Pinterest is a unique platform catering to the shopping community. Very recently, PINS announced a cross-marketing facility for merchants. This should reduce friction for shop-owners as they use the same advertising campaign on multiple platforms. While the feature is presently only available in North America, it is expected that the service will be launched in Australia and Europe later in the year. Pinterest is in its early life stage as a marketing and sales platform. Given this, estimates are probably on the lower end. In terms of valuation, valuation ratios should be closer to that of SNAP rather than FB or TWTR.
Is Pinterest the new Facebook? We think so! Investors looking for exposure to social media growth without all the FB-drama should consider Pinterest (PINS).
The platform acts as a digital repository and “visual discovery engine” for both users and companies. The digital scrapbook allows users to find, save, and organize all their favorite things from around the internet. Pinterest helps inspire users to travel, try out a new recipe, plan a wedding, or redecorate their home. More importantly, the company’s positive vibe and ability to avoid the pitfalls of its biggest rival have earned it the title of “anti-social media.”
In 2020, revenue grew by 48%, on the backs of more than 100 million monthly active users, bringing the total to 450 million, while the average revenue per user climbed 12%. U.S. growth has done the bulk of the heavy lifting thus far, but the international opportunities are what investors should be excited about. International revenue grew 78% sequentially in the most recent quarter while soaring 145% year over year, showing that the global growth story has just begun.
Pinterest generated revenue of $1.7 billion in 2020, which pales in comparison to its $500 billion addressable market, so the opportunity that remains is enormous.