Pinterest (PINS.US) - WordPress.com€¦ · 21-08-2019 · Pinterest (PINS.US) - Initial Analysis Skeleton - James Yeh August 21, 2019 @yuinausicaa | yuinausicaa.com/posts [email protected]

Pinterest (PINS.US)

- Initial Analysis Skeleton -

James Yeh

August 21, 2019

@yuinausicaa | yuinausicaa.com/posts

[email protected]

Products / FeaturesDownload App or visit pinterest.com Social graph not a major friction for adoption


Products / Features (1/3)

@yuinausicaa | yuinausicaa.com/posts 3

Home feed Search



Lens Visual search



Promoted Pins Browser button

Competitors Identified by Pinterest


Established Companies Vertical-Focused Companies

……

MonetizationAds are native / organic on Pinterest


Ads Format (1/2)


Promoted Pins Promoted Video Pins

Ads Format (2/2)


Promoted App Pins Promoted Carousels

Business ModelAn illustration



[Business Model]

What is the underlying we’re betting on?Searching for reference model


Social Network Service?


0

50

100

150

200

250

300

350

400

450

500

1Q

10

3Q

10

1Q

11

3Q

11

1Q

12

3Q

12

1Q

13

3Q

13

1Q

14

3Q

14

1Q

15

3Q

15

1Q

16

3Q

16

1Q

17

3Q

17

1Q

18

3Q

18

1Q

19

Pinterest

Snapchat

Baidu App*

Kakao Talk

Line

Weibo

Twitter

0

500

1,000

1,500

2,000

2,500

1Q

09

3Q

09

1Q

10

3Q

10

1Q

11

3Q

11

1Q

12

3Q

12

1Q

13

3Q

13

1Q

14

3Q

14

1Q

15

3Q

15

1Q

16

3Q

16

1Q

17

3Q

17

1Q

18

3Q

18

1Q

19

User Base (M)

WeChat

Facebook

Note: twitter now discloses mDAU.

Internet Content?


16 36 70 147 248361

513 587719 817

1,024 1,147

1,367 1,547

1,729 1,991

2,184 2,424

2,631 2,880

3,170 3,417

3,650 3,896

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

No. of Internet Users (M)

0 0 1 2 3 17 29 39 41 52 65 86 122 172 238 207

346

697 673

969 863

1,046

1,767

1,630

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

No. of Website (M)

30,000,000

130,000,000

Mar-13 Nov-16

Google Indexed Pages (M)

Investment Thesis & ApproachLong-term development rather than short-term catalyst



[Write-up?]

Traction, Metrics & MonitorPrepare for long-term bet


Traction – Monthly Active Users (MAU)


65 65 69 70 71 71 74 76 80 75 80 82 85 85

63 70 81 90 104 114 129 139160 156 171 184 206 215

128 135150 160

175 185203 215

240 231251

266291 300

37% 37% 35% 34% 37%

25% 24% 24% 21%30%

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

Monthly Active Users (M) USInternational

Y/Y growth

-10

-5

0

5

10

15

20

25

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

Monthly Active Users Net Addition (M)

US International

Traction – Revenue


$47 $62 $72 $111

$79 $96 $110 $163

$124 $153

$181

$257

$187 $238

$10

$7 $8

$9

$17

$15

$24

$47 $63 $74

$115

$82 $101

$116

$173

$131 $161

$190

$274

$202

$262

74%

60%57%

50%

60% 59%64%

58%54%

63%

1Q

16

2Q

16

3Q

16

4Q

16

1Q

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17

3Q

17

4Q

17

1Q

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2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

Revenue (M)US

International

$47 $82

$131

$202

$63 $101

$161

$262

$74 $116

$190

$115

$173

$274

74%

60%54%

60% 59%63%

57%

64%

50%

58%

1Q

16

1Q

17

1Q

18

1Q

19

2Q

16

2Q

17

2Q

18

2Q

19

3Q

16

3Q

17

3Q

18

3Q

19E

4Q

16

4Q

17

4Q

18

4Q

19E

US International Y/Y growth

$47 $63

$74

$115

$82 $101

$116

$173

$131

$161

$190

$274

$202

$262

1Q 2Q 3Q 4Q

2016 2017 2018 2019

+59%

+58

%

+63%

Metric – US Average Revenue per User (ARPU)


$0.74 $0.96 $1.07

$1.60

$1.13 $1.36

$1.52

$2.17

$1.59

$1.98 $2.33

$3.16

$2.25

$2.80

53%

42% 42%

36%

41%

46%

53%

46%42% 41%

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

US ARPU

US ARPU Y/Y growth

$0.74 $1.13

$1.59

$2.25

$0.96 $1.36

$1.98

$2.80

$1.07

$1.52

$2.33

$1.60

$2.17

$3.16

53%

41% 42% 42%46%

41% 42%

53%

36%

46%

1Q

16

1Q

17

1Q

18

1Q

19

2Q

16

2Q

17

2Q

18

2Q

19

3Q

16

3Q

17

3Q

18

3Q

19E

4Q

16

4Q

17

4Q

18

4Q

19E

US ARPU Y/Y growth

Metric – International Average Revenue per User (ARPU)


0.01

0.030.04

0.030.04

0.05

0.07

0.05 0.050.06

0.090.08

0.11

300%

67% 75% 67%25% 20% 29%

60%

120%

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

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2Q

19

International ARPU

International ARPU Y/Y growth

$0.03 $0.05

$0.08

$0.01 $0.04 $0.05

$0.11

$0.03 $0.05 $0.06

$0.04 $0.07

$0.09

67% 60%

300%

25%

120%

67%

20%

75%

29%

1Q

16

1Q

17

1Q

18

1Q

19

2Q

16

2Q

17

2Q

18

2Q

19

3Q

16

3Q

17

3Q

18

3Q

19E

4Q

16

4Q

17

4Q

18

4Q

19E

International ARPU Y/Y growth

Metric – Global Average Revenue per User (ARPU)


$0.39 $0.48 $0.52

$0.74

$0.49 $0.56 $0.60

$0.83

$0.58 $0.69

$0.79

$1.06

$0.73

$0.88

26%

17% 15%12%

18%23%

32%28% 26% 28%

1Q

16

2Q

16

3Q

16

4Q

16

1Q

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2Q

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3Q

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4Q

17

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Global ARPU

Global ARPU Y/Y growth

$0.39 $0.49

$0.58 $0.73

$0.48 $0.56

$0.69

$0.88

$0.52 $0.60

$0.79 $0.74 $0.83

$1.06

26%

18%

26%

17%

23%

28%

15%

32%

12%

28%

1Q

16

1Q

17

1Q

18

1Q

19

2Q

16

2Q

17

2Q

18

2Q

19

3Q

16

3Q

17

3Q

18

3Q

19E

4Q

16

4Q

17

4Q

18

4Q

19E

Global ARPU Y/Y growth

Metric – Engagement


[DAU/MAU WAU/MAU]

Monitor – Human Capital, Sales & Marketing and Engineering


67

13

19

2Q18 4Q18 1Q19 2Q19

No. of International Markets w/ Ads Product

1,797

1,904

2,005

4Q18 1Q19 2Q19

Headcount

0

3

6

9

12

15

18

2Q

13

3Q

13

4Q

13

1Q

14

2Q

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3Q

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4Q

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1Q

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2Q

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3Q

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4Q

18

1Q

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2Q

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3Q

19

No. of Posts @Pinterest_Engineering

Monitor – Employee Review and Talent Acquisition


1

1

1

1

1

2

2

2

4

18

121

JP

GB

ES

IT

BR

FR

DE

CA

AU

IE

US

Financials & ValuationCheck with your favorite analyst…


Housekeeping


Documents

Pinterest (PINS.US) - WordPress.com€¦ · 21-08-2019 · Pinterest (PINS.US) - Initial Analysis Skeleton - James Yeh August 21, 2019 @yuinausicaa | yuinausicaa.com/posts [email protected]