PINTEREST INC
For the period ended Mar 31, 2025. Filed May 8, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 8, 2025
PINS$18.96-4.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001506293-24-000182
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001506293-25-000108
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 94 previous paragraphs and 109 current paragraphs.
51 unchanged; 25 reworded; 32 added; 15 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (32)
Current report
Overview of First Quarter Results
Current report
•Revenue was $855.0 million, an increase of 16% on a reported basis and 17% on a constant currency basis compared to the three months ended March 31, 2024.
Current report
•Share-based compensation expense was $187.4 million, an increase of $25.0 million compared to the three months ended March 31, 2024.
Current report
•Net income was $8.9 million and Adjusted EBITDA was $171.6 million.
Current report
•Net cash provided by operating activities was $363.7 million and free cash flow was $356.4 million.
Current report
•Cash, cash equivalents and marketable securities was $2,615.2 million.
Current report
•Headcount was 4,778.
Current report
To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we consider certain non-GAAP financial measures, as described below.
Current report
We use constant currency revenue to evaluate our operating and financial results. We calculate constant currency revenue by translating our current period revenue using the corresponding prior period’s monthly exchange rates for currencies other than the U.S. dollar. We believe constant currency revenue provides useful information to investors because it excludes the effects of foreign currency volatility that are not indicative of our core operating results.
Current report
We present free cash flow because we believe it provides useful information to investors about the amount of cash generated from operations, after purchases of property and equipment, that can be used to strengthen our balance sheet or invest in our business among other things. We define free cash flow as net cash provided by operating activities less purchases of property and equipment. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.
Current report
•Adjusted EBITDA excludes:
Current report
•Constant currency revenue excludes the effect of changes in foreign currency exchange rates, which have an actual effect on our operating results; and
Current report
•Free cash flow does not reflect our future contractual commitments arising from purchases of property and equipment.
Current report
In addition, these non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP, and may differ from similarly titled measures used by other companies (if used at all), which reduces their usefulness as comparative measures.
Current report
Adjusted EBITDA
Current report
(1)We began excluding payroll tax expense related to share-based compensation from Adjusted EBITDA in the fourth quarter of 2024 because these taxes are variable due to our stock price and other factors outside our control and therefore are not reflective of our ongoing business operations or the underlying trends in our business. Accordingly, although payroll tax expense related to share-based compensation is a cash expense that we will continue to incur in the future, we believe excluding this expense provides investors with a better understanding of the performance of our core business and serves as a tool for investors to use in comparing our core business operating results over multiple periods with other companies in our industry. Prior period amounts have been restated to conform to this presentation.
Current report
Constant currency revenue
Current report
The following table presents revenue and period-over-period changes on an as reported and constant currency basis (in thousands, except percentages):
Current report
(1)On a constant currency basis, revenue for the three months ended March 31, 2025 was $865.1 million due to a $10.1 million unfavorable impact of changes in foreign exchange rates.
Current report
Free cash flow
Current report
The following table presents a reconciliation of net cash flows provided by operating activities, the most directly comparable financial measure calculated and presented in accordance with GAAP, to free cash flow (in thousands):
Current report
Sales and marketing for the three months ended March 31, 2025 increased by $27.6 million compared to the three months ended March 31, 2024. The increase was primarily due to a $8.4 million increase in marketing expenses and a 9% increase in personnel expenses due to higher headcount.
Current report
General and administrative for the three months ended March 31, 2025 decreased by $1.1 million compared to the three months ended March 31, 2024. The decrease was primarily due to a $7.9 million decrease in outsourced services costs, offset by a 10% increase in personnel expenses due to higher headcount.
Current report
Benefit from income taxes
Current report
Benefit from income taxes was primarily due to excess tax benefits from share-based compensation for the three months ended March 31, 2025, and due to losses generated in U.S. federal, state and certain foreign jurisdictions for the three months ended March 31, 2024.
Current report
Net income and Adjusted EBITDA
Current report
(1)See “Non-GAAP Financial Measure” for more information and for a reconciliation of net cash provided by operating activities, the most directly comparable financial measure calculated and presented in accordance with GAAP, to free cash flow.
Current report
Free cash flow
Current report
Free cash flow increased $12.4 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 and consists of net cash provided by operating activities and purchases of property and equipment. See “Non-GAAP Financial Measures” for more information and for a reconciliation of net cash flows provided by operating activities, the most directly comparable financial measure calculated and presented in accordance with GAAP, to free cash flow.
Current report
Income Taxes
Current report
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 the total deferred tax assets to the amount we believe is more likely than not to be realized. In assessing the need for a valuation allowance, we consider all available evidence, both positive and negative, including past operating results and estimates of future taxable income. In the event that we change our determination as to the amount of deferred tax assets that can be realized, we will adjust our valuation allowance with a corresponding impact to the provision for (benefit from) income taxes in the period in which such determination is made.
Current report
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.
Removed paragraphs (15)
Previous report
Overview of Third Quarter Results
Previous report
•Revenue was $898.4 million, an increase of 18% compared to the three months ended September 30, 2023.
Previous report
•Share-based compensation expense was $208.0 million, an increase of$36.1 million compared to the three months ended September 30, 2023.
Previous report
•Total costs and expenses were $904.3 million.
Previous report
•Net income was $30.6 million.
Previous report
•Adjusted EBITDA was $242.1 million.
Previous report
•Cash, cash equivalents and marketable securities was $2,442.6 million.
Previous report
•Headcount was 4,549.
Previous report
To supplement our condensed consolidated financial statements presented in accordance with GAAP, we consider Adjusted EBITDA, a financial measure which is not based on any standardized methodology prescribed by GAAP.
Previous report
(1)On November 1, 2024, we reached a settlement to resolve pending litigation relating to allegations concerning the early development of Pinterest. We recorded legal settlement expense of $34.7 million, net of insurance proceeds, for the three and nine months ended September 30, 2024, which we have excluded from Adjusted EBITDA because it is non-recurring and not reflective of our ongoing business operations or the underlying trends in our business.
Previous report
Sales and marketing for the three and nine months ended September 30, 2024 increased by $23.1 million and $70.4 million, respectively, compared to the three and nine months ended September 30, 2023. These increases were primarily due to $6.5 million and $16.8 million respective increases in share-based compensation expense, 6% and 6% respective increases in personnel expenses, higher outsourced services costs and for the nine months ended September 30, 2024, an increase of $28.1 million in marketing expenses.
Previous report
General and administrative for the three months ended September 30, 2024 increased by $34.5 million compared to the three months ended September 30, 2023 primarily due to a legal settlement of $34.7 million, net of insurance proceeds. General and administrative for the nine months ended September 30, 2024 decreased by $54.4 million, primarily due to $119.4 million of restructuring charges in 2023, offset by a legal settlement of $34.7 million, net of insurance proceeds, a $16.0 million increase in legal-related expenses and a $12.7 million increase in non income-based taxes compared to the nine months ended September 30, 2023.
Previous report
Provision for (benefit from) income taxes for all periods presented was primarily due to the income (losses) generated in U.S. federal, state and certain foreign jurisdictions. All periods include the effects of the capitalization and amortization of research and development expenses as required by the 2017 Tax Cuts and Jobs Act.
Previous report
Given our recent history of generating net income in the U.S., we believe that there is a reasonable possibility that sufficient positive evidence may become available to allow us to determine that a significant portion of the valuation allowance recorded against our U.S. deferred tax assets could be released within the next twelve months. The reversal would result in the recognition of material U.S. deferred tax assets and a corresponding income tax benefit estimated to be $1.5 billion to $1.7 billion in the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change based on our actual operating results.
Previous report
Net Income (Loss) and Adjusted EBITDA
Reworded paragraphs (25)
Previous wording
•Monthly active users ("MAUs") were 537 million, an increase of 11% compared to September 30, 2023.
Current wording
•Monthly active users ("MAUs") were 570 million, an increase of 10% compared to March 31, 2024.
Previous wording
•Loss from operations was $5.9 million.
Current wording
•Loss from operations was $35.5 million, a decrease of$18.9 million compared to the three months ended March 31, 2024.
Previous wording
For the three months ended September 30, 2024, global ARPU was $1.70, which represents an increase of 5% compared to the three months ended September 30, 2023. For the three months ended September 30, 2024, U.S. and Canada ARPU was $7.31, an increase of 13%, Europe ARPU was $1.00, an increase of 10%, and Rest of World ARPU was $0.14, an increase of 18% compared to the three months ended September 30, 2023.
Current wording
For the three months ended March 31, 2025, global ARPU was $1.52, which represents an increase of 5% compared to the three months ended March 31, 2024. For the three months ended March 31, 2025, U.S. and Canada ARPU was $6.54, an increase of 8%, Europe ARPU was $1.00, an increase of 17%, and Rest of World ARPU was $0.14, an increase of 29% compared to the three months ended March 31, 2024.
Previous wording
We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance.
Current wording
We use Adjusted EBITDA to evaluate our operating results and for financial and operational decision-making purposes. We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, payroll tax expense related to share-based compensation, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that it excludes.
Previous wording
We use Adjusted EBITDA to evaluate our operating results and for financial and operational decision-making purposes. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses that it excludes. We also believe Adjusted EBITDA provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects, and allows for greater transparency with respect to key metrics we use for financial and operational decision-making. We are presenting Adjusted EBITDA to assist investors in seeing our operating results through the eyes of management and because we believe that this measure provides an additional tool for investors to use in comparing our core business operating results over multiple periods with other companies in our industry. However, our definition of Adjusted EBITDA may not be the same as similarly titled measures used by other companies.
Current wording
We present these non-GAAP financial measures because we believe they provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We present these non-GAAP financial measures to assist investors in seeing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods with other companies in our industry.
Previous wording
Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), the nearest GAAP equivalent. For example, Adjusted EBITDA excludes:
Current wording
Adjusted EBITDA, constant currency revenue and free cash flow should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures rather than net income (loss), revenue and net cash provided by operations, the nearest GAAP equivalents. For example,
Previous wording
•share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense and an important part of our compensation strategy.
Current wording
•share-based compensation expense and related payroll tax expense, which have been and will continue to be for the foreseeable future, significant recurring expenses and an important part of our compensation strategy.
Previous wording
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net income (loss) and our other financial results presented in accordance with GAAP. The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA (in thousands):
Current wording
The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA (in thousands):
Previous wording
Provision for (Benefit from) Income Taxes. Provision for (benefit from) income taxes consists primarily of income taxes in foreign jurisdictions and U.S. federal and state income taxes adjusted for discrete items.
Current wording
Benefit from income taxes. Benefit from income taxes consists primarily of income taxes in foreign jurisdictions and U.S. federal and state income taxes.
Previous wording
Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance. See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Current wording
Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, payroll tax expense related to share-based compensation, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance. See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Previous wording
Three and Nine Months Ended September 30, 2024 and 2023
Current wording
Three Months Ended March 31, 2025 and 2024
Previous wording
Revenue for the three and nine months ended September 30, 2024 increased by $135.2 million and $418.2 million, respectively, compared to the three and nine months ended September 30, 2023 primarily due to growth in demand from our consideration and conversion objectives. Revenue growth was primarily driven by 5% and 8% respective increases in ARPU supported by an 11% increase in MAUs for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023. The number of advertisements served increased by 41% and 38% while the price of advertisements decreased by 17% and 13% for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively.
Current wording
Revenue for the three months ended March 31, 2025 increased by $115.0 million compared to the three months ended March 31, 2024 primarily due to growth from our awareness and conversion objectives. Revenue on a constant currency basis increased by 17% compared to the three months ended March 31, 2024. Revenue growth was primarily driven by a 5% increase in ARPU supported by a 10% increase in average MAUs. The number of advertisements served increased by 49% while the price of advertisements decreased by 22% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Previous wording
Revenue based on our estimate of the geographic location of our users increased by 16% and 19% in U.S. and Canada to $719.5 million and $1,984.2 million, Europe revenue increased by 20% and 24% to $136.6 million and $397.3 million, and Rest of World revenue increased by 38% and 32% to $42.3 million and $110.6 million for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively.
Current wording
Revenue based on our estimate of the geographic location of our users increased by 12% in U.S. and Canada to $663.5 million, Europe revenue increased by 24% to $146.7 million, and Rest of World revenue increased by 49% to $44.9 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Previous wording
Cost of revenue for the three and nine months ended September 30, 2024 increased by $16.5 million and $42.7 million, respectively, compared to the three and nine months ended September 30, 2023 primarily due to increased users and engagement offset by infrastructure efficiency initiatives.
Current wording
Cost of revenue for the three months ended March 31, 2025 increased by $18.2 million compared to the three months ended March 31, 2024 primarily due to increased users and engagement.
Previous wording
Research and development for the three and nine months ended September 30, 2024 increased by $62.0 million and $119.4 million, respectively, compared to the three and nine months ended September 30, 2023. These increases were primarily due to 26% and 17% respective increases in personnel expenses and $25.7 million and $53.7 million respective increases in share-based compensation expense.
Current wording
Research and development for the three months ended March 31, 2025 increased by $51.4 million compared to the three months ended March 31, 2024. The increase was primarily due to a 22% increase in personnel expenses due to higher headcount and a $17.1 million increase in share-based compensation expense.
Previous wording
Interest and other income (expense), net for the three and nine months ended September 30, 2024 increasedby $13.6 million and $18.2 million, respectively, compared to the three and nine months ended September 30, 2023, primarily due to higher returns on our marketable securities as a result of higher interest rates and higher invested balances as well as foreign currency exchange gains for the three months ended September 30, 2024.
Current wording
Interest and other income (expense), net for the three months ended March 31, 2025 increased by $5.1 million compared to the three months ended March 31, 2024. The increase was primarily due to higher foreign currency exchange gains offset by lower returns on our cash equivalents and marketable securities as a result of lower interest rates.
Previous wording
Net income for the three and nine months ended September 30, 2024 was $30.6 million and $14.6 million compared to net income of $6.7 million for the three months ended September 30, 2023 and a net loss of $236.8 million for the nine months ended September 30, 2023. Adjusted EBITDA was $242.1 million and $535.0 million for the three and nine months ended September 30, 2024 compared to $184.7 million and $318.7 million for the three and nine months ended September 30, 2023, due to the factors described above. See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Current wording
Net income for the three months ended March 31, 2025 was $8.9 million compared to net loss of $24.8 million for the three months ended March 31, 2024, and Adjusted EBITDA was $171.6 million for the three months ended March 31, 2025 compared to $126.1 million for the three months ended March 31, 2024, due to the factors described above. See “Non-GAAP Financial Measure” for more information and for a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA.
Previous wording
We finance our operations primarily through payments received from our customers. Our primary uses of cash are personnel-related costs and the cost of hosting our website and mobile application. As of September 30, 2024, we had $2,442.6 million in cash, cash equivalents and marketable securities. Our cash equivalents and marketable securities are primarily invested in short-duration fixed income securities, including government and investment-grade corporate debt securities and money market funds. As of September 30, 2024, $162.4 million of our cash and cash equivalents was held by our foreign subsidiaries.
Current wording
We finance our operations primarily through payments received from our customers. Our primary uses of cash are personnel-related costs and the cost of hosting our website and mobile application. As of March 31, 2025, we had $2,615.2 million in cash, cash equivalents and marketable securities. Our cash equivalents and marketable securities are primarily invested in short-duration fixed income securities, including government and investment-grade corporate debt securities and money market funds. As of March 31, 2025, $176.6 million of our cash and cash equivalents was held by our foreign subsidiaries.
Previous wording
On September 16, 2023, our board of directors authorized a stock repurchase program of up to $1.0 billion of our Class A common stock (the "September 2023 program"). Under the September 2023 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 such other manner as permitted by securities law and as determined by management at such time and in such amounts as management may decide. The September 2023 program does not obligate us to repurchase any specific number of shares and may be modified, suspended or discontinued at any time. The timing, manner, price and amount of any repurchases are determined by management in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. During the nine months ended September 30, 2024, we repurchased and retired 15,894,701 shares of our Class A common stock for an aggregate purchase price of $500.0 million. As of September 30, 2024, $500.0 million remained available for repurchases under the September 2023 program.
Current wording
In November 2024, our board of directors authorized a stock repurchase program of up to $2.0 billion of our Class A common stock. 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 such other 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. The timing, manner, price and amount of any repurchases are determined by management in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. During the three months ended March 31, 2025, we repurchased and retired 4,997,892 shares of our Class A common stock for an aggregate purchase price of $175.0 million at an average price per share of $35.01. As of March 31, 2025, $1,724.8 million remained available for repurchases under the stock repurchase program.
Previous wording
For the nine months ended September 30, 2024 and 2023, our net cash flows were as follows (in thousands):
Current wording
For the three months ended March 31, 2025 and 2024, our net cash flows were as follows (in thousands):
Previous wording
Cash flows from operating activities consist of our net income (loss) adjusted for certain non-cash reconciling items, such as share-based compensation expense, depreciation and amortization, non-cash restructuring charges and changes in our operating assets and liabilities. Net cash provided by operating activities increased by $355.9 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023 primarily due to an increase in our net income and an increase in accrued expenses and other liabilities due to timing of payments to vendors.
Current wording
Cash flows from operating activities consist of our net income (loss) adjusted for certain non-cash reconciling items, such as share-based compensation expense, depreciation and amortization, deferred income taxes, net amortization of investment premium and discount and changes in our operating assets and liabilities. Net cash provided by operating activities increased by $7.6 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 primarily due to an increase in our net income as adjusted for certain non-cash items offset by a decrease in accrued expenses and other liabilities due to timing of payments to vendors.
Previous wording
Cash flows from investing activities consist of capital expenditures for improvements to new and existing office spaces and acquisitions of businesses. We also actively manage our operating cash and cash equivalent balances and invest excess cash in short-duration marketable securities, the sales and maturities of which we use to fund our ongoing working capital requirements. Net cash used in investing activities increased by $194.1 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, primarily due to an increase in net purchases of marketable securities.
Current wording
Cash flows from investing activities consist of capital expenditures for improvements to new and existing office spaces. We also actively manage our operating cash and cash equivalent balances and invest excess cash in short-duration marketable securities, the sales and maturities of which we use to fund our ongoing cash requirements. Net cash provided by (used in) investing activities increased by $15.1 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in maturities of marketable securities offset by an increase in purchases of marketable securities.
Previous wording
Cash flows from financing activities consist of tax remittances on release of RSUs and RSAs, repurchases of our Class A common stock and proceeds from the exercise of stock options. Net cash used in financing activities increased by $46.0 million for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, primarily due to an increase in tax remittances on release of RSUs and RSAs due to an increase in our stock price.
Current wording
Cash flows from financing activities consist of tax remittances on release of RSUs and RSAs, repurchases of our Class A common stock and proceeds from the exercise of stock options. Net cash used in financing activities increased by $177.7 million for the three months ended March 31, 2025 compared to the three months ended March 31, 2024, primarily due to an increase in repurchases of our Class A common stock.
Previous wording
("CPD") basis or views a video ad contracted on a cost per view ("CPV") basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees. We typically bill customers on a CPC, CPM, CPV or CPD basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant.
Current wording
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 or CPD basis or views a video ad contracted on a CPV basis. We recognize revenue over the service period for ads contracted on a CPD basis, which do not contain minimum impression guarantees. We typically bill customers on a CPC, CPM, CPV or CPD basis, and our payment terms vary by customer type and location. The term between billing and payment due dates is not significant.
Previous wording
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.
Current wording
We recognize revenue only after satisfying our contractual performance obligations.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Because of these limitations, you should consider these non-GAAP financial measures alongside other financial performance measures, and our other financial results presented in accordance with GAAP.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Provision for (Benefit from) Income Taxes
Previous report — wording carried elsewhere
In November 2024, our board of directors authorized a new stock repurchase program of up to $2.0 billion of our Class A common stock (the "November 2024 program") and canceled the September 2023 program under which $500.0 million had remained available for repurchase. Under the November 2024 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 such other manner as permitted by securities law and as determined by management at such time and in such amounts as management may decide. The November 2024 program does not obligate us to repurchase any specific number of shares and may be modified, suspended or discontinued at any time. The timing, manner, price and amount of any repurchases are determined by management in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. We have not repurchased any of our Class A common stock under the November 2024 program as of November 7, 2024.
Previous report — wording carried elsewhere
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") or cost per day