Pinterest Just Went Public — But Is It Profitable?
IPO Value & Stock Price 2019
The problem? Though these companies are high-profile, in reality they’re not all profitable.
Pinterest IPO: Is the Company Profitable?
Today, our advertising products help businesses reach 'Pinners' across their decision-making journey.” So how does this translate into actual earnings?
This said, the company is still losing money.
It reports that it generated a net loss of $63 million, with adjusted earnings before interest, taxes, and amortization (EBITDA) of $39 million in 2018. In 2017, Pinterest had a net loss of $130 million and EBITDA of $93 million.
However, when compared to Lyft or Uber, Pinterest is losing significantly less money, suggesting that it’s not a total sinkhole.
They have integrated a "buy it" button that allows users to buy products through their platform instead of having to visit third-party sites. E-commerce merchants are also allowed to partner with Pinterest.
Pinterest also has an in-house creative studio, the Pin Factory, which allows advertisers to pay for more appealing promoted pins. For this, they charge “per action,” meaning that marketers don’t pay unless users take a specific desired action.
They currently have 250 million users, or “pinners," each month, according to Investopedia, so compared to other tech startups, the company still has a comfortable profit margin and a pretty bright future.