Social media space. Pixabay Image.
Pinterest (PINS) is a popular social media platform with monthly active users estimated at 450 million globally, according to the company’s latest filings.
That said, this article presents the revenue and revenue by region of the social media company, Pinterest (PINS).
Apart from the revenue breakdown, we also look at the profitability and margin of Pinterest.
In terms of revenue by region, we look at Pinterest’s growth rates by region and the revenue share contributed by each region.
The geographical regions discussed here include the U.S. & Canada, Europe, and the Rest Of World.
Europe includes Russia and Turkey.
Let’s start with the topics below!
Pinterest’s Revenue, Profitability And Margin Topics
1. Total Revenue And Profit
2. Pinterest Margins
3. Revenue By Region
4. Revenue Share By Region
5. Revenue Growth By Region
6. Summary
7. References and Credits
8. Disclosure
Total Revenue And Profit
Pinterest’s global revenue and profitability
Pinterest’s total revenue came in at $2.8 billion as of fiscal 2022, a record high since 2018, and was around 9% higher than that of the prior year.
Similarly, Pinterest’s gross profit also has been on a rise and reached a record high of $2.1 billion as of 2022, a 4% increase over 2021.
While total revenue and gross profit have been on the rise, other profitability metrics such as the operating income, non-GAAP net income, and adjusted EBITDA were seen on a decline.
For example, Pinterest’s non-GAAP net income and adjusted EBITDA in 2022 were down significantly from 2021, topping $440 million each, only half of that reported in 2021.
Pinterest’s operating income was even worse in 2022 and was seen tumbling to -$102 million, illustrating that the company suffered an operating loss in 2022.
In short, Pinterest has turned from a profitable company with an operating profit of $326 million reported in 2021 to a loss-making company in 2022.
Pinterest’s Margins
Pinterest’s margins
On a long-term basis, Pinterest’s margins have been on a rise and reached record highs in 2021.
In 2022, Pinterest’s margins declined significantly from that of 2021.
For example, the gross margin was down to 76% in 2022 from the 2021 figure of 80% while the non-GAAP net margin as well as the adjusted EBITDA margin was reduced by 50% in 2022 over 2021.
Similarly, Pinterest’s operating margin tumbled to -3.6% in 2022 from the 2021 figure of 13%.
In short, Pinterest suffered a massive decline in profitability in 2022 compared to 2021.
Revenue By Region
Pinterest’s revenue by region
For revenue by region, Pinterest’s U.S. and Canada region makes up the biggest part of the total, at more than $2 billion in sales.
In 2022, Pinterest took in US$2.3 billion in sales from the U.S. and Canada alone, an increase of 8% over 2021.
For the European region, Pinterest’s revenue in this segment totaled nearly $400 million in 2022, a rise of 4% over 2021.
Pinterest’s sales in Rest Of World region came in at the lowest, at less than $100 million annually.
In 2022, Pinterest earned $95 million in sales from Rest Of World compared to $62 million reported in 2021.
Revenue Share By Region
Pinterest’s revenue share by region
In terms of the revenue breakdown by percentage, Pinterest’s sales from the U.S. and Canada constitute the biggest proportion, topping 82% in 2022 and 83% in 2021.
On the contrary, Pinterest’s Europe revenue represents only 14% of the total revenue in 2022, down slightly from the 15% reported in 2021.
Lastly, Pinterest’s Rest Of World sales formed the smallest proportion, at only 3.4% of total revenue in 2022, up slightly from the 2.4% reported in 2021.
Revenue Growth By Region
Pinterest’s revenue by region growth rates
On a global basis, Pinterest’s total sales grew by 9% in 2022 over 2021.
Of all the regions, Pinterest’s Rest Of World grew the fastest, at 53% in 2022.
On the other hand, Pinterest’s U.S. and Canada revenue grew 8% in 2022, which was about the same rate as that of the global revenue.
The U.S. and Canada revenue growth rate is expected to be nearly in line with that of the total sales as this region constitutes the biggest proportion, at more than 80% of total sales in 2022.
Summary
To recap, Pinterest’s revenue and profitability have been on a rise since 2018 and reached record highs as of 2022.
While revenue and gross profit grew in 2022, some of Pinterest’s other profitability metrics such as operating income, non-GAAP net income, and adjusted EBITDA were seen tumbling significantly in the same period.
For example, operating income declined to -$102 million while gross profit rose to $2.1 billion in 2022, indicating the massive increase in operating expenses and costs in the same year.
A similar trend is seen in Pinterest’s gross margin and operating margin where the operating margin declined while the gross margin increased in 2022.
Therefore, Pinterest’s profitability deteriorated significantly in 2022 compared to 2021.
Pinterest’s North America region which includes only the U.S. and Canada represents the largest revenue share, at more than 80% while Europe constitutes only 14% as of 2022.
However, Pinterest’s sales from the North American region grew only 8% while Rest Of World region grew 53% in 2022.
References and Credits
1. All financial figures in this article were obtained and referenced from earnings releases which are available in Pinterest Investor Relation.
2. Image by Gerd Altmann from Pixabay
Disclosure
The content in this article is for informational purposes only and is neither a recommendation nor a piece of financial advice to purchase a stock.
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