Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 24, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38872 | |
Entity Registrant Name | Pinterest, Inc. | |
Entity Central Index Key | 0001506293 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-3607129 | |
Entity Address, Address Line One | 505 Brannan Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 415 | |
Local Phone Number | 762-7100 | |
Title of 12(b) Security | Class A Common Stock, $0.00001 par value | |
Trading Symbol | PINS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 462,675,810 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 137,875,104 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 863,620 | $ 649,666 |
Marketable securities | 839,470 | 1,063,679 |
Accounts receivable, net of allowances of $5,612 and $2,851 as of June 30, 2020 and December 31, 2019, respectively | 209,933 | 316,367 |
Prepaid expenses and other current assets | 45,170 | 37,522 |
Total current assets | 1,958,193 | 2,067,234 |
Property and equipment, net | 83,006 | 91,992 |
Operating lease right-of-use assets | 165,250 | 188,251 |
Goodwill and intangible assets, net | 14,067 | 14,576 |
Restricted cash | 23,221 | 25,339 |
Other assets | 5,887 | 5,925 |
Total assets | 2,249,624 | 2,393,317 |
Current liabilities: | ||
Accounts payable | 43,705 | 34,334 |
Accrued expenses and other current liabilities | 122,912 | 141,823 |
Total current liabilities | 166,617 | 176,157 |
Operating lease liabilities | 151,282 | 173,392 |
Other liabilities | 25,095 | 20,063 |
Total liabilities | 342,994 | 369,612 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock | 6 | 6 |
Additional paid-in capital | 4,351,557 | 4,229,778 |
Accumulated other comprehensive income | 3,737 | 647 |
Accumulated deficit | (2,448,670) | (2,206,726) |
Total stockholders’ equity | 1,906,630 | 2,023,705 |
Total liabilities and stockholders’ equity | $ 2,249,624 | $ 2,393,317 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Allowances | $ 5,612 | $ 2,851 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 6,666,667,000 | 6,666,667,000 |
Common stock, shares issued (in shares) | 451,944,000 | 360,850,000 |
Common stock, shares outstanding (in shares) | 451,944,000 | 360,850,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 1,333,333,000 | 1,333,333,000 |
Common stock, shares issued (in shares) | 144,320,000 | 209,054,000 |
Common stock, shares outstanding (in shares) | 144,320,000 | 209,054,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 272,485 | $ 261,249 | $ 544,425 | $ 463,160 |
Costs and expenses: | ||||
Cost of revenue | 108,259 | 105,415 | 207,491 | 179,109 |
Research and development | 136,593 | 801,879 | 282,297 | 874,323 |
Sales and marketing | 86,483 | 296,919 | 203,510 | 373,313 |
General and administrative | 45,680 | 224,179 | 101,747 | 248,384 |
Total costs and expenses | 377,015 | 1,428,392 | 795,045 | 1,675,129 |
Loss from operations | (104,530) | (1,167,143) | (250,620) | (1,211,969) |
Interest income | 4,218 | 8,127 | 11,369 | 12,186 |
Interest expense and other income (expense), net | (16) | (448) | (2,093) | (948) |
Loss before provision for income taxes | (100,328) | (1,159,464) | (241,344) | (1,200,731) |
Provision for income taxes | 420 | 37 | 600 | 190 |
Net loss | $ (100,748) | $ (1,159,501) | $ (241,944) | $ (1,200,921) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.17) | $ (2.62) | $ (0.42) | $ (4.20) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 586,737 | 443,340 | 581,518 | 285,955 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (100,748) | $ (1,159,501) | $ (241,944) | $ (1,200,921) |
Other comprehensive income (loss), net of taxes: | ||||
Change in unrealized gain (loss) on available-for-sale marketable securities | 5,941 | 745 | 3,406 | 1,934 |
Change in foreign currency translation adjustment | 3 | 9 | (316) | 10 |
Comprehensive loss | $ (94,804) | $ (1,158,747) | $ (238,854) | $ (1,198,977) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2018 | 308,373 | ||||
Balance at Dec. 31, 2018 | $ 1,465,399 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering (in shares) | (308,373) | ||||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering | $ (1,465,399) | ||||
Balance (in shares) at Jun. 30, 2019 | 0 | ||||
Balance at Jun. 30, 2019 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 127,298 | ||||
Beginning balance at Dec. 31, 2018 | (594,563) | $ 1 | $ 252,212 | $ (1,421) | $ (845,355) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units (in shares) | 20,257 | ||||
Release of restricted stock units | 0 | ||||
Shares repurchased for tax withholdings on release of restricted stock units | (302,675) | (302,675) | |||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering (in shares) | 308,622 | ||||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering | 1,470,077 | $ 3 | 1,470,074 | ||
Issuance of common stock in connection with initial public offering net of underwriters' discounts and commissions and offering costs (in shares) | 86,250 | ||||
Issuance of common stock in connection with initial public offering net of underwriters' discounts and commissions and offering costs | 1,563,383 | $ 1 | 1,563,382 | ||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 277 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 702 | 702 | |||
Share-based compensation | 1,135,293 | 1,135,293 | |||
Other comprehensive income (loss) | 1,944 | 1,944 | |||
Net loss | (1,200,921) | (1,200,921) | |||
Ending balance (in shares) at Jun. 30, 2019 | 542,704 | ||||
Ending balance at Jun. 30, 2019 | $ 2,073,240 | $ 5 | 4,118,988 | 523 | (2,046,276) |
Balance (in shares) at Mar. 31, 2019 | 308,373 | ||||
Balance at Mar. 31, 2019 | $ 1,465,399 | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering (in shares) | (308,373) | ||||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering | $ (1,465,399) | ||||
Balance (in shares) at Jun. 30, 2019 | 0 | ||||
Balance at Jun. 30, 2019 | $ 0 | ||||
Beginning balance (in shares) at Mar. 31, 2019 | 127,371 | ||||
Beginning balance at Mar. 31, 2019 | (633,989) | $ 1 | 253,016 | (231) | (886,775) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units (in shares) | 20,257 | ||||
Release of restricted stock units | 0 | ||||
Shares repurchased for tax withholdings on release of restricted stock units | (302,675) | (302,675) | |||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering (in shares) | 308,622 | ||||
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering | 1,470,077 | $ 3 | 1,470,074 | ||
Issuance of common stock in connection with initial public offering net of underwriters' discounts and commissions and offering costs (in shares) | 86,250 | ||||
Issuance of common stock in connection with initial public offering net of underwriters' discounts and commissions and offering costs | 1,563,383 | $ 1 | 1,563,382 | ||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 204 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 592 | 592 | |||
Share-based compensation | 1,134,599 | 1,134,599 | |||
Other comprehensive income (loss) | 754 | 754 | |||
Net loss | (1,159,501) | (1,159,501) | |||
Ending balance (in shares) at Jun. 30, 2019 | 542,704 | ||||
Ending balance at Jun. 30, 2019 | $ 2,073,240 | $ 5 | 4,118,988 | 523 | (2,046,276) |
Balance (in shares) at Dec. 31, 2019 | 0 | ||||
Balance at Dec. 31, 2019 | $ 0 | ||||
Balance (in shares) at Jun. 30, 2020 | 0 | ||||
Balance at Jun. 30, 2020 | $ 0 | ||||
Beginning balance (in shares) at Dec. 31, 2019 | 569,904 | ||||
Beginning balance at Dec. 31, 2019 | 2,023,705 | $ 6 | 4,229,778 | 647 | (2,206,726) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units (in shares) | 8,143 | ||||
Release of restricted stock units | 0 | ||||
Shares repurchased for tax withholdings on release of restricted stock units | $ (56,887) | (56,887) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 15,518 | 15,518 | |||
Issuance of common stock for cash upon exercise of stock options, net | $ 32,749 | 32,749 | |||
Issuance of common stock related to charitable contributions (in shares) | 150 | ||||
Issuance of common stock related to charitable contributions | 2,748 | 2,748 | |||
Issuance of restricted stock awards (in shares) | 2,549 | ||||
Issuance of restricted stock awards | 0 | ||||
Share-based compensation | 143,169 | 143,169 | |||
Other comprehensive income (loss) | 3,090 | 3,090 | |||
Net loss | (241,944) | (241,944) | |||
Ending balance (in shares) at Jun. 30, 2020 | 596,264 | ||||
Ending balance at Jun. 30, 2020 | $ 1,906,630 | $ 6 | 4,351,557 | 3,737 | (2,448,670) |
Balance (in shares) at Mar. 31, 2020 | 0 | ||||
Balance at Mar. 31, 2020 | $ 0 | ||||
Balance (in shares) at Jun. 30, 2020 | 0 | ||||
Balance at Jun. 30, 2020 | $ 0 | ||||
Beginning balance (in shares) at Mar. 31, 2020 | 581,840 | ||||
Beginning balance at Mar. 31, 2020 | 1,938,480 | $ 6 | 4,288,603 | (2,207) | (2,347,922) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units (in shares) | 5,230 | ||||
Release of restricted stock units | 0 | ||||
Shares repurchased for tax withholdings on release of restricted stock units | (12,797) | (12,797) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 6,595 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 12,402 | 12,402 | |||
Issuance of common stock related to charitable contributions (in shares) | 50 | ||||
Issuance of common stock related to charitable contributions | 1,204 | 1,204 | |||
Issuance of restricted stock awards (in shares) | 2,549 | ||||
Issuance of restricted stock awards | 0 | ||||
Share-based compensation | 62,145 | 62,145 | |||
Other comprehensive income (loss) | 5,944 | 5,944 | |||
Net loss | (100,748) | (100,748) | |||
Ending balance (in shares) at Jun. 30, 2020 | 596,264 | ||||
Ending balance at Jun. 30, 2020 | $ 1,906,630 | $ 6 | $ 4,351,557 | $ 3,737 | $ (2,448,670) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities | ||
Net income (loss) | $ (241,944) | $ (1,200,921) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 20,231 | 12,203 |
Share-based compensation | 143,169 | 1,135,293 |
Other | 3,811 | (2,713) |
Changes in assets and liabilities: | ||
Accounts receivable | 103,544 | 19,615 |
Prepaid expenses and other assets | (7,180) | (6,174) |
Operating lease right-of-use assets | 21,456 | 14,040 |
Accounts payable | 9,780 | 7,189 |
Accrued expenses and other liabilities | (7,743) | 15,310 |
Operating lease liabilities | (24,357) | (10,217) |
Net cash provided by (used in) operating activities | 20,767 | (16,375) |
Investing activities | ||
Purchases of property and equipment and intangible assets | (11,325) | (11,914) |
Purchases of marketable securities | (308,612) | (159,315) |
Sales of marketable securities | 113,184 | 60,239 |
Maturities of marketable securities | 422,266 | 166,288 |
Other investing activities | 316 | 0 |
Net cash provided by investing activities | 215,829 | 55,298 |
Financing activities | ||
Proceeds from initial public offering, net of underwriters' discounts and commissions | 0 | 1,573,200 |
Proceeds from exercise of stock options, net | 32,749 | 702 |
Shares repurchased for tax withholdings on release of restricted stock units | (56,887) | (302,675) |
Payment of deferred offering costs and other financing activities | 0 | (10,103) |
Net cash provided by (used in) financing activities | (24,138) | 1,261,124 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (150) | (17) |
Net increase in cash, cash equivalents, and restricted cash | 212,308 | 1,300,030 |
Cash, cash equivalents, and restricted cash, beginning of period | 677,743 | 135,290 |
Cash, cash equivalents, and restricted cash, end of period | 890,051 | 1,435,320 |
Supplemental cash flow information | ||
Accrued property and equipment | 4,453 | 4,618 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 4,121 | $ 23,381 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets | ||
Cash and cash equivalents | $ 863,620 | $ 1,408,739 |
Restricted cash included in prepaid expenses and other current assets | 3,210 | 3,266 |
Restricted cash | 23,221 | 23,315 |
Total cash, cash equivalents, and restricted cash | $ 890,051 | $ 1,435,320 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business Pinterest was incorporated in Delaware in 2008 and is headquartered in San Francisco, California. Pinterest is a visual discovery engine that people around the globe use to find the inspiration to create a life they love. We generate revenue by delivering ads on our website and mobile application. Basis of Presentation and Consolidation We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2019, which are included in our Annual Report on Form 10-K. In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results for the interim periods presented, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020. Reclassifications We have reclassified certain amounts in prior periods to conform with current presentation. Use of Estimates Preparing our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the condensed consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, assets acquired and liabilities assumed through business combinations, common stock prior to our initial public offering ("IPO"), share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments. Many of our estimates require increased judgment due to the significant volatility, uncertainty and economic disruption of the recent global COVID-19 pandemic. We continue to monitor the effects of the COVID-19 pandemic, and our estimates and judgments may change materially as new events occur or additional information becomes available to us. Segments We operate as a single operating segment. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by disaggregated information about our revenue, for purposes of making operating decisions, assessing financial performance and allocating resources. Revenue Recognition We generate revenue by delivering ads on our website and mobile application. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click (“CPC”) basis, views an ad contracted on a cost per thousand impressions (“CPM”) basis or views a video ad contracted on a cost per view ("CPV") basis. We typically bill customers on a CPC, CPM or CPV basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant. We occasionally offer customers free ad inventory, and revenue is recognized only after satisfying our contractual performance obligations. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to be entitled in exchange for promised goods or services, to each of the distinct performance obligations based on their relative standalone selling prices. We generally determine standalone selling prices based on the effective price charged per contracted click, impression or view and we do not disclose the value of unsatisfied performance obligations because the original expected duration of our contracts is generally less than one year. We record sales commissions in sales and marketing expense as incurred because we would amortize these over a period of less than one year. Deferred revenue was not material as of June 30, 2020 and December 31, 2019. Share-Based Compensation Restricted stock units ("RSUs") granted under our 2009 Stock Plan (the "2009 Plan") are subject to both a service condition, which is typically satisfied over four years, and a performance condition, which was deemed satisfied upon the pricing of our IPO. We did not record any share-based compensation expense for our RSUs prior to our IPO because the performance condition had not yet been satisfied. Upon pricing our IPO, we recorded cumulative share-based compensation expense using the accelerated attribution method for those RSUs granted under our 2009 Plan for which the service condition had been satisfied at that date. We will record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period. RSUs and Restricted Stock Awards ("RSAs") granted under our 2019 Omnibus Incentive Plan (the "2019 Plan") are subject only to a service condition, which is typically satisfied over four years. We record share-based compensation expense for these RSUs and RSAs on a straight-line basis over the requisite service period. We measure RSUs and RSAs based on the fair market value of our common stock on the grant date, and we account for forfeitures as they occur. Leases and Operating Lease Incremental Borrowing Rate We lease office space under operating leases with expiration dates through 2035. We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our condensed consolidated balance sheets at lease commencement. We measure lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or our incremental borrowing rate, which is the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. We estimate our incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to our own. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement, and we do not allocate consideration between lease and non-lease components. For short-term leases, we record rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets not held at fair value. ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. We adopted ASU 2016-13 as of January 1, 2020, using the modified retrospective method, and while the effects of adoption on our condensed consolidated financial statements were not material, we continue to monitor the effects of the COVID-19 pandemic on expected credit losses. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. We elected to early adopt ASU 2019-12 effective as of January 1, 2020, and the effects of adoption on our condensed consolidated financial statements were not material. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands): June 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 357,054 $ — $ — $ 357,054 Commercial paper — 176,304 — 176,304 Corporate bonds — 4,045 — 4,045 U.S. treasury securities 28,893 — — 28,893 Marketable securities: Corporate bonds — 356,837 — 356,837 U.S. treasury securities 226,000 — — 226,000 Commercial paper — 109,889 — 109,889 Asset-backed securities — 66,751 — 66,751 Certificates of deposit — 79,993 — 79,993 Prepaid expenses and other current assets: Certificates of deposit — 3,210 — 3,210 Restricted cash: Certificates of deposit $ — $ 23,221 $ — $ 23,221 December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 214,413 $ — $ — $ 214,413 Commercial paper — 105,354 — 105,354 Corporate bonds — 3,791 — 3,791 Certificates of deposit — 2,914 — 2,914 Marketable securities: Corporate bonds — 450,433 — 450,433 U.S. treasury securities 201,640 — — 201,640 Commercial paper — 196,328 — 196,328 Asset-backed securities — 114,599 — 114,599 Certificates of deposit — 100,679 — 100,679 Prepaid expenses and other current assets: Certificates of deposit — 2,738 — 2,738 Restricted cash: Certificates of deposit $ — $ 25,339 $ — $ 25,339 We classify our marketable securities within Level 1 or Level 2 because we determine their fair values using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Gross unrealized gains and losses on our marketable securities were immaterial in the aggregate as of June 30, 2020 and December 31, 2019. We evaluated all available evidence and did not recognize any allowance for credit losses for our marketable securities as of June 30, 2020 and December 31, 2019. We continue to monitor the effects of the COVID-19 pandemic on expected credit losses. The fair value of our marketable securities by contractual maturity is as follows (in thousands): June 30, 2020 Due in one year or less $ 637,398 Due after one to five years 202,072 Total $ 839,470 Net realized gains and losses from sales of available-for-sale securities were not material for any period presented. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments In March 2019, we entered into a lease for approximately 490,000 square feet of office space to be constructed near our current headquarters campus in San Francisco, California. Expected delivery of the premises has been delayed, and we currently estimate that commencement and expiration will occur in 2025 and 2035, respectively. We may terminate the lease prior to commencement if certain contingencies are not satisfied. We will be subject to total non-cancelable minimum lease payments of approximately $440.0 million if these contingencies are met, and if the lease commences we will record a right-of-use asset and related lease liability of no more than that amount at lease commencement using our incremental borrowing rate at that date. Legal Matters We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. While the results of legal matters are inherently uncertain, we do not believe the ultimate resolution of these matters, either individually or in aggregate, will have a material adverse effect on our business, financial position, results of operations or cash flows. Letters of Credit We had $23.8 million and $25.5 million of secured letters of credit outstanding as of June 30, 2020 and December 31, 2019. These primarily relate to our office space leases and are fully collateralized by certificates of deposit which we record in prepaid expenses and other current assets or restricted cash in our condensed consolidated balance sheets based on the term of the remaining restriction. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation Equity Incentive Plan In June 2009, our board of directors adopted and approved our 2009 Plan, which provides for the issuance of stock options, RSAs and RSUs to qualified employees, directors and consultants. Stock options granted under our 2009 Stock Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. RSUs granted under our 2009 Plan have a maximum life of seven years. No shares of our common stock were reserved for future issuance under our 2009 Plan as of June 30, 2020. Our 2019 Plan became effective upon closing of our IPO and succeeds our 2009 Plan. Our 2019 Plan provides for the issuance of stock options, RSAs, RSUs and other equity- or cash-based awards to qualified employees, directors and consultants. Stock options granted under our 2019 Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. 103,492,207 shares of our Class A common stock were reserved for future issuance under our 2019 Plan as of June 30, 2020. The number of shares of our Class A common stock available for issuance under the 2019 Plan will be increased by the number of shares of our Class B common stock subject to awards outstanding under our 2009 Plan as of the closing of our IPO that would, but for the terms of the 2019 Plan, have returned to the share reserves of the 2009 Plan pursuant to the terms of such awards, including as the result of forfeiture, repurchase, expiration or retention by us in order to satisfy an award’s exercise price or tax withholding obligations. In addition, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan will automatically increase on the first day of each fiscal year, commencing on January 1, 2020 and ending on (and including) January 1, 2029, in an amount equal to 5% of the total number of shares of our Class A common stock and our Class B common stock outstanding on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by our board of directors. Stock Option Activity Stock option activity during the six months ended June 30, 2020, was as follows (in thousands, except per share amounts): Stock Options Outstanding Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in years) Outstanding as of December 31, 2019 56,966 $ 2.25 3.5 $ 933,299 Granted 1,130 22.35 Exercised (15,518) 2.11 Outstanding as of June 30, 2020 42,578 $ 2.84 3.2 $ 823,099 Exercisable as of June 30, 2020 41,588 $ 2.38 3.1 $ 823,087 (1) We calculate intrinsic value based on the difference between the exercise price of in-the-money-stock options and the fair value of our common stock as of the respective balance sheet date. The total grant-date fair value of stock options vested during the six months ended June 30, 2020 and 2019, was $1.7 million and $1.9 million, respectively. The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2020 and 2019, was $303.1 million and $5.6 million, respectively. The total grant-date fair value of stock options granted during the six months ended June 30, 2020 was not material. No stock options were granted during the six months ended June 30, 2019. Restricted Stock Unit and Restricted Stock Award Activity RSU and RSA activity during the six months ended June 30, 2020, was as follows (in thousands, except per share amounts): Restricted Stock Units and Restricted Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2019 56,791 $ 20.19 Granted 24,365 16.46 Released (11,360) 19.33 Forfeited (7,465) 18.95 Outstanding as of June 30, 2020 62,331 $ 19.03 Share-Based Compensation Share-based compensation expense during the three and six months ended June 30, 2020 and 2019, was as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of revenue $ 2,325 $ 28,157 $ 3,751 $ 28,172 Research and development 46,358 709,996 95,264 710,622 Sales and marketing (1) (2,074) 202,128 11,845 202,157 General and administrative 15,536 194,318 32,309 194,342 Total share-based compensation $ 62,145 $ 1,134,599 $ 143,169 $ 1,135,293 (1) Share-based compensation expense was negative for the three months ended June 30, 2020 due to the reversal of previously recognized share-based compensation expense related to unvested RSUs forfeited by our former Chief Operating Officer. As of June 30, 2020, we had $764.3 million of unrecognized share-based compensation expense, which we expect to recognize over a weighted-average period of 3.2 years. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders We present net loss per share attributable to common stockholders using the two-class method required for multiple classes of common stock and participating securities. Holders of our Class A and Class B common stock have identical rights except with respect to voting, conversion and transfer rights and therefore share equally in our net losses. Prior to our IPO, we considered all series of our redeemable convertible preferred stock participating securities. We have not allocated net loss attributable to common stockholders to our redeemable convertible preferred stock because the holders of our redeemable convertible preferred stock are not contractually obligated to share in our losses. We calculate basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders gives effect to all potential shares of common stock, including common stock issuable upon conversion of our redeemable convertible preferred stock and redeemable convertible preferred stock warrants, stock options, RSAs, RSUs and common stock warrants to the extent these are dilutive. We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (70,961) $ (29,787) $ (189,368) $ (970,133) $ (165,255) $ (76,689) $ (151,947) $ (1,048,974) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 413,262 173,475 72,406 370,934 397,194 184,324 36,180 249,775 Net loss per share attributable to common stockholders, basic and diluted $ (0.17) $ (0.17) $ (2.62) $ (2.62) $ (0.42) $ (0.42) $ (4.20) $ (4.20) Basic net loss per share is the same as diluted net loss per share because we reported net losses for all periods presented. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net loss per share attributable to common stockholders because these would be anti-dilutive (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Redeemable convertible preferred stock — 74,552 — 190,816 Outstanding stock options 46,274 76,424 49,427 76,505 Unvested restricted stock units and restricted stock awards 65,873 73,555 61,083 77,708 Redeemable convertible preferred stock warrants — 60 — 154 Total 112,147 224,591 110,510 345,183 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We determine our income tax provision for interim periods using an estimate of our annual effective tax rate adjusted for discrete items occurring during the periods presented. The primary difference between our effective tax rate and the federal statutory rate is the full valuation allowance we have established on our federal, state and foreign net operating losses and credits. Income taxes from international operations are not material for the three and six months ended June 30, 2020 and 2019. On June 7, 2019, a three-judge panel from the U.S. Court of Appeals for the Ninth Circuit overturned the U.S. Tax Court's decision in Altera Corp. v. Commissioner and upheld the portion of the Treasury regulations under Section 482 of the Internal Revenue Code that requires related parties in a cost-sharing arrangement to share expenses related to share-based compensation. As a result of this decision, our gross unrecognized tax benefits increased to reflect the impact of including share-based compensation in cost-sharing arrangements. Recognizing our gross unrecognized tax benefits would not affect our effective tax rate as their recognition would be offset by the reversal of the related deferred tax assets, which are subject to a full valuation allowance. On July 22, 2019, the taxpayer filed a petition for a rehearing before the full Ninth Circuit and the request was denied on November 12, 2019. On February 10, 2020, the |
Geographical Information
Geographical Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Geographical Information | Geographical Information Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 United States $ 224,272 $ 231,770 $ 459,222 $ 413,532 International (1) $ 48,213 29,479 85,203 49,628 Total revenue $ 272,485 $ 261,249 $ 544,425 $ 463,160 (1) No individual country other than the United States exceeded 10% of our total revenue for any period presented. Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands): June 30, December 31, 2020 2019 United States $ 236,644 $ 266,763 International (1) 11,612 13,480 Total property and equipment, net and operating lease right-of-use assets $ 248,256 $ 280,243 (1) No individual country other than the United States exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2019, which are included in our Annual Report on Form 10-K. In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results for the interim periods presented, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020. |
Consolidation | We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2019, which are included in our Annual Report on Form 10-K. In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results for the interim periods presented, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020. |
Reclassifications | We have reclassified certain amounts in prior periods to conform with current presentation. |
Use of Estimates | Preparing our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the condensed consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, assets acquired and liabilities assumed through business combinations, common stock prior to our initial public offering ("IPO"), share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments. Many of our estimates require increased judgment due to the significant volatility, uncertainty and economic disruption of the recent global COVID-19 pandemic. We continue to monitor the effects of the COVID-19 pandemic, and our estimates and judgments may change materially as new events occur or additional information becomes available to us. |
Segments | We operate as a single operating segment. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by disaggregated information about our revenue, for purposes of making operating decisions, assessing financial performance and allocating resources. |
Revenue Recognition | We generate revenue by delivering ads on our website and mobile application. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click (“CPC”) basis, views an ad contracted on a cost per thousand impressions (“CPM”) basis or views a video ad contracted on a cost per view ("CPV") basis. We typically bill customers on a CPC, CPM or CPV basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant. We occasionally offer customers free ad inventory, and revenue is recognized only after satisfying our contractual performance obligations. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to be entitled in exchange for promised goods or services, to each of the distinct performance obligations based on their relative standalone selling prices. We generally determine standalone selling prices based on the effective price charged per contracted click, impression or view and we do not disclose the value of unsatisfied performance obligations because the original expected duration of our contracts is generally less than one year. |
Share-Based Compensation | Restricted stock units ("RSUs") granted under our 2009 Stock Plan (the "2009 Plan") are subject to both a service condition, which is typically satisfied over four years, and a performance condition, which was deemed satisfied upon the pricing of our IPO. We did not record any share-based compensation expense for our RSUs prior to our IPO because the performance condition had not yet been satisfied. Upon pricing our IPO, we recorded cumulative share-based compensation expense using the accelerated attribution method for those RSUs granted under our 2009 Plan for which the service condition had been satisfied at that date. We will record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period. RSUs and Restricted Stock Awards ("RSAs") granted under our 2019 Omnibus Incentive Plan (the "2019 Plan") are subject only to a service condition, which is typically satisfied over four years. We record share-based compensation expense for these RSUs and RSAs on a straight-line basis over the requisite service period. We measure RSUs and RSAs based on the fair market value of our common stock on the grant date, and we account for forfeitures as they occur. |
Leases and Operating Lease Incremental Borrowing Rate | We lease office space under operating leases with expiration dates through 2035. We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our condensed consolidated balance sheets at lease commencement. We measure lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or our incremental borrowing rate, which is the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. We estimate our incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to our own. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement, and we do not allocate consideration between lease and non-lease components. For short-term leases, we record rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred. |
Recently Adopted Accounting Pronouncement | In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets not held at fair value. ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. We adopted ASU 2016-13 as of January 1, 2020, using the modified retrospective method, and while the effects of adoption on our condensed consolidated financial statements were not material, we continue to monitor the effects of the COVID-19 pandemic on expected credit losses. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. We elected to early adopt ASU 2019-12 effective as of January 1, 2020, and the effects of adoption on our condensed consolidated financial statements were not material. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments Measured on a Recurring Basis | The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands): June 30, 2020 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 357,054 $ — $ — $ 357,054 Commercial paper — 176,304 — 176,304 Corporate bonds — 4,045 — 4,045 U.S. treasury securities 28,893 — — 28,893 Marketable securities: Corporate bonds — 356,837 — 356,837 U.S. treasury securities 226,000 — — 226,000 Commercial paper — 109,889 — 109,889 Asset-backed securities — 66,751 — 66,751 Certificates of deposit — 79,993 — 79,993 Prepaid expenses and other current assets: Certificates of deposit — 3,210 — 3,210 Restricted cash: Certificates of deposit $ — $ 23,221 $ — $ 23,221 December 31, 2019 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 214,413 $ — $ — $ 214,413 Commercial paper — 105,354 — 105,354 Corporate bonds — 3,791 — 3,791 Certificates of deposit — 2,914 — 2,914 Marketable securities: Corporate bonds — 450,433 — 450,433 U.S. treasury securities 201,640 — — 201,640 Commercial paper — 196,328 — 196,328 Asset-backed securities — 114,599 — 114,599 Certificates of deposit — 100,679 — 100,679 Prepaid expenses and other current assets: Certificates of deposit — 2,738 — 2,738 Restricted cash: Certificates of deposit $ — $ 25,339 $ — $ 25,339 |
Fair Value of Marketable Securities by Contractual Maturity | The fair value of our marketable securities by contractual maturity is as follows (in thousands): June 30, 2020 Due in one year or less $ 637,398 Due after one to five years 202,072 Total $ 839,470 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Option Activity | Stock option activity during the six months ended June 30, 2020, was as follows (in thousands, except per share amounts): Stock Options Outstanding Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in years) Outstanding as of December 31, 2019 56,966 $ 2.25 3.5 $ 933,299 Granted 1,130 22.35 Exercised (15,518) 2.11 Outstanding as of June 30, 2020 42,578 $ 2.84 3.2 $ 823,099 Exercisable as of June 30, 2020 41,588 $ 2.38 3.1 $ 823,087 (1) We calculate intrinsic value based on the difference between the exercise price of in-the-money-stock options and the fair value of our common stock as of the respective balance sheet date. |
Restricted Stock Unit Activity | RSU and RSA activity during the six months ended June 30, 2020, was as follows (in thousands, except per share amounts): Restricted Stock Units and Restricted Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2019 56,791 $ 20.19 Granted 24,365 16.46 Released (11,360) 19.33 Forfeited (7,465) 18.95 Outstanding as of June 30, 2020 62,331 $ 19.03 |
Share-Based Compensation Expense | Share-based compensation expense during the three and six months ended June 30, 2020 and 2019, was as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Cost of revenue $ 2,325 $ 28,157 $ 3,751 $ 28,172 Research and development 46,358 709,996 95,264 710,622 Sales and marketing (1) (2,074) 202,128 11,845 202,157 General and administrative 15,536 194,318 32,309 194,342 Total share-based compensation $ 62,145 $ 1,134,599 $ 143,169 $ 1,135,293 (1) Share-based compensation expense was negative for the three months ended June 30, 2020 due to the reversal of previously recognized share-based compensation expense related to unvested RSUs forfeited by our former Chief Operating Officer. |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders | We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Class A Class B Class A Class B Class A Class B Class A Class B Numerator: Net loss attributable to common stockholders $ (70,961) $ (29,787) $ (189,368) $ (970,133) $ (165,255) $ (76,689) $ (151,947) $ (1,048,974) Denominator: Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted 413,262 173,475 72,406 370,934 397,194 184,324 36,180 249,775 Net loss per share attributable to common stockholders, basic and diluted $ (0.17) $ (0.17) $ (2.62) $ (2.62) $ (0.42) $ (0.42) $ (4.20) $ (4.20) |
Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Loss Per Share | Basic net loss per share is the same as diluted net loss per share because we reported net losses for all periods presented. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net loss per share attributable to common stockholders because these would be anti-dilutive (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Redeemable convertible preferred stock — 74,552 — 190,816 Outstanding stock options 46,274 76,424 49,427 76,505 Unvested restricted stock units and restricted stock awards 65,873 73,555 61,083 77,708 Redeemable convertible preferred stock warrants — 60 — 154 Total 112,147 224,591 110,510 345,183 |
Geographical Information (Table
Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Revenue Disaggregated by Geography | Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 United States $ 224,272 $ 231,770 $ 459,222 $ 413,532 International (1) $ 48,213 29,479 85,203 49,628 Total revenue $ 272,485 $ 261,249 $ 544,425 $ 463,160 (1) No individual country other than the United States exceeded 10% of our total revenue for any period presented. |
Property and Equipment, Net and Operating Lease Right-of-Use Assets by Geography | Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands): June 30, December 31, 2020 2019 United States $ 236,644 $ 266,763 International (1) 11,612 13,480 Total property and equipment, net and operating lease right-of-use assets $ 248,256 $ 280,243 (1) No individual country other than the United States exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
Summary of Significant Accounting Policies [Line Items] | |
Number of operating segments | 1 |
RSUs | 2009 Plan | |
Summary of Significant Accounting Policies [Line Items] | |
Service period | 4 years |
Unvested restricted stock units and restricted stock awards | 2019 Plan | |
Summary of Significant Accounting Policies [Line Items] | |
Service period | 4 years |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Values of Financial Instruments Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 839,470 | |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 356,837 | $ 450,433 |
Corporate bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Corporate bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 356,837 | 450,433 |
Corporate bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 226,000 | 201,640 |
U.S. treasury securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 226,000 | 201,640 |
U.S. treasury securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
U.S. treasury securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 109,889 | 196,328 |
Commercial paper | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Commercial paper | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 109,889 | 196,328 |
Commercial paper | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Asset-backed securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 66,751 | 114,599 |
Asset-backed securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Asset-backed securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 66,751 | 114,599 |
Asset-backed securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Certificates of deposit | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 79,993 | 100,679 |
Prepaid expenses and other current assets | 3,210 | 2,738 |
Restricted cash | 23,221 | 25,339 |
Certificates of deposit | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Restricted cash | 0 | 0 |
Certificates of deposit | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 79,993 | 100,679 |
Prepaid expenses and other current assets | 3,210 | 2,738 |
Restricted cash | 23,221 | 25,339 |
Certificates of deposit | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Restricted cash | 0 | 0 |
Money market funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 357,054 | 214,413 |
Money market funds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 357,054 | 214,413 |
Money market funds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 176,304 | 105,354 |
Commercial paper | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 176,304 | 105,354 |
Commercial paper | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,045 | 3,791 |
Corporate bonds | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Corporate bonds | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,045 | 3,791 |
Corporate bonds | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
U.S. treasury securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 28,893 | |
U.S. treasury securities | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 28,893 | |
U.S. treasury securities | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
U.S. treasury securities | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | |
Certificates of deposit | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,914 | |
Certificates of deposit | Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Certificates of deposit | Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,914 | |
Certificates of deposit | Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value of Marketable Securities by Contractual Maturity (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Cash and Cash Equivalents [Abstract] | |
Due in one year or less | $ 637,398 |
Due after one to five years | 202,072 |
Total | $ 839,470 |
Commitments and Contingencies (
Commitments and Contingencies (Details) ft² in Thousands, $ in Millions | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($)ft² |
Commitments and Contingencies Disclosure [Abstract] | |||
Area of office space (in sqft) | ft² | 490 | ||
Noncancelable minimum lease payments not yet commenced | $ 440 | ||
Secured letters of credit outstanding | $ 23.8 | $ 25.5 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant-date fair value of stock options vested | $ 1.7 | $ 1.9 |
Aggregate intrinsic value of stock options exercised | $ 303.1 | $ 5.6 |
Stock options granted (in shares) | 1,130,000 | 0 |
Unrecognized share-based compensation expense | $ 764.3 | |
Weighted-average recognition period for unrecognized share-based compensation expense | 3 years 2 months 12 days | |
2009 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for issuance (in shares) | 0 | |
2009 Plan | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
2009 Plan | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 7 years | |
2019 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of outstanding shares, additional reserve | 5.00% | |
2019 Plan | Class A | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares reserved for issuance (in shares) | 103,492,207 | |
2019 Plan | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Shares | |||
Beginning balance (in shares) | 56,966,000 | ||
Granted (in shares) | 1,130,000 | 0 | |
Exercised (in shares) | (15,518,000) | ||
Ending balance (in shares) | 42,578,000 | ||
Exercisable (in shares) | 41,588,000 | ||
Weighted-Average Exercise Price | |||
Beginning balance (in dollars per share) | $ 2.25 | ||
Granted (in dollars per share) | 22.35 | ||
Exercised (in dollars per share) | 2.11 | ||
Ending balance (in dollars per share) | 2.84 | ||
Exercisable (in dollars per share) | $ 2.38 | ||
Weighted-Average Remaining Contractual Term, Outstanding | 3 years 2 months 12 days | 3 years 6 months | |
Weighted-Average Remaining Contractual Term, Exercisable | 3 years 1 month 6 days | ||
Aggregate Intrinsic Value, Outstanding | $ 823,099 | $ 933,299 | |
Aggregate Intrinsic Value, Exercisable | $ 823,087 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units and Restricted Stock Awards Outstanding shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 56,791 |
Granted (in shares) | shares | 24,365 |
Released (in shares) | shares | (11,360) |
Forfeited (in shares) | shares | (7,465) |
Ending balance (in shares) | shares | 62,331 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 20.19 |
Granted (in dollars per share) | $ / shares | 16.46 |
Released (in dollars per share) | $ / shares | 19.33 |
Forfeited (in dollars per share) | $ / shares | 18.95 |
Ending balance (in dollars per share) | $ / shares | $ 19.03 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation | $ 62,145 | $ 1,134,599 | $ 143,169 | $ 1,135,293 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation | 2,325 | 28,157 | 3,751 | 28,172 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation | 46,358 | 709,996 | 95,264 | 710,622 |
Sales and marketing (1) | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation | (2,074) | 202,128 | 11,845 | 202,157 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total share-based compensation | $ 15,536 | $ 194,318 | $ 32,309 | $ 194,342 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Common Stockholders - Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net loss attributable to common stockholders | $ (100,748) | $ (1,159,501) | $ (241,944) | $ (1,200,921) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 586,737 | 443,340 | 581,518 | 285,955 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.17) | $ (2.62) | $ (0.42) | $ (4.20) |
Class A | ||||
Numerator: | ||||
Net loss attributable to common stockholders | $ (70,961) | $ (189,368) | $ (165,255) | $ (151,947) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 413,262 | 72,406 | 397,194 | 36,180 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.17) | $ (2.62) | $ (0.42) | $ (4.20) |
Class B | ||||
Numerator: | ||||
Net loss attributable to common stockholders | $ (29,787) | $ (970,133) | $ (76,689) | $ (1,048,974) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) | 173,475 | 370,934 | 184,324 | 249,775 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.17) | $ (2.62) | $ (0.42) | $ (4.20) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 112,147 | 224,591 | 110,510 | 345,183 |
Redeemable convertible preferred stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 0 | 74,552 | 0 | 190,816 |
Outstanding stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 46,274 | 76,424 | 49,427 | 76,505 |
Unvested restricted stock units and restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 65,873 | 73,555 | 61,083 | 77,708 |
Redeemable convertible preferred stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 0 | 60 | 0 | 154 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Jun. 22, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Reduction in deferred tax assets related to net operating losses | $ 24.4 |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 272,485 | $ 261,249 | $ 544,425 | $ 463,160 | |
Total property and equipment, net and operating lease right-of-use assets | 248,256 | 248,256 | $ 280,243 | ||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 224,272 | 231,770 | 459,222 | 413,532 | |
Total property and equipment, net and operating lease right-of-use assets | 236,644 | 236,644 | 266,763 | ||
International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 48,213 | $ 29,479 | 85,203 | $ 49,628 | |
Total property and equipment, net and operating lease right-of-use assets | $ 11,612 | $ 11,612 | $ 13,480 |