Pinterest went public in April 2019 — a decade after the digital pinboard company was first founded. Its valuation at the time of its IPO was $12.7 billion, according to Crunchbase.
Despite its popularity — with more than 250 million users around the world — and unicorn status, the company reported a net loss of $124.7 million in the third quarter of 2019, which was 561% greater than its net loss over the same quarter the previous year.
Why Pinterest Isn’t Profitable
Pinterest has yet to bring in enough revenue to outweigh its costs, which include research and development, and sales and marketing. However, the company shared in its IPO filing that it’s “in the early stages of building an advertising product suite that fully taps the value of [the] alignment between Pinners and advertisers […] We believe it will be a competitive advantage over the long term.”
Although Pinterest hasn’t turned a profit yet, some analysts predict that it will eventually be more profitable than Twitter with its push for increased ad revenue.
