Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Fiverr International Ltd / Equity Capital Markets

Fiverr plans to raise between $94 million and $104 million in this IPO that values the company at $560 million-$620 million. The company plans to sell 5.3 million shares at $18 to $20 per share which would represent a 17% stake. Our base case valuation of Fiverr implies $19 per share or implied market cap of $582 million. Our base case valuation is same as the mid-point bankers' valuation of $19 per share. As such, we would AVOID this deal since the implied price does not provide much upside.Our valuation sensitivity analysis suggests a valuation range of $16 to $22 per share for Fiverr. We used a EV/sales comparison versus Upwork as the main method to value Fiverr. Upwork is currently trading at 4.1x EV/Sales, using the consensus estimates in 2020. We used a 20% discount to Upwork's valuation multiple to value Fiverr.

Fiverr plans to raise between $94 million and $104 million in this IPO that values the company at $560 million-$620 million. The company plans to sell 5.3 million shares at $18 to $20 per share which would represent a 17% stake. Our base case valuation of Fiverr implies $19 per share or implied market cap of $582 million. Our base case valuation is same as the mid-point bankers' valuation of $19 per share. As such, we would AVOID this deal since the implied price does not provide much upside.Our valuation sensitivity analysis suggests a valuation range of $16 to $22 per share for Fiverr. We used a EV/sales comparison versus Upwork as the main method to value Fiverr. Upwork is currently trading at 4.1x EV/Sales, using the consensus estimates in 2020. We used a 20% discount to Upwork's valuation multiple to value Fiverr. 

<a href="https://www.smartkarma.com/entities/28093" target="_blank" data-smartkarma-citation="entities:28093:1">Fiverr International Ltd (FVRR US)</a> is an Israel based company which is planning to complete its IPO in the NASDAQ market in the next few weeks. Fiverr is one of the largest online platforms globally that enables businesses to work with freelancers for various kinds of services. JP Morgan and Citigroup are the lead bankers on this deal.Fiverr provides freelancers with many benefits including helping to find part-time work as well as to companies by reducing the time and costs associated with seeking talent and contracting formal work. Many popular services that are available on Fiverr platform include video marketing, voice-over work, translations, website building, mobile app development,  and graphic design.The company generated sales of $75.5 million in 2018, up 45% YoY. Fiverr generated an operating loss of $36.5 million in 2018, up from an operating loss of $19.5 million in 2017. However, the company was able to reduce its operating losses to $8.5 million in 1Q19, down from an operating loss of $16.5 million in 1Q18.

Fiverr International Ltd (FVRR US) is an Israel based company which is planning to complete its IPO in the NASDAQ market in the next few weeks. Fiverr is one of the largest online platforms globally that enables businesses to work with freelancers for various kinds of services. JP Morgan and Citigroup are the lead bankers on this deal.Fiverr provides freelancers with many benefits including helping to find part-time work as well as to companies by reducing the time and costs associated with seeking talent and contracting formal work. Many popular services that are available on Fiverr platform include video marketing, voice-over work, translations, website building, mobile app development,  and graphic design.The company generated sales of $75.5 million in 2018, up 45% YoY. Fiverr generated an operating loss of $36.5 million in 2018, up from an operating loss of $19.5 million in 2017. However, the company was able to reduce its operating losses to $8.5 million in 1Q19, down from an operating loss of $16.5 million in 1Q18.

Israel

Fiverr International Ltd. provides an online marketplace for selling goods and services. The Company specializes logo, poster, and brochure designing, as well as photoshop editing, content marketing, web analytics, and translation services. Fiverr International serves customers worldwide.

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Fiverr International Ltd (FVRR US)

Fiverr IPO Valuation Analysis

Fiverr plans to raise between $94 million and $104 million in this IPO that values the company at $560 million-$620 million. The company plans to...

Douglas Kim

Fiverr IPO Preview

Fiverr International Ltd (FVRR US) is an Israel based company which is planning to complete its IPO in the NASDAQ market in the next few...

Douglas Kim

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