Pinterest has hired its first chief financial officer, Todd Morgenfeld — who was most recently vice president of finance at Twitter — the company said today. He was at Twitter for about a year and a half before joining Pinterest.
Generally, these kinds of hires can signal a few things. One is that, more simply, the company is getting more ambitious about getting its finances in order (the company has around 40 people on its finance staff, according to a story in The Wall Street Journal) for more general reasons. But sometimes the tea leaves reveal greater ambitions: getting things in order for a potential initial public offering.
A representative from Pinterest said the company has “no plans for an IPO right now, as we focus on growing the business.”
“We are excited that Todd is joining Pinterest as CFO,” CEO Ben Silbermann said in a statement. “Todd brings to the company a wide range of experience from HP to the military to a fast paced environment like Twitter. He believes in our mission and the strong business opportunity it presents. We are committed to building our company for the long term and thrilled that Todd will be an integral part of continuing this growth.”
Pinterest has been aggressively expanding its advertising and commerce tools as it looks to begin generating a healthy amount of revenue. In 2015, leaked documents showed Pinterest was forecasting around $169 million in revenue, as well as a forecast of $2.8 billion in annual revenue in 2018. The company was most recently valued at $11 billion in a financing round. Of course, these forecasts can change as the year progresses, and the documents were released earlier last year.
Still, things might be a little challenging for Morgenfeld. The Wall Street Journal is also reporting that Pinterest generated roughly $100 million in revenue, which could mean it fell below the forecast laid out in the previously leaked documents. The company has released a large number of advertising tools as it looks to offer marketers an alternative option than Facebook and Google, banking on giving marketers access to multiple parts of the purchasing cycle.
Twitter, too, was in a challenging position under Morgenfeld. The company since its initial public offering has had to deal with stalling growth and a frustrated Wall Street, as it tried to put together a strong business proposition that would keep it an independent company. Earlier this month it was revealed that a number of companies, including Salesforce and Alphabet, are looking at snapping up the company as it might make sense in the context of a greater tech empire.
(Obviously Morgenfeld wasn’t running the show at Twitter, as Anthony Noto serves as the company’s CFO.)
The social media site has raised over $1.3 billion in capital from investors, including SV Angel, Rakuten and Bessemer Venture Partners.