Pinterest files for IPO after earning $750 million in 2018 revenue
The social media app officially files for an IPO after increasing revenue last year.
One of the most eagerly awaited 2019 initial public offerings (IPO’s) is coming to Wall Street in 2019. Pinterest officially filed for an IPO with the US Securities Exchange Commission (SEC).
How did Pinterest increase revenue in 2018?
Pinterest earned 60% more revenue over the past year, $750 million in 2018. Though the social media app hasn’t made a profit, Pinterest increased revenue by partnering with corporations that visitors may search for in order to increase sales for the corporation and for Pinterest. Pinterest users or ‘pinners’ can pin an picture of an item they like, then click and purchase the item. That feature has likely helped drive up Pinterest’s profits.
How is Pinterest different from other unicorn IPO's?
While Pinterest is primarily thought of as a social media app like Facebook, Pinterest says it is a combination of social media app, e-commerce site like Amazon, and a search engine like Google. Pinterest users often search for items on the site similar to looking on a search engine.
‘We primarily compete with consumer internet companies that are either tools (search, e-commerce) or media (newsfeeds, video, social networks),’ said Pinterest in its IPO filing.
‘In this way, Pinterest is unique. Most consumer internet companies are either tools (search, ecommerce) or media (newsfeeds, video, social networks). Pinterest is not a pure media channel, nor is it a pure utility. It’s a media-rich utility that satisfies both emotional and functional needs by solving a widespread consumer problem that is unaddressed by many other platforms. We call it discovery,’ continued Pinterest.
What’s next for Pinterest’s IPO?
Pinterest has yet to reveal how much shares will be sold for in its IPO filing. Underwriters for the IPO include Goldman Sachs and JPMorganChase. The IPO will be listed in the New York Stock Exchange under ‘PINS.’
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