Pinterest Announces Termination of Future Lease Contract
SAN FRANCISCO–(BUSINESS WIRE)–Pinterest, Inc (NYSE: PINS) announces that it has terminated its lease for approximately 490,000 square feet of office space to be constructed near its current headquarters campus in San Francisco, California. Instead, the company’s present plan is to continue to lease its current buildings in downtown San Francisco and remain an active member of the local community.
This action is intended to support a more diverse and geographically distributed workforce at Pinterest. “As we analyze how our workplace will change in a post-COVID world, we are specifically rethinking where future employees could be based,” said Todd Morgenfeld, CFO and Head of Business Operations of Pinterest. “A more distributed workforce will give us the opportunity to hire people from a wider range of backgrounds and experiences.”
The agreement involved a one-time payment of $89.5 million in the third quarter of 2020. This will be reflected in Pinterest’s financial statements as a GAAP general and administrative expense, to be filed with its Quarterly Report on Form 10-Q for the period ended September 30, 2020. As a result of the termination, Pinterest will no longer be subject to future minimum lease payments of approximately $440 million as disclosed in prior filings.
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Pinterest is a visual discovery engine more than 400 million people use each month to find inspiration for their lives, including recipes, home and style ideas, travel destinations and more. People have saved more than 240 billion Pins across a range of interests, which others with similar tastes can discover through search and recommendations. Located in San Francisco, Pinterest launched in 2010 and has hundreds of millions of monthly active users around the world. Available on iOS and Android, and at pinterest.com.