The startup is valued at $12 billion and nearly $1 billion only in Ad revenue. The company is founded by Ben Silbermann, Paul Sciarra and Evan Sharp.
The favourite social media image sharing platform turns 9 years old this year. It interviewing potential investors and bankers, those familiar with underwriting. This looks to be a sign of preparing for an IPO. This particular IPO has been much talked about since the start of 2018. Now, at the start of 2019 the company administration is holding some high profile meetings.
Now this is something definitely to pin!
Among the lead bankers, those close to the company affairs believe that Goldman Sachs has the edge. Both parties have declined to comment on the matter. If the executive board is able to make a decision on this soon then it keeps its pace for a second quarter IPO. By that it can churn enough financial numbers to share with the Wall Street.
Hoping to make the IPO live back in 2018, the company has pushed it to early 2019 as it failed to achieve an internal target. According to sources, the company will decide on its choice of underwriters by January. Which means that the company is all hands on deck right now.
2019 is expected to launch some very interesting IPOs. Especially those in the field on tech and product development. However, it begs the question that is now a good time? Considering the Government shutdown and the latest NY Stock market crash. The financial and political situation can have a direct impact on an IPO. Experts say that 2019 will see an expected recession later in the year around Q3 or Q4. This means that companies are moving fast to successfully process the paperwork before market shut down becomes a reality.
Pinterest is currently eyeing an April IPO.
Another troubling matter is that of Pinterest itself. Currently, the social media app boast a monthly usership of 250 million. A number achieved just back in September 2018. But is this enough in order to satisfy the investors? When it comes to consumer applications, mostly investors will look in to the growth potential. The image pinning app right now welcomes a user base from different niches which range from furniture to recipes to design and more. Can it beat the $12 billion private valuation it achieved in 2017? Or are the chances strong for it to crash and burn like other young startups?
The company, like Facebook, runs ads. By 2018 as estimated it has collected a revenue of nearly $700 million. This is 50% more than the ad revenue in 2017. The website allows users to create pins on their boards of their favourite items. In fact altogether, there have been 175 billion pinned posts on the website till now!
It could still be snatched by the giants like Google and Amazon.
One thing is for certain that the company is in full throttle mode and pushing all gears to drive its IPO goals.