Pinterest, Inc. Class A Common Stock

Innovation and product development · Product development and randd investment risks

Unless we improve existing and develop new measurement tools that better showcase our platform's effectiveness, some advertisers may view our products or platform as experimental and may devote less advertising spend on our platform. We may not always be able to develop tools that effectively and efficiently meet the needs of advertisers.

Customer and revenue · Revenue concentration in specific products or segments

A substantial portion of our revenue is derived from a small number of advertisers and is currently concentrated in certain verticals, particularly retail and CPG.

Customer and revenue · Changing customer preferences and behavior

The insights on user behavior we provide to advertisers may not yield effective results for the advertisers and as a result, they may reduce or stop their spend on our platform. Advertisers will not do business with us if they do not believe that advertisements on our platform are effective in meeting their campaign goals.

Customer and revenue · Customer retention and subscription renewal

Most of our advertisers do not have long-term advertising commitments with us. Many of our advertisers spend a relatively small portion of their overall advertising budget with us. To increase the number of advertisers and increase the portion of the advertising budget that our existing advertisers spend with us, we must invest in new tools and technology and/or expand our sales force.

Customer and revenue · Customer concentration and key customer dependence

A substantial portion of our revenue is derived from a small number of advertisers and is currently concentrated in certain verticals, particularly retail and CPG. Our business, revenue and financial results could be harmed by the loss of, or a deterioration in our relationship with, any of our largest advertisers or with any advertising agencies or the large media corporations that control them.

Market position and competition · Competitive pressure and market share loss

We face significant competition to attract, retain and engage users and for their time and attention. We compete with large, established companies such as Amazon, Meta (including Instagram), Google (including YouTube), Snap, Reddit, TikTok and X, which provide their users with a variety of online products, services, content and advertising offerings.

Strategic execution · Merger acquisition and divestiture risks

We may acquire other businesses, talent or technology as part of our business strategy. Any acquisitions will require significant time and resources, and we may not be able to manage the process successfully. If we fail to successfully integrate acquisitions, the business, revenue and financial results of the combined company could be harmed.

Customer and revenue · Revenue concentration in specific products or segments

Substantially all of our revenue is generated from third-party advertising. A substantial portion of our revenue is derived from a small number of advertisers and is currently concentrated in certain verticals, particularly CPG and retail.

Customer and revenue · Customer retention and subscription renewal

If we fail to add new users or retain or recover users, or if users engage less with us, our business, revenue and financial results could be harmed. Our ability to serve advertisements on our platform depends on the size and engagement of our user base.

Digital transformation and innovation · Artificial intelligence and automation

We use machine learning and AI technologies in our products and services. The continued integration of any AI technologies into our products can result in new or enhanced governmental or regulatory scrutiny, intellectual property claims, litigation, confidentiality or security risks, ethical concerns, negative user perceptions as to automation and AI.

Technology infrastructure · Cloud services and data center operations

Our business depends on our ability to maintain and scale our technology infrastructure, including speed and availability of our service. A substantial portion of our technology infrastructure is provided by third parties. We depend on Amazon Web Services for the vast majority of our compute, storage, data transfer and other services.

Cybersecurity and data protection · Third party data security and vendors

We allow users to authenticate with our service through third-party login providers. If these third parties discontinue these tools or experience a breach or outage in their platform, user retention, growth or engagement could decline.

Cybersecurity and data protection · Data breaches and cyber attacks

As a social media company, we are frequently targeted by cybersecurity attacks because we receive, process, use, store, and share digitally large amounts of data. There can be no assurance that any cybersecurity attack or incident will not be material or ultimately result in significant legal, financial, and reputational harm.

Reputation and brand · Brand damage and negative publicity

Our business depends on a strong brand and reputation. Our brand and reputation can be negatively affected by the content or actions of our users that are deemed to be harmful or inappropriate, by adverse publicity relating to us or to social media platforms in general, or by the actions of our advertisers.

Core operations · Operational disruption and business continuity

Our systems and operations are vulnerable to damage, delays or interruptions from fire, flood, power loss, earthquakes, the effects of climate change, and other events beyond our control. The substantial majority of our employees are located in California, which has historically experienced climate-related events including drought, wildfires and power shut-offs.

Economic and market conditions · Economic recession and downturns

Adverse global economic and financial events, such as epidemics, pandemics, recession or fears of recession, inflation, and supply chain issues, have caused, and could in the future, continue to cause disruptions and volatility in global financial markets and adversely impact the ability and willingness of companies to spend on advertising.

International and currency · International operations and emerging markets

We continue to develop and evolve our international growth strategy. We are subject to a variety of risks inherent in doing business internationally, including political, social and economic instability, selective or inconsistent government regulatory action, fluctuations in currency exchange rates, and compliance with multiple tax jurisdictions.

Credit and liquidity · Debt service and covenant compliance

Our revolving credit facility contains financial covenants and other restrictions on our actions that may limit our operational flexibility. If we fail to comply with the covenants, lenders would have a right to terminate the commitments to provide additional loans and declare all outstanding loans due and payable.

Legal and litigation · Intellectual property disputes

We are currently involved in, have been subject to, and expect to be subject in the future to actual and threatened litigation with respect to third-party patents, trademarks, copyrights and other intellectual property. Companies in the internet, technology and media industries frequently enter into litigation based on allegations of infringement or other violations of intellectual property rights.

Data and privacy · Data protection and privacy laws

We receive, process, store, use and share data, some of which contains personal information. We are subject to GDPR which provides for significant penalties for non-compliance, including fines of up to 4% of global annual turnover. Other states have also enacted privacy laws similar to the CCPA, which may require us to modify our data processing practices and policies.