PINTEREST, INC., 10-Q filed on 10/29/2020
Quarterly Report
v3.20.2
Cover Page - shares
9 Months Ended
Sep. 30, 2020
Oct. 23, 2020
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2020  
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, $0.00001 par value  
Trading Symbol PINS  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Document Fiscal Year Focus 2020  
Current Fiscal Year End Date --12-31  
Entity Central Index Key 0001506293  
Class A Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   510,856,241
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   107,214,170
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 652,723 $ 649,666
Marketable securities 996,392 1,063,679
Accounts receivable, net of allowances of $5,670 and $2,851 as of September 30, 2020 and December 31, 2019, respectively 339,274 316,367
Prepaid expenses and other current assets 44,537 37,522
Total current assets 2,032,926 2,067,234
Property and equipment, net 76,294 91,992
Operating lease right-of-use assets 164,803 188,251
Goodwill and intangible assets, net 13,814 14,576
Restricted cash 9,221 25,339
Other assets 3,980 5,925
Total assets 2,301,038 2,393,317
Current liabilities:    
Accounts payable 41,703 34,334
Accrued expenses and other current liabilities 147,946 141,823
Total current liabilities 189,649 176,157
Operating lease liabilities 150,162 173,392
Other liabilities 26,623 20,063
Total liabilities 366,434 369,612
Commitments and contingencies
Stockholders’ equity:    
Common stock 6 6
Additional paid-in capital 4,475,425 4,229,778
Accumulated other comprehensive income 2,063 647
Accumulated deficit (2,542,890) (2,206,726)
Total stockholders’ equity 1,934,604 2,023,705
Total liabilities and stockholders’ equity $ 2,301,038 $ 2,393,317
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Allowances $ 5,670 $ 2,851
Class A Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 6,666,667,000 6,666,667,000
Common stock, shares issued (in shares) 507,248,000 360,850,000
Common stock, shares outstanding (in shares) 507,248,000 360,850,000
Class B Common Stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, shares authorized (in shares) 1,333,333,000 1,333,333,000
Common stock, shares issued (in shares) 107,995,000 209,054,000
Common stock, shares outstanding (in shares) 107,995,000 209,054,000
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Income Statement [Abstract]        
Revenue $ 442,616 $ 279,703 $ 987,041 $ 742,863
Costs and expenses:        
Cost of revenue 112,844 83,520 320,335 262,629
Research and development 160,187 167,703 442,484 1,042,026
Sales and marketing 118,531 110,740 322,041 484,053
General and administrative 148,087 51,450 249,834 299,834
Total costs and expenses 539,649 413,413 1,334,694 2,088,542
Loss from operations (97,033) (133,710) (347,653) (1,345,679)
Interest income 2,896 9,837 14,265 22,023
Interest expense and other income (expense), net (51) (1,056) (2,144) (2,004)
Loss before provision for income taxes (94,188) (124,929) (335,532) (1,325,660)
Provision for (benefit from) income taxes 32 (197) 632 (7)
Net loss $ (94,220) $ (124,732) $ (336,164) $ (1,325,653)
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) $ (0.16) $ (0.23) $ (0.57) $ (4.15)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) 603,490 546,126 588,895 319,490
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ (94,220) $ (124,732) $ (336,164) $ (1,325,653)
Other comprehensive income (loss), net of taxes:        
Change in unrealized gain (loss) on available-for-sale marketable securities (1,772) 0 1,634 1,934
Change in foreign currency translation adjustment 98 (147) (218) (137)
Comprehensive loss $ (95,894) $ (124,879) $ (334,748) $ (1,323,856)
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income
Accumulated Deficit
Balance (in shares) at Dec. 31, 2018 308,373        
Balance at Dec. 31, 2018 $ 1,465,399        
Increase (Decrease) in Temporary Equity [Roll Forward]          
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering (in shares) (308,373)        
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering $ (1,465,399)        
Balance (in shares) at Sep. 30, 2019 0        
Balance at Sep. 30, 2019 $ 0        
Beginning balance (in shares) at Dec. 31, 2018   127,298      
Beginning balance at Dec. 31, 2018 (594,563) $ 1 $ 252,212 $ (1,421) $ (845,355)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Release of restricted stock units (in shares)   25,108      
Release of restricted stock units 0        
Shares repurchased for tax withholdings on release of restricted stock units (424,965)   (424,965)    
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering (in shares)   308,622      
Conversion of redeemable convertible preferred stock and redeemable convertible preferred stock warrants to common stock in connection with initial public offering 1,470,077 $ 3 1,470,074    
Issuance of common stock in connection with initial public offering net of underwriters' discounts and commissions and offering costs (in shares)   86,250      
Issuance of common stock in connection with initial public offering net of underwriters' discounts and commissions and offering costs 1,563,383 $ 1 1,563,382    
Issuance of common stock for cash upon exercise of stock options, net (in shares)   287      
Issuance of common stock for cash upon exercise of stock options, net 744   744    
Share-based compensation 1,265,581   1,265,581    
Other comprehensive income (loss) 1,797     1,797  
Net loss (1,325,653)       (1,325,653)
Ending balance (in shares) at Sep. 30, 2019   547,565      
Ending balance at Sep. 30, 2019 $ 1,956,401 $ 5 4,127,028 376 (2,171,008)
Balance (in shares) at Jun. 30, 2019 0        
Balance at Jun. 30, 2019 $ 0        
Balance (in shares) at Sep. 30, 2019 0        
Balance at Sep. 30, 2019 $ 0        
Beginning balance (in shares) at Jun. 30, 2019   542,704      
Beginning balance at Jun. 30, 2019 2,073,240 $ 5 4,118,988 523 (2,046,276)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Release of restricted stock units (in shares)   4,851      
Release of restricted stock units 0        
Shares repurchased for tax withholdings on release of restricted stock units (122,290)   (122,290)    
Issuance of common stock for cash upon exercise of stock options, net (in shares)   10      
Issuance of common stock for cash upon exercise of stock options, net 42   42    
Share-based compensation 130,288   130,288    
Other comprehensive income (loss) (147)     (147)  
Net loss (124,732)       (124,732)
Ending balance (in shares) at Sep. 30, 2019   547,565      
Ending balance at Sep. 30, 2019 $ 1,956,401 $ 5 4,127,028 376 (2,171,008)
Balance (in shares) at Dec. 31, 2019 0        
Balance at Dec. 31, 2019 $ 0        
Balance (in shares) at Sep. 30, 2020 0        
Balance at Sep. 30, 2020 $ 0        
Beginning balance (in shares) at Dec. 31, 2019   569,904      
Beginning balance at Dec. 31, 2019 2,023,705 $ 6 4,229,778 647 (2,206,726)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Release of restricted stock units (in shares)   13,785      
Release of restricted stock units 0        
Shares repurchased for tax withholdings on release of restricted stock units $ (56,894)   (56,894)    
Issuance of common stock for cash upon exercise of stock options, net (in shares) 28,855 28,855      
Issuance of common stock for cash upon exercise of stock options, net $ 64,992   64,992    
Issuance of common stock related to charitable contributions (in shares)   150      
Issuance of common stock related to charitable contributions 2,748   2,748    
Issuance of restricted stock awards (in shares)   2,549      
Issuance of restricted stock awards 0        
Share-based compensation 234,801   234,801    
Other comprehensive income (loss) 1,416     1,416  
Net loss (336,164)       (336,164)
Ending balance (in shares) at Sep. 30, 2020   615,243      
Ending balance at Sep. 30, 2020 $ 1,934,604 $ 6 4,475,425 2,063 (2,542,890)
Balance (in shares) at Jun. 30, 2020 0        
Balance at Jun. 30, 2020 $ 0        
Balance (in shares) at Sep. 30, 2020 0        
Balance at Sep. 30, 2020 $ 0        
Beginning balance (in shares) at Jun. 30, 2020   596,264      
Beginning balance at Jun. 30, 2020 1,906,630 $ 6 4,351,557 3,737 (2,448,670)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Release of restricted stock units (in shares)   5,642      
Release of restricted stock units 0        
Shares repurchased for tax withholdings on release of restricted stock units (7)   (7)    
Issuance of common stock for cash upon exercise of stock options, net (in shares)   13,337      
Issuance of common stock for cash upon exercise of stock options, net 32,243   32,243    
Share-based compensation 91,632   91,632    
Other comprehensive income (loss) (1,674)     (1,674)  
Net loss (94,220)       (94,220)
Ending balance (in shares) at Sep. 30, 2020   615,243      
Ending balance at Sep. 30, 2020 $ 1,934,604 $ 6 $ 4,475,425 $ 2,063 $ (2,542,890)
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Operating activities    
Net income (loss) $ (336,164) $ (1,325,653)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 29,174 19,496
Share-based compensation 234,801 1,265,581
Other 7,268 (3,296)
Changes in assets and liabilities:    
Accounts receivable (25,667) 12,331
Prepaid expenses and other assets (6,184) (1,502)
Operating lease right-of-use assets 31,835 21,746
Accounts payable 7,689 8,897
Accrued expenses and other liabilities 20,391 13,133
Operating lease liabilities (35,013) (19,634)
Net cash used in operating activities (71,870) (8,901)
Investing activities    
Purchases of property and equipment and intangible assets (14,032) (20,433)
Purchases of marketable securities (808,180) (527,899)
Sales of marketable securities 174,042 93,389
Maturities of marketable securities 699,133 252,164
Other investing activities 316 0
Net cash provided by (used in) investing activities 51,279 (202,779)
Financing activities    
Proceeds from initial public offering, net of underwriters' discounts and commissions 0 1,573,200
Proceeds from exercise of stock options, net 64,992 744
Shares repurchased for tax withholdings on release of restricted stock units (56,894) (424,965)
Payment of deferred offering costs and other financing activities (1,750) (11,305)
Net cash provided by financing activities 6,348 1,137,674
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (86) (182)
Net increase (decrease) in cash, cash equivalents, and restricted cash (14,329) 925,812
Cash, cash equivalents, and restricted cash, beginning of period 677,743 135,290
Cash, cash equivalents, and restricted cash, end of period 663,414 1,061,102
Supplemental cash flow information    
Accrued property and equipment 3,952 7,174
Operating lease right-of-use assets obtained in exchange for operating lease liabilities $ 14,030 $ 41,399
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets    
Cash and cash equivalents $ 652,723 $ 1,033,871
Restricted cash included in prepaid expenses and other current assets 1,470 2,409
Restricted cash 9,221 24,822
Total cash, cash equivalents, and restricted cash $ 663,414 $ 1,061,102
v3.20.2
Description of Business and Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Description of Business and Summary of Significant Accounting Policies Description of Business and Summary of Significant Accounting Policies
Description of Business
Pinterest was incorporated in Delaware in 2008 and is headquartered in San Francisco, California. Pinterest is a visual discovery engine that people around the globe use to find the inspiration to create a life they love. We generate revenue by delivering ads on our website and mobile application.
Basis of Presentation and Consolidation
We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions.
The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2019, which are included in our Annual Report on Form 10-K.
In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results for the interim periods presented, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020.
Reclassifications
We have reclassified certain amounts in prior periods to conform with current presentation.
Use of Estimates
Preparing our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the condensed consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, assets acquired and liabilities assumed through business combinations, common stock prior to our initial public offering ("IPO"), share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments.
Many of our estimates require increased judgment due to the significant volatility, uncertainty and economic disruption of the recent global COVID-19 pandemic. We continue to monitor the effects of the COVID-19 pandemic, and our estimates and judgments may change materially as new events occur or additional information becomes available to us.
Segments
We operate as a single operating segment. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by disaggregated information about our revenue, for purposes of making operating decisions, assessing financial performance and allocating resources.
Revenue Recognition
We generate revenue by delivering ads on our website and mobile application. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click (“CPC”) basis, views an ad contracted on a cost per thousand impressions (“CPM”) basis or views
a video ad contracted on a cost per view ("CPV") basis. We typically bill customers on a CPC, CPM or CPV basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant.
We occasionally offer customers free ad inventory, and revenue is recognized only after satisfying our contractual performance obligations. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to be entitled in exchange for promised goods or services, to each of the distinct performance obligations based on their relative standalone selling prices. We generally determine standalone selling prices based on the effective price charged per contracted click, impression or view and we do not disclose the value of unsatisfied performance obligations because the original expected duration of our contracts is generally less than one year.
We record sales commissions in sales and marketing expense as incurred because we would amortize these over a period of less than one year.
Deferred revenue was not material as of September 30, 2020 and December 31, 2019.
Share-Based Compensation
Restricted stock units ("RSUs") granted under our 2009 Stock Plan (the "2009 Plan") are subject to both a service condition, which is typically satisfied over four years, and a performance condition, which was deemed satisfied upon the pricing of our IPO. We did not record any share-based compensation expense for our RSUs prior to our IPO because the performance condition had not yet been satisfied. Upon pricing our IPO, we recorded cumulative share-based compensation expense using the accelerated attribution method for those RSUs granted under our 2009 Plan for which the service condition had been satisfied at that date. We will record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period.
RSUs and Restricted Stock Awards ("RSAs") granted under our 2019 Omnibus Incentive Plan (the "2019 Plan") are subject only to a service condition, which is typically satisfied over four years. We record share-based compensation expense for these RSUs and RSAs on a straight-line basis over the requisite service period.
We measure RSUs and RSAs based on the fair market value of our common stock on the grant date, and we account for forfeitures as they occur.
Leases and Operating Lease Incremental Borrowing Rate
We lease office space under operating leases with expiration dates through 2033. We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our condensed consolidated balance sheets at lease commencement. We measure lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or our incremental borrowing rate, which is the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. We estimate our incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to our own. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement, and we do not allocate consideration between lease and non-lease components.
For short-term leases, we record rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred.
Recently Adopted Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets not held at fair value. ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier
recognition of credit losses. We adopted ASU 2016-13 as of January 1, 2020, using the modified retrospective method, and while the effects of adoption on our condensed consolidated financial statements were not material, we continue to monitor the effects of the COVID-19 pandemic on expected credit losses.
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. We elected to early adopt ASU 2019-12 effective as of January 1, 2020, and the effects of adoption on our condensed consolidated financial statements were not material.
v3.20.2
Fair Value of Financial Instruments
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments Fair Value of Financial Instruments
The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands):
September 30, 2020
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds $316,736 $— $— $316,736 
Commercial paper — 78,479 — 78,479 
Certificates of deposit— 12,010 — 12,010 
Corporate bonds— 3,347 — 3,347 
Marketable securities:
Corporate bonds — 415,998 — 415,998 
U.S. treasury securities 271,930 — — 271,930 
Commercial paper — 169,619 — 169,619 
Certificates of deposit — 73,213 — 73,213 
Asset-backed securities — 33,655 — 33,655 
U.S. agency bonds— 15,992 — 15,992 
Non-U.S. government and supranational bonds— 15,985 — 15,985 
Prepaid expenses and other current assets:
Certificates of deposit — 1,470 — 1,470 
Restricted cash:
Certificates of deposit $— $9,221 $— $9,221 
December 31, 2019
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds $214,413 $— $— $214,413 
Commercial paper— 105,354 — 105,354 
Corporate bonds— 3,791 — 3,791 
Certificates of deposit— 2,914 — 2,914 
Marketable securities:
Corporate bonds — 450,433 — 450,433 
U.S. treasury securities 201,640 — — 201,640 
Commercial paper — 196,328 — 196,328 
Asset-backed securities — 114,599 — 114,599 
Certificates of deposit — 100,679 — 100,679 
Prepaid expenses and other current assets:
Certificates of deposit — 2,738 — 2,738 
Restricted cash:
Certificates of deposit $— $25,339 $— $25,339 
We classify our marketable securities within Level 1 or Level 2 because we determine their fair values using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
Gross unrealized gains and losses on our marketable securities were immaterial in the aggregate as of September 30, 2020 and December 31, 2019. We evaluated all available evidence and did not recognize any allowance for credit losses for our marketable securities as of September 30, 2020 and December 31, 2019. We continue to monitor the effects of the COVID-19 pandemic on expected credit losses.
The fair value of our marketable securities by contractual maturity is as follows (in thousands):
September 30, 2020
Due in one year or less $731,474 
Due after one to five years 264,918 
Total $996,392 
Net realized gains and losses from sales of available-for-sale securities were not material for any period presented.
v3.20.2
Commitments and Contingencies
9 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments
In March 2019, we entered into a lease for approximately 490,000 square feet of office space to be constructed near our current headquarters campus in San Francisco, California. In August 2020, we entered into an agreement to terminate the lease which involved a one-time payment of $89.5 million. As a result of the termination, we will not be subject to future total minimum lease payments of approximately $440.0 million.
Legal Matters
We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. While the results of legal matters are inherently uncertain, we do not believe the ultimate resolution of these matters, either individually or in aggregate, will have a material adverse effect on our business, financial position, results of operations or cash flows.
Letters of Credit
We had $8.1 million and $25.5 million of secured letters of credit outstanding as of September 30, 2020 and December 31, 2019. These primarily relate to our office space leases and are fully collateralized by certificates of deposit which we record in prepaid expenses and other current assets or restricted cash in our condensed consolidated balance sheets based on the term of the remaining restriction.
v3.20.2
Share-Based Compensation
9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Share-Based Compensation Share-Based Compensation
Equity Incentive Plan
In June 2009, our board of directors adopted and approved our 2009 Plan, which provides for the issuance of stock options, RSAs and RSUs to qualified employees, directors and consultants. Stock options granted under our 2009 Stock Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. RSUs granted under our 2009 Plan have a maximum life of seven years. No shares of our common stock were reserved for future issuance under our 2009 Plan as of September 30, 2020.
Our 2019 Plan became effective upon closing of our IPO and succeeds our 2009 Plan. Our 2019 Plan provides for the issuance of stock options, RSAs, RSUs and other equity- or cash-based awards to qualified employees, directors and consultants. Stock options granted under our 2019 Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. 100,443,058 shares of our Class A common stock were reserved for future issuance under our 2019 Plan as of September 30, 2020.
The number of shares of our Class A common stock available for issuance under the 2019 Plan will be increased by the number of shares of our Class B common stock subject to awards outstanding under our 2009 Plan as of the closing of our IPO that would, but for the terms of the 2019 Plan, have returned to the share reserves of the 2009 Plan pursuant to the terms of such awards, including as the result of forfeiture, repurchase, expiration or retention by us in order to satisfy an award’s exercise price or tax withholding obligations. In addition, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan will automatically increase on the first day of each fiscal year, commencing on January 1, 2020 and ending on (and including) January 1, 2029, in an amount equal to 5% of the total number of shares of our Class A common stock and our Class B common stock outstanding on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by our board of directors.
Stock Option Activity
Stock option activity during the nine months ended September 30, 2020, was as follows (in thousands, except per share amounts):
Stock Options Outstanding
SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term
Aggregate Intrinsic
Value (1)
(in years)
Outstanding as of December 31, 201956,966$2.25 3.5$933,299 
Granted 1,13022.35 
Exercised (28,855)2.25 
Outstanding as of September 30, 202029,241$3.03 3.1$1,124,964 
Exercisable as of September 30, 202028,322$2.41 2.9$1,107,358 
(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 nine months ended September 30, 2020 and 2019, was $2.5 million and $2.1 million, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2020 and 2019, was $719 million and $5.8 million, respectively.
The total grant-date fair value of stock options granted during the nine months ended September 30, 2020 was not material. No stock options were granted during the nine months ended September 30, 2019.
Restricted Stock Unit and Restricted Stock Award Activity
RSU and RSA activity during the nine months ended September 30, 2020, was as follows (in thousands, except per share amounts):
Restricted Stock Units and Restricted Stock Awards Outstanding
SharesWeighted Average Grant Date Fair Value
Outstanding as of December 31, 201956,791$20.19 
Granted 29,06017.99 
Released(17,105)19.39 
Forfeited(9,111)18.82 
Outstanding as of September 30, 202059,635$19.55 
Share-Based Compensation
Share-based compensation expense during the three and nine months ended September 30, 2020 and 2019, was as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Cost of revenue $2,298 $1,568 $6,049 $29,740 
Research and development61,357 83,539 156,621 794,161 
Sales and marketing11,958 21,243 23,803 223,400 
General and administrative 16,019 23,938 48,328 218,280 
Total share-based compensation $91,632 $130,288 $234,801 $1,265,581 

As of September 30, 2020, we had $764.3 million of unrecognized share-based compensation expense, which we expect to recognize over a weighted-average period of 3.1 years.
v3.20.2
Net Loss Per Share Attributable to Common Stockholders
9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Net Loss Per Share Attributable to Common Stockholders Net Loss Per Share Attributable to Common Stockholders
We present net loss per share attributable to common stockholders using the two-class method required for multiple classes of common stock and participating securities. Holders of our Class A and Class B common stock have identical rights except with respect to voting, conversion and transfer rights and therefore share equally in our net losses. Prior to our IPO, we considered all series of our redeemable convertible preferred stock participating securities. We have not allocated net loss attributable to common stockholders to our redeemable convertible preferred stock because the holders of our redeemable convertible preferred stock are not contractually obligated to share in our losses.
We calculate basic net loss per share attributable to common stockholders by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share attributable to common stockholders gives effect to all potential shares of common stock, including common stock issuable upon conversion of our redeemable convertible preferred stock and redeemable convertible preferred stock warrants, stock options, RSAs, RSUs and common stock warrants to the extent these are dilutive.
We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Class AClass BClass AClass BClass AClass BClass AClass B
Numerator:
Net loss attributable to common stockholders$(75,035)$(19,185)$(38,702)$(86,030)$(242,731)$(93,433)$(336,971)$(988,682)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted480,606 122,885 169,452 376,674 425,218 163,677 81,212 238,278 
Net loss per share attributable to common stockholders, basic and diluted$(0.16)$(0.16)$(0.23)$(0.23)$(0.57)$(0.57)$(4.15)$(4.15)
Basic net loss per share is the same as diluted net loss per share because we reported net losses for all periods presented. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net loss per share attributable to common stockholders because these would be anti-dilutive (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Redeemable convertible preferred stock— — — 127,642 
Outstanding stock options35,226 76,334 44,659 76,447 
Unvested restricted stock units and restricted stock awards63,695 63,738 64,353 72,961 
Redeemable convertible preferred stock warrants— — — 103 
Total98,921 140,072 109,013 277,153 
v3.20.2
Income Taxes
9 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We determine our income tax provision for interim periods using an estimate of our annual effective tax rate adjusted for discrete items occurring during the periods presented. The primary difference between our effective tax rate and the federal statutory rate is the full valuation allowance we have established on our federal, state and foreign net operating losses and credits. Income taxes from international operations are not material for the three and nine months ended September 30, 2020 and 2019.
On June 7, 2019, a three-judge panel from the U.S. Court of Appeals for the Ninth Circuit overturned the U.S. Tax Court's decision in Altera Corp. v. Commissioner and upheld the portion of the Treasury regulations under Section 482 of the Internal Revenue Code that requires related parties in a cost-sharing arrangement to share expenses related to share-based compensation. As a result of this decision, our gross unrecognized tax benefits increased to reflect the impact of including share-based compensation in cost-sharing arrangements. Recognizing our gross unrecognized tax benefits would not affect our effective tax rate as their recognition would be offset by the reversal of the related deferred tax assets, which are subject to a full valuation allowance. On July 22, 2019, the taxpayer filed a petition for a rehearing before the full Ninth Circuit and the request was denied on November 12, 2019. On February 10, 2020, the taxpayer filed a petition to appeal the decision to the Supreme Court and on June 22, 2020, the Supreme Court denied the petition. As a result of the Supreme Court’s action, our U.S. deferred tax asset related to net operating
losses was reduced by $24.4 million and we no longer consider this to be an uncertain tax position. There is no impact on our effective tax rate for the three and nine months ended September 30, 2020, due to our full valuation allowance against our deferred tax assets.
v3.20.2
Geographical Information
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Geographical Information Geographical Information
Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
United States $367,998 $247,222 $827,220 $660,754 
International(1)
$74,618 32,481 159,821 82,109 
Total revenue $442,616 $279,703 $987,041 $742,863 
(1)No individual country other than the United States exceeded 10% of our total revenue for any period presented.
Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands):
September 30,December 31,
20202019
United States $227,517 $266,763 
International(1)
13,580 13,480 
Total property and equipment, net and operating lease right-of-use assets$241,097 $280,243 
(1)No individual country other than the United States exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented.
v3.20.2
Description of Business and Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Basis of Presentation
We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions.
The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2019, which are included in our Annual Report on Form 10-K.
In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results for the interim periods presented, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020.
Consolidation
We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions.
The condensed consolidated balance sheet as of December 31, 2019 included herein was derived from the audited financial statements as of that date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2019, which are included in our Annual Report on Form 10-K.
In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results for the interim periods presented, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2020.
Reclassifications We have reclassified certain amounts in prior periods to conform with current presentation.
Use of Estimates
Preparing our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the condensed consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, assets acquired and liabilities assumed through business combinations, common stock prior to our initial public offering ("IPO"), share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments.
Many of our estimates require increased judgment due to the significant volatility, uncertainty and economic disruption of the recent global COVID-19 pandemic. We continue to monitor the effects of the COVID-19 pandemic, and our estimates and judgments may change materially as new events occur or additional information becomes available to us.
Segments We operate as a single operating segment. Our chief operating decision maker is our Chief Executive Officer, who reviews financial information presented on a consolidated basis, accompanied by disaggregated information about our revenue, for purposes of making operating decisions, assessing financial performance and allocating resources.
Revenue Recognition We generate revenue by delivering ads on our website and mobile application. We recognize revenue only after transferring control of promised goods or services to customers, which occurs when a user clicks on an ad contracted on a cost per click (“CPC”) basis, views an ad contracted on a cost per thousand impressions (“CPM”) basis or views
a video ad contracted on a cost per view ("CPV") basis. We typically bill customers on a CPC, CPM or CPV basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant.
We occasionally offer customers free ad inventory, and revenue is recognized only after satisfying our contractual performance obligations. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to be entitled in exchange for promised goods or services, to each of the distinct performance obligations based on their relative standalone selling prices. We generally determine standalone selling prices based on the effective price charged per contracted click, impression or view and we do not disclose the value of unsatisfied performance obligations because the original expected duration of our contracts is generally less than one year.
We record sales commissions in sales and marketing expense as incurred because we would amortize these over a period of less than one year.
Share-Based Compensation
Restricted stock units ("RSUs") granted under our 2009 Stock Plan (the "2009 Plan") are subject to both a service condition, which is typically satisfied over four years, and a performance condition, which was deemed satisfied upon the pricing of our IPO. We did not record any share-based compensation expense for our RSUs prior to our IPO because the performance condition had not yet been satisfied. Upon pricing our IPO, we recorded cumulative share-based compensation expense using the accelerated attribution method for those RSUs granted under our 2009 Plan for which the service condition had been satisfied at that date. We will record the remaining unrecognized share-based compensation expense over the remainder of the requisite service period.
RSUs and Restricted Stock Awards ("RSAs") granted under our 2019 Omnibus Incentive Plan (the "2019 Plan") are subject only to a service condition, which is typically satisfied over four years. We record share-based compensation expense for these RSUs and RSAs on a straight-line basis over the requisite service period.
We measure RSUs and RSAs based on the fair market value of our common stock on the grant date, and we account for forfeitures as they occur.
Leases and Operating Lease Incremental Borrowing Rate
We lease office space under operating leases with expiration dates through 2033. We determine whether an arrangement constitutes a lease and record lease liabilities and right-of-use assets on our condensed consolidated balance sheets at lease commencement. We measure lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or our incremental borrowing rate, which is the estimated rate we would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. We estimate our incremental borrowing rate based on an analysis of publicly traded debt securities of companies with credit and financial profiles similar to our own. We measure right-of-use assets based on the corresponding lease liability adjusted for (i) payments made to the lessor at or before the commencement date, (ii) initial direct costs we incur and (iii) tenant incentives under the lease. We begin recognizing rent expense when the lessor makes the underlying asset available to us, we do not assume renewals or early terminations unless we are reasonably certain to exercise these options at commencement, and we do not allocate consideration between lease and non-lease components.
For short-term leases, we record rent expense in our condensed consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred.
Recently Adopted Accounting Pronouncement In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the measurement and recognition of expected credit losses for financial assets not held at fair value. ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier
recognition of credit losses. We adopted ASU 2016-13 as of January 1, 2020, using the modified retrospective method, and while the effects of adoption on our condensed consolidated financial statements were not material, we continue to monitor the effects of the COVID-19 pandemic on expected credit losses.
In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles for income taxes. We elected to early adopt ASU 2019-12 effective as of January 1, 2020, and the effects of adoption on our condensed consolidated financial statements were not material.
v3.20.2
Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Values of Financial Instruments Measured on a Recurring Basis
The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands):
September 30, 2020
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds $316,736 $— $— $316,736 
Commercial paper — 78,479 — 78,479 
Certificates of deposit— 12,010 — 12,010 
Corporate bonds— 3,347 — 3,347 
Marketable securities:
Corporate bonds — 415,998 — 415,998 
U.S. treasury securities 271,930 — — 271,930 
Commercial paper — 169,619 — 169,619 
Certificates of deposit — 73,213 — 73,213 
Asset-backed securities — 33,655 — 33,655 
U.S. agency bonds— 15,992 — 15,992 
Non-U.S. government and supranational bonds— 15,985 — 15,985 
Prepaid expenses and other current assets:
Certificates of deposit — 1,470 — 1,470 
Restricted cash:
Certificates of deposit $— $9,221 $— $9,221 
December 31, 2019
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds $214,413 $— $— $214,413 
Commercial paper— 105,354 — 105,354 
Corporate bonds— 3,791 — 3,791 
Certificates of deposit— 2,914 — 2,914 
Marketable securities:
Corporate bonds — 450,433 — 450,433 
U.S. treasury securities 201,640 — — 201,640 
Commercial paper — 196,328 — 196,328 
Asset-backed securities — 114,599 — 114,599 
Certificates of deposit — 100,679 — 100,679 
Prepaid expenses and other current assets:
Certificates of deposit — 2,738 — 2,738 
Restricted cash:
Certificates of deposit $— $25,339 $— $25,339 
Fair Value of Marketable Securities by Contractual Maturity
The fair value of our marketable securities by contractual maturity is as follows (in thousands):
September 30, 2020
Due in one year or less $731,474 
Due after one to five years 264,918 
Total $996,392 
v3.20.2
Share-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock Option Activity
Stock option activity during the nine months ended September 30, 2020, was as follows (in thousands, except per share amounts):
Stock Options Outstanding
SharesWeighted-Average Exercise PriceWeighted-Average Remaining Contractual Term
Aggregate Intrinsic
Value (1)
(in years)
Outstanding as of December 31, 201956,966$2.25 3.5$933,299 
Granted 1,13022.35 
Exercised (28,855)2.25 
Outstanding as of September 30, 202029,241$3.03 3.1$1,124,964 
Exercisable as of September 30, 202028,322$2.41 2.9$1,107,358 
(1)We calculate intrinsic value based on the difference between the exercise price of in-the-money-stock options and the fair value of our common stock as of the respective balance sheet date.
Restricted Stock Unit Activity
RSU and RSA activity during the nine months ended September 30, 2020, was as follows (in thousands, except per share amounts):
Restricted Stock Units and Restricted Stock Awards Outstanding
SharesWeighted Average Grant Date Fair Value
Outstanding as of December 31, 201956,791$20.19 
Granted 29,06017.99 
Released(17,105)19.39 
Forfeited(9,111)18.82 
Outstanding as of September 30, 202059,635$19.55 
Share-Based Compensation Expense
Share-based compensation expense during the three and nine months ended September 30, 2020 and 2019, was as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Cost of revenue $2,298 $1,568 $6,049 $29,740 
Research and development61,357 83,539 156,621 794,161 
Sales and marketing11,958 21,243 23,803 223,400 
General and administrative 16,019 23,938 48,328 218,280 
Total share-based compensation $91,632 $130,288 $234,801 $1,265,581 
v3.20.2
Net Loss Per Share Attributable to Common Stockholders (Tables)
9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders We calculated basic and diluted net loss per share attributable to common stockholders as follows (in thousands, except per share amounts):
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Class AClass BClass AClass BClass AClass BClass AClass B
Numerator:
Net loss attributable to common stockholders$(75,035)$(19,185)$(38,702)$(86,030)$(242,731)$(93,433)$(336,971)$(988,682)
Denominator:
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted480,606 122,885 169,452 376,674 425,218 163,677 81,212 238,278 
Net loss per share attributable to common stockholders, basic and diluted$(0.16)$(0.16)$(0.23)$(0.23)$(0.57)$(0.57)$(4.15)$(4.15)
Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Loss Per Share
Basic net loss per share is the same as diluted net loss per share because we reported net losses for all periods presented. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net loss per share attributable to common stockholders because these would be anti-dilutive (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
Redeemable convertible preferred stock— — — 127,642 
Outstanding stock options35,226 76,334 44,659 76,447 
Unvested restricted stock units and restricted stock awards63,695 63,738 64,353 72,961 
Redeemable convertible preferred stock warrants— — — 103 
Total98,921 140,072 109,013 277,153 
v3.20.2
Geographical Information (Tables)
9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Revenue Disaggregated by Geography
Revenue disaggregated by geography based on our customers’ billing addresses is as follows (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2020201920202019
United States $367,998 $247,222 $827,220 $660,754 
International(1)
$74,618 32,481 159,821 82,109 
Total revenue $442,616 $279,703 $987,041 $742,863 
(1)No individual country other than the United States exceeded 10% of our total revenue for any period presented.
Property and Equipment, Net and Operating Lease Right-of-Use Assets by Geography
Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands):
September 30,December 31,
20202019
United States $227,517 $266,763 
International(1)
13,580 13,480 
Total property and equipment, net and operating lease right-of-use assets$241,097 $280,243 
(1)No individual country other than the United States exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented.
v3.20.2
Description of Business and Summary of Significant Accounting Policies (Details)
9 Months Ended
Sep. 30, 2020
segment
Summary of Significant Accounting Policies [Line Items]  
Number of operating segments 1
RSUs | 2009 Plan  
Summary of Significant Accounting Policies [Line Items]  
Service period 4 years
Unvested restricted stock units and restricted stock awards | 2019 Plan  
Summary of Significant Accounting Policies [Line Items]  
Service period 4 years
v3.20.2
Fair Value of Financial Instruments - Fair Values of Financial Instruments Measured on a Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities $ 996,392  
Corporate bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 415,998 $ 450,433
Corporate bonds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Corporate bonds | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 415,998 450,433
Corporate bonds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
U.S. treasury securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 271,930 201,640
U.S. treasury securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 271,930 201,640
U.S. treasury securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
U.S. treasury securities | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Commercial paper | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 169,619 196,328
Commercial paper | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Commercial paper | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 169,619 196,328
Commercial paper | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Certificates of deposit | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 73,213 100,679
Prepaid expenses and other current assets 1,470 2,738
Restricted cash 9,221 25,339
Certificates of deposit | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Prepaid expenses and other current assets 0 0
Restricted cash 0 0
Certificates of deposit | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 73,213 100,679
Prepaid expenses and other current assets 1,470 2,738
Restricted cash 9,221 25,339
Certificates of deposit | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Prepaid expenses and other current assets 0 0
Restricted cash 0 0
Asset-backed securities | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 33,655 114,599
Asset-backed securities | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Asset-backed securities | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 33,655 114,599
Asset-backed securities | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
U.S. agency bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 15,992  
U.S. agency bonds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
U.S. agency bonds | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 15,992  
U.S. agency bonds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Non-U.S. government and supranational bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 15,985  
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  
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 15,985  
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  
Money market funds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 316,736 214,413
Money market funds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 316,736 214,413
Money market funds | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Money market funds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Commercial paper | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 78,479 105,354
Commercial paper | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Commercial paper | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 78,479 105,354
Commercial paper | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Certificates of deposit | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 12,010 2,914
Certificates of deposit | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Certificates of deposit | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 12,010 2,914
Certificates of deposit | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Corporate bonds | Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,347 3,791
Corporate bonds | Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Corporate bonds | Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 3,347 3,791
Corporate bonds | Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 0 $ 0
v3.20.2
Fair Value of Financial Instruments - Fair Value of Marketable Securities by Contractual Maturity (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Cash and Cash Equivalents [Abstract]  
Due in one year or less $ 731,474
Due after one to five years 264,918
Total $ 996,392
v3.20.2
Commitments and Contingencies (Details)
ft² in Thousands, $ in Millions
1 Months Ended
Aug. 31, 2020
USD ($)
Sep. 30, 2020
USD ($)
Dec. 31, 2019
USD ($)
Mar. 31, 2019
USD ($)
ft²
Commitments and Contingencies Disclosure [Abstract]        
Area of office space (in sqft) | ft²       490
One-time payment for lease termination $ 89.5      
Noncancelable minimum lease payments not yet commenced       $ 440.0
Secured letters of credit outstanding   $ 8.1 $ 25.5  
v3.20.2
Share-Based Compensation - Narrative (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Grant-date fair value of stock options vested $ 2.5 $ 2.1
Aggregate intrinsic value of stock options exercised $ 719.0 $ 5.8
Stock options granted (in shares) 1,130,000 0
Unrecognized share-based compensation expense $ 764.3  
Weighted-average recognition period for unrecognized share-based compensation expense 3 years 1 month 6 days  
2009 Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares reserved for issuance (in shares) 0  
2009 Plan | Stock Options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expiration period 10 years  
2009 Plan | RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expiration period 7 years  
2019 Plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Percentage of outstanding shares, additional reserve 5.00%  
2019 Plan | Class A    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Shares reserved for issuance (in shares) 100,443,058  
2019 Plan | Stock Options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expiration period 10 years  
v3.20.2
Share-Based Compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Shares      
Beginning balance (in shares) 56,966,000    
Granted (in shares) 1,130,000 0  
Exercised (in shares) (28,855,000)    
Ending balance (in shares) 29,241,000    
Exercisable (in shares) 28,322,000    
Weighted-Average Exercise Price      
Beginning balance (in dollars per share) $ 2.25    
Granted (in dollars per share) 22.35    
Exercised (in dollars per share) 2.25    
Ending balance (in dollars per share) 3.03    
Exercisable (in dollars per share) $ 2.41    
Weighted-Average Remaining Contractual Term, Outstanding 3 years 1 month 6 days 3 years 6 months  
Weighted-Average Remaining Contractual Term, Exercisable 2 years 10 months 24 days    
Aggregate Intrinsic Value, Outstanding $ 1,124,964   $ 933,299
Aggregate Intrinsic Value, Exercisable $ 1,107,358    
v3.20.2
Share-Based Compensation - Restricted Stock Unit Activity (Details) - Restricted Stock Units and Restricted Stock Awards Outstanding
shares in Thousands
9 Months Ended
Sep. 30, 2020
$ / shares
shares
Shares  
Beginning balance (in shares) | shares 56,791
Granted (in shares) | shares 29,060
Released (in shares) | shares (17,105)
Forfeited (in shares) | shares (9,111)
Ending balance (in shares) | shares 59,635
Weighted Average Grant Date Fair Value  
Beginning balance (in dollars per share) | $ / shares $ 20.19
Granted (in dollars per share) | $ / shares 17.99
Released (in dollars per share) | $ / shares 19.39
Forfeited (in dollars per share) | $ / shares 18.82
Ending balance (in dollars per share) | $ / shares $ 19.55
v3.20.2
Share-Based Compensation - Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total share-based compensation $ 91,632 $ 130,288 $ 234,801 $ 1,265,581
Cost of revenue        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total share-based compensation 2,298 1,568 6,049 29,740
Research and development        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total share-based compensation 61,357 83,539 156,621 794,161
Sales and marketing        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total share-based compensation 11,958 21,243 23,803 223,400
General and administrative        
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]        
Total share-based compensation $ 16,019 $ 23,938 $ 48,328 $ 218,280
v3.20.2
Net Loss Per Share Attributable to Common Stockholders - Calculation of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Numerator:        
Net loss attributable to common stockholders $ (94,220) $ (124,732) $ (336,164) $ (1,325,653)
Denominator:        
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) 603,490 546,126 588,895 319,490
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) $ (0.16) $ (0.23) $ (0.57) $ (4.15)
Class A        
Numerator:        
Net loss attributable to common stockholders $ (75,035) $ (38,702) $ (242,731) $ (336,971)
Denominator:        
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) 480,606 169,452 425,218 81,212
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) $ (0.16) $ (0.23) $ (0.57) $ (4.15)
Class B        
Numerator:        
Net loss attributable to common stockholders $ (19,185) $ (86,030) $ (93,433) $ (988,682)
Denominator:        
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted (in shares) 122,885 376,674 163,677 238,278
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) $ (0.16) $ (0.23) $ (0.57) $ (4.15)
v3.20.2
Net Loss Per Share Attributable to Common Stockholders - Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Loss Per Share (Details) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Weighted-average anti-dilutive shares of common stock (in shares) 98,921 140,072 109,013 277,153
Redeemable convertible preferred stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Weighted-average anti-dilutive shares of common stock (in shares) 0 0 0 127,642
Outstanding stock options        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Weighted-average anti-dilutive shares of common stock (in shares) 35,226 76,334 44,659 76,447
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) 63,695 63,738 64,353 72,961
Redeemable convertible preferred stock warrants        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Weighted-average anti-dilutive shares of common stock (in shares) 0 0 0 103
v3.20.2
Income Taxes (Details)
$ in Millions
Jun. 22, 2020
USD ($)
Income Tax Disclosure [Abstract]  
Reduction in deferred tax assets related to net operating losses $ 24.4
v3.20.2
Geographical Information (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2020
Sep. 30, 2019
Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]          
Total revenue $ 442,616 $ 279,703 $ 987,041 $ 742,863  
Total property and equipment, net and operating lease right-of-use assets 241,097   241,097   $ 280,243
United States          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Total revenue 367,998 247,222 827,220 660,754  
Total property and equipment, net and operating lease right-of-use assets 227,517   227,517   266,763
International          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Total revenue 74,618 $ 32,481 159,821 $ 82,109  
Total property and equipment, net and operating lease right-of-use assets $ 13,580   $ 13,580   $ 13,480