Pinterest Hopeful to Generate an Annual Revenue of $1 Billion for the Very First Time

Pinterest had a decline in its earnings lately, but according to the latest report, the visual-discovery platform has an increase of more than 15% in its shares.

The revenue of the platform grew 62% to $261 million, though it was expected to reach $235.53 million, as per Refinitiv. Previously Pinterest estimated annual revenue to be $1.08 billion, but now they are hoping somewhere between $1.095 billion to $1.115 billion.

In case the forecast turn to reality, Pinterest for the very first time will be generating annual revenue more than $1 billion.

In the second quarter, 300 million active users per month were reported. This is a 30% increase than the last year. There are now around 84 million active users per month in the US, whereas other than the USA, the monthly active users reached 215 million, a 38% increase.

Recently, there had been several new updates on Pinterest. Search recommendations have been improved along with increased video content and added a shopping feature to buy products from the platform directly.

Pinterest uses artificial intelligence to increase its reach and raise merchandise sales on its platform. The second-quarter report clearly shows that these efforts are proving to be effective.

Ben Silbermann, CEO of Pinterest, informed investors that they are working to develop tools that will let small scale businesses to advertise on the platform. Also, the latest mobile interface tool launched is expected to increase the ad spending by the end of this year and in the next year.

Silbermann is also positive about coming to level to compete with tech giants like Facebook, Twitter, and Snapchat.

Videos are the new focused and prominent medium among Pinterest advertisers. It goes perfectly with popular categories of the platform, allowing for tutorial videos as for exercise, recipes, and DIY videos.

Videos viewed in the second quarter of this year were more than the total videos watched last year.

Company is giving its privacy controls the utmost importance, to distinguish itself from other platforms that have been part of many security scandals.

Currently, users are allowed to make their Pinterest boards private and can also have the option not to get recommended based on specific boards.

A new shopping tool has also been introduced by Pinterest that shows shoppable products related to the search. Wellness and stress-relieving tools also have been added by the platform that will give certain activities to users looking for depressive or anxiety-related content.

It seems like Pinterest has finally found the way forward, and they are hoping to raise to the level for other leading social platforms.

Photo: Getty

Read next: How to Make the Best Out of Your Pinterest Business Account (infographic)
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