Fiverr cancels planned $700m offering

Micha Kaufman / Photo: Omer Hacohen, PR, PR
Micha Kaufman / Photo: Omer Hacohen, PR, PR

The Israeli freelancer platform today announced that due to market conditions it would not be in its shareholders' interest to proceed and the offering has been cancelled.

Freelancer platform Fiverr International Ltd. (NYSE: FVRR) issued a preliminary prospectus earlier in the week for $700 million equity offering, but today announced that due to market conditions it would not be in its shareholders' interest to proceed and the offering has been cancelled.

Fiverr's share price is currently up 3.5% in premarket trading after falling 13% yesterday to $242.99, giving a market cap of $8.71 billion.

Last October, Fiverr, managed by cofounder and CEO Micah Kaufman, raised $460 million in a convertible bond issue at zero interest, after raising $120 million in an equity offering in May at a price of $60 per share. Fiverr's IPO was at $21 per share.

2020 was an excellent year for Fiverr, as the coronavirus pandemic drove commercial activity online. The company turned profitable earlier than expected, while its share price shot up by 730% over the year. Since the beginning of 2021, the share price has continued to climb, reaching $279.44 at yesterday's close, although 3.55% down on the day, and 13.6% below its mid-February peak of $323.

Last week, the company released good financials and provided optimistic guidance. It posted non-GAAP earnings per share of $0.12 for the fourth quarter on revenue of $55.9 million, 89.2% more than its revenue in the fourth quarter of 2019. For the first quarter of 2021, Fiverr expects to report revenue of $63-65 million, 84-90% more than in the first quarter of 2021. This compares with an analysts' consensus estimate of $57.8 million.

Published by Globes, Israel business news - en.globes.co.il - on March 4, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Micha Kaufman / Photo: Omer Hacohen, PR, PR
Micha Kaufman / Photo: Omer Hacohen, PR, PR
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