Pinterest prepares for IPO

Pinterest could go public in 2019. The picture sharing site is reportedly getting closer to filing for an initial public offering (IPO) that could launch next April. The app has been valued at $12 billion.

Pinterest pins big profits

The social media app was started by Ben Silbermann in 2010. The site features pictures from categories for millions of topics, ranging from clothes to tattoos. Users can ‘pin’ pictures they like and be alerted to similar photos. Pinterest has become extremely popular, with 250 million monthly members.

Pinterest has become valuable to advertisers as users, or ‘pinners’, share their interests online. Corporations can cater to visitors by targeting ads to potential consumers. The app’s members are the most interactive of social media apps. Brands can reach out to users easily through pins as well. If a visitor pins an item, they can turn into a ‘buyable pin’ by purchasing the product on the app. A study found that 98% of pinners participate in activities they find on Pinterest, making them a valuable customer base. The company has raised almost $1 billion, double its earnings of 2017.

Preparing for another unicorn IPO

Pinterest has been preparing for the IPO by hiring its first chief marketing officer, Andrea Mallard. The company has also contacted major banks to underwrite loans up to $500 million.

Pinterest is one of many unicorn companies valued at over $1 billion readying to go public in 2019. Uber, Lyft, and Airbnb all have eagerly awaited IPO’s coming in the new year. Investors will be watching to see if all these companies will be worth their valuations.