Pinterest Inc. is a social media platform. This Company allows members observe, share ideas and contents based on grids of “pinned” images. Pinterest competes against Facebook. Both social media allows members to share ideas, links, and e-commerce like Amazon, eBay and others.
The Pinterest Inc. Company commenced as a private startup around 2016. The underwriters for Pinterest IPO include Allen & Co., Goldman Sachs and JP Morgan. Around 2017, Pinterest Inc became a Francisco-based Company. It became public using trade symbol “PINS” and joined the New York Stock Exchange in 2017. Around the same time, Pinterest Inc was valuated as $12.3 billion. The investors who joined the Pinterest Inc. include Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital, and Fidelity and SV Angel. At a later date, the valuation rose to $1.5 billion.
Originally, according to the S-1, Pinterest Inc had revenue of $755.9 million (31st December 2018). This valuation was more than revenue $472.8 million (2017) that was double of $265 million (2016). Around September 2018, Pinterest Inc. reported that the Company had 250 million monthly active members. These users were accessing the site via desktops, laptops and mobile apps. The numbers of users were up 25% from the previous year (2017). Also, most users were logging in from outside the US. In 2018, it was estimated that Pinterest Inc earned $700 million from advertisements. Also, there were 50% more active members who took advantage of the new formats and options for marketing.
On Monday, 8th April 2019, Pinterest Inc. filed an updated S-1. There, the price range was fixed as $15-17 per share for the sale of 75 million shares. As a result, Pinterest Inc would be able to make profit from $1.125 billion to $1.275 billion. In order to calculate valuation, one should consider Class A, Class B, and options of Class B. One should account for outstanding summation of 664.84 million shares. The valuation of Pinterest Inc. is at $10.64 billion (midrange- $16/share); $10 billion (full range at $15/share) and $11.3 billion (business with unproven economics at $17/share).