It seems like Pinterest has decided to go public probably by June or July of 2019 with the launch of its IPO (Initial Public Offering).
The company includes various aspects of interest such as clothing, travel destinations, jewelry or accessories, home decor, recipe ideas, projects, etc. It was launched way back in 2010 without much changes initially. But in the recent times Pinterest has taken an initiative to finally act in order to achieve more.
The nature of the company tends to attract advertisers. This is mostly because the users of the Pinterest app could easily “pin” whatever they like and make it into a list which can further be viewed by their friends or family.
This Pin turns out to be a much more accurate endorsement of any particular product than a “like” on Facebook or even Twitter. These “Buyable Pins” also happen to give an insight into the user’s potential buying behavior. It basically offers the ability to view prices as well as buy the products if they want to.
More Insight –
Further Details on the IPO launch by Pinterest –
The company has grown drastically especially since 2017. This Lifestyle – Planning – Social – Networking – Site has about 200 million monthly active users (as of September 2017).
It has surely taken a long time to make a mark with its private market valuation. But with many new stats from the report shared by CNBC, it looks like Pinterest has finally managed to take the big step –
- The social media company is finally approaching $1 billion in ad revenue as it pushes toward an IPO in mid-2019, according to people familiar with the matter.
- After hitting $500 million in sales in 2017, Pinterest is on pace to almost double that this year, said the people, who asked not to be named because the company’s financials are private.
- Investors are already getting more bullish on Pinterest. Trades on the secondary market value the company at between $13 billion and $15 billion, said people with knowledge of the matter. That is up from a valuation of $12.3 billion at the time of its last financing round in June 2017.
Certain Concerns with the upcoming IPO –
Some of the statistics also noted down few of the main problems in the upcoming IPO launch, such as –
- Reaching $1 billion in revenue will mark a significant milestone, but it’s way below previous estimates. In 2015, TechCrunch reported on leaked financial documents that showed Pinterest was then projecting sales of $2.8 billion by 2018.
- CNBC also mentioned about the previous competition scenario like Snap Inc. Snap went public in 2017. But possibly due to its competition from Facebook’s Instagram, it was difficult for them to gain profit. The stocks went down over 20 % from its initial offering price.
- According to the site’s business webpage, 70 % of its monthly users were women as of September 2017. That is a much greater gender disparity than Twitter or Facebook, which are a bit more even in that regard.
- The platform doesn’t cater to video, which has been a major growth areas for online ads.
With further competition from companies such as Uber or Airbnb, both of which have also decided on going public, hopefully Pinterest gains profit and not loss.