As Pinterest wagered on eCommerce, the social media platform’s revenue surpassed the $1 billion threshold last year. Pinterest foresees revenue clocking in at roughly $1.52 billion this year, which would be above analyst forecasts of $1.47 billion, The Wall Street Journal reported.
The San Francisco-based company is looking to roll out a verified merchants program that would first focus on fashion and home décor. To become part of the program, merchants would need to meet some guidelines, like having clearly defined shipping procedures along with contact information for customer service.
Investments have powered the company’s growth in users and revenue, but have also contributed to losses. The platform finished off 2019 with 335 million monthly active users, which was 26 percent higher than the prior year. Pinterest also concluded the year with a $1.36 billion loss or $3.24 per share, in comparison to a $63 million loss or 50 cents per share a year prior. Revenue increased 51 percent, reaching $1.14 billion. Expenses, however, grew over three times to $2.53 billion.
Pinterest went public in 2019 and has not yet reported a profit. The firm’s stock increased 17 percent to $26.95 on better-than-forecasted results in after-hours trading.
In January, news surfaced that a new Pinterest feature allows consumers to try out lipstick virtually. Users can bring up the “Lens” smart camera and select “Try it” to find the new function.
Beauty and makeup are common points of discussion on platforms like Instagram and YouTube, but Pinterest is also a popular destination for those seeking personal care and beauty products.
More than 52 million people search and engage with beauty information on its platform each month in the United States. A 2018 GfK study noted that 87 percent of personal care and beauty pinners visit the platform when considering what to purchase.