EMMAs

Pinterest has priced its IPO as it looks to further expand

Michael Somerville

Social media company Pinterest has priced its upcoming IPO at $19 a share as it seeks to raise new equity to fund international expansion and to further open the platform to advertisers.

Pinterest says it reaches 8 out of 10 ‘moms’ in the US and also delivers the highest average order value compared to Facebook, Instagram and Snapchat.

According to its IPO prospectus, Pinterest has over 250m monthly users which is far below Facebook which reaches billions of people a month. It says it doesn’t anticipate that its users will use the platform on a daily basis like Facebook.

 

Aaron Goldman, CMO of 4C Insights commented, “Pinterest plays an important role in the media mix by helping brands reach audiences at key moments of inspiration. While other channels specialize in facilitating high-level brand awareness or direct-response purchase activity, Pinterest generates results across the entire marketing funnel.

"We've seen continued increases in investment on Pinterest from advertisers using 4C to buy an array of formats including Promoted Pins, Video, and Shopping Ads.”

 

Pinterest was founded by Ben Silbermann, Paul Sciarra and Evan Sharp in 2009 and is led by Silbermann who serves as CEO. It started gaining revenue from advertisers in 2014, launching its ‘buyable pins’ in 2015  where users could receive in-app notifications when prices on certain products dropped.