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Pinterest Gross Margin %

: 75.24% (As of Jun. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. Pinterest's Gross Profit for the three months ended in Jun. 2022 was $501 Mil. Pinterest's Revenue for the three months ended in Jun. 2022 was $666 Mil. Therefore, Pinterest's Gross Margin % for the quarter that ended in Jun. 2022 was 75.24%.


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: 68.59   Max: 79.47
Current: 78.72


During the past 5 years, the highest Gross Margin % of Pinterest was 79.47%. The lowest was 62.22%. And the median was 68.59%.

PINS's Gross Margin % is ranked better than
69.83% of 527 companies
in the Interactive Media industry
Industry Median: 60.56 vs PINS: 78.72

Pinterest had a gross margin of 75.24% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Pinterest was 0.00% 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 Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21
Gross Margin %
62.22 68.04 68.59 73.45 79.47

Pinterest Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % 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 Premium Member Only Premium Member Only 79.16 79.97 83.32 74.59 75.24

Competitive Comparison

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 Gross Margin % Distribution

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. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=2048.7 / 2578.027
=(Revenue - Cost of Goods Sold) / Revenue
=(2578.027 - 529.32) / 2578.027
=79.47 %

Pinterest's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=501 / 665.93
=(Revenue - Cost of Goods Sold) / Revenue
=(665.93 - 164.896) / 665.93
=75.24 %

* 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 75.24% for the quarter that ended in Jun. 2022 => 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 Business Description

Pinterest logo
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 more than 365 million monthly active users. The company generates revenue by selling digital ads and is now rolling out more in-platform e-commerce features.
Executives
Acosta Andrea officer: Chief Accounting Officer C/O BIOMARIN PHARMACEUTICAL INC. 770 LINDARO ST SAN RAFAEL CA 94901
Gavini Naveen officer: SVP, Products 505 BRANNAN ST. SAN FRANCISCO CA 94107
Coleman Salaam director 505 BRANNAN ST. SAN FRANCISCO CA 94701
Wishom Andrea M director 651 BRANNAN ST. SAN FRANCISCO CA 94107
Reynolds Fredric G director CBS CORPORATION 51 WEST 52ND STREET NEW YORK NY 10019
Kilgore Leslie J director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Wilson L Michelle director PO BOX 81226 SEATTLE WA 98108-1226
Levine Jeremy S. director C/O BESSEMER VENTURE PARTNERS 1865 PALMER AVENUE LARCHMONT NY 10538
Rajaram Gokul director 301 CONGRESS AVENUE SUITE 700 AUSTIN TX 78701
Jordan Jeffrey D director 2865 SAND HILL ROAD #101 MENLO PARK CA 94025
Silbermann Benjamin director, 10 percent owner, officer: Chairman, President, CEO, Co-F 505 BRANNAN STREET SAN FRANCISCO CA 94107
Sharp Evan director, officer: Co-Founder & Chief Design & Cr 505 BRANNAN STREET SAN FRANCISCO CA 94107
Yang Tseli Lily officer: Chief Accounting Officer C/O MEDIVATION, INC. 525 MARKET ST., 36TH FLOOR SAN FRANCISCO CA 94105
Flores Christine officer: General Counsel 505 BRANNAN STREET SAN FRANCISCO CA 94107
Brougher Francoise officer: Chief Operating Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103

Pinterest Headlines

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