Pinterest IPO Preview

TL;DR

Pinterest plans to go public with a valuation of $9 billion, selling shares at $15 to $17 each. They face challenges in attracting advertisers outside the US.

Transcript

Pinterest is apparently seeking a valuation in the region of nine million dollars when it debuts on the public markets this spring the company plans to sell 75 million shares at between $15 to $17 a share when it starts trading on the New York Stock Exchange under the symbol pins the company plans to use a joule class share structure to concentrate... Read More

Key Insights

• 🌱 Pinterest plans to go public with a valuation of $9 billion, selling shares at $15 to $17 each.
• 😕 The company uses a dual-class share structure, giving co-founders and stakeholders Class B shares.
• 😘 Pinterest's IPO pricing is lower than previous financing rounds, possibly giving it an advantage.
• 😀 The company is known for its nice corporate culture but has faced criticism for being too non-critical.
• 👤 Pinterest has a user base of over 265 million globally, with women comprising two-thirds of users.
• 👤 Advertisers are attracted to Pinterest due to its demographics, with half of US millennials being users.
• 😀 Pinterest faces challenges in attracting advertisers outside the US, where it generates only 8% of its revenue.

Questions & Answers

Q: What is the expected valuation of Pinterest's IPO?

Pinterest seeks a valuation of $9 billion for its IPO, aiming to sell 75 million shares at $15 to $17 each.

Q: What share structure does Pinterest use to concentrate voting power?

Pinterest uses a dual-class share structure, giving co-founders and stakeholders, such as Benjamin Silberman and Evan Sharp, Class B shares to concentrate voting power.

Q: How does Pinterest's IPO pricing compare to other recent unicorn IPOs?

Pinterest's pricing of $15 to $17 per share is below the $21 per share it received in a previous financing round. This restraint may prove advantageous compared to unicorns like Lyft, which priced its IPO at $72 per share.

Q: What challenges does Pinterest face in attracting advertisers?

Pinterest faces challenges in attracting advertisers outside the US. Currently, only 8% of its revenue comes from international sources, while Twitter derives almost half of its revenue internationally.

Summary & Key Takeaways

• Pinterest plans to go public with a valuation of $9 billion and sell 75 million shares.

• The company uses a dual-class share structure to concentrate voting power among stakeholders.

• Pinterest faces challenges in attracting advertisers outside the US, where it currently generates only 8% of its revenue.