Fiverr IPO: What You Need To Know

An Israeli company with a unique service business that leverages the advantages of e-commerce is set to make its Wall Street debut Thursday.

The IPO Terms

Tel Aviv-based Fiverr International Ltd proposes to offer 5,263,158 shares in a U.S. initial public offering, with the price of each share estimated between $18 and $20, according to an F-1 filing with the SEC.

The company said it seeks to list its ordinary shares on the NYSE under the ticker symbol "FVRR."

Since Fiverr is an emerging growth company and a foreign private issuer as defined under the U.S. federal securities laws, it can take advantage of reduced public disclosure norms.

JPMorgan, Citigroup, Bank of America Merrill Lynch and UBS are the lead underwriters for the offering.

The Company

Founded in 2010 with a simple idea of providing a platform for people to buy and sell digital services, Fiverr is seen as key player in the arena. It has a digital marketplace, with a comprehensive SKU-like services catalog and a "find-and-order" process for connecting businesses and freelancers.

The catalog contains over 200 categories of service listings, or Gigs, and each Gig has a clearly defined scope, duration and price, along with buyer-generated reviews.

Since its inception, Fiverr said it has facilitated over 50 million transactions between more than 5.5 million buyers and more than 830,000 sellers on its platform.

"We estimate our total market opportunity within the United States alone to be approximately $100 billion," the company said.

The Finances

Fiverr reported revenue of $75.503 million in the fiscal year ended in December, up from $52.112 million one year ago. For the quarter ended March 2019, the company posted revenue of $23.763 million.

Fiverr generates revenue from transaction and service fees.

The company has been consistently making losses, with the loss widening from $3.04 per share in 2017 to $5.42 per share in 2018. For the March 2019 quarter, it reported a loss of $1.26.

Related Links:

CrowdStrike IPO: What To Know About The Cybersecurity Unicorn's Debut

IPO Outlook For The Week: Freelancers, Web Security And Pet Products

Photo courtesy of Fiverr.