Morning Markets: The 2019 IPO calendar firmed up this week with Pinterest reportedly eyeing a Q2 debut.
Pinterest, a social giant worth in excess of $10 billion, may list its shares publicly in April of 2019, according to the Wall Street Journal. That the San Francisco-based company intends to float next year is not a surprise. That Pinterest might go out in April may, however, be sooner than some anticipated.
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The Journal’s reporting details several other key data points. Adding to what we already know about Pinterest’s user growth and revenue expansion, the company reached “more than 250 million monthly active users” in the first month of Q3 according to the WSJ, and “is poised to generate revenue in excess of $700 million this year.”
Checking in with our prior work, Pinterest saw revenue of $473 million in 2017, against an estimate of $500 million. The company also crossed the 200 million monthly active user count in the year, according to media reports.
So, Pinterest will grow its top line from $473 million to $700 million or more in 2018. At $700 million, the revenue figure represents just under 50 percent growth on a year-over-year basis. Estimates over $700 million quickly give the firm a full 50 percent expansion for the year.
While impressive, Pinterest’s numbers aren’t as good as it, and others had hoped. In 2015, the company thought that it would have revenues of $2.8 billion in 2018, not a figure of around $700 million. And it expected 329 million monthly actives, not the figure between 250 and 300 million that it will turn in.
Even more recent Pinterest projections detailed faster-than-delivered revenue growth. This CNBC report from earlier this year notes that Pinterest “is finally approaching $1 billion in ad revenue” on its road towards an eventual IPO. Or, instead, $700 million.
But worth more than $10 billion, and flush with a lifetime raise total of around $1.5 billion, it’s time for Pinterest to get out. You go public with the company you have.
Top Image Credit: Li-Anne Dias.