Pinterest stock is taking a beating, as investors are turning bearish on digital companies yet to turn a profit. But, for Pinterest, the ‘yet’ could be coming soon, as its alternative data paints a far rosier picture than a number of the other big-name startups that launched 2019 IPOs only to have their newly-minted listed stock lose nearly 50% of its value from shares’ peak.
With Pinterest’s Facebook ($NYSE:PINS) Talking About Count, we can tell that there’s a big spike up in the online shopping social network, about a couple of weeks before the holidays. At the far right of our chart, we can also see that the trend appears to be repeating itself.
There are plenty of startups that saw their sagging share prices sap hiring ambition. Not Pinterest, though – in 2019, its job postings rose 48%, as it continued to scale up – hopefully in anticipation of a big holiday shopping season, although investors won’t know the full outcome until earnings at the end of January.
Pinterest is dependent – in part – on social media traffic, which is what makes its Facebook Talking About Count relevant as a performance metric. But, it’s also dependent on the digital marketplace to fuel its growth – and that’s what makes Pinterest’s Apple ($NASDAQ:AAPL) Store Ratings Count (the graphic above) and Pinterest’s average rating in the store so important. As our chart tracks, it grew its rating count by 18% in 2019 – a clear signal of engagement – and user reviews (the graphic below) logged a 3.2% year-over-year increase.
About the Data:
Thinknum tracks companies using the information they post online – jobs, social and web traffic, product sales and app ratings – and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.
Jon Marino is Thinknum’s finance editor, covering the impacts of alternative data on public companies and investors. Prior to joining Thinknum, Jon worked in the …
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Pinterest to give special attention to ‘trustworthy’ retailers
Pinterest is launching a verified merchant program it says will help users “discover and buy from trustworthy brands.” Retailers that are accepted into the program will have their products eligible for distribution within dedicated Pinterest shopping features such as Shop the Look pins or related product carousels.
Verified merchants will get “Verified” badges on their profile and product pins. Their product pins will also show product availability and pricing info. Other front-end benefits will include a special shop tab on their profile that makes it easier for users to see what they sell.
On the back end, verified merchants will receive early access to our the Pinterest insights tool, which helps measure the total sales impact of paid and organic pins.
According to Pinterest, 97% of the top searches on the social media platform are non-branded and 83% of Pinterest users have made a purchase based on content from brands on the site.
Pinterest is rolling out its verified merchant program as part of a broader push to become a full-fledged e-commerce site. In July 2019, the visually-oriented social network began offering personalized shopping hubs at the top of users’ home feeds, as well as an updated shopping section allowing users to browse entire product catalogs and click directly to the checkout page on the retailer’s site if they would like to purchase a pinned item.
In March 2019, Pinterest rolled out “Shop a brand,” a new dedicated section from retailers beneath product pins. Pinterest is also now offering personalized shopping recommendations alongside style, home, beauty, and DIY boards.
Pinterest now has 335 million active users, crosses $1 billion in revenue for 2019
There have been social media platforms that are much-talked about while there are other platforms which go under the radar quite a lot. Most of the times, we have a perception that the platforms that are not in the news might be struggling or the user engagement might not be great there. However, we see reports afterwards regarding those platforms which open our eyes regarding the popularity they possess. One such platform, and the best example we can take of an underrated platform, is Pinterest.
If you have never heard of Pinterest which is quite possible, it is similar to Instagram in a way that it is also an image-sharing platform. On Pinterest, people share images and even add links to sources of those webpages. People can then interact with the media shared on interact and even go to the source and become aware of other websites. There was also an interesting story regarding Pinterest where a leaked document revealed some ambitious targets from the platform.
As per that document, Pinterest expected to have monthly active users to 329 million by 2018. However, the more ambitious part was its revenue target where it was expecting $2.8B by the end of 2018. Now, we have Pinterest’s figures for 2019 and the ambitious targets from Pinterest have been achieved in one department, monthly active users. Yes, Pinterest has just revealed that the platform serves 335 million monthly active users which is what it planned to achieve by 2018.
However, the revenue for them is still quite far but they have still crossed $1 billion in revenue last year. It is worth noting that Pinterest saw a growth of 26% in monthly active users year-on-year and there is no particular reason as to why that happened. Pinterest is a platform popular in European countries such as UK, Germany, France and Italy and it is also similarly popular in the US.
Pinterest Publishes New Update on Employee Diversity and its Impacts on Product Decisions
Pinterest has this week released a new update on its efforts to employ a more diverse and inclusive range of people within its organization, and the impacts that those efforts have had on its product decisions.
As explained by Pinterest:
“It’s hard to feel inspired when you don’t feel represented – online or in your workplace – and research shows that diverse teams make us more creative, diligent and hard-working. When we are building products, a team of people with different backgrounds enables us to think through products, policies, and safety from all angles (for instance, how products could be abused or how they could unintentionally impact a community).”
Pinterest has set a range of targets on staff diversity, and it says that, for the most part, it’s now meeting those aims:
- We wanted to increase hiring rates for full-time women engineers to 25% and surpassed it with a new high of 27%
- We wanted to increase hiring rates to 8% underrepresented* minority engineers and exceeded it at 9%
- We wanted to increase hiring rates for underrepresented minority employees across the company (business and product) to 12% and exceeded it at 14%
This increased focus on diversity has lead to some significant, inclusive product developments, including improved user wellbeing policies, the creation of a gender transition guide for organizations, and the implementation of a ‘skin tone’ search qualifier to hone in on more relevant search results.
In a more progressive, inclusive online world, Pinterest is looking to lead the way in showing how expanding your employee perspective can lead to a more beneficial, supportive and welcoming situation – both for the employees themselves and for those utilizing your services. The outcomes listed here highlight exactly what that looks like in practice, and as the world becomes even more connected, such initiatives will only increase in relevance.
You can read Pinterest’s full ‘Diversity Report 2020’ update here.