PINTEREST, INC., 10-K filed on 2/6/2023
Annual Report
v3.22.4
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2022
Jan. 31, 2023
Jun. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-38872    
Entity Registrant Name Pinterest, Inc.    
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 Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 9.7
Documents Incorporated by Reference Portions of the registrant’s definitive Proxy Statement for the 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2022.    
Document Fiscal Period Focus FY    
Amendment Flag false    
Document Fiscal Year Focus 2022    
Entity Central Index Key 0001506293    
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   594,519,329  
Class B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   89,348,474  
v3.22.4
Audit Information
 12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Firm ID 42
Auditor Location San Francisco, California
v3.22.4
Consolidated balance sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 1,611,063 $ 1,419,630
Marketable securities 1,087,164 1,060,488
Accounts receivable, net of allowances of $12,672 and $8,282 as of December 31, 2022 and 2021, respectively 681,532 653,355
Prepaid expenses and other current assets 74,918 48,090
Total current assets 3,454,677 3,181,563
Property and equipment, net 59,575 53,401
Operating lease right-of-use assets 206,253 227,912
Goodwill and intangible assets, net 124,822 61,115
Other assets 17,403 13,247
Total assets 3,862,730 3,537,238
Current liabilities:    
Accounts payable 87,920 17,675
Accrued expenses and other current liabilities 292,611 242,131
Total current liabilities 380,531 259,806
Operating lease liabilities 178,694 209,181
Other liabilities 21,851 29,508
Total liabilities 581,076 498,495
Commitments and contingencies
Stockholders’ equity:    
Common stock 7 7
Additional paid-in capital 5,407,724 5,059,528
Accumulated other comprehensive loss (11,419) (2,181)
Accumulated deficit (2,114,658) (2,018,611)
Total stockholders’ equity 3,281,654 3,038,743
Total liabilities and stockholders’ equity $ 3,862,730 $ 3,537,238
v3.22.4
Consolidated balance sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Allowances $ 12,672 $ 8,282
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 6,666,667
Common stock, shares issued (in shares) 593,918 568,228
Common stock, shares outstanding (in shares) 593,918 568,228
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 1,333,333
Common stock, shares issued (in shares) 89,284 88,644
Common stock, shares outstanding (in shares) 89,284 88,644
v3.22.4
Consolidated statements of operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Statement [Abstract]      
Revenue $ 2,802,574 $ 2,578,027 $ 1,692,658
Costs and expenses:      
Cost of revenue 678,597 529,320 449,358
Research and development 948,980 780,264 606,194
Sales and marketing 933,133 641,279 442,807
General and administrative 343,541 300,977 336,803
Total costs and expenses 2,904,251 2,251,840 1,835,162
Income (loss) from operations (101,677) 326,187 (142,504)
Interest income 30,943 4,204 16,119
Interest expense and other income (expense), net (15,210) (9,420) (635)
Income (loss) before provision for income taxes (85,944) 320,971 (127,020)
Provision for income taxes 10,103 4,533 1,303
Net income (loss) $ (96,047) $ 316,438 $ (128,323)
Net income (loss) per share attributable to common stockholders:      
Net loss per share attributable to common stockholders, basic (in dollars per share) $ (0.14) $ 0.49 $ (0.22)
Net loss per share attributable to common stockholders, diluted (in dollars per share) $ (0.14) $ 0.46 $ (0.22)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders:      
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic (in shares) 665,732 640,030 596,264
Weighted-average shares used in computing net loss per share attributable to common stockholders, diluted (in shares) 665,732 691,651 596,264
v3.22.4
Consolidated statements of comprehensive income (loss) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ (96,047) $ 316,438 $ (128,323)
Other comprehensive income (loss), net of taxes:      
Change in unrealized gain (loss) on available-for-sale marketable securities (8,334) (4,252) 1,670
Change in foreign currency translation adjustment (904) (409) 163
Comprehensive income (loss) $ (105,285) $ 311,777 $ (126,490)
v3.22.4
Consolidated statements of stockholders' equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
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 and issuance of restricted stock awards, net (in shares)   22,169      
Release of restricted stock units and issuance of restricted stock awards, net 0 $ 0      
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards (56,894)   (56,894)    
Issuance of common stock for cash upon exercise of stock options, net (in shares)   34,149      
Issuance of common stock for cash upon exercise of stock options, net 78,282   78,282    
Issuance of common stock related to charitable contributions (in shares)   150      
Issuance of common stock related to charitable contributions 2,748   2,748    
Share-based compensation 321,020   321,020    
Other comprehensive income (loss) 1,833     1,833  
Net income (loss) (128,323)       (128,323)
Ending balance (in shares) at Dec. 31, 2020   626,372      
Ending balance at Dec. 31, 2020 2,242,371 $ 6 4,574,934 2,480 (2,335,049)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Release of restricted stock units and issuance of restricted stock awards, net (in shares)   21,944      
Release of restricted stock units and issuance of restricted stock awards, net 1 $ 1      
Issuance of common stock for cash upon exercise of stock options, net (in shares)   7,806      
Issuance of common stock for cash upon exercise of stock options, net 23,912   23,912    
Issuance of common stock related to charitable contributions (in shares)   750      
Issuance of common stock related to charitable contributions 45,300   45,300    
Share-based compensation 415,382   415,382    
Other comprehensive income (loss) (4,661)     (4,661)  
Net income (loss) 316,438       316,438
Ending balance (in shares) at Dec. 31, 2021   656,872      
Ending balance at Dec. 31, 2021 3,038,743 $ 7 5,059,528 (2,181) (2,018,611)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Release of restricted stock units and issuance of restricted stock awards, net (in shares)   17,435      
Release of restricted stock units and issuance of restricted stock awards, net 0 $ 0      
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards $ (161,809)   (161,809)    
Issuance of common stock for cash upon exercise of stock options, net (in shares) 8,895 8,895      
Issuance of common stock for cash upon exercise of stock options, net $ 12,882   12,882    
Share-based compensation 497,123   497,123    
Other comprehensive income (loss) (9,238)     (9,238)  
Net income (loss) (96,047)       (96,047)
Ending balance (in shares) at Dec. 31, 2022   683,202      
Ending balance at Dec. 31, 2022 $ 3,281,654 $ 7 $ 5,407,724 $ (11,419) $ (2,114,658)
v3.22.4
Consolidated statements of cash flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating activities      
Net income (loss) $ (96,047) $ 316,438 $ (128,323)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 46,489 27,500 36,988
Share-based compensation 497,123 415,382 321,020
Non-cash charitable contributions 0 45,300 2,748
Other (13,889) 9,607 8,332
Changes in assets and liabilities:      
Accounts receivable (28,856) (88,862) (253,173)
Prepaid expenses and other assets (30,214) (14,727) 4,128
Operating lease right-of-use assets 56,024 43,995 41,898
Accounts payable 70,777 (33,451) 15,721
Accrued expenses and other liabilities 20,627 82,435 23,647
Operating lease liabilities (52,832) (50,710) (44,160)
Net cash provided by operating activities 469,202 752,907 28,826
Investing activities      
Purchases of property and equipment and intangible assets (28,984) (9,031) (17,401)
Purchases of marketable securities (1,028,480) (1,104,087) (1,216,260)
Sales of marketable securities 7,417 274,654 265,422
Maturities of marketable securities 1,007,861 849,520 920,300
Acquisition of business, net of cash acquired (86,059) (36,914) 0
Other investing activities 0 0 316
Net cash used in investing activities (128,245) (25,858) (47,623)
Financing activities      
Proceeds from exercise of stock options, net 12,882 23,912 78,282
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards (161,809) 0 (56,894)
Payment of deferred offering costs and other financing activities 0 (1,750) (1,750)
Net cash (used in) provided by financing activities (148,927) 22,162 19,638
Effect of exchange rate changes on cash, cash equivalents and restricted cash (1,434) (1,058) 327
Net increase in cash, cash equivalents and restricted cash 190,596 748,153 1,168
Cash, cash equivalents and restricted cash, beginning of period 1,427,064 678,911 677,743
Cash, cash equivalents and restricted cash, end of period 1,617,660 1,427,064 678,911
Supplemental cash flow information      
Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 31,515 $ 118,977 $ 15,089
v3.22.4
Consolidated statements of cash flows (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets      
Cash and cash equivalents $ 1,611,063 $ 1,419,630 $ 669,230
Restricted cash included in prepaid expenses and other current assets 1,067 1,137 571
Restricted cash included in other assets 5,530 6,297 9,110
Total cash, cash equivalents and restricted cash $ 1,617,660 $ 1,427,064 $ 678,911
v3.22.4
Description of business and summary of significant accounting policies
 12 Months Ended
Dec. 31, 2022
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 consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions.
Reclassifications
We have reclassified certain amounts in prior periods to conform with current presentation.
Use of estimates
Preparing our consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the 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, 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.
Segments
We operate as a single operating segment. Our chief operating decision maker is our Chief Executive Officer ("CEO"), 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 CPC basis, views an ad contracted on a CPM basis or views a video ad contracted on a 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 recognize revenue only after satisfying our contractual performance obligations. We occasionally offer customers free ad inventory. 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 as incurred because we would amortize these over a period of less than one year.
Deferred revenue was not material as of December 31, 2022 and 2021.
Cost of revenue
Cost of revenue consists primarily of expenses associated with the delivery of our service, including the cost of hosting our website and mobile application. Cost of revenue also includes personnel-related expense, including salaries, benefits and share-based compensation for employees on our operations teams, payments associated with partner arrangements, credit card and other transaction processing fees, amortization of acquired intangible assets and allocated facilities and other supporting overhead costs.
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 initial public offering ("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 record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period.
RSUs, restricted stock awards ("RSAs"), and stock options 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, RSAs and stock options 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 stock options based on their estimated grant date fair values, which we determine using the Black-Scholes option-pricing model. We record the resulting expense in our consolidated statements of operations over the requisite service period, which is generally four years, and we account for forfeitures as they occur.
Income taxes
We account for income taxes using the asset and liability method. We recognize deferred tax assets and liabilities for temporary differences between the financial reporting and tax bases of assets and liabilities using the enacted statutory tax rates in effect for the years in which we expect the differences to reverse. We establish valuation allowances to reduce deferred tax assets to the amounts we believe it is more likely than not we will be able to realize. We recognize tax benefits from uncertain tax positions when we believe it is more likely than not that the tax position is sustainable on examination by tax authorities based on its technical merits. We recognize taxes on Global Intangible Low-Taxed Income as incurred.
Advertising expenses
We record advertising expenses as incurred and include these in sales and marketing in the consolidated statements of operations. Advertising expenses were $139.7 million, $94.7 million and $30.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Marketable securities
We invest in highly liquid corporate debt securities, U.S. treasury securities, asset-backed securities, U.S. government agency securities, municipal securities, non-U.S. government and supranational bonds and certificates of deposit. We classify marketable investments with stated maturities of ninety days or less from the date of purchase as cash equivalents and those with stated maturities greater than ninety days from the date of purchase as marketable securities.
We classify our marketable securities as available-for-sale investments in our current assets because they are available for use to support current operations. We carry our marketable investments at fair value and record unrealized gains or losses, net of taxes, in accumulated other comprehensive loss in stockholders’ equity. We determine realized gains and losses on the sale of marketable investments using a specific identification method and record these and any expected credit losses in interest expense and other income (expense), net.
Fair value measurements
We account for certain assets and liabilities at fair value, which is the amount we believe market participants would be willing to receive to sell an asset or pay to transfer a liability in an orderly transaction. We categorize these assets and liabilities into the three levels below based on the degree to which the inputs we use to measure their fair values are observable in active markets. We use the most observable inputs available to us when measuring fair value.
•Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets
•Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or inputs that are derived principally from or corroborated by observable market data or other means
•Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities
Accounts receivable, net of allowances
We record accounts receivable at the original invoiced amount. We maintain an allowance for credit losses for any receivables we may be unable to collect. We estimate uncollectible receivables based on our receivables’ age, our customers’ credit quality and current economic conditions, among other factors that may affect our customers’ ability to pay. We also maintain an allowance for sales credits, which we determine based on historical credits issued to customers. We include the allowances for credit losses and sales credits in accounts receivable, net in the consolidated balance sheets.
Property and equipment
We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally:
Property and EquipmentUseful Life
Computer and network equipment3 years
Furniture and fixtures4 years
Leasehold improvementsLesser of estimated useful life or remaining lease term
Leases and operating lease incremental borrowing rate
We lease office space under operating leases with expiration dates through 2033. We determine whether an arrangement constitutes a lease at inception and record lease liabilities and right-of-use assets on our 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 consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred.
Business combinations
We include the results of operations of businesses that we acquire in our consolidated financial statements beginning on their respective acquisition dates. We allocate the fair value of the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values. When the fair value of the purchase consideration exceeds the fair values of the identifiable assets and liabilities acquired, we record the excess as goodwill. Our estimates of fair value are based on assumptions we believe to be reasonable but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets and liabilities acquired with the corresponding offset to goodwill. Any adjustments after the measurement period are reflected in our consolidated statements of operations.
Long-lived assets, including goodwill and intangible assets
We record definite-lived intangible assets at fair value less accumulated amortization. We calculate amortization using the straight-line method over the assets’ estimated useful lives of up to ten years.
We review our property and equipment and intangible assets for impairment whenever events or circumstances indicate that an asset’s carrying value may not be recoverable. We measure recoverability by comparing an asset’s carrying value to the future undiscounted cash flows that we expect it to generate. If this test indicates that the asset’s carrying value is not recoverable, we record an impairment charge to reduce the asset’s carrying value to its fair value. In the fourth quarter of 2022 we recorded $9.4 million of impairment charges for acquired intangible assets. We did not record any other material property and equipment or intangible asset impairments during the periods presented.
We review goodwill for impairment at least annually or more frequently if current circumstances or events indicate that the fair value of our single reporting unit may be less than its carrying value. We did not record any goodwill impairment during the periods presented.
Website development costs
We capitalize costs to develop our website and mobile application when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Due to the iterative process by which we perform upgrades and the relatively short duration of our development projects, development costs meeting our capitalization criteria were not material during the periods presented.
Loss contingencies
We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. We record a liability for these when we believe it is probable that we have incurred a loss and can reasonably estimate the loss. We regularly evaluate current information to determine whether we should adjust a recorded liability or record a new one.
Foreign currency
The functional currency of our international subsidiaries is generally their local currency. We translate these subsidiaries’ financial statements into U.S. dollars using month-end exchange rates for assets and liabilities and average exchange rates for revenue and costs and expenses. We record translation gains and losses in accumulated other comprehensive loss in stockholders’ equity. We record foreign exchange gains and losses in interest expense and other income (expense), net. Our net foreign exchange gains and losses were not material for the periods presented.
Concentration of business risk
We have an agreement with Amazon Web Services (“AWS”) to provide the cloud computing infrastructure we use to host our website, mobile application and many of the internal tools we use to operate our business. We are currently required to maintain a substantial majority of our monthly usage of certain compute, storage, data transfer and other services on AWS. Any transition of the cloud services currently provided by AWS to another cloud services provider would be difficult to implement and would cause us to incur significant time and expense.
Concentration of credit risk
Financial instruments that may potentially expose us to concentrations of credit risk primarily consist of cash, cash equivalents, marketable securities and restricted cash. Our investment policy is meant to preserve capital and maintain liquidity. The policy limits our marketable investments to investment-grade securities and limits our credit exposure by limiting our concentration in any one corporate issuer or sector and by establishing a minimum credit rating for marketable investments we purchase. Although we deposit cash and marketable investments with multiple financial institutions, our deposits may exceed insurable limits.
No customer accounted for more than 10% of our revenue for the years ended December 31, 2022, 2021 and 2020.
Our accounts receivable are generally unsecured. We monitor our customers’ credit quality on an ongoing basis and maintain reserves for estimated credit losses. Bad debt expense was not material for the years ended December 31, 2022, 2021 and 2020.
v3.22.4
Cash, cash equivalents and marketable securities
 12 Months Ended
Dec. 31, 2022
Cash and Cash Equivalents [Abstract]  
Cash, cash equivalents and marketable securities Cash, cash equivalents and marketable securities
Cash, cash equivalents and marketable securities consist of the following (in thousands):
December 31, 2022
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash and cash equivalents:
Cash
$474,365 $— $— $474,365 
Money market funds
1,017,191 — — 1,017,191 
Commercial paper
111,996 — (21)111,975 
Corporate bonds
1,542 — — 1,542 
U.S. treasury securities
5,988 2 — 5,990 
Total cash and cash equivalents
1,611,082 2 (21)1,611,063 
Marketable securities:
Corporate bonds
370,445 172 (7,542)363,075 
Commercial paper
241,407 71 (286)241,192 
U.S. treasury securities
244,056 33 (1,173)242,916 
Certificates of deposit
158,607 60 (421)158,246 
Municipal securities
28,029 4 (584)27,449 
Non-U.S. government and supranational bonds
23,228 — (629)22,599 
U.S. agency bonds
31,695 40 (48)31,687 
Total marketable securities
1,097,467 380 (10,683)1,087,164 
Total $2,708,549 $382 $(10,704)$2,698,227 
December 31, 2021
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash and cash equivalents:
Cash
$589,156 $— $— $589,156 
Money market funds
711,188 — — 711,188 
Commercial paper
114,972 4 — 114,976 
Corporate bonds
4,310 — — 4,310 
Total cash and cash equivalents
1,419,626 4 — 1,419,630 
Marketable securities:
Corporate bonds
450,746 181 (1,510)449,417 
Commercial paper
247,623 15 (78)247,560 
U.S. treasury securities
189,325 19 (334)189,010 
Certificates of deposit
82,504 19 (37)82,486 
Municipal securities
49,470 11 (150)49,331 
Non-U.S. government and supranational bonds
41,812 3 (131)41,684 
U.S. agency bonds
1,000 — — 1,000 
Total marketable securities
1,062,480 248 (2,240)1,060,488 
Total $2,482,106 $252 $(2,240)$2,480,118 
Our allowance for credit losses for our marketable securities was not material as of December 31, 2022 and 2021.
The fair value of our marketable securities by contractual maturity is as follows (in thousands):
December 31, 2022
Due in one year or less $951,486 
Due after one to five years 135,678 
Total
$1,087,164 
Net realized gains and losses from sales of available-for-sale securities were not material for any period presented.
v3.22.4
Fair value of financial instruments
 12 Months Ended
Dec. 31, 2022
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):
December 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds
$1,017,191 $— $— $1,017,191 
Commercial paper
— 111,975 — 111,975 
U.S. treasury securities
5,990 — — 5,990 
Marketable securities:
Corporate bonds
— 363,075 — 363,075 
Commercial paper
— 241,192 — 241,192 
U.S. treasury securities
242,916 — — 242,916 
Certificates of deposit
— 158,246 — 158,246 
Municipal securities
— 27,449 — 27,449 
Non-U.S. government and supranational bonds
— 22,599 — 22,599 
U.S. agency bonds
— 31,687 — 31,687 
Prepaid expenses and other current assets:
Certificates of deposit
— 1,067 — 1,067 
Restricted cash:
Certificates of deposit
$— $5,530 $— $5,530 
December 31, 2021
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds
$711,188 $— $— $711,188 
Commercial paper
— 114,976 — 114,976 
Corporate bonds
— 4,310 — 4,310 
Marketable securities:
Corporate bonds
— 449,417 — 449,417 
Commercial paper
— 247,560 — 247,560 
U.S. treasury securities
189,010 — — 189,010 
Certificates of deposit
— 82,486 — 82,486 
Municipal securities
— 49,331 — 49,331 
Non-U.S. government and supranational bonds
— 41,684 — 41,684 
U.S. agency bonds
— 1,000 — 1,000 
Prepaid expenses and other current assets:
Certificates of deposit
— 1,137 — 1,137 
Restricted cash:
Certificates of deposit
$— $6,297 $— $6,297 
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.
v3.22.4
Other balance sheet components
 12 Months Ended
Dec. 31, 2022
Other Balance Sheet Components [Abstract]  
Other balance sheet components Other balance sheet components
Property and equipment, net
Property and equipment, net consists of the following (in thousands):
December 31,
20222021
Leasehold improvements$104,557 $101,214 
Furniture and fixtures 30,882 25,956 
Computer and network equipment32,845 32,020 
Total property and equipment
168,284 159,190 
Less: accumulated depreciation (116,291)(108,159)
Construction in progress 7,582 2,370 
Property and equipment, net
$59,575 $53,401 
Depreciation expense was $21.6 million, $26.2 million and $36.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Accrued expenses and other current liabilities
Accrued expenses and other current liabilities consists of the following (in thousands):
December 31,
20222021
Accrued hosting expenses$53,380 $84,105 
Accrued compensation48,146 37,154 
Operating lease liabilities50,274 41,693 
Other accrued expenses140,811 79,179 
Accrued expenses and other current liabilities $292,611 $242,131 
v3.22.4
Acquisition
 12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisition
On June 10, 2022, we acquired all outstanding shares of The Yes Platform, Inc. (“The Yes”), an AI powered shopping platform for fashion. We believe the acquisition of The Yes will help accelerate our vision for Pinterest to be the home of taste-driven shopping.
The total purchase consideration was $87.6 million in cash. Of this, we attributed $15.0 million to customer relationships, $13.6 million to developed technology, and $60.0 million to goodwill. Goodwill represents the synergies we expect to realize from the acquisition and the assembled workforce and is not deductible for tax purposes.
We included the results of The Yes’s operations in our consolidated financial statements beginning on the acquisition date. The acquisition did not have a material impact on our consolidated financial statements so we have not presented historical and pro forma disclosures.
In the fourth quarter of 2022, we recorded impairment charges of $9.4 million related to the customer relationships and developed technology. Refer to Note 6 for detail.
v3.22.4
Goodwill and intangible assets, net
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets, net Goodwill and intangible assets, netChanges in goodwill for the periods presented are as follows (in thousands):
Balance as of December 31, 2021$40,208 
Acquisitions60,019 
Balance as of December 31, 2022$100,227 
Intangible assets, net consists of the following (in thousands):
December 31, 2022
Gross Carrying Amount
Accumulated Amortization(1)
Net Carrying Amount
Weighted-Average Useful Life(2)
Acquired technology, patents and other intangibles$39,907 $(17,427)$22,480 4.9 years
Customer relationships17,700 (15,585)2,115 1.6 years
Total intangible assets, net$57,607 $(33,012)$24,595 
December 31, 2021
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Weighted-Average Useful Life(2)
Acquired technology, patents and other intangibles$26,307 $(8,055)$18,252 5.8 years
Customer relationships2,700 (45)2,655 5.0 years
Total intangible assets, net $29,007 $(8,100)$20,907 
(1)Accumulated amortization includes a $9.4 million of impairment charges for acquired intangible assets for the year ended December 31, 2022.
(2)Based on the weighted-average useful life established as of acquisition date.
Amortization expense was $24.9 million, $1.3 million, and $1.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.
During the fourth quarter of 2022, we evaluated the acquired intangible assets from The Yes for impairment due to the departure of certain key employees. We concluded that the fair values of the customer relationships and developed technology were impaired and recorded impairment charges of $6.3 million and $3.1 million to sales and marketing and cost of revenue, respectively.
Estimated future amortization expense as of December 31, 2022, is as follows (in thousands):
Intangible Asset Amortization
2023$7,359 
20247,359 
20255,464 
20263,424 
2027476 
Thereafter513 
Total$24,595 
v3.22.4
Commitments and contingencies
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
As of December 31, 2022, our non-cancelable contractual commitments are as follows (in thousands):
Purchase CommitmentsOperating LeasesTotal Commitments
2023$— $58,990 $58,990 
2024— 37,628 37,628 
2025— 29,756 29,756 
2026— 30,443 30,443 
2027— 27,892 27,892 
Thereafter2,357,100 85,891 2,442,991 
Total$2,357,100 $270,600 $2,627,700 
Purchase commitments
In April 2021, we entered into a new private pricing addendum with AWS, which governs our use of cloud computing infrastructure provided by AWS. Under the new pricing addendum, we are required to purchase at least $3,250.0 million of cloud services from AWS through April 2029. If we fail to do so, we are required to pay the difference between the amount we spend and the required commitment amount. As of December 31, 2022, our remaining contractual commitment is $2,357.1 million. We expect to meet our remaining commitment.
Legal matters
We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business, including those described below. While the results of legal matters are inherently uncertain, we do not believe there is a reasonable possibility that 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.
In November and December 2020, certain of our executives and members of our board of directors were named as defendants in shareholder derivative lawsuits filed in the U.S. District Court for the Northern District of California. Pinterest was also named as a nominal defendant. The lawsuits purport to assert claims for breach of fiduciary duty in connection with allegations of gender and racial discrimination at Pinterest. In addition, the lawsuits purport to assert claims for waste, abuse of control, aiding and abetting breaches of fiduciary duties, unjust enrichment, and violations of Section 14(a) of the Exchange Act. The complaints seek declaratory and injunctive relief, corporate governance changes, monetary damages, interest, disgorgement, and fees and costs. On July 14, 2021, another shareholder derivative complaint with similar allegations was filed in the same court and was subsequently related to the earlier action. The cases were referred to a magistrate judge for mediation, and the proceedings were stayed during the pendency of that mediation. On November 24, 2021, the parties entered into a stipulation of settlement. A final approval for the settlement was granted on May 26, 2022. The court granted a portion of the attorneys' fees sought by Plaintiffs, while another portion remains contingent on certain conditions being fulfilled within two years of the settlement approval. We don't believe that these fees will be material to our financial position.
In March 2021, certain of our executives and members of our board of directors were named as defendants in a shareholder derivative lawsuit filed in the Delaware Chancery Court. Pinterest was also named as a nominal defendant. The complaint alleged that executives and members of the board breached their fiduciary duties to the company in connection with allegations of gender and racial discrimination at Pinterest. The complaint sought damages, litigation costs, and interest. On May 10, 2021, the court stayed this lawsuit in light of the related pending case in the Northern District of California. On July 21, 2022 the matter was dismissed.
Revolving credit facility
In October 2022, we entered into an amended and restated five-year $400.0 million revolving credit facility (the “2022 revolving credit facility”), which replaced our previous $500.0 million revolving credit facility entered into in November 2018. The 2022 revolving credit facility also contains an accordion option which, if exercised, would allow us to increase the aggregate commitments by up to $405.0 million provided we are able to secure additional lender commitments and satisfy certain other conditions. Interest on any borrowings under the 2022 revolving credit facility accrues at either an adjusted term Secured Overnight Financing Rate ("SOFR") plus 0.10% and a margin of 1.50% or at an alternative base rate
plus a margin of 0.50%, at our election, and we are required to pay an annual commitment fee that accrues at 0.15% per annum on the unused portion of the aggregate commitments under the 2022 revolving credit facility.
The 2022 revolving credit facility also allows us to issue letters of credit, which reduce the amount we can borrow. We are required to pay a fee that accrues at 0.125% per annum on the average aggregate daily maximum amount available to be drawn under any outstanding letters of credit.
The 2022 revolving credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict our ability to incur indebtedness, grant liens, make distributions to holders of our stock or the stock of our subsidiaries, make investments or engage in transactions with our affiliates. The 2022 revolving credit facility also contains a financial maintenance covenant: a maximum net leverage ratio of consolidated debt to consolidated EBITDA no greater than 3.50 to 1.00, subject to an increase up to 4.00 to 1.00 for a certain period following an acquisition. The obligations under the 2022 revolving credit facility are secured by liens on substantially all of our domestic assets, including certain domestic intellectual property assets.
Our total borrowing capacity under the revolving credit facility is $400.0 million as of December 31, 2022. We have not issued any letters of credit and there are no amounts outstanding under the 2022 revolving credit facility as of December 31, 2022.
v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
We have entered into various non-cancelable office space operating leases with original lease periods expiring between 2023 and 2033. These do not contain material variable rent payments, residual value guarantees, covenants or other restrictions. Operating lease costs for the years ended December 31, 2022, 2021 and 2020, are as follows (in thousands):
Year Ended December 31,
202220212020
Lease cost:
Operating lease cost$66,022 $53,691 $51,285 
Short-term lease cost2,809 1,434 3,933 
Total$68,831 $55,125 $55,218 
The weighted-average remaining term of our operating leases was 6.8 years and 7.5 years, and the weighted-average discount rate used to measure the present value of our operating lease liabilities was 4.1% and 4.2% as of December 31, 2022 and 2021, respectively.
Maturities of our operating lease liabilities, which do not include short-term leases, as of December 31, 2022, are as follows (in thousands):
Operating Leases
2023$58,990 
202437,628 
202529,756 
202630,443 
202727,892 
Thereafter85,891 
Total lease payments270,600 
Less imputed interest(41,632)
Total operating lease liabilities$228,968 
Cash payments included in the measurement of our operating lease liabilities were $64.0 million, $59.0 million and $54.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.
As of December 31, 2022, operating leases that have not yet commenced were not material and are excluded from the table above.
v3.22.4
Share-based compensation
 12 Months Ended
Dec. 31, 2022
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 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 December 31, 2022.
Our 2019 Plan became effective upon closing of our initial public offering 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. 117,384,569 shares of our Class A common stock were reserved for future issuance under our 2019 Plan as of December 31, 2022.
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 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 through 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 year ended December 31, 2022, 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, 202116,141$3.19 1.9$535,118 
Granted
8,55319.96 
Exercised
(8,895)1.45 
Outstanding as of December 31, 202215,799$13.25 6.1$174,165 
Exercisable as of December 31, 20227,498$5.74 2.4$138,979 
(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 years ended December 31, 2022, 2021 and 2020 was $9.5 million, $3.2 million and $3.3 million, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2022, 2021 and 2020 was $180.2 million, $511.4 million and $1,023.9 million, respectively.
Restricted stock unit and restricted stock award activity
RSU and RSA activity during the year ended December 31, 2022, 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, 202136,258$30.84 
Granted
52,48021.91 
Released
(22,763)25.41 
Forfeited
(11,457)26.31 
Outstanding as of December 31, 202254,518$25.46 
Share-based compensation
Share-based compensation expense during the years ended December 31, 2022, 2021 and 2020, was as follows (in thousands):
Year Ended December 31,
202220212020
Cost of revenue $7,629 $7,438 $7,865 
Research and development 324,161 309,715 218,718 
Sales and marketing 99,467 52,691 35,645 
General and administrative 65,866 45,538 58,792 
Total share-based compensation
$497,123 $415,382 $321,020 
As of December 31, 2022, we had $1,302.8 million of unrecognized share-based compensation expense, which we expect to recognize over a weighted-average period of 2.9 years.
Fair value of stock options
We measure stock options based on their estimated grant date fair values, which we determine using the Black-Scholes option-pricing model, and we record the resulting expense in our consolidated statements of operations over the requisite service period, which is generally four years.
We estimated the fair value of the stock options granted during the year ended December 31, 2022, using the Black‑Scholes option-pricing model with the following assumptions:
Year Ended
December 31, 2022
Expected term (in years)6.1
Risk-free interest rate3.2 %
Expected volatility61.1 %
Dividend yield— %
The key inputs we used in the Black-Scholes model are:
•Expected term – The expected term represents the period we expect our share-based awards to be outstanding, which is also the period we used to measure risk-free interest rates and expected volatility. We estimated the expected term using the simplified method as we do not have sufficient historical stock option exercise data.
•Risk-free interest rate – We estimated the risk-free interest rate based on zero-coupon U.S. Treasury notes.
•Expected volatility – We estimated expected volatility based on a combination of our historical volatility and that of comparable publicly-traded companies.
•Dividend yield – We applied a dividend yield of zero because we have never paid or declared dividends, and we have no plan to do so in the foreseeable future.
The weighted-average grant-date fair value of stock options granted during the year ended December 31, 2022 was $11.79. Stock options granted during the years ended December 31, 2021 and 2020 were not material.
v3.22.4
Net income (loss) per share
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Net income (loss) per share Net income (loss) per share
We present net income (loss) per share using the two-class method required for multiple classes of common stock. 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 income or losses.
We calculate basic net income (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period.
Diluted net income (loss) per share gives effect to all potential shares of common stock, including stock options, RSAs and RSUs to the extent these are dilutive. The calculation of diluted net income (loss) of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss) of Class B common stock does not assume the conversion of those shares to Class A common stock.
We calculated basic and diluted net income (loss) per share as follows (in thousands, except per share amounts):
Year Ended December 31,
202220212020
Class AClass BClass AClass BClass AClass B
Basic net income (loss) per share:
Numerator:
Net income (loss)
$(83,110)$(12,937)$274,699 $41,739 $(96,499)$(31,824)
Denominator:
Basic weighted-average shares used in computing net income (loss) per share
576,061 89,671 555,608 84,422 448,392 147,872 
Basic net income (loss) per share$(0.14)$(0.14)$0.49 $0.49 $(0.22)$(0.22)
Diluted net income (loss) per share:
Numerator:
Net income (loss)
$(83,110)$(12,937)$274,699 $41,739 $(96,499)$(31,824)
Reallocation of net income as a result of conversion of Class B to Class A common stock
— — 41,739 — — — 
Reallocation of net income to Class B common stock
— — — (3,115)— — 
Diluted net income (loss)
$(83,110)$(12,937)$316,438 $38,624 $(96,499)$(31,824)
Denominator:
Basic weighted-average shares used in computing net income (loss) per share
576,061 89,671 555,608 84,422 448,392 147,872 
Conversion of Class B to Class A common stock
— — 84,422 — — — 
Weighted average effect of dilutive potential common stock
— — 51,621 — — — 
Diluted weighted-average shares used in computing net income (loss) per share
576,061 89,671 691,651 84,422 448,392 147,872 
Diluted net income (loss) per share$(0.14)$(0.14)$0.46 $0.46 $(0.22)$(0.22)
Basic net loss per share is the same as diluted net loss per share for the periods we reported net losses. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net income (loss) per share because these would be anti-dilutive (in thousands):
Year Ended December 31,
202220212020
Outstanding stock options17,405 — 40,067 
Unvested restricted stock units and restricted stock awards52,256 3,271 63,603 
Total
69,661 3,271 103,670 
v3.22.4
Income taxes
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The components of income (loss) before provision for income taxes are as follows (in thousands):
Year Ended December 31,
202220212020
United States$29,108 $331,447 $49,973 
Foreign(115,052)(10,476)(176,993)
Income (loss) before provision for income taxes $(85,944)$320,971 $(127,020)
Provision for income taxes consists of the following (in thousands):
Year Ended December 31,
202220212020
Current:
Federal
$1,681 $— $— 
State
7,385 2,303 79 
Foreign
4,381 2,957 691 
Total current tax expense
13,447 5,260 770 
Deferred:
Federal
(1,861)6 654 
State
(356)6 5 
Foreign
(1,127)(739)(126)
Total deferred tax expense (benefit)
(3,344)(727)533 
Provision for income taxes$10,103 $4,533 $1,303 
The difference between income taxes computed at the statutory federal income tax rate and the provision for income taxes is attributable to the following (in thousands):
Year Ended December 31,
202220212020
Tax at U.S. statutory rate
$(18,048)$67,404 $(26,674)
State income taxes, net of benefit
5,502 2,307 84 
Foreign operations
26,985 4,448 37,716 
Permanent book/tax differences
6,598 409 1,927 
Legal settlement
— — 2,290 
Share-based compensation
(20,663)(269,009)(303,245)
Change in valuation allowance
62,048 278,761 352,410 
Tax credits
(52,319)(79,787)(63,205)
Provision for income taxes
$10,103 $4,533 $1,303 
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 and for the year ended December 31, 2022 includes the effects of the capitalization and amortization of research and development expenses as required by the 2017 Tax Cuts and Jobs Act.
Significant components of our deferred tax assets and liabilities are as follows (in thousands):
December 31,
20222021
Deferred tax assets:
Net operating loss carryforwards$900,200 $1,036,254 
Research tax credits473,248 401,219 
Reserves, accruals, and other31,502 29,641 
Lease obligation56,185 58,860 
Share-based compensation40,976 63,798 
Research capitalization and amortization208,373 — 
Total deferred tax assets1,710,484 1,589,772 
Less: valuation allowance(1,660,609)(1,539,889)
Deferred tax assets, net of valuation allowance49,875 49,883 
Deferred tax liabilities:
Depreciation and amortization(44,790)(47,952)
Prepaid expenses(4,190)(2,036)
Total deferred tax liabilities(48,980)(49,988)
Deferred tax assets (liabilities)$895 $(105)
Due to our history of losses, we believe it is more likely than not that our U.S. and Irish deferred tax assets will not be realized as of December 31, 2022. Accordingly, we have established a full valuation allowance on our U.S. and Irish deferred tax assets. Our valuation allowance increased by $120.7 million during the year ended December 31, 2022, primarily due to U.S. federal and state tax credits and the effects of the capitalization and amortization of research and development expenses as required by the 2017 Tax Cuts and Job Act. Our valuation allowance increased by $363.0 million during the year ended December 31, 2021, primarily due to U.S. federal and state tax losses and credits incurred during the period.
As of December 31, 2022, we had federal, California and other state net operating loss carryforwards of $3,636.5 million, $551.8 million and $1,501.5 million, respectively. Our federal carryforwards do not expire. If not utilized, our California and other state carryforwards will begin to expire in 2028 and 2026, respectively. Utilization of our net operating loss carryforwards may be subject to annual limitations due to the ownership change limitations provided by Section 382 of the
Internal Revenue Code and similar state provisions. Our net operating loss carryforwards could expire before utilization if subject to annual limitations. As of December 31, 2022, we had $173.2 million and $5.6 million of Irish and Other Foreign net operating loss carryforwards, respectively that can be carried forward indefinitely.
As of December 31, 2022, we had federal and California research and development credit carryforwards of $426.5 million and $319.3 million, respectively. If not utilized, our federal carryforwards will begin to expire in 2030. Our California carryforwards do not expire.
Changes in gross unrecognized tax benefits were as follows (in thousands):
Gross Unrecognized
Tax Benefits
Balance as of December 31, 2020$140,160 
Increases for tax positions of prior years2,906 
Increases for tax positions of current year61,993 
Balance as of December 31, 2021$205,059 
Increases for tax positions of prior years— 
Decreases for tax positions of prior years(3,347)
Increases for tax positions of current year38,226 
Balance as of December 31, 2022$239,938 
Recognizing the $239.9 million of gross unrecognized tax benefits we had as of December 31, 2022 would affect our effective tax rate by $3.2 million. The remaining $236.7 million of gross unrecognized tax benefits would be offset by the reversal of related deferred tax assets, which are subject to a full valuation allowance. We do not expect our gross unrecognized tax benefits to change significantly within the next 12 months. We recognize interest and penalties related to uncertain tax positions in provision for income taxes. Accrued interest and penalties are not material as of December 31, 2022 and 2021.
We are subject to taxation in the U.S. and various other state and foreign jurisdictions. As we have net operating loss carryforwards for U.S. federal and state jurisdictions, the statute of limitations is open for all tax years. For material foreign jurisdictions, the tax years open to examination include the years 2017 and forward. We are currently under examination of our U.S. consolidated federal income tax return by the Internal Revenue Service for 2018 and 2019. We believe that we have adequately reserved for any adjustments to the provision for income taxes or other tax items that may ultimately result from these examinations.
We have not recognized deferred taxes for the difference between the financial reporting basis and the tax basis of our investment in our foreign subsidiaries because we have the ability and intent to maintain our investments for the foreseeable future. If we were to remit earnings as of December 31, 2022, the residual taxes would not be material.
v3.22.4
Geographical information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Geographical information Geographical information
Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands):
Year Ended December 31,
202220212020
U.S. and Canada(1)
$2,264,640 $2,109,089 $1,464,344 
Europe(2)
410,516 384,657 191,767 
Rest of World
127,418 84,281 36,547 
Total revenue
$2,802,574 $2,578,027 $1,692,658 
(1)United States revenue was $2,144.3 million, $2,003.6 million and $1,404.3 million as of December 31, 2022 and 2021 and 2020, respectively. No individual country other than the United States exceeded 10% of our total revenue for any period presented.
(2)Europe includes Russia and Turkey.
Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands):
December 31,
20222021
United States
$205,374 $247,975 
International(1)
60,454 33,338 
Total property and equipment, net and operating lease right-of-use assets
$265,828 $281,313 
(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.
v3.22.4
Subsequent Events
 12 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events Subsequent eventsOn February 2, 2023, our board of directors authorized a stock repurchase program of up to $500 million of our Class A common stock over the next 12 months. Under the stock repurchase program, we are authorized to repurchase, from time-to-time, shares of our Class A common stock through open market purchases, in privately negotiated transactions or in other such manner as permitted by securities law and as determined by management at such time and in such amounts as management may decide. The program does not obligate us to repurchase any specific number of shares and may be modified, suspended or discontinued at any time. We have not repurchased any of our Class A common stock under the repurchase program as of February 6, 2023.
v3.22.4
Description of business and summary of significant accounting policies (Policies)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of presentation Basis of presentation and consolidationWe prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions.
Consolidation Basis of presentation and consolidationWe prepared the accompanying consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions.
Reclassifications
Reclassifications
We have reclassified certain amounts in prior periods to conform with current presentation.
Use of estimates
Use of estimates
Preparing our consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the 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, 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.
Segments SegmentsWe operate as a single operating segment. Our chief operating decision maker is our Chief Executive Officer ("CEO"), 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 and Cost of revenue
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 CPC basis, views an ad contracted on a CPM basis or views a video ad contracted on a 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 recognize revenue only after satisfying our contractual performance obligations. We occasionally offer customers free ad inventory. 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 as incurred because we would amortize these over a period of less than one year.
Cost of revenue
Cost of revenue consists primarily of expenses associated with the delivery of our service, including the cost of hosting our website and mobile application. Cost of revenue also includes personnel-related expense, including salaries, benefits and share-based compensation for employees on our operations teams, payments associated with partner arrangements, credit card and other transaction processing fees, amortization of acquired intangible assets and allocated facilities and other supporting overhead costs.
Share-based compensation
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 initial public offering ("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 record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period.
RSUs, restricted stock awards ("RSAs"), and stock options 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, RSAs and stock options 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 stock options based on their estimated grant date fair values, which we determine using the Black-Scholes option-pricing model. We record the resulting expense in our consolidated statements of operations over the requisite service period, which is generally four years, and we account for forfeitures as they occur.
Income taxes We account for income taxes using the asset and liability method. We recognize deferred tax assets and liabilities for temporary differences between the financial reporting and tax bases of assets and liabilities using the enacted statutory tax rates in effect for the years in which we expect the differences to reverse. We establish valuation allowances to reduce deferred tax assets to the amounts we believe it is more likely than not we will be able to realize. We recognize tax benefits from uncertain tax positions when we believe it is more likely than not that the tax position is sustainable on examination by tax authorities based on its technical merits. We recognize taxes on Global Intangible Low-Taxed Income as incurred.
Advertising expenses Advertising expensesWe record advertising expenses as incurred and include these in sales and marketing in the consolidated statements of operations.
Marketable securities
Marketable securities
We invest in highly liquid corporate debt securities, U.S. treasury securities, asset-backed securities, U.S. government agency securities, municipal securities, non-U.S. government and supranational bonds and certificates of deposit. We classify marketable investments with stated maturities of ninety days or less from the date of purchase as cash equivalents and those with stated maturities greater than ninety days from the date of purchase as marketable securities.
We classify our marketable securities as available-for-sale investments in our current assets because they are available for use to support current operations. We carry our marketable investments at fair value and record unrealized gains or losses, net of taxes, in accumulated other comprehensive loss in stockholders’ equity. We determine realized gains and losses on the sale of marketable investments using a specific identification method and record these and any expected credit losses in interest expense and other income (expense), net.
Fair value measurements
Fair value measurements
We account for certain assets and liabilities at fair value, which is the amount we believe market participants would be willing to receive to sell an asset or pay to transfer a liability in an orderly transaction. We categorize these assets and liabilities into the three levels below based on the degree to which the inputs we use to measure their fair values are observable in active markets. We use the most observable inputs available to us when measuring fair value.
•Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets
•Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, or inputs that are derived principally from or corroborated by observable market data or other means
•Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities
Accounts receivable, net of allowances
Accounts receivable, net of allowances
We record accounts receivable at the original invoiced amount. We maintain an allowance for credit losses for any receivables we may be unable to collect. We estimate uncollectible receivables based on our receivables’ age, our customers’ credit quality and current economic conditions, among other factors that may affect our customers’ ability to pay. We also maintain an allowance for sales credits, which we determine based on historical credits issued to customers. We include the allowances for credit losses and sales credits in accounts receivable, net in the consolidated balance sheets.
Property and equipment
We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally:
Property and EquipmentUseful Life
Computer and network equipment3 years
Furniture and fixtures4 years
Leasehold improvementsLesser of estimated useful life or remaining lease term
Leases and operating lease incremental borrowing rate
Leases and operating lease incremental borrowing rate
We lease office space under operating leases with expiration dates through 2033. We determine whether an arrangement constitutes a lease at inception and record lease liabilities and right-of-use assets on our 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 consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred.
Business combinations
Business combinations
We include the results of operations of businesses that we acquire in our consolidated financial statements beginning on their respective acquisition dates. We allocate the fair value of the purchase consideration to the assets acquired and liabilities assumed based on their estimated fair values. When the fair value of the purchase consideration exceeds the fair values of the identifiable assets and liabilities acquired, we record the excess as goodwill. Our estimates of fair value are based on assumptions we believe to be reasonable but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets and liabilities acquired with the corresponding offset to goodwill. Any adjustments after the measurement period are reflected in our consolidated statements of operations.
Long-lived assets, including goodwill and intangible assets
Long-lived assets, including goodwill and intangible assets
We record definite-lived intangible assets at fair value less accumulated amortization. We calculate amortization using the straight-line method over the assets’ estimated useful lives of up to ten years.
We review our property and equipment and intangible assets for impairment whenever events or circumstances indicate that an asset’s carrying value may not be recoverable. We measure recoverability by comparing an asset’s carrying value to the future undiscounted cash flows that we expect it to generate. If this test indicates that the asset’s carrying value is not recoverable, we record an impairment charge to reduce the asset’s carrying value to its fair value. In the fourth quarter of 2022 we recorded $9.4 million of impairment charges for acquired intangible assets. We did not record any other material property and equipment or intangible asset impairments during the periods presented.
We review goodwill for impairment at least annually or more frequently if current circumstances or events indicate that the fair value of our single reporting unit may be less than its carrying value. We did not record any goodwill impairment during the periods presented.
Website development costs
Website development costs
We capitalize costs to develop our website and mobile application when preliminary development efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Due to the iterative process by which we perform upgrades and the relatively short duration of our development projects, development costs meeting our capitalization criteria were not material during the periods presented.
Loss contingencies
Loss contingencies
We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. We record a liability for these when we believe it is probable that we have incurred a loss and can reasonably estimate the loss. We regularly evaluate current information to determine whether we should adjust a recorded liability or record a new one.
Foreign currency
Foreign currency
The functional currency of our international subsidiaries is generally their local currency. We translate these subsidiaries’ financial statements into U.S. dollars using month-end exchange rates for assets and liabilities and average exchange rates for revenue and costs and expenses. We record translation gains and losses in accumulated other comprehensive loss in stockholders’ equity. We record foreign exchange gains and losses in interest expense and other income (expense), net. Our net foreign exchange gains and losses were not material for the periods presented.
Concentration of business risk
Concentration of business risk
We have an agreement with Amazon Web Services (“AWS”) to provide the cloud computing infrastructure we use to host our website, mobile application and many of the internal tools we use to operate our business. We are currently required to maintain a substantial majority of our monthly usage of certain compute, storage, data transfer and other services on AWS. Any transition of the cloud services currently provided by AWS to another cloud services provider would be difficult to implement and would cause us to incur significant time and expense.
Concentration of credit risk
Concentration of credit risk
Financial instruments that may potentially expose us to concentrations of credit risk primarily consist of cash, cash equivalents, marketable securities and restricted cash. Our investment policy is meant to preserve capital and maintain liquidity. The policy limits our marketable investments to investment-grade securities and limits our credit exposure by limiting our concentration in any one corporate issuer or sector and by establishing a minimum credit rating for marketable investments we purchase. Although we deposit cash and marketable investments with multiple financial institutions, our deposits may exceed insurable limits.
Credit losses on accounts receivable Our accounts receivable are generally unsecured. We monitor our customers’ credit quality on an ongoing basis and maintain reserves for estimated credit losses.
v3.22.4
Description of business and summary of significant accounting policies (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Estimated Useful Lives of Property and Equipment
We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally:
Property and EquipmentUseful Life
Computer and network equipment3 years
Furniture and fixtures4 years
Leasehold improvementsLesser of estimated useful life or remaining lease term
Property and equipment, net consists of the following (in thousands):
December 31,
20222021
Leasehold improvements$104,557 $101,214 
Furniture and fixtures 30,882 25,956 
Computer and network equipment32,845 32,020 
Total property and equipment
168,284 159,190 
Less: accumulated depreciation (116,291)(108,159)
Construction in progress 7,582 2,370 
Property and equipment, net
$59,575 $53,401 
v3.22.4
Cash, cash equivalents and marketable securities (Tables)
 12 Months Ended
Dec. 31, 2022
Cash and Cash Equivalents [Abstract]  
Composition of Cash, Cash Equivalents and Marketable Securities
Cash, cash equivalents and marketable securities consist of the following (in thousands):
December 31, 2022
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash and cash equivalents:
Cash
$474,365 $— $— $474,365 
Money market funds
1,017,191 — — 1,017,191 
Commercial paper
111,996 — (21)111,975 
Corporate bonds
1,542 — — 1,542 
U.S. treasury securities
5,988 2 — 5,990 
Total cash and cash equivalents
1,611,082 2 (21)1,611,063 
Marketable securities:
Corporate bonds
370,445 172 (7,542)363,075 
Commercial paper
241,407 71 (286)241,192 
U.S. treasury securities
244,056 33 (1,173)242,916 
Certificates of deposit
158,607 60 (421)158,246 
Municipal securities
28,029 4 (584)27,449 
Non-U.S. government and supranational bonds
23,228 — (629)22,599 
U.S. agency bonds
31,695 40 (48)31,687 
Total marketable securities
1,097,467 380 (10,683)1,087,164 
Total $2,708,549 $382 $(10,704)$2,698,227 
December 31, 2021
Amortized CostUnrealized GainsUnrealized LossesFair Value
Cash and cash equivalents:
Cash
$589,156 $— $— $589,156 
Money market funds
711,188 — — 711,188 
Commercial paper
114,972 4 — 114,976 
Corporate bonds
4,310 — — 4,310 
Total cash and cash equivalents
1,419,626 4 — 1,419,630 
Marketable securities:
Corporate bonds
450,746 181 (1,510)449,417 
Commercial paper
247,623 15 (78)247,560 
U.S. treasury securities
189,325 19 (334)189,010 
Certificates of deposit
82,504 19 (37)82,486 
Municipal securities
49,470 11 (150)49,331 
Non-U.S. government and supranational bonds
41,812 3 (131)41,684 
U.S. agency bonds
1,000 — — 1,000 
Total marketable securities
1,062,480 248 (2,240)1,060,488 
Total $2,482,106 $252 $(2,240)$2,480,118 
Fair Value of Marketable Securities by Contractual Maturity
The fair value of our marketable securities by contractual maturity is as follows (in thousands):
December 31, 2022
Due in one year or less $951,486 
Due after one to five years 135,678 
Total
$1,087,164 
v3.22.4
Fair value of financial instruments (Tables)
 12 Months Ended
Dec. 31, 2022
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):
December 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds
$1,017,191 $— $— $1,017,191 
Commercial paper
— 111,975 — 111,975 
U.S. treasury securities
5,990 — — 5,990 
Marketable securities:
Corporate bonds
— 363,075 — 363,075 
Commercial paper
— 241,192 — 241,192 
U.S. treasury securities
242,916 — — 242,916 
Certificates of deposit
— 158,246 — 158,246 
Municipal securities
— 27,449 — 27,449 
Non-U.S. government and supranational bonds
— 22,599 — 22,599 
U.S. agency bonds
— 31,687 — 31,687 
Prepaid expenses and other current assets:
Certificates of deposit
— 1,067 — 1,067 
Restricted cash:
Certificates of deposit
$— $5,530 $— $5,530 
December 31, 2021
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds
$711,188 $— $— $711,188 
Commercial paper
— 114,976 — 114,976 
Corporate bonds
— 4,310 — 4,310 
Marketable securities:
Corporate bonds
— 449,417 — 449,417 
Commercial paper
— 247,560 — 247,560 
U.S. treasury securities
189,010 — — 189,010 
Certificates of deposit
— 82,486 — 82,486 
Municipal securities
— 49,331 — 49,331 
Non-U.S. government and supranational bonds
— 41,684 — 41,684 
U.S. agency bonds
— 1,000 — 1,000 
Prepaid expenses and other current assets:
Certificates of deposit
— 1,137 — 1,137 
Restricted cash:
Certificates of deposit
$— $6,297 $— $6,297 
v3.22.4
Other balance sheet components (Tables)
 12 Months Ended
Dec. 31, 2022
Other Balance Sheet Components [Abstract]  
Property and Equipment, Net
We carry property and equipment at cost less accumulated depreciation and calculate depreciation using the straight-line method over our assets’ estimated useful lives, which are generally:
Property and EquipmentUseful Life
Computer and network equipment3 years
Furniture and fixtures4 years
Leasehold improvementsLesser of estimated useful life or remaining lease term
Property and equipment, net consists of the following (in thousands):
December 31,
20222021
Leasehold improvements$104,557 $101,214 
Furniture and fixtures 30,882 25,956 
Computer and network equipment32,845 32,020 
Total property and equipment
168,284 159,190 
Less: accumulated depreciation (116,291)(108,159)
Construction in progress 7,582 2,370 
Property and equipment, net
$59,575 $53,401 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consists of the following (in thousands):
December 31,
20222021
Accrued hosting expenses$53,380 $84,105 
Accrued compensation48,146 37,154 
Operating lease liabilities50,274 41,693 
Other accrued expenses140,811 79,179 
Accrued expenses and other current liabilities $292,611 $242,131 
v3.22.4
Goodwill and intangible assets, net (Tables)
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill Changes in goodwill for the periods presented are as follows (in thousands):
Balance as of December 31, 2021$40,208 
Acquisitions60,019 
Balance as of December 31, 2022$100,227 
Composition of Intangible Assets, Net
Intangible assets, net consists of the following (in thousands):
December 31, 2022
Gross Carrying Amount
Accumulated Amortization(1)
Net Carrying Amount
Weighted-Average Useful Life(2)
Acquired technology, patents and other intangibles$39,907 $(17,427)$22,480 4.9 years
Customer relationships17,700 (15,585)2,115 1.6 years
Total intangible assets, net$57,607 $(33,012)$24,595 
December 31, 2021
Gross Carrying Amount
Accumulated Amortization
Net Carrying Amount
Weighted-Average Useful Life(2)
Acquired technology, patents and other intangibles$26,307 $(8,055)$18,252 5.8 years
Customer relationships2,700 (45)2,655 5.0 years
Total intangible assets, net $29,007 $(8,100)$20,907 
(1)Accumulated amortization includes a $9.4 million of impairment charges for acquired intangible assets for the year ended December 31, 2022.
(2)Based on the weighted-average useful life established as of acquisition date.
Estimated Future Amortization Expense Estimated future amortization expense as of December 31, 2022, is as follows (in thousands):
Intangible Asset Amortization
2023$7,359 
20247,359 
20255,464 
20263,424 
2027476 
Thereafter513 
Total$24,595 
v3.22.4
Commitments and contingencies (Tables)
 12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Non-cancelable Contractual Commitments As of December 31, 2022, our non-cancelable contractual commitments are as follows (in thousands):
Purchase CommitmentsOperating LeasesTotal Commitments
2023$— $58,990 $58,990 
2024— 37,628 37,628 
2025— 29,756 29,756 
2026— 30,443 30,443 
2027— 27,892 27,892 
Thereafter2,357,100 85,891 2,442,991 
Total$2,357,100 $270,600 $2,627,700 
v3.22.4
Leases (Tables)
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Operating Lease Costs Operating lease costs for the years ended December 31, 2022, 2021 and 2020, are as follows (in thousands):
Year Ended December 31,
202220212020
Lease cost:
Operating lease cost$66,022 $53,691 $51,285 
Short-term lease cost2,809 1,434 3,933 
Total$68,831 $55,125 $55,218 
Maturities of Operating Lease Liabilities Maturities of our operating lease liabilities, which do not include short-term leases, as of December 31, 2022, are as follows (in thousands):
Operating Leases
2023$58,990 
202437,628 
202529,756 
202630,443 
202727,892 
Thereafter85,891 
Total lease payments270,600 
Less imputed interest(41,632)
Total operating lease liabilities$228,968 
v3.22.4
Share-based compensation (Tables)
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Stock Option Activity
Stock option activity during the year ended December 31, 2022, 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, 202116,141$3.19 1.9$535,118 
Granted
8,55319.96 
Exercised
(8,895)1.45 
Outstanding as of December 31, 202215,799$13.25 6.1$174,165 
Exercisable as of December 31, 20227,498$5.74 2.4$138,979 
(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 and Restricted Stock Award Activity
RSU and RSA activity during the year ended December 31, 2022, 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, 202136,258$30.84 
Granted
52,48021.91 
Released
(22,763)25.41 
Forfeited
(11,457)26.31 
Outstanding as of December 31, 202254,518$25.46 
Share-Based Compensation Expense
Share-based compensation expense during the years ended December 31, 2022, 2021 and 2020, was as follows (in thousands):
Year Ended December 31,
202220212020
Cost of revenue $7,629 $7,438 $7,865 
Research and development 324,161 309,715 218,718 
Sales and marketing 99,467 52,691 35,645 
General and administrative 65,866 45,538 58,792 
Total share-based compensation
$497,123 $415,382 $321,020 
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions
We estimated the fair value of the stock options granted during the year ended December 31, 2022, using the Black‑Scholes option-pricing model with the following assumptions:
Year Ended
December 31, 2022
Expected term (in years)6.1
Risk-free interest rate3.2 %
Expected volatility61.1 %
Dividend yield— %
v3.22.4
Net income (loss) per share (Tables)
 12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Net Income (Loss) Per Share
We calculated basic and diluted net income (loss) per share as follows (in thousands, except per share amounts):
Year Ended December 31,
202220212020
Class AClass BClass AClass BClass AClass B
Basic net income (loss) per share:
Numerator:
Net income (loss)
$(83,110)$(12,937)$274,699 $41,739 $(96,499)$(31,824)
Denominator:
Basic weighted-average shares used in computing net income (loss) per share
576,061 89,671 555,608 84,422 448,392 147,872 
Basic net income (loss) per share$(0.14)$(0.14)$0.49 $0.49 $(0.22)$(0.22)
Diluted net income (loss) per share:
Numerator:
Net income (loss)
$(83,110)$(12,937)$274,699 $41,739 $(96,499)$(31,824)
Reallocation of net income as a result of conversion of Class B to Class A common stock
— — 41,739 — — — 
Reallocation of net income to Class B common stock
— — — (3,115)— — 
Diluted net income (loss)
$(83,110)$(12,937)$316,438 $38,624 $(96,499)$(31,824)
Denominator:
Basic weighted-average shares used in computing net income (loss) per share
576,061 89,671 555,608 84,422 448,392 147,872 
Conversion of Class B to Class A common stock
— — 84,422 — — — 
Weighted average effect of dilutive potential common stock
— — 51,621 — — — 
Diluted weighted-average shares used in computing net income (loss) per share
576,061 89,671 691,651 84,422 448,392 147,872 
Diluted net income (loss) per share$(0.14)$(0.14)$0.46 $0.46 $(0.22)$(0.22)
Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Income (Loss) Per Share
Basic net loss per share is the same as diluted net loss per share for the periods we reported net losses. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net income (loss) per share because these would be anti-dilutive (in thousands):
Year Ended December 31,
202220212020
Outstanding stock options17,405 — 40,067 
Unvested restricted stock units and restricted stock awards52,256 3,271 63,603 
Total
69,661 3,271 103,670 
v3.22.4
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Components of Income (Loss) Before Provision for Income Taxes
The components of income (loss) before provision for income taxes are as follows (in thousands):
Year Ended December 31,
202220212020
United States$29,108 $331,447 $49,973 
Foreign(115,052)(10,476)(176,993)
Income (loss) before provision for income taxes $(85,944)$320,971 $(127,020)
Composition of the Provision for Income Taxes
Provision for income taxes consists of the following (in thousands):
Year Ended December 31,
202220212020
Current:
Federal
$1,681 $— $— 
State
7,385 2,303 79 
Foreign
4,381 2,957 691 
Total current tax expense
13,447 5,260 770 
Deferred:
Federal
(1,861)6 654 
State
(356)6 5 
Foreign
(1,127)(739)(126)
Total deferred tax expense (benefit)
(3,344)(727)533 
Provision for income taxes$10,103 $4,533 $1,303 
Reconciliation of the Difference Between Income Taxes Computed at the Statutory Federal Income Tax Rate and the Provision for Income Taxes
The difference between income taxes computed at the statutory federal income tax rate and the provision for income taxes is attributable to the following (in thousands):
Year Ended December 31,
202220212020
Tax at U.S. statutory rate
$(18,048)$67,404 $(26,674)
State income taxes, net of benefit
5,502 2,307 84 
Foreign operations
26,985 4,448 37,716 
Permanent book/tax differences
6,598 409 1,927 
Legal settlement
— — 2,290 
Share-based compensation
(20,663)(269,009)(303,245)
Change in valuation allowance
62,048 278,761 352,410 
Tax credits
(52,319)(79,787)(63,205)
Provision for income taxes
$10,103 $4,533 $1,303 
Significant Components of Deferred Tax Assets and Liabilities
Significant components of our deferred tax assets and liabilities are as follows (in thousands):
December 31,
20222021
Deferred tax assets:
Net operating loss carryforwards$900,200 $1,036,254 
Research tax credits473,248 401,219 
Reserves, accruals, and other31,502 29,641 
Lease obligation56,185 58,860 
Share-based compensation40,976 63,798 
Research capitalization and amortization208,373 — 
Total deferred tax assets1,710,484 1,589,772 
Less: valuation allowance(1,660,609)(1,539,889)
Deferred tax assets, net of valuation allowance49,875 49,883 
Deferred tax liabilities:
Depreciation and amortization(44,790)(47,952)
Prepaid expenses(4,190)(2,036)
Total deferred tax liabilities(48,980)(49,988)
Deferred tax assets (liabilities)$895 $(105)
Changes in Gross Unrecognized Tax Benefits
Changes in gross unrecognized tax benefits were as follows (in thousands):
Gross Unrecognized
Tax Benefits
Balance as of December 31, 2020$140,160 
Increases for tax positions of prior years2,906 
Increases for tax positions of current year61,993 
Balance as of December 31, 2021$205,059 
Increases for tax positions of prior years— 
Decreases for tax positions of prior years(3,347)
Increases for tax positions of current year38,226 
Balance as of December 31, 2022$239,938 
v3.22.4
Geographical information (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Revenue Disaggregated by Geography
Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands):
Year Ended December 31,
202220212020
U.S. and Canada(1)
$2,264,640 $2,109,089 $1,464,344 
Europe(2)
410,516 384,657 191,767 
Rest of World
127,418 84,281 36,547 
Total revenue
$2,802,574 $2,578,027 $1,692,658 
(1)United States revenue was $2,144.3 million, $2,003.6 million and $1,404.3 million as of December 31, 2022 and 2021 and 2020, respectively. No individual country other than the United States exceeded 10% of our total revenue for any period presented.
(2)Europe includes Russia and Turkey.
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):
December 31,
20222021
United States
$205,374 $247,975 
International(1)
60,454 33,338 
Total property and equipment, net and operating lease right-of-use assets
$265,828 $281,313 
(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.
v3.22.4
Description of business and summary of significant accounting policies - Narrative (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Summary of Significant Accounting Policies [Line Items]        
Number of operating segments | segment   1    
Advertising expenses   $ 139.7 $ 94.7 $ 30.3
Estimated useful lives of intangible assets (up to)   10 years    
Acquired intangible assets impairment charges $ 9.4      
Unvested restricted stock units and restricted stock awards        
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    
RSUs | 2009 Plan        
Summary of Significant Accounting Policies [Line Items]        
Service period   4 years    
v3.22.4
Description of business and summary of significant accounting policies - Estimated Useful Lives of Property and Equipment (Details)
 12 Months Ended
Dec. 31, 2022
Computer and network equipment  
Property, Plant and Equipment [Line Items]  
Useful Life 3 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Useful Life 4 years
v3.22.4
Cash, cash equivalents and marketable securities - Composition of Cash, Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Cash and cash equivalents:    
Amortized Cost $ 1,611,082 $ 1,419,626
Unrealized Gains 2 4
Unrealized Losses (21) 0
Fair Value 1,611,063 1,419,630
Marketable securities:    
Amortized Cost 1,097,467 1,062,480
Unrealized Gains 380 248
Unrealized Losses (10,683) (2,240)
Fair Value 1,087,164 1,060,488
Total    
Amortized Cost 2,708,549 2,482,106
Unrealized Gains 382 252
Unrealized Losses (10,704) (2,240)
Fair Value 2,698,227 2,480,118
Corporate bonds    
Marketable securities:    
Amortized Cost 370,445 450,746
Unrealized Gains 172 181
Unrealized Losses (7,542) (1,510)
Fair Value 363,075 449,417
Commercial paper    
Marketable securities:    
Amortized Cost 241,407 247,623
Unrealized Gains 71 15
Unrealized Losses (286) (78)
Fair Value 241,192 247,560
U.S. treasury securities    
Marketable securities:    
Amortized Cost 244,056 189,325
Unrealized Gains 33 19
Unrealized Losses (1,173) (334)
Fair Value 242,916 189,010
Certificates of deposit    
Marketable securities:    
Amortized Cost 158,607 82,504
Unrealized Gains 60 19
Unrealized Losses (421) (37)
Fair Value 158,246 82,486
Municipal securities    
Marketable securities:    
Amortized Cost 28,029 49,470
Unrealized Gains 4 11
Unrealized Losses (584) (150)
Fair Value 27,449 49,331
Non-U.S. government and supranational bonds    
Marketable securities:    
Amortized Cost 23,228 41,812
Unrealized Gains 0 3
Unrealized Losses (629) (131)
Fair Value 22,599 41,684
U.S. agency bonds    
Marketable securities:    
Amortized Cost 31,695 1,000
Unrealized Gains 40 0
Unrealized Losses (48) 0
Fair Value 31,687 1,000
Cash    
Cash and cash equivalents:    
Amortized Cost 474,365 589,156
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 474,365 589,156
Money market funds    
Cash and cash equivalents:    
Amortized Cost 1,017,191 711,188
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 1,017,191 711,188
Commercial paper    
Cash and cash equivalents:    
Amortized Cost 111,996 114,972
Unrealized Gains 0 4
Unrealized Losses (21) 0
Fair Value 111,975 114,976
Corporate bonds    
Cash and cash equivalents:    
Amortized Cost 1,542 4,310
Unrealized Gains 0 0
Unrealized Losses 0 0
Fair Value 1,542 $ 4,310
U.S. treasury securities    
Cash and cash equivalents:    
Amortized Cost 5,988  
Unrealized Gains 2  
Unrealized Losses 0  
Fair Value $ 5,990  
v3.22.4
Cash, cash equivalents and marketable securities - Fair Value of Marketable Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Cash and Cash Equivalents [Abstract]    
Due in one year or less $ 951,486  
Due after one to five years 135,678  
Total $ 1,087,164 $ 1,060,488
v3.22.4
Fair value of financial instruments - Fair Values of Financial Instruments Measured on a Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 1,611,063 $ 1,419,630
Marketable securities 1,087,164 1,060,488
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 363,075 449,417
Corporate bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 363,075 449,417
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 363,075 449,417
Corporate bonds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 241,192 247,560
Commercial paper | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 241,192 247,560
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 241,192 247,560
Commercial paper | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 242,916 189,010
U.S. treasury securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 242,916 189,010
U.S. treasury securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 242,916 189,010
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
Certificates of deposit    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 158,246 82,486
Certificates of deposit | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 158,246 82,486
Prepaid expenses and other current assets 1,067 1,137
Restricted cash 5,530 6,297
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 158,246 82,486
Prepaid expenses and other current assets 1,067 1,137
Restricted cash 5,530 6,297
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
Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 27,449 49,331
Municipal securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 27,449 49,331
Municipal securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Municipal securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 27,449 49,331
Municipal securities | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Non-U.S. government and supranational bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 22,599 41,684
Non-U.S. government and supranational bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 22,599 41,684
Non-U.S. government and supranational bonds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Non-U.S. government and supranational bonds | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 22,599 41,684
Non-U.S. government and supranational bonds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
U.S. agency bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 31,687 1,000
U.S. agency bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 31,687 1,000
U.S. agency bonds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
U.S. agency bonds | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 31,687 1,000
U.S. agency bonds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,017,191 711,188
Money market funds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,017,191 711,188
Money market funds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,017,191 711,188
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    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 111,975 114,976
Commercial paper | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 111,975 114,976
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 111,975 114,976
Commercial paper | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
U.S. treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,990  
U.S. treasury securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,990  
U.S. treasury securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,990  
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  
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 1,542 4,310
Corporate bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   4,310
Corporate bonds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   0
Corporate bonds | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   4,310
Corporate bonds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents   $ 0
v3.22.4
Other balance sheet components - Property and Equipment, Net (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Less: accumulated depreciation $ (116,291) $ (108,159)
Property and equipment, net 59,575 53,401
Depreciable Property and Equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment 168,284 159,190
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 104,557 101,214
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment 30,882 25,956
Computer and network equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment 32,845 32,020
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 7,582 $ 2,370
v3.22.4
Other balance sheet components - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Other Balance Sheet Components [Abstract]      
Depreciation expense $ 21.6 $ 26.2 $ 36.0
v3.22.4
Other balance sheet components - Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Other Balance Sheet Components [Abstract]    
Accrued hosting expenses $ 53,380 $ 84,105
Accrued compensation 48,146 37,154
Operating lease liabilities 50,274 41,693
Other accrued expenses 140,811 79,179
Accrued expenses and other current liabilities $ 292,611 $ 242,131
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities Accrued expenses and other current liabilities
v3.22.4
Acquisition (Details) - USD ($)
 3 Months Ended
Jun. 10, 2022
Dec. 31, 2022
Dec. 31, 2021
Asset Acquisition [Line Items]      
Goodwill   $ 100,227,000 $ 40,208,000
Acquired intangible assets impairment charges   9,400,000  
The Yes Platform, Inc.      
Asset Acquisition [Line Items]      
Purchase consideration in cash $ 87,600,000    
Goodwill 60,000,000    
Deductible goodwill 0    
The Yes Platform, Inc. | Customer Relationships      
Asset Acquisition [Line Items]      
Finite intangibles acquired 15,000,000    
Acquired intangible assets impairment charges   9,400,000  
The Yes Platform, Inc. | Developed Technology Rights      
Asset Acquisition [Line Items]      
Finite intangibles acquired $ 13,600,000    
Acquired intangible assets impairment charges   $ 9,400,000  
v3.22.4
Goodwill and intangible assets, net - Schedule of Goodwill (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
USD ($)
Goodwill [Roll Forward]  
Balance as of December 31, 2021 $ 40,208
Acquisitions 60,019
Balance as of December 31, 2022 $ 100,227
v3.22.4
Goodwill and intangible assets, net - Composition of Intangible Assets, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 57,607 $ 29,007
Accumulated Amortization (33,012) (8,100)
Net Carrying Amount $ 24,595 20,907
Weighted-Average Useful Life 10 years  
Acquired technology, patents and other intangibles    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 39,907 26,307
Accumulated Amortization (17,427) (8,055)
Net Carrying Amount $ 22,480 $ 18,252
Weighted-Average Useful Life 4 years 10 months 24 days 5 years 9 months 18 days
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 17,700 $ 2,700
Accumulated Amortization (15,585) (45)
Net Carrying Amount $ 2,115 $ 2,655
Weighted-Average Useful Life 1 year 7 months 6 days 5 years
v3.22.4
Goodwill and intangible assets, net - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]        
Amortization expense   $ 24.9 $ 1.3 $ 1.0
Cost of revenue        
Finite-Lived Intangible Assets [Line Items]        
Impairment charges $ 3.1      
Sales and marketing        
Finite-Lived Intangible Assets [Line Items]        
Impairment charges $ 6.3      
v3.22.4
Goodwill and intangible assets, net - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 $ 7,359  
2024 7,359  
2025 5,464  
2026 3,424  
2027 476  
Thereafter 513  
Net Carrying Amount $ 24,595 $ 20,907
v3.22.4
Commitments and contingencies - Non-cancelable Contractual Commitments (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Purchase Commitments  
2023 $ 0
2024 0
2025 0
2026 0
2027 0
Thereafter 2,357,100
Total 2,357,100
Operating Leases  
2023 58,990
2024 37,628
2025 29,756
2026 30,443
2027 27,892
Thereafter 85,891
Total lease payments 270,600
Total Commitments  
2023 58,990
2024 37,628
2025 29,756
2026 30,443
2027 27,892
Thereafter 2,442,991
Total $ 2,627,700
v3.22.4
Commitments and contingencies - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended
Oct. 31, 2022
Dec. 31, 2022
Apr. 30, 2021
Nov. 30, 2018
Commitments And Contingencies [Line Items]        
Minimum required purchases   $ 2,357.1 $ 3,250.0  
Revolving Credit Facility | Line of Credit        
Commitments And Contingencies [Line Items]        
Term of borrowing agreement 5 years      
Maximum borrowing capacity $ 400.0     $ 500.0
Commitment fee rate 0.15%      
Remaining borrowing capacity   $ 400.0    
Revolving Credit Facility | Line of Credit | Alternative Base Rate        
Commitments And Contingencies [Line Items]        
Basis spread on variable rate 0.50%      
v3.22.4
Commitments and contingencies - Revolving Credit Facility (Details) - Line of Credit
$ in Millions
 1 Months Ended
Oct. 31, 2022
USD ($)
Nov. 30, 2018
USD ($)
Revolving Credit Facility    
Commitments And Contingencies [Line Items]    
Term of borrowing agreement 5 years  
Maximum borrowing capacity $ 400.0 $ 500.0
Commitment fee rate 0.15%  
Ration of consolidated net debt to EBITDA (no greater than) 3.50  
Future ratio of consolidated net debt to EBITDA (no greater than) 4.00  
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR)    
Commitments And Contingencies [Line Items]    
Base rate component, spread on variable rate 0.0010  
Basis spread on variable rate 1.50%  
Revolving Credit Facility | Alternative Base Rate    
Commitments And Contingencies [Line Items]    
Basis spread on variable rate 0.50%  
Revolving Credit Facility | Credit Agreement Amended And Restated    
Commitments And Contingencies [Line Items]    
Accordion feature maximum borrowings capacity $ 405.0  
Letter of Credit    
Commitments And Contingencies [Line Items]    
Commitment fee 0.125%  
v3.22.4
Leases - Operating Lease Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Lease cost:      
Operating lease cost $ 66,022 $ 53,691 $ 51,285
Short-term lease cost 2,809 1,434 3,933
Total $ 68,831 $ 55,125 $ 55,218
v3.22.4
Leases - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Weighted-average remaining term of operating leases 6 years 9 months 18 days 7 years 6 months  
Weighted-average discount rate used to measure the present value of operating lease liabilities 4.10% 4.20%  
Cash payments included in the measurement of operating lease liabilities $ 64.0 $ 59.0 $ 54.3
v3.22.4
Leases - Maturities of Operating Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Leases [Abstract]  
2023 $ 58,990
2024 37,628
2025 29,756
2026 30,443
2027 27,892
Thereafter 85,891
Total lease payments 270,600
Less imputed interest (41,632)
Total operating lease liabilities $ 228,968
v3.22.4
Share-based compensation - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Grant-date fair value of stock options vested $ 9,500 $ 3,200 $ 3,300
Aggregate intrinsic value of stock options exercised 180,200 511,400 1,023,900
Unrecognized share-based compensation expense $ 1,302,800    
Weighted-average recognition period for unrecognized share-based compensation expense 2 years 10 months 24 days    
Share-based compensation $ 497,123 $ 415,382 $ 321,020
Stock options granted (in shares) $ 11.79    
Granted (in shares) 8,553,000    
Unvested restricted stock units and restricted stock awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 4 years    
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    
Service period 4 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) 117,384,569    
2019 Plan | Unvested restricted stock units and restricted stock awards      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Service period 4 years    
2019 Plan | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expiration period 10 years    
v3.22.4
Share-based compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Shares    
Beginning balance (in shares) 16,141  
Granted (in shares) 8,553  
Exercised (in shares) (8,895)  
Ending balance (in shares) 15,799 16,141
Exercisable (in shares) 7,498  
Weighted-Average Exercise Price    
Beginning balance (in dollars per share) $ 3.19  
Granted (in dollars per share) 19.96  
Exercised (in dollars per share) 1.45  
Ending balance (in dollars per share) 13.25 $ 3.19
Exercisable (in dollars per share) $ 5.74  
Weighted-Average Remaining Contractual Term, Outstanding 6 years 1 month 6 days 1 year 10 months 24 days
Weighted-Average Remaining Contractual Term, Exercisable 2 years 4 months 24 days  
Aggregate Intrinsic Value, Outstanding $ 174,165 $ 535,118
Aggregate Intrinsic Value, Exercisable $ 138,979  
v3.22.4
Share-based compensation - Restricted Stock Unit and Restricted Stock Award Activity (Details) - Unvested restricted stock units and restricted stock awards
shares in Thousands
 12 Months Ended
Dec. 31, 2022
$ / shares
shares
Shares  
Beginning balance (in shares) | shares 36,258
Granted (in shares) | shares 52,480
Released (in shares) | shares (22,763)
Forfeited (in shares) | shares (11,457)
Ending balance (in shares) | shares 54,518
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 30.84
Granted (in dollars per share) | $ / shares 21.91
Released (in dollars per share) | $ / shares 25.41
Forfeited (in dollars per share) | $ / shares 26.31
Ending balance (in dollars per share) | $ / shares $ 25.46
v3.22.4
Share-based compensation - Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation $ 497,123 $ 415,382 $ 321,020
Cost of revenue      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation 7,629 7,438 7,865
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation 324,161 309,715 218,718
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation 99,467 52,691 35,645
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]      
Share-based compensation $ 65,866 $ 45,538 $ 58,792
v3.22.4
Share-based compensation - Fair Value of Stock Options (Details) - Stock options
 12 Months Ended
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Expected term (in years) 6 years 1 month 6 days
Risk-free interest rate 3.20%
Expected volatility 61.10%
Dividend yield 0.00%
v3.22.4
Net income (loss) per share - Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Denominator:      
Basic weighted-average shares used in computing net income (loss) per share (in shares) 665,732 640,030 596,264
Diluted weighted-average shares used in computing net income (loss) per share) (in shares) 665,732 691,651 596,264
Basic net income (loss) per share (in dollars per share) $ (0.14) $ 0.49 $ (0.22)
Diluted net income (loss) per share (in dollars per share) $ (0.14) $ 0.46 $ (0.22)
Class A      
Numerator:      
Net income (loss) $ (83,110) $ 274,699 $ (96,499)
Reallocation of net income as a result of conversion of Class B to Class A common stock 0 41,739 0
Reallocation of net income to Class B common stock 0 0 0
Diluted net income (loss) $ (83,110) $ 316,438 $ (96,499)
Denominator:      
Basic weighted-average shares used in computing net income (loss) per share (in shares) 576,061 555,608 448,392
Conversion of Class B to Class A common stock (in shares) 0 84,422 0
Weighted average effect of dilutive potential common stock (in shares) 0 51,621 0
Diluted weighted-average shares used in computing net income (loss) per share) (in shares) 576,061 691,651 448,392
Basic net income (loss) per share (in dollars per share) $ (0.14) $ 0.49 $ (0.22)
Diluted net income (loss) per share (in dollars per share) $ (0.14) $ 0.46 $ (0.22)
Common Class B [Member]      
Numerator:      
Net income (loss) $ (12,937) $ 41,739 $ (31,824)
Reallocation of net income as a result of conversion of Class B to Class A common stock 0 0 0
Reallocation of net income to Class B common stock 0 (3,115) 0
Diluted net income (loss) $ (12,937) $ 38,624 $ (31,824)
Denominator:      
Basic weighted-average shares used in computing net income (loss) per share (in shares) 89,671 84,422 147,872
Conversion of Class B to Class A common stock (in shares) 0 0 0
Weighted average effect of dilutive potential common stock (in shares) 0 0 0
Diluted weighted-average shares used in computing net income (loss) per share) (in shares) 89,671 84,422 147,872
Basic net income (loss) per share (in dollars per share) $ (0.14) $ 0.49 $ (0.22)
Diluted net income (loss) per share (in dollars per share) $ (0.14) $ 0.46 $ (0.22)
v3.22.4
Net income (loss) per share - Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Weighted-average anti-dilutive shares of common stock (in shares) 69,661 3,271 103,670
Outstanding stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Weighted-average anti-dilutive shares of common stock (in shares) 17,405 0 40,067
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) 52,256 3,271 63,603
v3.22.4
Income taxes - Components of Loss Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
United States $ 29,108 $ 331,447 $ 49,973
Foreign (115,052) (10,476) (176,993)
Income (loss) before provision for income taxes $ (85,944) $ 320,971 $ (127,020)
v3.22.4
Income taxes - Composition of the Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:      
Federal $ 1,681 $ 0 $ 0
State 7,385 2,303 79
Foreign 4,381 2,957 691
Total current tax expense 13,447 5,260 770
Deferred:      
Federal (1,861) 6 654
State (356) 6 5
Foreign (1,127) (739) (126)
Total deferred tax expense (benefit) (3,344) (727) 533
Provision for income taxes $ 10,103 $ 4,533 $ 1,303
v3.22.4
Income taxes - Reconciliation of the Difference Between Income Taxes Computed at the Statutory Federal Income Tax Rate and the Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Tax at U.S. statutory rate $ (18,048) $ 67,404 $ (26,674)
State income taxes, net of benefit 5,502 2,307 84
Foreign operations 26,985 4,448 37,716
Permanent book/tax differences 6,598 409 1,927
Legal settlement 0 0 2,290
Share-based compensation (20,663) (269,009) (303,245)
Change in valuation allowance 62,048 278,761 352,410
Tax credits (52,319) (79,787) (63,205)
Provision for income taxes $ 10,103 $ 4,533 $ 1,303
v3.22.4
Income taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:    
Net operating loss carryforwards $ 900,200 $ 1,036,254
Research tax credits 473,248 401,219
Reserves, accruals, and other 31,502 29,641
Lease obligation 56,185 58,860
Share-based compensation 40,976 63,798
Research capitalization and amortization 208,373 0
Total deferred tax assets 1,710,484 1,589,772
Less: valuation allowance (1,660,609) (1,539,889)
Deferred tax assets, net of valuation allowance 49,875 49,883
Deferred tax liabilities:    
Depreciation and amortization (44,790) (47,952)
Prepaid expenses (4,190) (2,036)
Total deferred tax liabilities (48,980) (49,988)
Deferred tax assets $ 895  
Deferred tax liabilities   $ (105)
v3.22.4
Income taxes - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Income Taxes [Line Items]    
Increase (decrease) in deferred tax asset valuation allowance $ 120.7 $ 363.0
Unrecognized tax benefits that would affect effective tax rate 239.9  
Effective tax rate impact 3.2  
Remaining unrecognized tax benefits 236.7  
Federal    
Income Taxes [Line Items]    
Net operating loss carryforwards 3,636.5  
Federal | Research Tax Credits    
Income Taxes [Line Items]    
Tax credit carryforwards 426.5  
State | California    
Income Taxes [Line Items]    
Net operating loss carryforwards 551.8  
State | California | Research Tax Credits    
Income Taxes [Line Items]    
Tax credit carryforwards 319.3  
State | Other States    
Income Taxes [Line Items]    
Net operating loss carryforwards 1,501.5  
Foreign | Ireland    
Income Taxes [Line Items]    
Net operating loss carryforwards 173.2  
Foreign | Other Foreign    
Income Taxes [Line Items]    
Net operating loss carryforwards $ 5.6  
v3.22.4
Income taxes - Changes in Gross Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Beginning balance $ 205,059 $ 140,160
Increases for tax positions of prior years 0 2,906
Decreases for tax positions of prior years (3,347)  
Increases for tax positions of current year 38,226 61,993
Ending balance $ 239,938 $ 205,059
v3.22.4
Geographical information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue $ 2,802,574 $ 2,578,027 $ 1,692,658
Total property and equipment, net and operating lease right-of-use assets 265,828 281,313  
United States and Canada      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 2,264,640 2,109,089 1,464,344
Europe      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 410,516 384,657 191,767
Rest Of World      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 127,418 84,281 36,547
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total revenue 2,144,300 2,003,600 $ 1,404,300
Total property and equipment, net and operating lease right-of-use assets 205,374 247,975  
International      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Total property and equipment, net and operating lease right-of-use assets $ 60,454 $ 33,338  
v3.22.4
Subsequent Events (Details)
$ in Millions
Feb. 28, 2023
USD ($)
Subsequent event  
Subsequent Event [Line Items]  
Authorized stock repurchase amount $ 500