Core Insights - Pinterest Inc (NYSE:PINS) shares increased by 10.7% to $30.83 following a stronger-than-expected current-quarter forecast, with first-quarter revenue of $855 million surpassing estimates, while adjusted earnings were 23 cents per share, slightly below expectations [1] Analyst Reactions - Following the earnings report, seven analysts raised their price targets, with Citigroup increasing its target to $41 from $38, while six analysts cut their targets, the most significant reduction being Jefferies' cut to $27 from $39 [2] Stock Performance - Pinterest's stock has broken above the 50-day moving average, reaching its highest levels since early April, and is up 6.7% year-to-date, indicating a positive trend for 2025 [3] Options Activity - In the options market, there has been significant activity with 46,000 calls and 24,000 puts exchanged, which is eight times the typical volume for this time of day, with the most popular options being the weekly 5/9 29-strike call and the 32-strike call [4] - The Schaeffer's Volatility Scorecard (SVS) for Pinterest stands at 88 out of 100, indicating that the stock has exceeded options traders' volatility expectations over the past year, benefiting options buyers [4]

Core Insights - Approximately 80% of Pinterest's users are located outside the United States [1] - 20% of Pinterest's revenue is generated from international markets [1] - Generation Z accounts for over 40% of the user base on Pinterest [1] - Consumers in the United States continue to show resilience [1]

Core Insights - Pinterest reported strong first-quarter results with $855 million in revenue, marking a 16% year-over-year increase, and a 10% increase in monthly active users to 570 million [1] - CEO Bill Ready highlighted that the growth is attributed to the company's investment in artificial intelligence (AI), particularly in attracting Generation Z users [1][2] AI and User Experience - The ability to leverage AI for personalized user experiences is a key differentiator for the company, helping to find the best product market fit in years [2] - The platform's visual exploration capabilities are crucial for user engagement, especially for Generation Z, who are accustomed to visual content [3] Visual Search Capabilities - The company plans to enhance its visual search capabilities in 2025, utilizing multimodal AI models to unlock new levels of personalization [3][4] - Pinterest is expanding its visual search features to the U.S., U.K., and Canada, allowing users to search for personalized women's fashion content [6] Competitive Landscape - The shift towards visual search engines is not unique to Pinterest, as other platforms like Google are also integrating visual search technologies into their services [5] - New entrants like Aesthetic are focusing on AI-powered clothing recognition, adding competition in the fashion AI technology space [6]

Pinterest公司(PINS.US)于美东时间5月8日盘后公布第一季度财报，因其第二季度营收预期中值高于市场 预期，该股在盘后交易中大幅上涨，其股价一度飙升17%，截至发稿，该股盘后上涨了15.47%。有迹象 显示，该公司利用人工智能推动增长的努力已初见成效，这进一步缓解了市场对广告业务增长放缓的担 忧。 数据显示，该公司Q1营收同比增长16%至8.55亿美元，超出市场预期的8.47亿美元;调整后每股收益0.23 美元，不及市场预期的0.26美元。 Pinterest在声明中表示，第二季度营收预计将达到9.6亿至9.8亿美元，高于分析师预期的9.637亿美元。 此外，Pinterest第一季度的月活跃用户数量和盈利指标也均超出预期。 不过，分析师指出，不断上升的关税对该公司的前景构成风险。彭博行业研究分析师曼迪普.辛格在对 财报的评论中写道："随着亚洲大型广告商削减支出，Pinterest在美国的广告销售增长可能会面临阻力， 而且这种影响可能比对大型同行更为显著。" 首席执行官比尔.雷迪在与分析师的电话会议中指出："我们运用人工智能实现用户体验个性化的能力， 是我们的核心竞争优势。"他还补充道，"这也让我 ...

Core Insights - Pinterest reported revenue of $854.99 million for the quarter ended March 2025, reflecting a 15.5% increase year-over-year and surpassing the Zacks Consensus Estimate of $845.74 million by 1.09% [1] - The company's EPS was $0.23, up from $0.20 in the same quarter last year, although it fell short of the consensus estimate of $0.25 by 8% [1] Financial Performance - Revenue growth of 15.5% year-over-year [1] - EPS increased to $0.23 from $0.20 year-over-year [1] - Revenue surprise of +1.09% compared to estimates [1] - EPS surprise of -8.00% compared to estimates [1] Key Metrics - Monthly Active Users (MAUs) globally reached 570 million, exceeding the average estimate of 562 million [4] - Average Revenue Per User (ARPU) globally was $1.52, slightly above the average estimate of $1.51 [4] - MAUs in the U.S. and Canada were 102 million, compared to the estimate of 101 million [4] - Geographic revenue from the U.S. and Canada was $663 million, surpassing the estimate of $658.03 million, representing a 12% year-over-year increase [4] - Geographic revenue from Europe was $147 million, exceeding the estimate of $140.72 million, with a year-over-year change of 24.6% [4] - Geographic revenue from the Rest of World was $45 million, slightly below the estimate of $46.86 million, but showing a significant 50% increase year-over-year [4] Stock Performance - Pinterest shares have returned -2.8% over the past month, while the Zacks S&P 500 composite increased by 11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Group 1: Earnings Performance - Pinterest reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.25 per share, but showing an increase from $0.20 per share a year ago, representing an earnings surprise of -8% [1] - The company posted revenues of $854.99 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.09%, and up from $739.98 million year-over-year [2] - Over the last four quarters, Pinterest has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Pinterest shares have declined approximately 5.7% since the beginning of the year, compared to a decline of -4.3% for the S&P 500 [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - The current consensus EPS estimate for the coming quarter is $0.35 on revenues of $960.53 million, and for the current fiscal year, it is $1.73 on revenues of $4.11 billion [7] Group 3: Industry Context - The Internet - Software industry, to which Pinterest belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported a revenue of $855 million, reflecting a 16% year-over-year increase [6][34] - Adjusted EBITDA grew to $172 million, with an adjusted EBITDA margin of 20%, an increase of 300 basis points compared to Q1 2024 [7][37] - The company ended the quarter with cash, cash equivalents, and marketable securities totaling $2.6 billion [37] Business Line Data and Key Metrics Changes - The company achieved a record number of 570 million monthly active users (MAUs), representing a 10% growth year-over-year [6][32] - Revenue from the U.S. and Canada was $663 million, growing 12%, while Europe saw revenue of $147 million, growing 24% [35] - Revenue from the rest of the world reached $45 million, growing 49% [36] Market Data and Key Metrics Changes - Ad impressions grew by 49% year-over-year, while ad pricing declined by 22% [36] - The international mix shift contributed to the decline in ad pricing, as ads were served in previously unmonetized markets [36][72] - The company expanded its reseller efforts to eight additional markets, enhancing revenue from catalog shopping ads [25][26] Company Strategy and Development Direction - The company is focused on enhancing user engagement through improved visual search capabilities and AI-driven personalization [9][12] - The strategy includes leveraging a full funnel approach to advertising, allowing advertisers to reach consumers at various stages of their shopping journey [17][78] - The company aims to deepen engagement and grow its user base while maintaining expense discipline and investing in high ROI opportunities [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the effectiveness of product investments made over the past three years [38][46] - The company anticipates Q2 2025 revenue to be in the range of $960 million to $980 million, representing a 12% to 15% growth year-over-year [38] - Management acknowledged some softness in ad spend from certain categories due to macroeconomic factors but emphasized strong fundamentals [45][46] Other Important Information - The company is enhancing its privacy-centric measurement tools to improve performance measurement for advertisers [26] - The introduction of Performance Plus is expected to drive advertiser value and improve campaign efficiency [22][59] - The company is leveraging AI to automate repetitive tasks and improve engineering productivity, with over 25% of code now generated through AI [31][85] Q&A Session Summary Question: Guidance for Q2 and impact of tariffs on retail and CPG - Management noted strength in business trends and geographic diversification from Asia-based retailers to European markets, despite some tariff impacts [44][45] Question: Progress on Performance Plus and advertiser receptivity - Management highlighted strong performance from advertisers using Performance Plus, with 80% of campaigns outperforming traditional ones [59][60] Question: Trends in ad impressions and pricing in the U.S. and Canada - Management explained that impression growth and pricing dynamics are primarily driven by international mix shift, with less pronounced trends in mature markets [72][73] Question: Broader macro volatility impacting ad spend - Management emphasized the ability to tie together full funnel campaigns, which is particularly compelling during periods of uncertainty [78][79] Question: Success in emerging verticals and AI-generated code - Management discussed growth in financial services and other emerging verticals, highlighting the platform's appeal during key life moments [84][85]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $855 million, reflecting a 16% year-over-year increase [5][34] - Adjusted EBITDA grew to $172 million, with an adjusted EBITDA margin of 20%, an increase of 300 basis points year-over-year [6][37] - The company ended the quarter with cash, cash equivalents, and marketable securities totaling $2.6 billion [37] Business Line Data and Key Metrics Changes - Monthly Active Users (MAUs) reached 570 million globally, representing a 10% growth year-over-year [5][32] - Revenue from the U.S. and Canada was $663 million, growing 12% [35] - Revenue from Europe was $147 million, growing 24% on a reported basis [35] - Revenue from the rest of the world was $45 million, growing 49% on a reported basis [36] Market Data and Key Metrics Changes - Ad impressions grew by 49% year-over-year, while ad pricing declined by 22% [36] - The international mix shift contributed to the decline in ad pricing, as ads were served in previously unmonetized markets [36][74] Company Strategy and Development Direction - The company aims to enhance user engagement through improved visual search capabilities and AI-driven personalization [8][12] - The strategy focuses on becoming a shopping destination, with 85% of MAUs accessing the mobile app [7] - The company is expanding its lower funnel ad offerings and enhancing the Performance Plus suite to drive advertiser value [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and the effectiveness of product investments made over the past three years [38] - The company anticipates Q2 revenue in the range of $960 million to $980 million, representing 12% to 15% growth year-over-year [38] - Management noted that while there are pockets of spend impacted by tariffs, the fundamentals of the business remain strong [46][47] Other Important Information - The company is focusing on privacy-centric measurement tools and has entered partnerships to improve performance measurement [26][70] - The company reported that 25% of its code is now generated through AI, which has improved engineering velocity and productivity [32][88] Q&A Session Summary Question: Guidance for Q2 and pipeline observations - Management noted that trends remain healthy and that product investments are driving performance gains for advertisers [45][46] Question: Progress on Performance Plus and advertiser receptivity - Management highlighted that Performance Plus is driving strong performance and that 80% of campaigns outperform traditional campaigns [60][61] Question: Impact of macro volatility on ad spend - Management indicated that the full funnel approach is helping advertisers tie upper and lower funnel objectives, leading to better performance [78][80] Question: Update on emerging verticals and AI-generated code - Management discussed growth in financial services and other emerging verticals, emphasizing the platform's fit for advertisers during key life moments [85][88]

Q1 2025 Earnings Report © 2025 Pinterest. All rights reserved. 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) ...

Part I [Financial Statements (Unaudited)](index=8&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Total assets of **$5.28 billion**, revenue of **$855.0 million** (16% YoY increase), and a shift from a **$24.8 million** net loss to an **$8.9 million** net income, with **$363.7 million** in operating cash flow [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were **$5.28 billion**, with cash and cash equivalents increasing to **$1.25 billion**, total liabilities at **$594.2 million**, and equity at **$4.69 billion** Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,252,310 | $1,136,460 | | Marketable securities | $1,362,913 | $1,376,409 | | Accounts receivable, net | $709,994 | $893,403 | | Total current assets | $3,402,258 | $3,484,707 | | Total assets | $5,282,696 | $5,342,660 | | **Liabilities & Equity** | | | | Total current liabilities | $404,399 | $398,133 | | Total liabilities | $594,227 | $591,506 | | Total stockholders' equity | $4,688,469 | $4,751,154 | | Total liabilities and stockholders' equity | $5,282,696 | $5,342,660 | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 revenue grew **16%** to **$855.0 million**, resulting in a net income of **$8.9 million**, a turnaround from a **$24.8 million** net loss in Q1 2024, with diluted EPS of **$0.01** Condensed Consolidated Statements of Operations (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $854,988 | $739,983 | | Total costs and expenses | $890,465 | $794,399 | | Loss from operations | $(35,477) | $(54,416) | | Net income (loss) | $8,922 | $(24,812) | | Diluted net income (loss) per share | $0.01 | $(0.04) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income for Q1 2025 was **$10.6 million**, a significant improvement from a **$26.4 million** comprehensive loss in Q1 2024, driven by net income and positive other comprehensive income Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $8,922 | $(24,812) | | Other comprehensive income (loss), net of taxes | $1,668 | $(1,602) | | Comprehensive income (loss) | $10,590 | $(26,414) | [Condensed Consolidated Statements of Stockholders' Equity](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased to **$4.69 billion** in Q1 2025, primarily due to **$175.0 million** in stock repurchases and **$187.4 million** in share-based compensation expense - Repurchased **5.0 million shares** of Class A common stock for **$175.0 million** during Q1 2025[31](index=31&type=chunk) - Recorded share-based compensation expense of **$187.4 million** for Q1 2025, an increase from **$162.5 million** in Q1 2024[31](index=31&type=chunk)[33](index=33&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$363.7 million** in Q1 2025, with investing activities providing **$11.9 million** and financing activities using **$260.7 million**, primarily for stock repurchases Net Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $363,706 | $356,146 | | Net cash provided by (used in) investing activities | $11,949 | $(3,119) | | Net cash used in financing activities | $(260,701) | $(82,952) | - Cash used in financing activities increased significantly year-over-year, driven by **$175.0 million** in Class A common stock repurchases in Q1 2025, which did not occur in Q1 2024[35](index=35&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, a **$939.2 million** AWS commitment, a **$2.0 billion** stock repurchase program with **$1.72 billion** remaining, and Q1 2025 revenue of **$632.1 million** primarily from U.S. and Canada - The company has a purchase commitment with AWS requiring at least **$3.25 billion** in cloud services through April 2029, with a remaining commitment of **$939.2 million** as of March 31, 2025[54](index=54&type=chunk) - In November 2024, a **$2.0 billion** stock repurchase program was authorized. During Q1 2025, **5.0 million shares** were repurchased for **$175.0 million**, leaving **$1.72 billion** available[64](index=64&type=chunk) Revenue by Geography (in thousands) | Region | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | U.S. and Canada | $632,134 | $546,584 | | Europe | $147,176 | $124,042 | | Rest of World | $75,678 | $69,357 | | **Total revenue** | **$854,988** | **$739,983** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2025 revenue grew **16%** to **$855.0 million**, driven by **10%** MAU growth and **5%** ARPU growth, resulting in **$8.9 million** net income and **$171.6 million** Adjusted EBITDA, supported by strong liquidity [Overview of First Quarter Results](index=22&type=section&id=Overview%20of%20First%20Quarter%20Results) Pinterest reported Q1 2025 revenue of **$855.0 million** (**16%** YoY growth), **570 million** MAUs (**10%** growth), **$8.9 million** net income, and **$171.6 million** Adjusted EBITDA, with **$2.6 billion** in cash and marketable securities Q1 2025 Key Metrics | Metric | Q1 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | $855.0 million | +16% | | Monthly Active Users (MAUs) | 570 million | +10% | | Net Income | $8.9 million | N/A (from loss) | | Adjusted EBITDA | $171.6 million | +36% | | Free Cash Flow | $356.4 million | +3.6% | [Trends in User and Monetization Metrics](index=23&type=section&id=Trends%20in%20User%20and%20Monetization%20Metrics) Global MAUs grew **10%** to **570 million**, and Global ARPU increased **5%** to **$1.52**, with the strongest ARPU growth in Rest of World (**29%**) - Global MAUs increased to **570 million** as of March 31, 2025, a **10%** year-over-year increase, primarily due to ongoing investments in relevance and personalization[77](index=77&type=chunk)[81](index=81&type=chunk) Quarterly ARPU by Region (YoY Change) | Region | Q1 2025 ARPU | YoY Change | | :--- | :--- | :--- | | Global | $1.52 | +5% | | U.S. and Canada | $6.54 | +8% | | Europe | $1.00 | +17% | | Rest of World | $0.14 | +29% | [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures show Q1 2025 Adjusted EBITDA of **$171.6 million** (up from **$126.1 million**), **17%** constant currency revenue growth, and **$356.4 million** in free cash flow Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income (loss) | $8,922 | $(24,812) | | Adjustments (Depreciation, SBC, etc.) | $162,727 | $150,801 | | **Adjusted EBITDA** | **$171,649** | **$126,089** | - Constant currency revenue for Q1 2025 was **$865.1 million**, representing **17%** YoY growth, compared to the reported **16%** growth. This indicates a **$10.1 million** unfavorable impact from foreign exchange rates[105](index=105&type=chunk) Free Cash Flow Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $363,706 | $356,146 | | Less: Purchases of property and equipment | $(7,289) | $(12,113) | | **Free cash flow** | **$356,417** | **$344,033** | [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q1 2025 revenue grew **16%** to **$855.0 million**, driven by a **49%** increase in ad impressions despite a **22%** decrease in ad prices, leading to **$8.9 million** net income and **$171.6 million** Adjusted EBITDA - Q1 2025 revenue growth was driven by a **49%** increase in the number of advertisements served, which was partially offset by a **22%** decrease in the price of advertisements compared to Q1 2024[117](index=117&type=chunk) - Research and development expenses increased by **18%** (**$51.4 million**) YoY, primarily due to a **22%** increase in personnel expenses from higher headcount and a **$17.1 million** increase in share-based compensation[120](index=120&type=chunk) Costs and Expenses as a Percentage of Revenue | Expense Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cost of revenue | 23% | 24% | | Research and development | 39% | 38% | | Sales and marketing | 30% | 31% | | General and administrative | 12% | 14% | | **Total costs and expenses** | **104%** | **107%** | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, liquidity included **$2.62 billion** in cash and marketable securities, an undrawn **$500 million** credit facility, and **$175.0 million** in Q1 2025 stock repurchases - The company has a **$500.0 million** revolving credit facility, which was undrawn as of March 31, 2025[129](index=129&type=chunk)[132](index=132&type=chunk) - During Q1 2025, the company repurchased **5.0 million shares** of Class A common stock for **$175.0 million**, with **$1.72 billion** remaining under the repurchase program[135](index=135&type=chunk)[136](index=136&type=chunk) - Net cash used in financing activities increased by **$177.7 million** YoY, primarily due to the increase in stock repurchases[139](index=139&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company faces market risks from foreign currency and interest rate fluctuations, with a hypothetical **100 basis point** interest rate increase impacting marketable securities by **$8.8 million**, and no current hedging activities - The company's primary market risks are foreign currency exchange and interest rate fluctuations[147](index=147&type=chunk) - A hypothetical **100 basis point** increase in interest rates would decrease the market value of cash equivalents and marketable securities by **$8.8 million** as of March 31, 2025[149](index=149&type=chunk) - The company does not currently engage in hedging activities for foreign currency exchange risk[148](index=148&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective[150](index=150&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[151](index=151&type=chunk) Part II [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings related to intellectual property and data privacy, with management not expecting a material adverse effect on financial results - Pinterest is involved in ordinary course legal proceedings related to intellectual property, data privacy, content, and other matters[153](index=153&type=chunk) - The company does not believe there is a reasonable possibility that the final outcome of current legal matters will have a material adverse effect on its business or financial results[155](index=155&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) Key risks include reliance on advertising revenue, user engagement, intense competition, data privacy regulations, third-party dependencies, content liability, and the dual-class stock structure concentrating voting power [Risks Related to Business Strategy and Growth](index=40&type=section&id=Risks%20Related%20to%20our%20Business%20Strategy%20and%20Growth) Growth risks include heavy reliance on advertising revenue, the need to attract and retain users, intense competition from larger tech companies, challenges in international expansion, and potential negative impacts from AI development - Substantially all revenue is generated from advertising, and the business could be harmed by the loss of advertisers, a reduction in their spending, or failure to attract new ones[158](index=158&type=chunk) - The business depends on attracting and retaining an engaged user base; failure to do so could render the platform less attractive to advertisers and harm revenue[164](index=164&type=chunk) - The company faces significant competition from large, established companies like Amazon, Meta, and Google, which have greater resources and larger user bases[180](index=180&type=chunk) - Continued development and use of AI technologies present risks including reputational harm, legal liability, evolving regulations (like the EU AI Act), and competition[208](index=208&type=chunk)[210](index=210&type=chunk) [Risks Related to Data, Security and Privacy](index=56&type=section&id=Risks%20Related%20to%20Data,%20Security%20and%20Privacy) Significant risks include data security compromises, impacts from browser changes (e.g., Apple's ITP) on ad effectiveness, and compliance with evolving global privacy regulations like GDPR and CCPA - A compromise of security could lead to loss of user and advertiser trust, reputational harm, and significant legal and financial costs[212](index=212&type=chunk) - Changes by browser developers like Apple (e.g., AppTrackingTransparency) and Google impair the ability to measure ad effectiveness, which could reduce advertiser spending[223](index=223&type=chunk)[225](index=225&type=chunk) - The company is subject to complex and evolving data privacy laws globally, such as GDPR and CCPA, which could require costly changes to business practices and limit targeted advertising[229](index=229&type=chunk)[230](index=230&type=chunk) [Risks Related to Business Operations](index=62&type=section&id=Risks%20Related%20to%20our%20Business%20Operations) Operational risks include dependence on technology infrastructure, where interruptions could harm user and advertiser retention, and challenges in attracting and retaining key personnel in a competitive talent market - The business depends on the reliable performance of its technology infrastructure; service interruptions or outages could cause a loss of users and advertisers[238](index=238&type=chunk) - The failure to attract and retain key personnel, including executives and specialized engineers, could disrupt operations and harm financial results[243](index=243&type=chunk)[245](index=245&type=chunk) [Risks Arising from Reliance on Third Parties](index=64&type=section&id=Risks%20Arising%20from%20our%20Reliance%20on%20Third%20Parties) Reliance on third parties poses risks, including dependence on search engines for traffic, app stores for distribution, third-party login providers, and critical reliance on Amazon Web Services (AWS) for cloud infrastructure - The company depends on internet search engines like Google to direct significant traffic; changes in search algorithms or policies can negatively impact user growth and engagement[249](index=249&type=chunk)[250](index=250&type=chunk) - Pinterest depends on Amazon Web Services (AWS) for the vast majority of its compute, storage, and data transfer services. Any disruption or interference with AWS could negatively affect operations[254](index=254&type=chunk) - A significant number of users authenticate via third-party providers like Facebook, Apple, or Google. Discontinuation of these services or policy changes could adversely affect user growth and retention[253](index=253&type=chunk) [Risks Related to Legal and Regulatory Matters](index=67&type=section&id=Risks%20Related%20to%20Legal%20and%20Regulatory%20Matters) Legal and regulatory risks include potential liability for platform content, uncertain interpretations of legal protections (CDA, DMCA), increasing global legislative scrutiny, government restrictions on access, and intellectual property challenges - The company may be held liable for content published on its platform, and legal protections like the Communications Decency Act (CDA) and Digital Millennium Copyright Act (DMCA) are subject to uncertain interpretation and legislative changes[264](index=264&type=chunk)[265](index=265&type=chunk) - Governmental authorities outside the U.S. have restricted, and may in the future restrict, access to the platform, which could adversely affect user growth[270](index=270&type=chunk) - The company's use of "open source" software could subject it to litigation or unfavorable license conditions, potentially requiring it to release proprietary source code[279](index=279&type=chunk) [Risks Relating to Financial Statements and Performance](index=72&type=section&id=Risks%20Relating%20to%20our%20Financial%20Statements%20and%20Performance) Financial risks include a limited operating history, past operating losses, potential inability to maintain profitability, quarterly fluctuations due to seasonality, and risks related to tax liabilities and net operating loss carryforwards - The company has a limited operating history at its current scale, has incurred operating losses in the past, and may not maintain profitability in the future[285](index=285&type=chunk)[286](index=286&type=chunk) - Quarterly operating results are likely to fluctuate due to factors like seasonality in advertiser spending, user engagement, and macroeconomic conditions[288](index=288&type=chunk) - User metrics like MAUs are calculated using internal data and are subject to inherent measurement challenges, and any real or perceived inaccuracies could harm the business[289](index=289&type=chunk) [Risks Related to Ownership of Our Class A Common Stock](index=79&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Class%20A%20Common%20Stock) Risks include the dual-class stock structure concentrating approximately **73.5%** of voting power with Class B stockholders, potential stock price volatility, and anti-takeover provisions that could deter mergers or tender offers - The dual-class stock structure concentrates approximately **73.5%** of voting power with Class B stockholders, limiting the ability of Class A stockholders to influence corporate matters[306](index=306&type=chunk) - The trading price of Class A common stock has been and is likely to continue to be volatile due to market fluctuations, changes in operating performance, and other factors[311](index=311&type=chunk) - Anti-takeover provisions in the company's governing documents and Delaware law could make a merger, tender offer, or proxy contest difficult[318](index=318&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **5,030,146 shares**, with **4,997,892** under the stock repurchase program, leaving approximately **$1.72 billion** available Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | Approx. Value Remaining in Program | | :--- | :--- | :--- | :--- | :--- | | Jan 2025 | 32,254 | $30.53 | — | $1,899,801,819 | | Feb 2025 | 2,748,536 | $36.75 | 2,748,536 | $1,798,796,938 | | Mar 2025 | 2,249,356 | $32.90 | 2,249,356 | $1,724,801,819 | | **Total** | **5,030,146** | | **4,997,892** | | [Other Information](index=88&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 officers adopted or terminated Rule 10b5-1 trading plans during Q1 2025 - No directors or section 16 officers entered into or terminated a Rule 10b5-1 trading plan during the quarter ended March 31, 2025[324](index=324&type=chunk) [Exhibits](index=89&type=section&id=Item%206.%20Exhibits) Exhibits filed with the 10-Q include employee equity award agreements, CEO and CFO certifications, and financial data in Inline XBRL format - Filed exhibits include forms of the 2019 Omnibus Incentive Plan agreements for performance-based RSUs, stock options, and standard RSUs[325](index=325&type=chunk) - Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[325](index=325&type=chunk)