159
Prepaid expenses and other current
assets
73,497
64,316
Total current assets
3,413,771
3,338,559
Property and equipment, net
38,160
32,225
Operating lease right-of-use assets
85,069
92,119
Goodwill and intangible assets, net
115,622
117,462
Other assets
14,097
14,040
Total assets
$
3,666,719
$
3,594,405
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
83,654
$
79,058
Accrued expenses and other current
liabilities
256,229
238,032
Total current liabilities
339,883
317,090
Operating lease liabilities
154,340
160,616
Other liabilities
28,654
26,019
Total liabilities
522,877
503,725
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.00001 par value,
6,666,667 shares authorized, 598,867 and 591,663 shares issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively; Class B common stock, $0.00001 par value, 1,333,333
shares authorized, 83,714 and 86,355 shares issued and outstanding
as of March 31, 2024 and December 31, 2023, respectively
7
7
Additional paid-in capital
5,321,530
5,241,954
Accumulated other comprehensive loss
(2,615
)
(1,013
)
Accumulated deficit
(2,175,080
)
(2,150,268
)
Total stockholders’ equity
3,143,842
3,090,680
Total liabilities and stockholders’
equity
$
3,666,719
$
3,594,405
PINTEREST, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended March
31,
2024
2023
Revenue
$
739,983
$
602,581
Costs and expenses:
Cost of revenue
181,091
170,926
Research and development
280,275
266,346
Sales and marketing
226,289
201,131
General and administrative
106,744
207,864
Total costs and expenses
794,399
846,267
Loss from operations
(54,416
)
(243,686
)
Interest income (expense), net
31,266
24,901
Other income (expense), net
(4,526
)
322
Loss before benefit from income taxes
(27,676
)
(218,463
)
Benefit from income taxes
(2,864
)
(9,884
)
Net loss
$
(24,812
)
$
(208,579
)
Net loss per share, basic and diluted
$
(0.04
)
$
(0.31
)
Weighted-average shares used in computing
net loss per share, basic and diluted
678,819
681,140
PINTEREST, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended March
31,
2024
2023
Operating activities
Net loss
$
(24,812
)
$
(208,579
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
4,861
6,212
Share-based compensation
162,473
143,122
Impairment and abandonment charges for
leases and leasehold improvements
—
112,934
Net amortization of investment premium and
discount
(6,788
)
(4,198
)
Other
(2,695
)
2,852
Changes in assets and liabilities:
Accounts receivable
201,188
192,523
Prepaid expenses and other assets
(10,240
)
(5,773
)
Operating lease right-of-use assets
8,727
25,163
Accounts payable
4,639
(11,031
)
Accrued expenses and other liabilities
29,688
(43,659
)
Operating lease liabilities
(10,895
)
(26,109
)
Net cash provided by operating
activities
356,146
183,457
Investing activities
Purchases of property and equipment
(12,113
)
(1,990
)
Purchases of marketable securities
(336,522
)
(331,608
)
Sales of marketable securities
2,999
29,271
Maturities of marketable securities
342,517
318,490
Net cash (used in) provided by investing
activities
(3,119
)
14,163
Financing activities
Proceeds from exercise of stock options,
net
16,756
2,400
Repurchases of Class A common stock
—
(69,476
)
Shares repurchased for tax withholdings on
release of restricted stock units and restricted stock awards
(99,708
)
(91,508
)
Net cash used in financing activities
(82,952
)
(158,584
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(709
)
1,142
Net increase in cash, cash equivalents and
restricted cash
269,366
40,178
Cash, cash equivalents and restricted
cash, beginning of period
1,368,532
1,617,660
Cash, cash equivalents and restricted
cash, end of period
$
1,637,898
$
1,657,838
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
2,057
803
Reconciliation of cash, cash
equivalents and restricted cash to condensed consolidated balance
sheets
Cash and cash equivalents
$
1,632,149
$
1,651,242
Restricted cash included in prepaid
expenses and other current assets
1,695
2,243
Restricted cash included in other
assets
4,054
4,353
Total cash, cash equivalents and
restricted cash
$
1,637,898
$
1,657,838
PINTEREST, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL RESULTS
(in thousands)
(unaudited)
Three Months Ended March
31,
2024
2023
Share-based compensation by
function:
Cost of revenue
$
2,948
$
2,309
Research and development
102,355
94,265
Sales and marketing
24,989
19,189
General and administrative
32,181
27,359
Total share-based compensation
$
162,473
$
143,122
Amortization of acquired intangible
assets by function:
Cost of revenue
$
1,508
$
1,508
Sales and marketing
135
135
General and administrative
197
197
Total amortization of acquired intangible
assets
$
1,840
$
1,840
Restructuring charges by
function:
Research and development
$
—
$
4,093
Sales and marketing
—
2,677
General and administrative
—
114,551
Total restructuring charges
$
—
$
121,321
Reconciliation of total costs and
expenses to non-GAAP costs and expenses:
Total costs and expenses
$
794,399
$
846,267
Share-based compensation
(162,473
)
(143,122
)
Amortization of acquired intangible
assets
(1,840
)
(1,840
)
Restructuring charges
—
(121,321
)
Total non-GAAP costs and expenses
$
630,086
$
579,984
Reconciliation of net loss to Adjusted
EBITDA:
Net loss
$
(24,812
)
$
(208,579
)
Depreciation and amortization
4,861
6,212
Share-based compensation
162,473
143,122
Interest (income) expense, net
(31,266
)
(24,901
)
Other (income) expense, net
4,526
(322
)
Benefit from income taxes
(2,864
)
(9,884
)
Restructuring charges
—
121,321
Adjusted EBITDA
$
112,918
$
26,969
PINTEREST, INC.
RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL RESULTS
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended March
31,
2024
2023
Reconciliation of net loss to non-GAAP
net income:
Net loss
$
(24,812
)
$
(208,579
)
Share-based compensation
162,473
143,122
Amortization of acquired intangible
assets
1,840
1,840
Restructuring charges
—
121,321
Non-GAAP net income
$
139,501
$
57,704
Basic weighted-average shares used in
computing net loss per share
678,819
681,140
Weighted-average dilutive
securities(1)
22,758
18,731
Diluted weighted-average shares used in
computing non-GAAP net income per share
701,577
699,871
Non-GAAP net income per share
$
0.20
$
0.08
_______________
(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/20240430632865/en/
Press: Tessa Chen press@pinterest.com
Investor relations: Andrew Somberg ir@pinterest.com
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