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Pinterest (Pinterest) Gross Margin % : 75.53% (As of Mar. 2024)


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What is Pinterest Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Pinterest's Gross Profit for the three months ended in Mar. 2024 was $559 Mil. Pinterest's Revenue for the three months ended in Mar. 2024 was $740 Mil. Therefore, Pinterest's Gross Margin % for the quarter that ended in Mar. 2024 was 75.53%.


The historical rank and industry rank for Pinterest's Gross Margin % or its related term are showing as below:

PINS' s Gross Margin % Range Over the Past 10 Years
Min: 62.22   Med: 73.45   Max: 79.47
Current: 78.11


During the past 7 years, the highest Gross Margin % of Pinterest was 79.47%. The lowest was 62.22%. And the median was 73.45%.

PINS's Gross Margin % is ranked better than
66.54% of 517 companies
in the Interactive Media industry
Industry Median: 61.05 vs PINS: 78.11

Pinterest had a gross margin of 75.53% for the quarter that ended in Mar. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Pinterest was 3.00% per year.


Pinterest Gross Margin % Historical Data

The historical data trend for Pinterest's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Pinterest Gross Margin % Chart

Pinterest Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 68.59 73.45 79.47 75.79 77.46

Pinterest Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 71.63 76.17 77.59 81.85 75.53

Competitive Comparison of Pinterest's Gross Margin %

For the Internet Content & Information subindustry, Pinterest's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Pinterest's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Pinterest's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Pinterest's Gross Margin % falls into.



Pinterest Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Pinterest's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=2366.3 / 3055.071
=(Revenue - Cost of Goods Sold) / Revenue
=(3055.071 - 688.76) / 3055.071
=77.46 %

Pinterest's Gross Margin for the quarter that ended in Mar. 2024 is calculated as


Gross Margin % (Q: Mar. 2024 )=Gross Profit (Q: Mar. 2024 ) / Revenue (Q: Mar. 2024 )
=558.9 / 739.983
=(Revenue - Cost of Goods Sold) / Revenue
=(739.983 - 181.091) / 739.983
=75.53 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Pinterest  (NYSE:PINS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Pinterest had a gross margin of 75.53% for the quarter that ended in Mar. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Pinterest Gross Margin % Related Terms

Thank you for viewing the detailed overview of Pinterest's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Pinterest (Pinterest) Business Description

Traded in Other Exchanges
Address
505 Brannan Street, San Francisco, CA, USA, 94107
Pinterest is an online product and idea discovery platform that helps users gather ideas on everything from recipes to cook to destinations to travel to. Founded in 2010, the platform consists of a largely female audience, at roughly two thirds of its 450 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Executives
Gokul Rajaram director 301 CONGRESS AVENUE, SUITE 700, AUSTIN TX 78701
Jeffrey D Jordan director 2865 SAND HILL ROAD #101, MENLO PARK CA 94025
Christine Deputy officer: Chief People Officer 130 ROYALL STREET, CANTON MA 02021
Evan Sharp director, officer: Co-Founder & Chief Design & Cr 505 BRANNAN STREET, SAN FRANCISCO CA 94107
Sabrina Ellis officer: Chief Product Officer 651 BRANNAN ST., SAN FRANCISCO CA 94107
Wanjiku Juanita Walcott officer: Chief Legal Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Naveen Gavini officer: SVP, Products 505 BRANNAN ST., SAN FRANCISCO CA 94107
Scott F. Schenkel director C/O EBAY INC., 2025 HAMILTON AVE., SAN JOSE CA 95125
Todd R Morgenfeld officer: Chief Financial Officer C/O PINTEREST, INC., 651 BRANNAN STREET, SAN FRANCISCO CA 94107
Benjamin Silbermann director, 10 percent owner, officer: Chairman, President, CEO, Co-F 505 BRANNAN STREET, SAN FRANCISCO CA 94107
Donnelly Julia Brau officer: Chief Financial Officer C/O PINTEREST, INC., 651 BRANNAN STREET, SAN FRANCISCO CA 94107
Malik Ducard officer: Chief Content Officer 651 BRANNAN ST., SAN FRANCISCO CA 94107
Marc Steinberg director 600 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
William J Ready director, officer: Chief Executive Officer C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Christine Flores officer: General Counsel 505 BRANNAN STREET, SAN FRANCISCO CA 94107

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