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Risks

• We are in the early stages of our monetization efforts and there is no assurance we will be able to scale our business for future growth.
• Our ecosystem of Pinners and advertisers depends on our ability to attract, grow, retain and engage our user base. If we fail to add new Pinners or retain current Pinners, or if Pinners engage less with us, our business, revenue and financial results could be harmed.
• If we are not able to continue to provide content that is useful and relevant to Pinners’ personal taste and interests or fail to remove objectionable content or block objectionable practices by advertisers or third parties, user growth, retention or engagement could decline, which could result in the loss of advertisers and revenue.
• We may make decisions consistent with our mission and values that may reduce our short- or medium-term operating results.
• If we are unable to compete effectively for users, our business, revenue and financial results could be harmed.
• If we are unable to compete effectively for advertisers, our business, revenue and financial results could be harmed.
• We may not be able to develop effective products and tools for advertisers.
• We may not succeed in further expanding and monetizing our platform internationally and may be subject to increased international business and economic risks.
• We cannot assure you that we will effectively manage the growth of our business.
• We may acquire other businesses, which could require significant management attention, disrupt our business, dilute stockholder value and harm our business, revenue and financial results.
• Risks relating to our Business Operations
• The recent global COVID-19 pandemic outbreak has disrupted and harmed and is expected to continue to disrupt and harm our business and results of operations.
• Our business depends on a strong brand and reputation, and if we are unable to maintain and enhance our brand and reputation, our ability to expand our user and advertiser base will be impaired and our business, revenue and financial results could be harmed.
• If our security is compromised, or Pinners or advertisers believe our security has been compromised, we could lose the trust of Pinners and advertisers who may use our service less or may stop using our service altogether, which could harm our business, revenue and financial results.
• We generate substantially all of our revenue from advertising. The failure to attract new advertisers, the loss of advertisers or a reduction in how much they spend could harm our business, revenue and financial results.
• Our ability to attract and retain advertisers depends on our ability to collect and use data and develop tools to enable us to effectively deliver and accurately measure advertisements on our platform.
• Pinner metrics and other estimates are subject to inherent challenges in measurement, and real or perceived inaccuracies in those metrics could harm our business, revenue and financial results.
• Our business depends on our ability to maintain and scale our technology infrastructure, including speed and availability of our service.
• The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business, revenue and financial results.
• Risks arising from our reliance on third parties
• We depend in part on online application stores and internet search engines to direct traffic and refer new Pinners to our service. If these online application stores or search engines’ methodologies and policies are modified or enforced in ways we do not anticipate, or if our search results page rankings decline for other reasons, traffic to our service or user growth, retention or engagement could decline, any of which could harm our business, revenue and financial results.
• We allow users to authenticate with our service through third-party login providers. If these third parties discontinue these tools or experience a breach or outage in their platform or web browser developers make changes that restrict the use of these tools, user growth or engagement could decline, and our business, revenue and financial results could be harmed.
• We depend on Amazon Web Services for the vast majority of our compute, storage, data transfer and other services. Any disruption of, degradation in or interference with our use of Amazon Web Services could negatively affect our operations and harm our business, revenue and financial results.
• We must effectively operate with mobile operating systems, web browsers, online application stores, networks, regulations and standards, which we do not control. Changes in our products or to those mobile operating systems, web browsers, networks, regulations or standards may harm Pinner retention, growth and engagement.
• We rely on software, technologies and related services from other parties, and problems in their use, access or performance could increase our costs and harm our business, revenue and financial results.
• Technologies have been developed that can block the display of our ads, which could harm our business, revenue and financial results.
• Risks relating to Legal and Regulatory Matters
• We may be liable as a result of content or information that is published or made available on our service.
• Action by governments to restrict access to our service or certain of our products in their countries could harm our business, revenue and financial results.
• We receive, process, store, use and share data, some of which contains personal information, which subjects us to complex and evolving governmental regulation and other legal obligations related to data privacy, data protection and other matters, which are subject to change and uncertain interpretation.
• Risks relating to our Financial Statements and Performance
• The dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our capital stock prior to the completion of our initial public offering ("IPO"), including our co-founders, executive officers, employees and directors, their affiliates, and all of our other pre-IPO stockholders (including those unaffiliated with any of our co-founders, executive officers, employees or directors). This will limit or preclude your ability to influence corporate matters.
• Our dual class structure may depress the trading price of our Class A common stock.
• An active trading market for our Class A common stock may not be sustained.
• The trading price of our Class A common stock has been and may continue to be volatile, and you could lose all or part of your investment.
• Future offerings of debt or equity securities by us or existing stockholders may adversely affect the market price of our Class A common stock.
• Additional stock issuances, including in connection with settlement of equity awards, could result in significant dilution to our stockholders.
• We have broad discretion over the use of the net proceeds from our IPO and we may not use them effectively.
• Delaware law and provisions in our amended and restated certificate of incorporation and amended and restated bylaws could make a merger, tender offer or proxy contest difficult, thereby depressing the market price of our Class A common stock.
• Our amended and restated certificate of incorporation designates a state or federal court located within the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers or employees.
• The requirements of being a public company have and may continue to strain our resources, divert management’s attention and may result in more litigation.
• We do not intend to pay dividends for the foreseeable future.
• If we do not develop successful new products or improve existing ones, our business may suffer. We may also invest in new products that fail to attract or retain Pinners or generate revenue.
• Adverse global economic and financial conditions could harm our business and financial condition.