Pinterest is on track for a successful 2017 as the company raises an additional $150 million.
According to Business Insider, Pinterest is now valued at $12.3 billion after its new round of funding and business valuation.
Business valuation is primarily an economic analysis exercise. The two financial statements necessary for a proper business valuation is income statements and economic balance sheets. Additionally, three to five years of historic income statements and balance sheets might be required for smaller organizations.
Pinterest, however, is becoming one of the stronger companies in the technology sector, with 175 million users. Just two years ago in 2015, Pinterest was valued at $11 billion. The company made $300 million in advertising revenue in 2016 and Pinterest spokespersons expects the company to earn more than $500 million in ad revenue this year.
“One goal is to make the product experience great outside of the US, and the second is to continue building a sustainable revenue model that will let the company keep investing and building out a catalog of ideas,” said Pinterest CEO Ben Silberman.
Despite the fact that the employer turnover rate for companies that don’t use Professional Employer Organizations (PEOs), Pinterest has remained successful in the ever-changing technological landscape. For PEO companies, the annual employee turnover rate is around 28%. For companies that don’t use PEOs, however, the turnover rate is closer to 42%.
Though Pinterest was once one of the most popular startups in Silicon Valley, it struggled to compete with other tech conglomerates like Facebook, Twitter, and Google. As Bloomberg Technology reports, a somewhat similar application, Instagram (owned by Facebook), has more than five times the amount of users that Pinterest has.
Thanks to its recent venture funding campaign, however, Pinterest earned an additional $150 million and further delays a potential initial public offering (IPO).