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Pinterest Preparing For Possible April IPO Launch

Pinterest Preparing For Possible April IPO Launch
In the path to its preparation for the launch of its Initial Public Offering (IPO), the United States based visual search engine which has been operational since a decade now, Pinterest unveiled its S-1.
It was two months ago that Pinterest which was been valued at about $12.3 billion in 2017, had hired Goldman Sachs and JPMorgan Chase as lead underwriters for its NYSE IPO listing which was its first major step towards launch of the IPO. The company now is offering investors and analysts a more in-depth view of its financial performance.
In the year ending December 31, 2018, this San Francisco-based company generated revenues of $755.9 million compared to the 2017 revenues of $472.8 million. The company would be trading under the ticker symbol of “PINS”. Compared to early 2016, the company has been able to almost double its monthly active user. Late last year, the number stood at 265 million. In the meantime, the company also managed to reduce its net losses from $130 million in 2017 to $62.9 million at the end of 2018.
Since 2016, Pinterest has posted $1.525 billion in revenue in total.
During the years, Pinterest has also been able to raise about $1.5 billion in venture capital from both early and late-stage investors. Bessemer Venture Partners, FirstMark Capital, Andreessen Horowitz, Fidelity and Valiant Capital Partners are among the key stakeholders of the company. The listing documents submitted by the company however do not show the percentage of ownership of stakes of the investors.
According to reports, the company managed to generate about $700 million in ad revenue in 2018 driven by the presence of more than 250 million monthly active users which was a 50 per cent increase year-on-year. The company has a total of 1,600 employees working across 13 cities throughout the world which includes Chicago, London, Paris, São Paulo, Berlin and Tokyo. According to the listing documents filed by Pinterest, the company is preparing to construct its brand new San Francisco headquarters situated close to its current HQ.
In the year ended December 31, 2018, there was a 25 per cent year-on-year increase in the global average revenue per user (ARPU) of the company. Meanwhile the ARPU of the company in the US was at $9.04 which was a 47 per cent year-on-year increase in the same time period.
When Pinterest was launched in 2010, it was considered to be a buzzy social media startup and mobile app that encouraged inspirational images and quotes sharing by its users. Over the years, the company has attempted to monetize the platform, which relies on ad revenue to stay afloat, under the leadership of its co-founder and chief executive officer Ben Silbermann. The infrastructure behind its product pins was rebuilt by the company last fall in the efforts of the platform to transform more of its users into shoppers thereby competing with Instagram. Up-to-date pricing and stock information on all product pins were hereby introduced in the app by the update. The product pins linked directly to retailers under a new category called “Products like this” for each of the fashion and home decor pins and other user-friendly tweaks.

Christopher J. Mitchell

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