Pinterest managed to attract 250 million active users on monthly basis by mainly focusing on visual content, while other social networks such as Twitter had to compete with Facebook that has over 2.2 billion active users and already has publicly traded shares (FB).
While Facebook remains a solid competition to Pinterest as well, despite the differences in business models of the two companies, Pinterest is preparing to turn its potential and a solid rate of growth into more profitability with launching their IPO.
Pinterest has easily become one of the anticipated IPOs in 2019, this visually-focused social network has become heaven for advertisers and brands of all sorts, which could be turned into more profitability with the upcoming IPO.
What to Expect from the Upcoming Pinterest IPO in 2019?
Pinterest reported 60% of growth in revenue for both 2016 and 2017, while the same reports showcased growth rate of 25% for userbase increases.
Back in 2016, when Pinterest had around 150 million users, the company was able to produce 300 million dollars in revenue, furthermore almost doubling their revenues in 2017 with 200 million users and 500 million dollars in profit.
Due to the fact that Pinterest managed to show an upward trend in both reporting increasing user base and the increasing rate of revenues, estimates provided the company’s IPO with evaluation at 12.3 billion dollars.
It is expected to have the IPO officially issued in April 2019 when the company will be able to showcase its potential as a publicly traded company.
In the meanwhile, Pinterest is working on different strategies that would help the company create stable sources of revenue for the upcoming period, while making partnerships with other brands such as Target.
Many analysts are comparing Pinterest IPO with Snapchat, which is why market watchers are ready to see around 60% of returns for early investors.
Pinterest could publicize its initial public offering as soon as Friday with a view to listing on the New York Stock Exchange next month, reports The Wall Street Journal, citing people familiar with the matter. The San Francisco-based image app is said to have sped up its listing in a red-hot IPO market; Levi Strauss & Co. has just listed, and Lyft, Uber and Slack listings are expected later this year. Pinterest is expected to seek a valuation of at least $12 billion.
Ask any Pinterest power user how much they love
Geoffrey Colon, Head of Microsoft Advertising Brand Studio wrote on Linkedin;
I always find it interesting when social media “strategists” when told of this Pinterest IPO news respond by saying, “There’s no value in a network like that, not enough scale.”
Forget scale for a second. Ask any Pinterest power user how much they love and learn from the platform and you have real users who spend quality time there learning things. Very unlike the platforms overtaken by bots and political turmoil.
Plus Pinterest has been at the forefront of the experience stack. In 2017 they introduced the possibility of shopping for things just by taking a photo of it. It was a combination of AI and photography at least a year before other platforms were throwing around the term. You simply tap the camera icon in the Pinterest app, snap a photo of something you dig — say, your friend’s cool dad sneakers — and it’ll be smart enough to churn out a list of pins with similar-looking sneakers.
This is a very interesting trending topic to watch.
Pinterest Files Confidentially for U.S. IPO
Pinterest Inc. has filed confidentially for a U.S. initial public offering and is expected to seek a valuation for the company of at least $12 billion, according to a person familiar with the matter.
The visual search site could list toward the end of June, said the person, who asked not to be identified because the details aren’t public. A final decision on the San Francisco-based company’s IPO plans hasn’t been made, the person said.
Pinterest, where users post and look for pictures that interest them, is working with Goldman Sachs Group Inc. and JPMorgan Chase & Co. to leawW2d its listing, which could raise about $1.5 billion, people with knowledge of the matter said last month.
The company raised $150 million in a private funding round in 2017 for a total valuation of about $12.3 billion. The confidential filing and potential timing were reported earlier by the Wall Street Journal.
Founded in 2010, Pinterest is among the longest-lived of Silicon Valley’s so-called unicorns — startups with a valuation of more than $1 billion — that are lining up to go public this year or soon after.