Fiverr nearly doubles IPO price on first day

Freelance marketplace provider Fiverr closed up 90% at $39.90 in its first trading day Thursday. The company offered about 5.26 million shares at $21 apiece, higher than a previously anticipated $18 to $20 range, raising $110.5 million with a final estimated private valuation of $650.9 million.

According to its S-1 document, the Tel Aviv-based company pulled in $75.5 million in revenue for 2018, up from $52.1 million in 2017. As is common with recent IPOs, the company reported a net loss in 2018—nearly $36.1 million for 2018, up from $19.3 million in 2017.

The company depends on repeat buyers, which made up 57% of its 2018 revenue. Its S-1 reports only 10% growth YoY in active buyers, from 1.8 million for 2017 to 2 million in 2018, suggesting either difficulty in retaining customers or a lack of successful growth initiatives.

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