Pinterest (NYSE:PINS) Gross Margin %

: 71.63% (As of Mar. 2023)

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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 Mar. 2023 was $432 Mil. Pinterest's Revenue for the three months ended in Mar. 2023 was $603 Mil. Therefore, Pinterest's Gross Margin % for the quarter that ended in Mar. 2023 was 71.63%.

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: 71.02 Max: 79.47
Current: 75.15

During the past 6 years, the highest Gross Margin % of Pinterest was 79.47%. The lowest was 62.22%. And the median was 71.02%.

PINS's Gross Margin % is ranked better than
64.95% of 525 companies
in the Interactive Media industry
Industry Median: 58.54 vs PINS: 75.15

Pinterest had a gross margin of 71.63% for the quarter that ended in Mar. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Pinterest was 4.40% 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

Dec22

Gross Margin %

68.04

68.59

73.45

79.47

75.79

Pinterest Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Gross Margin %																74.59	75.24	73.33	78.91	71.63

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.

Annual Data Quarterly Data

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 in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.

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. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )	=	Gross Profit (A: Dec. 2022 )	/	Revenue (A: Dec. 2022 )
	=	2124	/	2802.574
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(2802.574 - 678.597)	/	2802.574
	=	75.79 %

Pinterest's Gross Margin for the quarter that ended in Mar. 2023 is calculated as

Gross Margin % (Q: Mar. 2023 )	=	Gross Profit (Q: Mar. 2023 )	/	Revenue (Q: Mar. 2023 )
	=	431.7	/	602.581
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(602.581 - 170.926)	/	602.581
	=	71.63 %

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 71.63% for the quarter that ended in Mar. 2023 => 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 (NYSE:PINS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Pinterest Inc (NYSE:PINS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

PINS:Mexico P2IN34:Brazil

Address

505 Brannan Street, San Francisco, CA, USA, 94107

Website

https://www.pinterest.com

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

Marc Steinberg	director	600 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Wanjiku Juanita Walcott	officer: Chief Legal Officer	2500 LAKE COOK ROAD, RIVERWOODS IL 60015
William J Ready	director, officer: Chief Executive Officer	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Andrea Acosta	officer: Chief Accounting Officer	C/O BIOMARIN PHARMACEUTICAL INC., 770 LINDARO ST, SAN RAFAEL CA 94901
Naveen Gavini	officer: SVP, Products	505 BRANNAN ST., SAN FRANCISCO CA 94107
Salaam Coleman	director	505 BRANNAN ST., SAN FRANCISCO CA 94701
Andrea M Wishom	director	651 BRANNAN ST., SAN FRANCISCO CA 94107
L Michelle Wilson	director	PO BOX 81226, SEATTLE WA 98108-1226
Jeremy S. Levine	director	C/O BESSEMER VENTURE PARTNERS, 1865 PALMER AVENUE, LARCHMONT NY 10538
Fredric G Reynolds	director	CBS CORPORATION, 51 WEST 52ND STREET, NEW YORK NY 10019
Leslie J Kilgore	director	121 ALBRIGHT WAY, LOS GATOS CA 95032
Gokul Rajaram	director	301 CONGRESS AVENUE, SUITE 700, AUSTIN TX 78701
Jeffrey D Jordan	director	2865 SAND HILL ROAD #101, MENLO PARK CA 94025
Evan Sharp	director, officer: Co-Founder & Chief Design & Cr	505 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