How Pinterest Makes Money

From the creator

Pinterest has 265 million monthly users who bookmark images they find online by "pinning" them to themed inspirations "boards." Pinterest makes money by targeting ads at these users, selling "promoted pins" and click-to-buy shopping ads to businesses and hundreds of retail partners. A note on Pinterest's $10B valuation: This represents the company's market cap vs its enterprise value of $11B. Pinterest will debut on the stock market on Thursday at an initial valuation above $10 billion. In its IPO filing, the company said it lost $63 million last year on revenue of $756 million in revenue, with revenue growth of 60%. The social network has 265 million monthly users who bookmark images they find online by “pinning” them to themed inspirations “boards.” That large user base is two-thirds women, and is highly valuable to advertisers. Pinterest sells targeted ads called “promoted pins” that appear at the top of users’ feeds and search results. Those ads brought in about $3 per user in 2018. It also sells click-to-buy shopping ads to businesses and hundreds of retail partners. Pinterest was growing rapidly in 2012, but a recent CNBC report found that expansion was slowed by a cautious and sometimes overly passive culture at the company. Pinterest raised $1.43 billion in its IPO after pricing the offering at $19 a share on Wednesday, valuing the company at $10 billion. Pinterest, which is expected to start trading on Thursday on the New York Stock Exchange, had originally g

Published 2019-04-18 · Watch on YouTube ↗
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