Fiverr (FVRR) shares surged 88.38% on Thursday after debuting on the New York Stock Exchange at $21 at the open and closing at $39.56. The tech company which bills itself as “the world’s largest freelance services marketplace” is showing heavy demand as investors get their hands on shares.
Fiverr announced the pricing of its initial public offering of 5,263,158 ordinary shares at a public offering price of $21.00 per share on Wednesday.
The company is well positioned but has been operating at a loss.
“Fiverr posted a net loss of $8.3 million in the three months ending March 31. However, this was narrower than the $16.3 million loss it posted the year prior, according to Yahoo! Finance. “Total sales for its fiscal first quarter of 2019 were $23.8 million, up 42% over last year. For the full-year 2018, revenue was $75.5 million, up 45% from 2017.”
In an interview with Yahoo! Finance’s ‘On the Move’ Fiverr CEO Micha Kaufman shared the company’s plans to become profitable.
“Fiverr is a very high growth business with very strong repeat behavior of its cohorts,” he said. “And if you look at our EBITDA, you see that the negative EBITDA is shrinking. So we’re balancing growth with the fact that we are on the path to reach profitability.”
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