After a subdued IPO market in the first half of 2019, things are finally starting to pick up. Fiverr International Ltd. (NYSE: FVRR), a company that links freelancers with clients around the world, is the latest to bring its shares to the public market.
Here’s all you need to know about Fiverr, what it does, and how much shares could cost as they become active on the market today.
Fiverr and the Gig Economy
Fiverr is the poster child for the gig economy; a labor market that is based around freelance short-term contracts rather than traditional employment. Through its website, Fiverr offers a platform where professionals can sell their services. The platform is popular with artists, marketing professionals, content creators, and professional consultants.
Fiverr will be the second major gig economy company to trade on the public market. Upwork (NASDAQ: UPWK) went public at the end of last year. It offers a software platform with similar features to Fiverr.
The gig economy could become highly valuable in the coming years. Some analysts have predicted that up to 40% of global professionals will work as independent freelancers by 2020. Fiverr has identified an addressable market worth up to $100 billion annually in the U.S. alone.
How Much Will Fiverr Shares Cost?
The Fiverr IPO was worth $21 a share on Wednesday night. The company raised $110 million of capital from 5.26 million shares. Members of the public will be able to purchase shares from Thursday (June 13) onwards.
Fiverr made $75.5 million in revenue during 2018. This was an increase from $52.1 million in the previous year. However, the company is still running at a loss as it invests in new technologies and business expansion. The company reported an operational loss of $8.3 million in the first quarter of this year. The good news is that the loss was reduced from $16.3 million a year ago.
Fiverr has a lot of potential, and its strong position in the gig economy could allow it to grow as more professionals look for contract work. However, new investors should be aware that it could take months, or even years for this stock to provide a meaningful return.
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