Profitability analysis
Pinterest ’ s revenue was $3 billion, $2.8 billion and $2.58 billion in 2023, 2022 and 2021, respectively.
Pinterest’ s revenue in 2023 was up 7% year-on-year.
Pinterest’ s revenue in 2022 was up 8.5% year-on-year.
Is pinterest a growth stock? No .
Pinterest ‘s growth rate in revenue was very slow.
Operating loss was $125.7 million, $101.7 million and $326 million in 2023, 2022 and 2021, respectively.
It is worth mentioning that stock-based compensation expenses were $648 million, $450 million and $415 million in 2023, 2022 and 2021, respectively.
Total cost and expenses included stock-based compensation expenses.
The rate of stock-based compensation expense to revenue was 21.6%, 16% and 16% for 2023, 2022 and 2021, respectively.
The U.S. and Canada ‘s revenues in 2023 were $2447.3 million, accounting for 83% of total revenues.
Europe ‘s revenue was $483.4 million in 2023, consisting of 16% of total assets.
Rest of World ‘s revenue was $124.4 million in 2023, which made up 4% of total assets.
Apparently, the U.S. and Canada ‘s users were more valuable than other areas.
Cash flow analysis
Net cash provided by operating activities was $613 million, $470 million and $753 million in 2023, 2022 and 2021, respectively.
Free cash flow was $605 million, $441 million and $744 million for 2023, 2022 and 2021, respectively.
Repurchases of Class A common stock were $500 million in 2023, which is less than the amount of stock-based compensation.
Balance sheet analysis
Pinterest ‘s total assets were $3.6 billion and $3.86 billion in 2023 and 2022, respectively.
The company’s total liabilities were $504 million and $581 million in 2023 and 2022, respectively.
The debt ratio in 2023 was 14%, which is extremely low.
The amount of cash, cash equivalents and marketable securities were $2.51 billion, accounting for 70% of total assets.
The amount of accounts receivable was $763 million in 2023, consisting of 21.2% of total assets.
The amount of total current assets was $3.34 billion in 2023, which made up 92.8% of total assets.
Pinterest’ s liquidity and solvency is rather strong.
Summary
Pinterest ‘s growth rate in revenue has been relatively low in the past two years.
The company’s investment value is very mediocre, according to Pinterest’ s operating results.
Pinterest’ s balance sheet is healthy well.
Now, pinterest’ s stock price is $35.5 per share, which is equivalent to about $24 billion in market cap.
The company’s valuation will be effected by stock-based compensation.
In the case, we are not optimistic about his future.
We reckon that $10 billion in market cap is appropriate to buy.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
Pinterest is a visual search and discovery platform, positioned at the intersection of search, social, and commerce. they offer a unique and differentiated experience that enables people to go from inspiration to action all on one consumer internet property. their primary service, Pinterest, can be accessed through our mobile application or the web.
498 million monthly active users from around the world come to Pinterest to find new ideas, curate and refine their tastes, and turn those ideas into reality. their platform particularly resonates with women, who comprise roughly two-thirds of their total user base. In addition, their platform also resonates with the younger generation, as Gen Z users represent over 40% of our user base. Geographically, they have a diverse user set, representing over 100 countries globally.