PINSNEUTRAL

PINS Gross Margin Analysis

76.3%

Higher than 73% of Communication Services sector peers

Updated 109h ago·SEC filings & market data

Key Takeaway

Pinterest’s gross margin of 76.3% means that for every dollar of revenue, the company keeps 76.3 cents after covering the direct costs of producing its service, like server and content expenses.

Sector Performance

73th percentile

PINS

76.3%

Sector Median

53.0%

Sector Avg

58.3%

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Deep Analysis

Pinterest’s gross margin of 76.3% means that for every dollar of revenue, the company keeps 76.3 cents after covering the direct costs of producing its service, like server and content expenses.

This is well above the sector median of 54.0% for Communication Services, placing PINS in the 75th percentile among its peers, indicating a strong cost advantage relative to competitors. However, the trend is not available—the year-over-year change, quarter-over-quarter change, and direction over the last eight quarters are all listed as N/A, so no momentum can be assessed from this data alone. Without a trend, the high level alone suggests the company has a durable margin structure that reduces near-term operating risk, but it also means there is no evidence of improvement or deterioration to gauge future stability. This metric supports the overall NEUTRAL verdict because the strong margin level is a positive for profitability, but the lack of trend data prevents a more bullish or bearish tilt.

Frequently Asked Questions

What does the Gross Margin tell investors about PINS?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does PINS's Gross Margin compare to its sector?

PINS's Gross Margin of 76.3% compares to a Communication Services sector median of 53.0%, placing it in the 73th percentile.

Who are PINS's closest peers by Gross Margin?

The closest Communication Services peers by Gross Margin include: TWTR (54.0%), NFLX (51.9%), DASH (50.6%), SNAP (56.5%), TWLO (48.6%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.