Pinterest Results Presentation Deck
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, and non-GAAP costs and expenses (including
non-GAAP cost of revenue, research and development, sales and marketing, and
general and administrative). The presentation of these financial measures is not
intended to be considered in isolation, or as a substitute for, or superior to, the
financial information prepared and presented in accordance with GAAP. Investors are
cautioned that there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. In addition, these measures may be different
from non-GAAP financial measures used by other companies, limiting their usefulness
for comparative purposes. We compensate for these limitations by providing
specific information regarding GAAP amounts excluded from these non-GAAP
financial measures.
For a reconciliation of these non-GAAP financial measures to the most directly
comparable GAAP financial measures, please see the Appendix.
Limitation of Key Metrics
and Other Data
The numbers for our key metrics, which include our monthly active users (MAUS) and
average revenue per user (ARPU), are calculated using internal company data based
on the activity of user accounts. We define a monthly active user as an authenticated
Pinterest user who visits our website, opens our mobile application or interacts with
Pinterest through one of our browser or site extensions, such as the Save button, at
least once during the 30-day period ending on the date of measurement. The number
of MAUS do not include Shuffles users unless they would otherwise qualify as MAUS.
We measure monetization of our platform through our average revenue per user
metric. We define ARPU as our total revenue in a given geography during a period
divided by average MAUs in that geography during the period. We calculate average
MAUs based on the average of the number of MAUs measured on the last day of the
current period and the last day prior to the beginning of the current period. We
calculate ARPU by geography based on our estimate of the geography in which
revenue-generating activities occur. We use these metrics to assess the growth and
health of the overall business and believe that MAUS and ARPU best reflect our ability
to attract, retain, engage and monetize our users, and thereby drive revenue. While
these numbers are based on what we believe to be reasonable estimates of our user
base for the applicable period of measurement, there are inherent challenges in
measuring usage of our products across large online and mobile populations around the
world. In addition, we are continually seeking to improve our estimates of our user base,
and such estimates may change due to improvements or changes in technology or our
methodology.
All information provided in this presentation is as of October 30th, 2023. We undertake
no duty to update this information unless required by law. All information provided in this
presentation is unaudited.
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