Delaware | 001-38872 | 26-3607129 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
505 Brannan Street San Francisco, California (Address of Principal Executive Offices) | 94107 (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered |
Class A Common Stock, $0.00001 par value | PINS | New York Stock Exchange (NYSE) |
Exhibit Number | Description |
99.1 | |
99.2 |
PINTEREST, INC. | ||
Date: May 16, 2019 | By: | /s/ Todd Morgenfeld |
Todd Morgenfeld | ||
Chief Financial Officer |
• | Q1 was a solid start to 2019, with revenue growing 54% year-over-year, continuing the momentum we have seen over the past several quarters. Our revenue surpassed $200 million for the second consecutive quarter. We are encouraged by strong underlying trends in U.S. ARPU and user growth in international markets. Our global monthly active users grew 22% year-over-year to 291 million. |
• | We made significant improvements across our major product areas of Pinner experience, advertising solutions and user growth. There are now more than 200 billion Pins saved on Pinterest. |
• | We continue to make steady progress providing solutions to businesses in international markets. At the end of Q1, we were serving ads to users in 13 countries, up from seven at the end of Q418. International revenue as a percentage of total revenue was 7.4% in Q119 vs. 5.5% in the year-ago period. |
• | U.S. MAUs were 85 million, an increase of 6% year-over-year compared to 80 million in the same period of the previous year. |
• | International MAUs were 206 million, an increase of 29% year-over-year in comparison to the 160 million in the same period of the previous year. |
• | Total U.S. revenue was $187 million, an increase of 51% year-over-year. U.S. revenue growth was largely driven by ARPU expansion and also supported by growth in MAUs. |
• | Total international revenue was $15 million, an increase of 107% year-over-year. International revenue growth was largely driven by both increases to international MAUs and international ARPU. |
• | U.S. ARPU was $2.25, an increase of 41% year-over-year. |
• | International ARPU was $0.08, an increase of 59% year-over-year. International ARPU remains in the early stages, as we have only begun to execute on our strategy to provide ads that are useful and inspiring to our users in regions outside of the U.S. |
• | Cost of revenue was $74 million or 36.5% of revenue, down from 39.3% in the year-ago quarter. Non-GAAP cost of revenue was also 36.5% of revenue, also down from 39.3% in the year-ago quarter. The decline as a percent of revenue in each case was primarily driven by higher ARPU, partially offset by an increase in absolute hosting costs due to growth of MAUs. |
• | Research and development expenses were $72 million, up 21% year-over-year. On a non-GAAP basis, expenses grew 28% year-over-year to $72 million. The growth in each case was due to higher headcount, which drove higher personnel and facilities related costs. |
• | Sales and marketing expenses were $76 million, up 37% year-over-year. On a non-GAAP basis, expenses grew 38% year-over-year to $76 million. The growth in each case was due to higher headcount, which drove higher personnel and facilities related costs, as well as higher consulting and marketing expenses. |
• | General and administrative expenses were $24 million, up 28% year-over-year. On a non-GAAP basis, expenses grew 30% year-over-year to $24 million. The growth in each case was due to higher headcount, which drove higher personnel and facilities related costs. |
• | We ended the quarter with approximately $642 million in cash, cash equivalents, and marketable securities. |
• | Net cash provided by operating activities in the quarter was $33 million, an increase from $14 million in the same period last year. |
• | Total revenue to be between $1,055 million and $1,080 million. |
• | Adjusted EBITDA to be between $(70) million to $(45) million.* |
Ben Silbermann | Todd Morgenfeld |
Co-Founder, President and CEO | CFO |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 134,648 | $ | 122,509 | |||
Marketable securities | 507,568 | 505,304 | |||||
Accounts receivable net of allowances of $2,600 and $3,097 as of March 31, 2019 and December 31, 2018, respectively | 161,108 | 221,932 | |||||
Prepaid expenses and other current assets | 43,623 | 39,607 | |||||
Total current assets | 846,947 | 889,352 | |||||
Property and equipment, net | 83,031 | 81,512 | |||||
Operating lease right-of-use assets | 160,802 | 145,203 | |||||
Goodwill and intangible assets, net | 13,728 | 14,071 | |||||
Restricted cash | 25,724 | 11,724 | |||||
Other assets | 11,008 | 10,869 | |||||
Total assets | $ | 1,141,240 | $ | 1,152,731 | |||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 30,320 | $ | 22,169 | |||
Accrued expenses and other current liabilities | 93,206 | 86,258 | |||||
Total current liabilities | 123,526 | 108,427 | |||||
Operating lease liabilities | 162,359 | 151,395 | |||||
Other liabilities | 23,945 | 22,073 | |||||
Total liabilities | 309,830 | 281,895 | |||||
Commitments and contingencies | |||||||
Redeemable convertible preferred stock, $0.00001 par value, 928,676 shares authorized; 308,373 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1,465,399 | 1,465,399 | |||||
Stockholders’ equity (deficit): | |||||||
Common stock, $0.00001 par value, 1,932,500 shares authorized; 127,371 and 127,298 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1 | 1 | |||||
Additional paid-in capital | 253,016 | 252,212 | |||||
Accumulated other comprehensive loss | (231 | ) | (1,421 | ) | |||
Accumulated deficit | (886,775 | ) | (845,355 | ) | |||
Total stockholders’ equity (deficit) | (633,989 | ) | (594,563 | ) | |||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | $ | 1,141,240 | $ | 1,152,731 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 201,911 | $ | 131,359 | |||
Costs and expenses: | |||||||
Cost of revenue | 73,694 | 51,653 | |||||
Research and development | 72,444 | 60,047 | |||||
Sales and marketing | 76,394 | 55,774 | |||||
General and administrative | 24,205 | 18,867 | |||||
Total costs and expenses | 246,737 | 186,341 | |||||
Loss from operations | (44,826 | ) | (54,982 | ) | |||
Other income (expense), net: | |||||||
Interest income | 4,059 | 2,638 | |||||
Interest expense and other income (expense), net | (500 | ) | (242 | ) | |||
Loss before provision for income taxes | (41,267 | ) | (52,586 | ) | |||
Provision for income taxes | 153 | 123 | |||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.33 | ) | $ | (0.42 | ) | |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 127,346 | 126,857 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 5,696 | 4,787 | |||||
Share-based compensation | 694 | 4,834 | |||||
Other | (993 | ) | 654 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 61,329 | 39,309 | |||||
Prepaid expenses and other assets | 510 | 7,102 | |||||
Operating lease right-of-use assets | 6,427 | 4,551 | |||||
Accounts payable | 7,481 | 4,484 | |||||
Accrued expenses and other liabilities | (2,024 | ) | 2,696 | ||||
Operating lease liabilities | (4,578 | ) | (2,174 | ) | |||
Net cash provided by operating activities | 33,122 | 13,534 | |||||
Investing activities | |||||||
Purchases of property and equipment | (3,706 | ) | (8,240 | ) | |||
Purchases of marketable securities | (113,952 | ) | (83,569 | ) | |||
Sales of marketable securities | 28,953 | 36,408 | |||||
Maturities of marketable securities | 84,883 | 142,428 | |||||
Net cash provided by (used in) investing activities | (3,822 | ) | 87,027 | ||||
Financing activities | |||||||
Proceeds from exercise of stock options, net | 110 | 435 | |||||
Other financing activities | (3,279 | ) | — | ||||
Net cash provided by (used in) financing activities | (3,169 | ) | 435 | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 8 | 48 | |||||
Net increase in cash, cash equivalents, and restricted cash | 26,139 | 101,044 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 135,290 | 83,969 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 161,429 | $ | 185,013 | |||
Supplemental cash flow information | |||||||
Accrued property and equipment | $ | 4,484 | $ | 7,779 | |||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 22,862 | $ | 2,356 | |||
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 134,648 | $ | 172,512 | |||
Restricted cash included in prepaid expenses and other current assets | 1,057 | 851 | |||||
Restricted cash | 25,724 | 11,650 | |||||
Total cash, cash equivalents, and restricted cash | $ | 161,429 | $ | 185,013 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Share-based compensation by function: | |||||||
Cost of revenue | $ | 15 | $ | 32 | |||
Research and development | 626 | 4,054 | |||||
Sales and marketing | 29 | 241 | |||||
General and administrative | 24 | 507 | |||||
Total share-based compensation | $ | 694 | $ | 4,834 | |||
Amortization of acquired intangible assets by function: | |||||||
Cost of revenue | $ | — | $ | 14 | |||
General and administrative | 343 | 74 | |||||
Total amortization of acquired intangible assets | $ | 343 | $ | 88 | |||
Reconciliation of total costs and expenses to non-GAAP costs and expenses: | |||||||
Total costs and expenses | $ | 246,737 | $ | 186,341 | |||
Share-based compensation | (694 | ) | (4,834 | ) | |||
Amortization of acquired intangible assets | (343 | ) | (88 | ) | |||
Non-GAAP costs and expenses | $ | 245,700 | $ | 181,419 | |||
Reconciliation of net loss to non-GAAP net loss: | |||||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Share-based compensation | 694 | 4,834 | |||||
Amortization of acquired intangible assets | 343 | 88 | |||||
Non-GAAP net loss | $ | (40,383 | ) | $ | (47,787 | ) | |
Weighted-average shares outstanding | 127,346 | 126,857 | |||||
Net loss per share | $ | (0.33 | ) | $ | (0.42 | ) | |
Non-GAAP net loss per share | $ | (0.32 | ) | $ | (0.38 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Reconciliation of net loss to Adjusted EBITDA | |||||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Depreciation and amortization | 5,696 | 4,787 | |||||
Share-based compensation | 694 | 4,834 | |||||
Interest income | (4,059 | ) | (2,638 | ) | |||
Interest expense and other (income) expense, net | 500 | 242 | |||||
Provision for income taxes | 153 | 123 | |||||
Adjusted EBITDA | $ | (38,436 | ) | $ | (45,361 | ) |
Three Months Ended March 31, | % Change | ||||||||||
2019 | 2018 | ||||||||||
Revenue | $ | 201,911 | $ | 131,359 | 54 | % | |||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | 21 | % | |||
Non-GAAP net loss* | $ | (40,383 | ) | $ | (47,787 | ) | 15 | % | |||
Adjusted EBITDA* | $ | (38,436 | ) | $ | (45,361 | ) | 15 | % | |||
Adjusted EBITDA margin* | (19 | )% | (35 | )% | |||||||
* | 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. |
Three Months Ended March 31, | % Change | |||||||||
2019 | 2018 | |||||||||
Revenue - Global | $ | 202 | $ | 131 | 54 | % | ||||
Revenue - United States | $ | 187 | $ | 124 | 51 | % | ||||
Revenue - International | $ | 15 | $ | 7 | 107 | % | ||||
MAUs - Global | 291 | 239 | 22 | % | ||||||
MAUs - United States | 85 | 80 | 6 | % | ||||||
MAUs - International | 206 | 160 | 29 | % | ||||||
ARPU - Global | $ | 0.73 | $ | 0.58 | 26 | % | ||||
ARPU - United States | $ | 2.25 | $ | 1.59 | 41 | % | ||||
ARPU - International | $ | 0.08 | $ | 0.05 | 59 | % |
• | Total revenue is expected to be between $1,055 million and $1,080 million. |
• | Adjusted EBITDA is expected to be between $(70) million and $(45) million.* |
* | For more information on this non-GAAP financial measure, please see "―About non-GAAP financial measures." |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 134,648 | $ | 122,509 | |||
Marketable securities | 507,568 | 505,304 | |||||
Accounts receivable net of allowances of $2,600 and $3,097 as of March 31, 2019 and December 31, 2018, respectively | 161,108 | 221,932 | |||||
Prepaid expenses and other current assets | 43,623 | 39,607 | |||||
Total current assets | 846,947 | 889,352 | |||||
Property and equipment, net | 83,031 | 81,512 | |||||
Operating lease right-of-use assets | 160,802 | 145,203 | |||||
Goodwill and intangible assets, net | 13,728 | 14,071 | |||||
Restricted cash | 25,724 | 11,724 | |||||
Other assets | 11,008 | 10,869 | |||||
Total assets | $ | 1,141,240 | $ | 1,152,731 | |||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 30,320 | $ | 22,169 | |||
Accrued expenses and other current liabilities | 93,206 | 86,258 | |||||
Total current liabilities | 123,526 | 108,427 | |||||
Operating lease liabilities | 162,359 | 151,395 | |||||
Other liabilities | 23,945 | 22,073 | |||||
Total liabilities | 309,830 | 281,895 | |||||
Commitments and contingencies | |||||||
Redeemable convertible preferred stock, $0.00001 par value, 928,676 shares authorized; 308,373 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1,465,399 | 1,465,399 | |||||
Stockholders’ equity (deficit): | |||||||
Common stock, $0.00001 par value, 1,932,500 shares authorized; 127,371 and 127,298 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 1 | 1 | |||||
Additional paid-in capital | 253,016 | 252,212 | |||||
Accumulated other comprehensive loss | (231 | ) | (1,421 | ) | |||
Accumulated deficit | (886,775 | ) | (845,355 | ) | |||
Total stockholders’ equity (deficit) | (633,989 | ) | (594,563 | ) | |||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity (deficit) | $ | 1,141,240 | $ | 1,152,731 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Revenue | $ | 201,911 | $ | 131,359 | |||
Costs and expenses: | |||||||
Cost of revenue | 73,694 | 51,653 | |||||
Research and development | 72,444 | 60,047 | |||||
Sales and marketing | 76,394 | 55,774 | |||||
General and administrative | 24,205 | 18,867 | |||||
Total costs and expenses | 246,737 | 186,341 | |||||
Loss from operations | (44,826 | ) | (54,982 | ) | |||
Other income (expense), net: | |||||||
Interest income | 4,059 | 2,638 | |||||
Interest expense and other income (expense), net | (500 | ) | (242 | ) | |||
Loss before provision for income taxes | (41,267 | ) | (52,586 | ) | |||
Provision for income taxes | 153 | 123 | |||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.33 | ) | $ | (0.42 | ) | |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 127,346 | 126,857 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating activities | |||||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 5,696 | 4,787 | |||||
Share-based compensation | 694 | 4,834 | |||||
Other | (993 | ) | 654 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 61,329 | 39,309 | |||||
Prepaid expenses and other assets | 510 | 7,102 | |||||
Operating lease right-of-use assets | 6,427 | 4,551 | |||||
Accounts payable | 7,481 | 4,484 | |||||
Accrued expenses and other liabilities | (2,024 | ) | 2,696 | ||||
Operating lease liabilities | (4,578 | ) | (2,174 | ) | |||
Net cash provided by operating activities | 33,122 | 13,534 | |||||
Investing activities | |||||||
Purchases of property and equipment | (3,706 | ) | (8,240 | ) | |||
Purchases of marketable securities | (113,952 | ) | (83,569 | ) | |||
Sales of marketable securities | 28,953 | 36,408 | |||||
Maturities of marketable securities | 84,883 | 142,428 | |||||
Net cash provided by (used in) investing activities | (3,822 | ) | 87,027 | ||||
Financing activities | |||||||
Proceeds from exercise of stock options, net | 110 | 435 | |||||
Other financing activities | (3,279 | ) | — | ||||
Net cash provided by (used in) financing activities | (3,169 | ) | 435 | ||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 8 | 48 | |||||
Net increase in cash, cash equivalents, and restricted cash | 26,139 | 101,044 | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 135,290 | 83,969 | |||||
Cash, cash equivalents, and restricted cash, end of period | $ | 161,429 | $ | 185,013 | |||
Supplemental cash flow information | |||||||
Accrued property and equipment | $ | 4,484 | $ | 7,779 | |||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 22,862 | $ | 2,356 | |||
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets | |||||||
Cash and cash equivalents | $ | 134,648 | $ | 172,512 | |||
Restricted cash included in prepaid expenses and other current assets | 1,057 | 851 | |||||
Restricted cash | 25,724 | 11,650 | |||||
Total cash, cash equivalents, and restricted cash | $ | 161,429 | $ | 185,013 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Share-based compensation by function: | |||||||
Cost of revenue | $ | 15 | $ | 32 | |||
Research and development | 626 | 4,054 | |||||
Sales and marketing | 29 | 241 | |||||
General and administrative | 24 | 507 | |||||
Total share-based compensation | $ | 694 | $ | 4,834 | |||
Amortization of acquired intangible assets by function: | |||||||
Cost of revenue | $ | — | $ | 14 | |||
General and administrative | 343 | 74 | |||||
Total amortization of acquired intangible assets | $ | 343 | $ | 88 | |||
Reconciliation of total costs and expenses to non-GAAP costs and expenses: | |||||||
Total costs and expenses | $ | 246,737 | $ | 186,341 | |||
Share-based compensation | (694 | ) | (4,834 | ) | |||
Amortization of acquired intangible assets | (343 | ) | (88 | ) | |||
Non-GAAP costs and expenses | $ | 245,700 | $ | 181,419 | |||
Reconciliation of net loss to non-GAAP net loss: | |||||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Share-based compensation | 694 | 4,834 | |||||
Amortization of acquired intangible assets | 343 | 88 | |||||
Non-GAAP net loss | $ | (40,383 | ) | $ | (47,787 | ) | |
Weighted-average shares outstanding | 127,346 | 126,857 | |||||
Net loss per share | $ | (0.33 | ) | $ | (0.42 | ) | |
Non-GAAP net loss per share | $ | (0.32 | ) | $ | (0.38 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Reconciliation of net loss to Adjusted EBITDA | |||||||
Net loss | $ | (41,420 | ) | $ | (52,709 | ) | |
Depreciation and amortization | 5,696 | 4,787 | |||||
Share-based compensation | 694 | 4,834 | |||||
Interest income | (4,059 | ) | (2,638 | ) | |||
Interest expense and other (income) expense, net | 500 | 242 | |||||
Provision for income taxes | 153 | 123 | |||||
Adjusted EBITDA | $ | (38,436 | ) | $ | (45,361 | ) |