Pinterest Revenue and Usage Statistics (2020)

Pinterest is an image search platform, which functions somewhat like an online mood board. Users ‘pin’ images they like to ‘boards’. Images are uploaded by users, and can then be pinned by other users. Users are also served an algorithmic feed based on selected interests. In 2018, an additional more social feed was added, based on followed accounts, presented in chronological order. Both word and image-based Pinterest searches can be conducted. The algorithm is driven by visual and textual data.

Despite this, Pinterest CEO Ben Silbermann has been keen in the past to insist that Pinterest is not a social site as such, but “a catalogue of ideas”, intended to spur users to take creative decisions in the real world. Suffice to say, Silbermann is in a minority, with Pinterest very much treated as and considered a social media platform…

Pinterest was launched by Silbermann and cofounders Paul Sciarra and Evan Sharp in 2010. Silbermann had previously worked in the online advertising group at Google. He and Sciarra had previously unsuccessfully launched an app called Tote, before teaming up with Sharp. Silbermann has reflected that the inspiration for the website came from his childhood love of collecting.

- Advertisement -

The site quickly caught on, becoming one of the 10-biggest social sites in 2011 (despite any objections to this categorisation), breaking the record for time taken to reach 10 million users. The launch of an iPhone app in March 2011 contributed significantly to rapid Pinterest user growth.

Accordingly, it was listed as of Time’s 50 best websites of the year. By March 2012 it ranked behind only Facebook and Twitter in terms of US users (in these pre-Snapchat and Instagram days).

This expansion of the Pinterest userbase came despite the fact that the site operated an invite-only registration policy. This was dropped in August 2012. Around the same time an Android Pinterest app was launched, fostering further growth. User numbers grew from 49 million in February 2013 to 70 million in July of the same year. This would more than double to 150 million by October 2016, with the latest figures (March 2018) showing 291 million active Pinterest users.

Mobile App Data That Helps You Grow

A platform to help your sales, product and advertising teams be smarter and more efficient.

Find out more

Pinterest marketing has become a key channel for businesses, with Pinterest for business accounts offered to companies who want to utilise the platform for these purposes. The first Pinterest revenue came in 2013, when it began offering advertisers these businesses to run ‘promoted pins’. While Pinterest may not offer the biggest audience, it can offer a high conversion rate, with Pinterest users seemingly more influenced to make purchases based on what they’ve seen on the platform than is the case on other platforms. Storefront options are also available to retailers, allowing them to sell directly.

In late March 2019, papers were filed for a Pinterest IPO, following on from the filing of confidential papers the previous month. It was initially thought that a valuation of $12 billion was being sought, in line with a 2017 investment round; and with the market cap of image-based rival Snapchat around this time. Shortly before the IPO it was announced, however, it was announced that the valuation being sought would around $10.6-$11.3 billion ($15-17 per share).

Pinterest went public on April 18 2019 as planned, trading at $19 per share (total value: $12.7 billion). Like many of the other big IPOs, Pinterest’s fortunes have been mixed since then, though it continues to add users and bring in record revenue.

Want to know more about the makeup of Pinterest’s userbase, its financial performance, and engagement levels? Read on to find out.

Table of Contents

Pinterest Overview and Key Statistics

Pinterest User Statistics

Pinterest Usage Statistics

Pinterest Trends

Pinterest for Business

Pinterest Revenue Statistics

Pinterest Overview

Key Pinterest User Statistics

Source: Pinterest

Source: Pew Research Center

Key Pinterest Financial Statistics

Source: Pinterest

Source: Pinterest

Reuters, Macrotrends 

Source: Craft, Crunchbase

Source: Google

Other Key Pinterest Stats 

• 57% of Pinterest MAU are WAU, as of 2018 (Pinterest)
• Over 75% of Pinterest users are from outside the US (Pinterest)
• 42% of American women are Pinterest users (Pew Research Center)
• Pinterest users have cumulatively placed over 200 billion pins (Pinterest)
• 85% of Pinterest usage occurs on mobile apps (Pinterest)
• 600 million visual searches occur monthly on Pinterest (Pinterest)
• Millennial Pinterest users spend 17% more than non-users of the same age (Pinterest)
• Pinterest users in general spend 29% while shopping than non-users (Pinterest)
• 98% of Pinterest users have tried something new they discovered on Pinterest (Pinterest)
• 61% of Pinterest users have purchased something after seeing a promoted pin (Pinterest)
• 85% of female Pinterest users use the app to plan life events (Pinterest)
• Pinterest users are 39% more likely to be active retail shoppers than non-users (Pinterest)
• 48% of US Pinterest users use Pinterest primarily to shop (eMarketer)
• 72% of Pinterest users are inspired to shop when using the platform even if they aren’t looking for anything in particular (Pinterest)
• 84% use the platform when they are undecided on which products to buy (Pinterest)
• 41% of users continue to use Pinterest when shopping in-store (Pinterest)
• There was an 115% increase in product-related pins from early 2017 to September 2018 (Pinterest)
• 78% of Pinterest users say it’s useful to see brand content on the platform (Pinterest)
• Pinterest marketers stand to make $2 for every $1 they spend on the platform (Pinterest)

Pinterest User Statistics

Pinterest reported 367 million active users for Q1 2020, up from 335 million the previous quarter and 291 million a year prior.

Pinterest monthly active users have been climbing healthily over the years, bar something of a blip midway through 2018. Pinterest MAU have not always grown at expected or hoped for levels, however.

The aim to to have risen to 151 million Pinterest users by the end of 2015, for example. This ambitious target was even used by Andreessen Horowitz in an attempt to attract investors to a special Pinterest investment fund. These estimates also anticipated 218 million users by the end of 2016 – a figure reached a year later.

Pinterest MAU by quarter, millions

Source: Pinterest

Pinterest does not reveal any specific DAU figures, though we are told that as of December 31^st 2018, 57% of monthly-active users were weekly active users.

As you’ll see below, we’ve seen a slowdown in US growth for Pinterest, even as international user numbers continue to climb. Pinterest has deliberately been pursuing international growth by localising content into different languages.

These figures had previously risen from 72.3 million to 77.4 million between 2017 and 2018, according to eMarketer statistics. This represents an increase of 7%, which supplements a 13.8% increase between 2016 and 2017.

This took penetration from 22.1% to 23.5% (total US population).

Pinterest US market penetration

Source: Hootsuite

eMarketer predicted in 2018 that US Pinterest user numbers will climb to 84 million by 2020. This expectation was comfortably exceeded, with the figure reached by Q1 2019.

Pew Research Center data shows US Pinterest penetration of 28% in 2019, down slightly on the 29% reported a year prior.

Pinterest user demographics

The majority of the Pinterest user base comes from outside the US, according to official stats. The proportion of international Pinterest users stood at 76% in Q1 2020.

International Pinterest users have accounted for over 50% of total users since Q2 2016, since when the proportion has been gradually climbing. US users continue to grow, albeit at a far slower pace.

Domestic vs. International Pinterest users by quarter, millions

Source: Pinterest

The US is still comfortably in the lead (compared to other individual countries); as of February 2020, it was the source of 44% of Pinterest desktop traffic. Brazil in second place contributes a mere 9%, which is more than double that of third-placed India at 4%.

Turkey and Poland interestingly complete the top-five; though we must factor in that this analysis looks at Pinterest desktop and not mobile traffic, which accounts for the vast majority of Pinterest app traffic.

International sources of Pinterest desktop traffic

Source: Statista

The IPO filing of late March 2019 reported that ARPU for US Pinterest users was 36 times greater than international ARPU despite US users being in the minority. This amounts to around 95% of Pinterest revenue.

Focusing again on the US market, Pew Research Center data shows that 34% of  the 18-29 and 35% of the 30-49 age demographics are Pinterest users.

eMarketer stats published in November show similar findings, with nearly identical US Pinterest penetration levels (40%) for 25-34 and 35-44-year-olds. Pinterest’s appeal is not limited to these age groups, as evidenced by 36% penetration among 18-24-year-olds and 34% of 45-54-year-olds.

This is in contrast to Snapchat, which trails off abruptly outside its strongholds among the youngest age groups.

Pinterest US users by age, vs Snapchat

Source: eMarketer

Going back a little way, over half of Millennials, reported the Pinterest IPO filing, are Pinterest users – setting the estimate a little higher. The official measure of what constitutes a Millennial, it should be noted, would spread across the three aforementioned brackets. The Millennials who use Pinterest are a useful market to target, reportedly spending more than 17% more than those who don’t use it (something they have in common with their older peers, then).

This high preponderance of usage in the older age demographic will certainly come as pleasant reading to marketers hoping to reach this more affluent base of consumers. Indeed, with penetration of 26% and 16% respectively, they would also be reaching a healthy proportion of the 50-64 and 65+ age demographics.

Pinterest US market penetration by age

Source: Statista

A study conducted by We are Flint shows that the Pinterest app is consistently in the top-six most-popular across age groups. It gradually climbs up as we move up the age groups, ranking highest among 45-54 and 55-64-year-olds, for whom it ranks fourth, behind only Facebook, YouTube and Facebook Messenger (though it falls back into fifth for the over-75s).

While these groups may not the be the biggest users of social media in general, for those who aim to reach these older users, it can clearly serve as an important channel.

Top US social networks by age group

Source: We are Flint

Over half of US women aged 18-54 had signed up to Pinterest, according to a document leaked in 2015.

Pew Research Center data published in February 2019 reports that 42% of American women use the Pinterest app. Its reach, however, is not limited to this 41%. Indeed, Comscore find that Pinterest reaches an amazing 83% of US women aged 25-54. Hootsuite speculates that the discrepancy here comes from the concentration of Pinterest-hosted results in Google image searches. This creates further impetus for brands to embrace Pinterest marketing, given that they can reach non-users on top of those actively using the platform (see more on Pinterest marketing in the ‘Pinterest for business’ and the ‘Shopping on Pinterest’ sections below).

In its IPO filing, Pinterest referenced an independent Comscore study which found that 43% of American internet users were Pinterest users. One of the most pronounced demographics is mothers, of whom eight out of 10 were reportedly Pinterest users.

It’s not just women who use the platform, however – 38% of American fathers apparently use the platform (48% of Pinterest app users are parents in all). Male users account for 40% of sign-ups, say Pinterest. eMarketer predicts a 7:3 ratio of women to men on Pinterest by 2022.

The aforementioned Pew Research Center Pinterest demographic data confirms higher levels of usage among higher income brackets. The trend here is neat; the greater the level of household income, the more likely a user is to use Pinterest.

This is also the case with level of education; those who have completed a full-college degree are twice as likely to be Pinterest users than those who stopped at high-school or before. The Pinterest app is most popular among white Americans, though there are solid percentage of both black and Hispanic users. We have no data for other racial/ethnic groupings.

Interestingly, there doesn’t seem to be a great deal in it when it comes to where respondents live. Suburbanites are traditionally the most likely to be Pinterest users – the Pinterest demographic who are perhaps most likely to own their own homes and possess the means to decorate it. That said, Pinterest penetration those who live in urban centres (holiday makers and frequenters of restaurants) has now drawn level, while rural penetration is not far behind (also homeowners and perhaps also business owners).

Pinterest US penetration by demographics: Pew Research Center

Data source: Pew Research Center

Demographic data from We are Flint reveals similar findings. We see usage among female survey respondents at around two-thirds, while a fairly solid 40% male users join them on the platform. Again, there’s not a great deal in it when it comes to urban/rural users.

Nor is there for income brackets, with every range logging over 50% penetration, bar the under-$30,000 (and even that comes fairly close). Usage is a little higher in higher income brackets, with the peak occurring in the $70-80,000 bracket. This looks at household rather than individual income.

When it comes to age groups, the highest penetration is among younger groups, with 25-34 year olds the most likely to be Pinterest users (69%), followed by 18-24 and 35-44 year-olds, who both register 62% penetration. We don’t drop below 50% until we reach the 55-64 bracket, and even 25% of over-75s can be found using the platform.

Pinterest US demographics: We are Flint

Source: We are Flint

Pinterest Usage Statistics

Pinterest users cumulatively placed 200 billon pins in total, as  2020. Official stats released in September 2018 had pinned the figure at 175 billion; a huge 75% increase on stats reported in early 2017. These pins have been made to four billion boards.

The average Pinterest user actively types roughly eight searches per month, though spends more time scrolling though related pins after clicking on an initial pin (maybe in their feed). The average Pinterest session is around 14 minutes in length.

According to We are Flint stats, 17% of US internet users use the Pinterest app on a daily basis. A further 17% are weekly users.

These stats also look at UK users, who are decidedly less enthusiastic Pinterest users than their US counterparts. That said, 8% are daily users, with a further 13% logging in at least weekly.

Frequency of Pinterest usage

Source: We are Flint

Pinterest devices

85% of Pinterest usage occurs on mobile devices. In Pinterest’s IPO filing it notes that international growth may be limited by either low smartphone penetration, or a poorer standard of mobile data availability. Both of these factors are considered to be key in terms of facilitating Pinterest usage.

Pinterest content

Pinterest reported a 115% increase in product-related pins, a 38% increase in style-idea pins, 50% in art, and 35% in DIY projects between early 2017 and September 2018.

A Nielson study shows that 98% of Pinterest users try new things that that they have seen on Pinterest – significantly higher than the 71% social media average.

Interestingly, 91% of Pinterest users say the site is filled with positivity; certainly registering more highly than other social media platforms (as anyone who has logged into one lately will most certainly know). Indeed, the only other app that seems to engender this level of making-the-world-a-better-place feeling anywhere in the world would be China’s mega-app WeChat.

In terms of content categories, a 2017 survey from Statista found that the most popular categories among US users were art, art supplies & hobbies, pinned by 48% of users, followed by (the rather diverse category of) flowers, food, drinks & gifts, and home, garden & pool/spa.

Most popular categories on Pinterest

Source: Statista

When do people use Pinterest?

85% of US women who use Pinterest reportedly use the Pinterest app to get ideas for ‘life events’ according to data published by Pinterest. This compares to 44% who use Instagram to do so, or 53% who use Facebook.

Life events might include decorating a house (43% of users use Pinterest for this) or going on holiday (50%), lower down the scale, planning meals (67%) or gym routines.

Pinterest releases an annual ‘Possibilities Planner’, which helps marketers choose when to run and to what to attach campaigns. Pinterest users, notes this guide, tend to look for ideas relatively early – as far as two or three months in advance. Christmas pins start appearing as early as August it notes.

The month-by-month guide published by Pinterest gives an indication of when marketers should become alive to the various events of the year – showing this early planning in effect.

For example, Pinterest users tend to start looking for ideas for ‘Veganuary’ at some point in December. School holiday planning seems to begin as early as April and Mothers’ Day in January. There are no rash resolutions made in the post-Christmas hangover period, poorly-planned holidays, or last-minute dashes to card shops for Pinterest users.

As we can see, annual/seasonal events go alongside one-off events (Wonder Woman) and other phenomena we might not expect to be so predictable (new haircuts).

Pinterest Possibilities Planner 2018-19

Source: Pinterest

Why do people use Pinterest?

Stats published on Statista in 2016 show the reasons for which users log into Pinterest. As we might expect, simply ‘viewing photos’ – the raison d’être of Pinterest in its most simplified form – comes out on top, at 60%. In a rather close second, however, we see shopping for products, highlighting the potential power of the Pinterest app as a platform for brands.

Commanding lower percentages, though still notable, we see other social media functions, such as exchanging messages and even checking the news.

For what do US users use Pinterest?

Source: Statista

Pinterest app users are 39% more likely to be active retail shoppers (as compared to non-Pinterest users), according to Oracle Data Cloud.

Pinterest Trends

Pinterest trends reveal the sort of events around which users are seeking ideas – and which events they are celebrating in general.

For instance, godparent proposals are on the up, with searches up 152% (for something to class a trend, it has to have been on the up for at least six months, by Pinterest’s reckoning; reported Pinterest trends come from Pinterest’s 2019 report). In a blow for those who run wedding venues, ‘backyard wedding’ searches were up by 441%. It seems also that many are looking to get more in touch with the rhythms of nature, with ‘moon gathering’ searches increasing by 54%.

We might also look to these Pinterest trends to get ideas of how they intend to mark these occasions. We can see Pinterest trends for flower garlands (up 1154%), neon wedding signs (281%), and smoke bomb photography (436%). For anyone who has a stake in the events industries, these Pinterest trends could be key in understanding where there is money to be made in the near future. And, of course, for those planning such events, there is plentiful inspiration to be had.

There’s more detail on Pinterest behaviour in the ‘Shopping on Pinterest’ section below, and more on trends in the ‘Pinterest Trends’ section.

Pinterest reports that more than twice as many travellers will use Pinterest search as will use top online travel agency sites when looking for holiday ideas. Reportedly over 2018, travel Pinterest trends (see above for the definition of a trend) included ‘abandoned castles’ (searches up 142%), ‘less travelled islands’ (up 179%), and ‘small town travel’ (up 276%).

The ‘Self care’ trend (a 140% increase), no doubt familiar to anyone who has been on any image-based site in recent years is big on Pinterest also. Pinterest search terms which have seen a significant increase include ‘elderberry recipes’ (+685%), ‘goat milk soap’ (+231%), and ‘sleep optimization’ (+116%).

Pinterest has always been associated with gardeners and home decorators. 83% of Pinners use Pinterest to find ideas for a DIY project, and 60% for a bigger project. Hobbyists of all stripes can be found on the platform, however, with several Pinterest search terms on the up. These include ‘ceramic pottery’ (+475%), boat building (+169%), and urban decay photography (+44%).

On the subject of home décor, ‘bold print wallpaper’ Pinterest searches have increased by 401%, cactus arrangements by 235%, and natural swimming pools by 262%.

Food photography is another inescapable facet of modern life; here we see ‘ginger water’ (+353%), ’oatmilk’ (+186%), and oxtail (+209%) among the search terms on the up.

Showing that the platform is used by men as well as women, we see a range of men’s style terms on the increase. Pinterest searches for ‘French crop haircuts’ are on the up, increasing by 84% (shaved on the back and sides, longer on top, in case you were wondering), for example. We also see a rise in Pinterest searches for ‘plaid pants’, which are up 267%; not enjoying this level of traction since the heyday of the Bay City Rollers, once and for all proving the cyclical nature of fashion. Cropped trousers are also popular (searches up by 671%), which perhaps is connected with the 266% rise in ‘quarter socks’-related searches.

Pinterest search terms for women’s fashion which have seen significant increases in volume include ‘bamboo bags’ (+2215%), ‘statement sneakers’ (+2211%), and ‘biker shorts’ (+1323%). We also see increases in beauty-related searches: ‘lilac hair’ (+1077%), ‘powder dip nails’ (+442%), and ‘standout lip color’ (+467%). 70% Pinterest app users who engage with beauty content use it for everyday looks, while 60% use it for a new look for a special occasion.

Finally, in relation to the high percentage of mothers and fathers alike that use the platform, we see Pinterest trends relating to parenthood also. Over 2019, we see the parents looking to celebrate the vital statistics of their progeny, with searches for ‘birth stats signs’ up 315%. Environmentally-conscious parents (and those looking to avoid the build-up of clutter associated with growing children) are increasingly searching for ‘toy share subscriptions’ (+313%). And, of course, this being Pinterest users, the children must have well-decorated nurseries. Specifically, it seems as if a natural look is in vogue, with ‘rustic nursery ideas’ up by 136% in terms of searches.

Pinterest search preferences

More than two billion searches are carried out every month on Pinterest, official stats state.

Pinterest’s incorporation of image search may give it an advantage with younger demographics. The below chart shows that over 60% of younger and older millennials alike are comfortable with visual search as part of their digital shopping experience.

This a greater percentage of those who elect shoppable content/click to purchase, AR, or live chat/messaging. As a side note, it seems younger millennials are far more comfortable with AR, while a greater proportion of older millennials are happy to use live chat.

Millennial search preferences

Source: eMarketer

According to internal Pinterest data dating from February 2018, 600 million visual Pinterest searches are carried out on a monthly basis on Pinterest browser extension Lens and using the Pinterest visual search tool inside the app itself. This represented a 140% increase over the preceding year.

Visual search volume 2017 vs. 2018

Source: eMarketer

Pinterest for Business

The 115% growth in product-related pins mentioned above will be of key interest to those who use or intend to use the Pinterest for business purposes – and to those with an interest in the company’s financial performance as we come up to the Pinterest IPO.

This is not just because it means eyeballs are drawn to products, but also because users are able to directly purchase items in this category – making it doubly valuable to retailers using Pinterest advertising.

Accordingly, brand and agency professionals have embraced Pinterest marketing. According to eMarketer, the proportion of US marketers using Pinterest is projected to rise to 36% in 2020, up from 34% in 2019.

What percentage of US marketers use Pinterest for professional purposes compared to other brands?

Source: eMarketer

As well as standard promoted pins, brands looking to use Pinterest for business can also purchase promoted video pins and promoted carousels. Promoted app pins allow users to download brand apps without even leaving Pinterest.

Pinterest advertising options also include promoted video pins in full-screen (or at least full Pinterest grid-sized. This affords brands considerably more visual real estate than the small portion of the screen commanded by normally-sized pins.

Promoted pins are certainly effective for those using Pinterest for business. 61% of Pinterest users have purchased something after seeing a promoted pin in their feed.

It was announced in May 2018 that Pinterest advertising would soon be driven by visual search technology – furthering brands’ ability to catch users at key moments during the discovery process. The visual search technology takes into account factors such as colours, shapes, and textures.

These ads are served through the ‘Instant Ideas’ link, which allows users to jump to related content from any given pin.

As allude to above, Pinterest marketing has established itself as a strong tool for marketers and advertisers, by virtue of its capacity to engagement with users at various steps of the purchasing journey – be it idle browsing, a deliberate search for inspiration, or seeking to purchase a specific item, or any of the many intermittent stages in between.

According to Analytic Partner data published by Pinterest in 2017, advertisers stand to make $2 profit for every $1 they spend on Pinterest marketing; $60 more profit per $100 spent that other measured marketing channels on average. If we swap profit for gross retail return, this increases to $4.30. The study found that Pinterest outperformed other measured online and offline channels by an average of 45%.

The Analytic Partners study concluded that advertisers could increase Pinterest marketing spend to a total of 5% of their total marketing budget without any adverse effect on ROI.

How to improve brand performance on Pinterest

In its materials for business, Pinterest states that 50% of impressions occur in users’ home feeds – thus algorithmically targeted advertising is likely to help brands reach new but relevant markets.

Audience-targeted campaigns generate a 28% improvement in engagement, Pinterest stats report. Pinterest also find a 22% online sales lift in pins tied to seasonal or special moments (see above).

CTAs, as most marketers are probably aware, increase sales by 6%. Consistent aesthetics help too – if branding in pins match the page to which they point, then sales are improved by 13%. Pinterest shoppers also seem to value honesty around pricing – a 28% increase in online sales can be driven through the inclusion of price points.

Imagery showing people using a product unsurprisingly improved performance. In this instance, we’re told that pins meeting this criterion were 67% more likely to drive a lift in offline sales, while clear product placement was 20% more likely to drive an offline sales lift.

Shopping on Pinterest

A study from Cowen found that 48% of US Pinterest users use the platform specifically to shop. This compares to 14% for Facebook, 10% for Instagram, and 7% for Twitter.

According to stats published by Pinterest, a greater proportion of users (60%) use Pinterest to get ideas for purchases than any other media – including search engines (48%) or social media platforms (35%). A little bit further down the decision-making journey, 90% of users of the platform say it helps them decide what to purchase. These stats claim that 33% more referral traffic is driven by Pinterest than nearest rival (in this respect) Facebook. This is proportional by number of users, rather than being an overall figure.

Of great interest to brands looking to use Pinterest for business transactions, 72% of users are inspired to shop when using the app without looking for anything in particular; 70% discover new products through the platform, and 66% buy products after seeing pins from the brand. 97% of Pinterest searches are unbranded – giving brands a wonderful opportunity to capture new custom. The Pinterest IPO filing mentions the fact that a household that views an item on Pinterest is 39% more likely to buy it than it would be otherwise.

Pinterest also seemingly plays a part in in-store shopping, with 41% of users shopping in person continuing to use the Pinterest app while doing so. Indeed, it continues to play a part in the post-purchase experience, with 59% of users finding out more about their purchases through using Pinterest.

Notably, users are happy to be marketed to through Pinterest, with 78% saying it’s useful to see brand content on Pinterest.

How people shop on Pinterest

Source: Pinterest

84% of Pinterest users use the platform when they are undecided about products to buy, making them fair game for brands. 77% have discovered new products while browsing Pinterest, making it ideal for brands seeking to permeate further into the consciousness of shoppers.

Moving away from Pinterest’s own data, Mary Meeker’s Internet Trends 2018 report for Kleiner Perkins confirms the clout of Pinterest in shopping terms. According to this data, 59% of millennials have discovered a product using Pinterest – putting it level with Instagram, and behind only Facebook. It outstrips Snapchat by some distance.

This is notable given that Instagram’s audience is four times the size of Pinterest’s.

Pinterest product discovery vs. other social media platforms

Source: Kleiner Perkins (via Hootsuite)

On top of the relative affluence of the average Pinterest app user (see above), we might also note that they are inclined to spend more of their money – spending 29% more compared to non-users while shopping, according to statistics published by Pinterest.

Pinterest is, then, very much shoppers’ social medium of choice – and no doubt a favourite of brands also.

Pinterest added several new ways to shop in April 2020. Users can: shop from their boards, being shown relevant products (either those on their board, or pieces inspired by them); shop using Pinterest’s search functionality, with price and brand filters; and shop from pins using visual search.

Pinterest Revenue Statistics

Pinterest 2019 revenue stood at $1.1  billion, the first time annual revenue had crossed the $1 billion mark. This was courtesy of a bumper Q4 2019, in which $400 million of Pinterest revenue was generated. Q1 2020 saw $272 million, by comparison – showing the centrality of the festive period in generating Pinterest revenue.

Over the course of 2018, Pinterest generated $755.9 million in revenue – up 60% on 2017. This was nearly entirely from Pinterest’s advertising business.

Pinterest quarterly revenue, Q1 2016 – Q1 2020, USD millions

Source: Pinterest

Pinterest’s S-1 filing revealed that while no one client contributes more than 10% of Pinterest revenue, the business is somewhat reliant on a small number of clients to contribute a significant share of revenue. This is listed as a potential risk factor.

As mentioned above, domestic sales contribute considerably more Pinterest revenue than international, despite growth in the latter. This is a potential area for concern for Pinterest, perhaps pointing at a ceiling in revenue, or at least a slowdown in growth levels. Indeed, it is listed as another risk factor in the Pinterest IPO filing.

Allowing more direct commerce has been put forward as a suggested channel through which Pinterest revenue growth can be fostered. Pinterest has, however, chosen to double down on the image discovery that has traditionally been its MO rather than focus on storefront features.

International Pinterest revenue is edging up gradually, however, accounting for 13% of Pinterest revenue in Q1 2020. This compares with 7% a year prior.

Pinterest domestic vs. international revenue, Q1 2016 – Q1 2020, USD millions

Source: Pinterest

In contrast to some of Pinterest’s overambitious targets outlined below, Pinterest ad revenue exceeded eMarketer’s expectations in 2018 (perhaps more conservative as a consequence of said overambition). These predictions, published in October 2018 predicted that Pinterest ad revenue will cross the $1 billion mark by 2020. As it stood, it crossed the nine-figure threshold in 2019.

Pinterest predicted ad revenue

Source: eMarketer

Pinterest ARPU stood at $0.73 in Q1 2020, and $1.22 in Q4 2020. Domestic ARPU came to $2.66 in Q1 2020 and $4 in Q4 2020, while international Pinterest ARPU came to $0.13 and $0.21 respectively.

The eMarketer predictions mentioned above seem to be operating on a different scale, anticipating that average revenue per US user will increase to just shy of $12/user by 2020, from $5.32 in 2017. This still, notes eMarketer, would leave it well short of the $135/user commanded by Facebook in 2018, or the $58 from Instagram.

On the other hand, it’s analogous with Snapchat’s $7.81.

Predicted Pinterest ad revenue per user

Source: eMarketer

eMarketer’s figures is at variance with other sources, including Pinterest stats, which show a lower ARPU figure (it is unclear if different factors are being taken into consideration in the divergent estimations).

Pinterest reported global ARPU of $0.73 in its S-1 filing (which looks at Q1 2019). This is comfortably up on the $0.58 reported for the first quarter of 2018.

Pinterest’s IPO filing revealed a 47% increase US ARPU, and a 22% increase in international ARPU.

As with projected user numbers, Pinterest revenue targets have been missed – by some distance. Leaked 2015 documents indicate that Pinterest was targeting $663 million in revenue in 2016; well in excess of the $300 million eventually reported (though this was triple the 2015 figure).

2015’s $100 million revenue also fell below the projected $169 million.

Pinterest profit

While Pinterest is considered to be one of the more prudent tech companies out there, it posted heavy losses in 2019, with IPO-related costs taking net loss levels to $1.4 billion.

Over the course of 2018, Pinterest lost a much smaller $63 million. It was, however, profitable in the last quarter of the year; though it should be noted that being a seasonal business, the holiday period toward the end of the year is the most lucrative. The $63 million figure also compares favourably with losses of nearly $130 million in 2017. We might also compare it positively with the $515 million lost by Snapchat in the year running up to its IPO.

Gross margins are on the up, reports The Motley Fool, increasing from 62% in 2017, to 68% in 2018; a robust 75% in the last quarter of 2018.

When it comes to profitability, Pinterest gets a boost from relatively low R&D and G&A expenses; around 30-50% and 16-26% of peer companies.

Pinterest cost of revenue stands at 34%, despite using Amazon Web Services to host the platform. This is relatively low compared to some competitors – for instance, the equivalent figure for Snapchat stands at around 67%. While Pinterest’s cost of revenue increased in absolute terms, it was down in percentage terms as compared to 2017, when it stood at 38% of revenue.

On the other hand, costs related to marketing have climbed, coming to $260 million in 2018 – an increase of 60%. In percentage terms, however, it has remained fixed at 34%.

Pinterest’s cash stockpile was listed at $630 million as of the beginning of the 2019.

Pinterest valuation and funding rounds

Pinterest was valued at $12.3 billion in June 2017, as it received investment of $150 million.

This represented a rather modest increase from a $11 billion Pinterest valuation reported in March 2016, which came on the back of a $367 million funding round.

In all, it has raised $1.5 billion in venture capital funding. Key Pinterest investors include Bessemer Venture Partners (13.1%), Andreessen Horowitz (9.6%), FirstMark Capital (9.8%), Fidelity, and SV Angel.

Pinterest CEO Ben Silbermann owns 11.4% of Pinterest stock, CPO Evan Sharp owns 2.1%, and co-founder Paul Sciarra (an advisor, though he no longer serves on Pinterest’s executive board) commands a 9.3% share.

Pinterest market cap/share price

As of June 2020, Pinterest’s market cap stands at $12.3 billion, with shares trading at £20.89.  This represents a slight recovery after a tumultuous few months, which saw the shares going for as low as $12.21, giving us a market cap of $7 billion during the early days of the coronavirus pandemic reaching the West.

We have seen a mixed picture for Pinterest since its April 2019 IPO. In August 2019, Pinterest stock price reached a record $34.50, giving us a market cap of $18.8 billion. The following months saw a considerable crash however, with prices reaching below IPO levels in December 2019. The recovery that followed that, however, was scuppered by COVID-19. At the time of writing, the world is on tenterhooks regarding the full economic ramifications of the crisis.

Pinterest IPO

Pinterest filed its S-1 on March 22 2019, with the goal of going public at some point in April of the same year. The valuation looked set to stand unchanged at around $12 billion.

Early indications indicated that Pinterest stock would be sold for $15-17 per share, however – which would see the valuation coming down to $10.6-$11.3 billion, which may have come as unpleasant news for some investors faced with write-downs. It should be noted that IPOs tend see increases in share price of around 15% on the first day of trading, we may well see this being the case with Pinterest stock. Nonetheless, in the run-up to the IPO, Pinterest was branded a ‘undercorn’.

On the other hand, however, some analysts have reportedly praised this approach, saying it reflects a prudent managing of expectations, and will perhaps result in less volatility. It’s notable that Pinterest revenue growth in the run-up to its IPO was at a significantly lower level than other tech companies before they went private.

Recode gives the examples of Facebook (88% growth in the year coming up to its 2011 IPO), Twitter (198% growth in 2012), and even Snapchat (597% growth over 2017). We might note two things, however: that Twitter and Snapchat were both smaller businesses at the time. We might also note both businesses have experienced declines in usership since (albeit in Twitter’s case many of the lost users were never real in the first place) if not in profitability.

Goldman Sachs and JPMorgan Chase will be the chief underwriters of the Pinterest IPO. Following the example set by other companies, Pinterest stock will be offered in different classes. The higher class of Pinterest stock will give holders 20 votes, as compared to the lower class, which will be one vote per share.

Pinterest began trading on the NYSE on April 18, with shares eventually priced at $19, giving it a total value of $12.7 billion. The Guardian report that trading began at $23.75, valuing Pinterest north of $15 billion.

Pinterest share price, first weeks of trading

Source: Yahoo Finance

Final thoughts

Pinterest may well have been a key participant in the great tech unicorn IPO rush of 2019, but in many ways it stands aloof. It may not grab headlines and stir controversy like the Ubers and Airbnbs of this world (albeit there have been a couple of minor ones related to ownership of content), but that is just the way publicity-shy Pinterest CEO Ben Silbermann would want it, seemingly.

Pinterest’s growth has been slow and sustainable, first reaching peak saturation in the lucrative domestic market in the US before expanding outwards to an international market where it continues to grow. The slowly-slowly approach to monetising has seemingly paid off, with paid content not jarring or impeding the user experience.

Indeed, in what might be considered one of the great coups of the digital age, the paid content is the experience. As Fool.com contributor Brian Feroldi notes, one of the most enticing things for Pinterest investors is the fact that ads are the native content of Pinterest. The majority of saved pins, he notes, are published by brands – meaning essentially people are coming to Pinterest specifically to see brand content.

How many other content platforms can make a similar claim? It’s also worth noting the clean reputation we alluded to above. Pinterest does not mistreat gig economy workers, does not push up rent/oversaturate tourist destinations, and does not facilitate the dissemination of misleading content. Indeed, it even went so far as to restrict any vaccine-related content to prevent dangerous anti-science views being spread to its audience – which we must remember is densely populated with parents.

Keeping its reputation clean in order to be tarred with the same brush as other social media platforms will certainly be key in Pinterest’s prosperity as a public company. Indeed, one wonders whether Pinterest’s insistence that it is a visual search engine rather than a social platform might be a drive toward effecting such a disassociation (the Financial Times describe it as the world’s most wholesome social network).

It is also, however, a drive towards highlighting Pinterest’s most exciting technology: its visual search functionality. For users, this may prove instrumental in helping them find what they’re looking for, be it a specific item or inspiration, where visual elements are more relevant or logical than words in framing the search. And, of course, for brands, this will help them reach the right (new) audience, an undisputed boon for brand awareness.

Pinterest’s fate as a public company will be interesting to observe – though as with anything in the history of the company, we may be waiting some years before we can truly assess the success of the venture. Certainly the heavy losses occurring in the wake of the IPO mean that we’ll have to wait to see whether Pinterest could really be a profitable unicorn. Coronavirus will no doubt have a negative effect on the year’s revenue, as the entire retail sector takes a hit. A good Q4, as ever, will be key, but we are likely to be also facing a recession. Nonetheless, Pinterest’s famed prudence may help steer it through the difficult times coming.

While it may be low on drama, there is certainly more than one way to do things. There are certainly signs that the Pinterest way is one of the better ones…