Pinterest is expected to file for its Initial Public Offering in April of this year as it has already submitted its S-1 documents. The social networking company has been in operation for almost a decade now. The S-1 is a crucial document that all companies in America need to file before their IPO offering.
Pinterest was valued at $12.3 billion back in 2017. The company took its first official step towards an IPO when it hired JP Morgan Chase and Goldman Sachs as their lead underwriters for this NYSE stock offering.
Pinterest is based out of San Francisco, and the company will trade its shares under the name “PINS”. The company posted net revenues of $755.9 in the financial year of 2018 that ended on December 31, which was up from the revenue of $472.8 million posted in the year of 2017. Pinterest has almost doubled its user count since early 2016, boasting 265 million users as of late 2018. Even though the company has posted an impressive revenue count for 2018, it was still posting a total net loss of $62.9 million for the financial year of 2018. This figure is lower than the net loss of $130 million posted in 2017.
The total revenue for Pinterest since early 2016 has been $1.525 billion.
The company managed to raise $1.5 billion from VC firms which include the likes of FirstMark Capital, Valiant Capital Partners, and Fidelity. The S-1 document failed to mention the shareholder percentages of each of these entities.
Pinterest has an active user base of 250 million monthly users and brought in $700 million in advertising revenue for the year of 2018. This ad revenue figure posted a 50 percent increase from the previous year of 2017. The firm employs around 1600 employees scattered around 13 cities. Pinterest has operations in cities such as Tokyo, Chicago, Berlin, Paris, and São Paulo. According to the IPO filing papers, Pinterest is slated to build a brand new headquarters in San Francisco, which will be near its current HQ building.
Pinterest’s global average revenue per user stood at $3.14 as of December 31, 2018, which is a 25 percent increase over the previous year. The company’s US average revenue per user stood at an impressive $9.04, which is a 47 percent increase over the previous year.
Pinterest gained mainstream popularity back in 2010 when it emerged as a social networking site where users shared inspiring quotes and images. Since then, the company started to monetize the site by means of showing advertisement on its platform, which has helped them to stay afloat.
Pinterest is just one of many billion dollar companies that decided to go public in 2019. The company is looking to capitalize on the IPO hype generated by ride-sharing companies such as Uber and Lyft. Although analysts predict that Pinterest’s IPO might be negatively impacted as it is branded as a social media company. The privacy concerns raised by Facebook and Twitter have already dampened their stock prices, and with Pinterest being a similar company to Facebook, its prices might be affected by industry concerns about social networking apps.