Freelancer platform Fiverr International Ltd. (NYSE: FVRR), headed by co-founder Micha Kaufman, is taking advantage of the meteoric rise in its share price over the past year to raise more capital. The company has issued a preliminary prospectus for a $700 million equity offering, on terms to be announced in a final prospectus. It will also grant the underwriters a 30-day option to purchase up to an additional 15% of the ordinary shares at the offering price, less underwriting commissions. Fiverr's initial public offering was in 2019. It now has a market cap of $10 billion.
J.P. Morgan Securities LLC is acting as lead book-running manager for the offering. Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are also acting as book-running managers.
Last October, Fiverr 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 3, 2021
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