Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $165 million, representing a 17% year-over-year increase, exceeding expectations across all revenue lines [8][23] - Adjusted EBITDA margin was 27%, with net cash from operating activities growing by 19%, indicating strong operational efficiency [8][26] - Advertiser business grew by 16%, driven by a 20% increase in activation revenue, while supply side business saw a 35% year-over-year growth [8][24] Business Line Data and Key Metrics Changes - Activation revenue increased by 20% year-over-year, with Authentic Brand Suitability (ABS) accounting for 54% of activation revenue and growing by 16% [24] - Measurement revenue grew by 8%, supported by new customer activations on the open web and stable growth from existing customers [24][25] - Supply side revenue surged by 35%, driven by increased revenue from both existing and new platform and publisher customers [25] Market Data and Key Metrics Changes - Social media measurement and activation solutions are gaining traction, with a robust sales pipeline for Meta's activation solution and significant early results from early adopters [10][11] - CTV measurement volumes grew by nearly 43% year-over-year, with DV's filtering rate for CTV jumping 55% year-over-year [12][14] - Retail media supply side revenue grew by 35% year-over-year, indicating strong demand in this segment [18] Company Strategy and Development Direction - The company aims to build a unified platform that enables advertisers to verify, optimize, and measure media outcomes, driving broader customer adoption and deeper partner engagement [7][20] - The strategic acquisition of RockerBox is expected to enhance customer engagement and expand offerings, unlocking greater growth opportunities [10][19] - The focus remains on driving volume through multi-product adoption and upselling opportunities across the platform [23] Management's Comments on Operating Environment and Future Outlook - Management noted that business momentum remained steady through April, with no evidence of macroeconomic pressure affecting customer demand [7] - The company is confident in its long-term strategy to drive durable diversified growth, despite leaving full-year guidance unchanged due to macro uncertainty [29][30] - Management emphasized the importance of performance-driven solutions in the current economic environment, which positions the company well for resilience [33][84] Other Important Information - The company repurchased 5.2 million shares for $82 million during the quarter and ended with approximately $175 million in cash and short-term investments, maintaining zero debt [27] - The company expects second-quarter revenue to range between $169 million and $173 million, representing a 10% year-over-year growth at the midpoint [28] Q&A Session Summary Question: What contributed to revenue outperformance in the quarter? - Management indicated that new client growth and strong adoption of additional solutions from existing customers were key drivers of revenue outperformance [40][41] Question: Thoughts on expanding into direct response budgets? - Management noted the convergence of brand and performance objectives, highlighting the importance of tools like CyBids and RockerBox in driving performance [42][44] Question: Impact of customer slowing spend on social growth? - Management acknowledged a significant customer that paused spending but expressed confidence in the growth potential of social activation solutions [50][61] Question: How does increased competition in the DSP space affect DoubleVerify? - Management stated that they are widely distributed across DSPs and that pricing remains consistent, indicating limited impact from DSP competition [86][88] Question: Predictions for CTV market expansion? - Management noted that as creative tools for CTV become more accessible, the addressable market is expanding, allowing for greater customer access [92]

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)

Pinterest(PINS.N)美股盘后涨超11%。 ...

Core Insights - Pinterest reported Q1 revenue of $855 million, exceeding analyst expectations of $846.3 million [1] - The monthly active user count for Q1 was 570 million, significantly higher than the analyst forecast of 163.9 million [1] - The average revenue per user (ARPU) for Q1 was $1.52, slightly above the expected $1.50 [1] - For Q2, Pinterest expects revenue between $960 million and $980 million, compared to analyst expectations of $963.7 million [1] - The anticipated revenue growth for Q2 is projected at 12%-15% [1] - Adjusted EBITDA for Q2 is expected to be between $217 million and $237 million, while analysts forecasted $237.4 million [1] - Following the earnings report, Pinterest's stock rose by 7.68% in after-hours trading, later increasing to 11.81% [1]

Pinterest美股盘后涨超11%。 ...

Core Insights - Pinterest's shares increased by 10% in extended trading following the release of first-quarter earnings and better-than-expected guidance for the second quarter [1] - The company anticipates second-quarter sales between $960 million and $980 million, surpassing analysts' expectations of $966 million [1] Financial Performance - Pinterest reported 570 million monthly active users in Q1, exceeding Wall Street's estimate of 565 million [2] - Q1 sales from the U.S. and Canada were $663 million, slightly below the expected $664 million, while Europe revenue was $147 million, surpassing projections of $141 million [2] - The company achieved $172 million in adjusted EBITDA for Q1, exceeding the $164 million expected by analysts, with an EBITDA margin of 20% compared to the anticipated 19.4% [3] - Global average revenue per user for Q1 was $1.52, aligning with analysts' estimates [3] Strategic Outlook - CEO Bill Ready emphasized the resilience of Pinterest amid evolving macroeconomic conditions and the digital advertising landscape, asserting strong business fundamentals and healthy growth [4] - The company is navigating challenges in the online advertising sector, particularly in light of broader economic uncertainties and trade disputes [4]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) Pinterest reported strong first-quarter 2025 results, achieving 16% revenue growth and a record 570 million global monthly active users, an increase of 10% year-over-year | Metric | Q1 2025 | Growth (YoY) | Constant Currency Growth (YoY) | | :----- | :------ | :----------- | :----------------------------- | | Revenue | $855 million | 16% | 17% | | Global MAUs | 570 million | 10% | N/A | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Bill Ready highlighted continued momentum in revenue, user growth, and engagement, attributing the company's resilience to its strategy and consistent execution amidst an evolving macroeconomic and digital ad landscape - Pinterest's strategy and consistent execution have made the company more resilient, with strong business fundamentals and healthy growth[2](index=2&type=chunk) - AI advancements are helping users make more intentional shopping decisions and driving performance for advertisers, contributing to market share gains and a solid foundation for long-term growth[2](index=2&type=chunk) [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) [Consolidated Financial Results](index=1&type=section&id=Consolidated%20Financial%20Results) Pinterest's Q1 2025 saw significant improvements in profitability, moving from a net loss to a net income, alongside strong growth in revenue and Adjusted EBITDA | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | % Change | | :-------------------------- | :-------------------------------- | :-------------------------------- | :------- | | Revenue | $854,988 | $739,983 | 16 % | | Constant currency % growth | N/A | N/A | 17 % | | Net income (loss) | $8,922 | $(24,812) | NM | | Net income (loss) margin | 1 % | (3)% | N/A | | Non-GAAP net income | $159,562 | $119,846 | 33 % | | Adjusted EBITDA | $171,649 | $126,089 | 36 % | | Adjusted EBITDA margin | 20 % | 17 % | N/A | | Net cash provided by operating activities | $363,706 | $356,146 | 2 % | | Free cash flow | $356,417 | $344,033 | 4 % | [Key Financial Metrics Summary](index=1&type=section&id=Key%20Financial%20Metrics%20Summary) The company achieved robust financial performance in Q1 2025, marked by double-digit revenue growth, a significant increase in global users, and positive GAAP net income and strong Adjusted EBITDA - Revenue reached **$855 million**, a **16%** year-over-year increase (**17%** on a constant currency basis)[4](index=4&type=chunk) - Global Monthly Active Users (MAUs) grew **10%** year-over-year to **570 million**[4](index=4&type=chunk) - GAAP net income was **$9 million**, and Adjusted EBITDA was **$172 million**[4](index=4&type=chunk) - Net cash provided by operating activities was **$364 million**, with free cash flow at **$356 million**[4](index=4&type=chunk) [Q1 2025 Operational Highlights](index=2&type=section&id=Q1%202025%20Operational%20Highlights) [Geographic Performance](index=2&type=section&id=Geographic%20Performance) Pinterest demonstrated strong growth across all geographic regions in Q1 2025, with the Rest of World segment leading in both revenue and ARPU growth, while Europe showed significant ARPU improvement | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------------- | :----------------- | :----------------- | :------- | | **Revenue - Global** | $855 | $740 | 16 % | | Revenue - U.S. and Canada | $663 | $592 | 12 % | | Revenue - Europe | $147 | $118 | 24 % | | Revenue - Rest of World | $45 | $30 | 49 % | | **MAUs - Global** | 570 | 518 | 10 % | | MAUs - U.S. and Canada | 102 | 98 | 4 % | | MAUs - Europe | 148 | 140 | 5 % | | MAUs - Rest of World | 320 | 279 | 14 % | | **ARPU - Global** | $1.52 | $1.46 | 5 % | | ARPU - U.S. and Canada | $6.54 | $6.05 | 8 % | | ARPU - Europe | $1.00 | $0.86 | 17 % | | ARPU - Rest of World | $0.14 | $0.11 | 29 % | [Business Outlook](index=3&type=section&id=Business%20Outlook) [Q2 2025 Guidance](index=3&type=section&id=Q2%202025%20Guidance) Pinterest provided guidance for Q2 2025, projecting continued revenue growth and a healthy range for Adjusted EBITDA | Metric | Q2 2025 Guidance | | :---------------- | :--------------- | | Revenue | $960M - $980M | | Revenue Growth YoY | 12% - 15% | | Adjusted EBITDA | $217M - $237M | [Guidance Disclaimer](index=3&type=section&id=Guidance%20Disclaimer) The company has not provided a GAAP reconciliation for its forward-looking Adjusted EBITDA guidance due to the inherent uncertainty and variability of reconciling items like share-based compensation and income taxes - A GAAP reconciliation for forward-looking Adjusted EBITDA is not provided due to the uncertainty and potential variability of reconciling items such as share-based compensation expense and income taxes[7](index=7&type=chunk) - Material changes to reconciling items could significantly affect future GAAP results, and any reconciliation provided might imply a misleading degree of precision[7](index=7&type=chunk) [Additional Company Information](index=4&type=section&id=Additional%20Company%20Information) [Webcast and Conference Call Information](index=4&type=section&id=Webcast%20and%20Conference%20Call%20Information) Details for accessing the live audio webcast and replay of the Q1 2025 earnings call, along with related materials, are provided for investors - A live audio webcast of the Q1 2025 earnings call is available at investor.pinterestinc.com, starting May 8, 2025, at 1:30 PM (PT) / 4:30 PM (ET)[9](index=9&type=chunk) - The press release, non-GAAP reconciliations, and slide presentation are also available, with a webcast recording accessible for 90 days[9](index=9&type=chunk) - The investor relations website (investor.pinterestinc.com) is used for disclosing material nonpublic information and fulfilling Regulation FD obligations[10](index=10&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section outlines the nature of forward-looking statements, emphasizing that they involve substantial assumptions, risks, and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements are identified by specific terminology and relate to future events, involving known and unknown risks, uncertainties, and assumptions[11](index=11&type=chunk) - Key risks include general economic uncertainty, financial performance, user attraction and retention, product development, brand reputation, security compromises, competition, international expansion, AI development, and regulatory compliance[11](index=11&type=chunk) - Investors should not place undue reliance on these statements, which are based on information available as of May 8, 2025, and the company undertakes no duty to update them unless required by law[11](index=11&type=chunk) [About Non-GAAP Financial Measures](index=5&type=section&id=About%20Non-GAAP%20Financial%20Measures) Pinterest utilizes various non-GAAP financial measures to supplement its GAAP financial statements, providing additional insights into operating results and aiding financial decision-making - Non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and free cash flow, are used to supplement GAAP statements and evaluate operating results[12](index=12&type=chunk) - These measures help identify underlying business trends by excluding certain income and expenses, enhancing transparency for management and investors[13](index=13&type=chunk) - Limitations exist, such as the exclusion of recurring non-cash charges (depreciation, amortization, share-based compensation) and the impact of foreign currency changes on constant currency revenue[13](index=13&type=chunk) [Definitions and Limitations](index=5&type=section&id=Definitions%20and%20Limitations) - Adjusted EBITDA is defined as net income (loss) adjusted for depreciation, amortization, share-based compensation, payroll tax related to share-based compensation, interest, other income/expense, and income taxes, along with certain non-recurring items[13](index=13&type=chunk) - Non-GAAP costs and expenses, and non-GAAP net income, exclude amortization of acquired intangible assets, share-based compensation, and related payroll tax expense. Non-GAAP net income also applies a fixed long-term projected tax rate (**20%** for 2024 and 2025)[13](index=13&type=chunk) - Free cash flow is defined as net cash provided by operating activities less purchases of property and equipment, and constant currency revenue translates current period revenue using prior period exchange rates[13](index=13&type=chunk) [Limitation of Key Metrics and Other Data](index=6&type=section&id=Limitation%20of%20Key%20Metrics%20and%20Other%20Data) Pinterest defines and explains its key metrics, Monthly Active Users (MAUs) and Average Revenue Per User (ARPU), acknowledging inherent challenges in measuring these metrics across a large global user base - MAU is defined as an authenticated Pinterest user visiting the website, mobile app, or interacting via browser/site extensions at least once during a 30-day period[15](index=15&type=chunk) - ARPU is calculated as total revenue in a given geography divided by the average MAUs in that geography during the period[15](index=15&type=chunk) - There are inherent challenges in measuring usage across large online populations, and estimates may change due to improvements in technology or methodology[15](index=15&type=chunk) [Contact Information](index=6&type=section&id=Contact%20Information) Contact details for press and investor relations are provided for inquiries - Press inquiries can be directed to Tessa Chen at press@pinterest.com[16](index=16&type=chunk) - Investor relations inquiries can be directed to Andrew Somberg at ir@pinterest.com[16](index=16&type=chunk) [Condensed Consolidated Financial Statements](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of Pinterest's financial position as of March 31, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity | ASSETS (in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------- | :------------- | :---------------- | | Total current assets | $3,402,258 | $3,484,707 | | Total assets | $5,282,696 | $5,342,660 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | | | | Total current liabilities | $404,399 | $398,133 | | Total liabilities | $594,227 | $591,506 | | Total stockholders' equity | $4,688,469 | $4,751,154 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations present Pinterest's financial performance for the three months ended March 31, 2025, and 2024, showing revenue, costs, and net income (loss) | (in thousands, except per share amounts) | 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) | | Net income (loss) per share: Basic | $0.01 | $(0.04) | | Net income (loss) per share: Diluted | $0.01 | $(0.04) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows detail the cash generated and used by Pinterest across operating, investing, and financing activities for the three months ended March 31, 2025, and 2024 | (in thousands) | 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) | | Net increase in cash, cash equivalents and restricted cash | $115,856 | $269,366 | | Cash, cash equivalents and restricted cash, end of period | $1,257,077 | $1,637,898 | [Reconciliation of GAAP to Non-GAAP Financial Results](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Results) [Share-Based Compensation, Payroll Tax, and Amortization](index=10&type=section&id=Share-Based%20Compensation,%20Payroll%20Tax,%20and%20Amortization) This section provides a detailed breakdown of share-based compensation, related payroll tax expense, and amortization of acquired intangible assets by function, which are key adjustments for non-GAAP calculations | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Total share-based compensation | $187,426 | $162,473 | | Total payroll tax expense related to share-based compensation | $13,852 | $13,171 | | Total amortization of acquired intangible assets | $1,840 | $1,840 | [Adjusted EBITDA Reconciliation](index=10&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation details the adjustments made to GAAP net income (loss) to arrive at Adjusted EBITDA, providing a clearer view of operational performance by excluding non-cash and non-recurring items | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $8,922 | $(24,812) | | Depreciation and amortization | $5,848 | $4,861 | | Share-based compensation | $187,426 | $162,473 | | Payroll tax expense related to share-based compensation | $13,852 | $13,171 | | Interest (income) expense, net | $(27,293) | $(31,266) | | Other (income) expense, net | $(4,519) | $4,526 | | Benefit from income taxes | $(12,587) | $(2,864) | | **Adjusted EBITDA** | **$171,649** | **$126,089** | [Non-GAAP Net Income and Free Cash Flow Reconciliation](index=11&type=section&id=Non-GAAP%20Net%20Income%20and%20Free%20Cash%20Flow%20Reconciliation) This section reconciles GAAP net income (loss) to non-GAAP net income and presents the calculation of free cash flow, offering alternative performance metrics for investors | (in thousands, except per share amounts) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $8,922 | $(24,812) | | Share-based compensation | $187,426 | $162,473 | | Payroll tax expense related to share-based compensation | $13,852 | $13,171 | | Amortization of acquired intangible assets | $1,840 | $1,840 | | Income tax effects and tax adjustments | $(52,478) | $(32,826) | | **Non-GAAP net income** | **$159,562** | **$119,846** | | Non-GAAP net income per share | $0.23 | $0.17 | | 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** | - Payroll tax expense related to share-based compensation is now excluded from Adjusted EBITDA and non-GAAP net income to better reflect core business operations, with prior periods restated[26](index=26&type=chunk) - The non-GAAP income tax provision uses a fixed long-term projected tax rate of **20%** for 2024 and 2025, subject to annual re-evaluation[13](index=13&type=chunk)[26](index=26&type=chunk)

Financial Data and Key Metrics Changes - The company reported record total revenue of $47 million for Q1 2025, up 5% year over year, with subscription revenue reaching $44.9 million, an increase of 9% year over year [5][21] - Adjusted EBITDA for the quarter was $4.1 million, marking the seventh consecutive quarter of adjusted EBITDA profitability [5][24] - Non-GAAP gross margin improved to 70%, up from 65% in the same quarter last year [6][24] - The company consumed $1 million in cash for operations during the quarter, consistent with the previous year [6][26] Business Line Data and Key Metrics Changes - In the Enterprise and Telecom (EENT) segment, total revenue was $34.4 million, up 6% year over year, with subscription revenue at $33.6 million, a 10% increase year over year [23] - In the Media and Telecom (M&T) segment, total revenue was $12.6 million, representing 2% year over year growth, with subscription revenue at $11.3 million, up 7% year over year [23][24] - Professional services revenue decreased significantly, down 42% year over year, contributing $2.1 million for the quarter [22] Market Data and Key Metrics Changes - The company experienced a gross retention rate in EENT at its best level since Q4 2022, while net dollar retention climbed to 107%, the highest since Q1 2022 [8][20] - The remaining performance obligations (RPO) were $184.9 million, down 9% sequentially but up 12% year over year [22] Company Strategy and Development Direction - The company aims to achieve double-digit revenue growth and a rule of 30 by 2028, focusing on consolidating video usage around its platform and enhancing AI capabilities [14][31] - Continued investment in AI to deliver hyper-personalized experiences is a key focus, with new product offerings like Genie agents and Content Lab enhancements [9][10] - The company plans to gradually increase its sales team after a previous reduction, focusing on enterprise markets while also reaccelerating efforts in media and education sectors [44][46] Management's Comments on Operating Environment and Future Outlook - Management noted that there has been no significant negative impact from the macroeconomic environment, with customers remaining stable in their spending [35][39] - The company expects a typical seasonal decline in Q2 revenue but anticipates a strong recovery in the second half of the year [27][29] - Management remains cautious about the uncertain macro outlook but is optimistic about the pipeline and growth opportunities [30][31] Other Important Information - The company hosted its first annual investor event, showcasing its profitable growth plans and AI-infused vision [14][15] - The company continues to receive recognition from leading analyst firms, including Gartner, for its video platform services [12][13] Q&A Session Summary Question: Customer spending trends and macroeconomic impact - Management indicated no material negative impact from customers regarding spending, noting that larger organizations are planning for the mid to long term [35][36] Question: Sales team resource allocation - The company plans to gradually increase sales resources, focusing on enterprise markets while also reaccelerating efforts in media and education [44][46] Question: Nature of M&T churn - Management clarified that the churn in M&T is expected and primarily involves a few accounts exiting rather than downsizing [50][51] Question: Product investment focus - The company is focusing on deeper solutions rather than self-service, with an emphasis on AI to enhance customer experiences [54][56] Question: Dynamics of higher ARR per customer - The increase in ARR per customer is driven by upselling and consolidation around Kaltura's products rather than price increases [73] Question: AI monetization strategy update - Management expressed excitement about the growing pipeline for AI products and expects to start monetizing these opportunities in the coming quarters [76][77]