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  • Writer's pictureJerremy Alexander Newsome

Fiverr IPO

Hello there titans of the ticks! How are you doing this fine Saturday? Jerremy is finishing up his 29029 race and I am busy starting at the charts. I just wanted to pop into your day to tell you a little bit about another IPO that recently came on to the market. You might have heard of them. You might have even used them before! Let's chat about Fiverr.

Fiverr is a nifty little company that is an online marketplace for freelancers and is based in Tel Aviv, Israel! I think this is our first company headquartered somewhere other than the USA! It is worldwide and allows users to sell their services called "Gigs" from the base price of $5 (see what they did there) for up to thousands with add ons. It is estimated to have around 830,000 freelancers! Fiverr was born in 2010 and since then website transaction volume has grown over 600%. And since the beginning of 2013 Fiverr has held strong as one of the top 100 sites in the US and top 200 sites in the world!

Fiverr envisioned a marketplace that was two sided; a way for both consumers and creators to buy and sell. To purchase or sell on it's site you start by signing up completely for free. If you choose to sell, you create gigs choose the price, and go live. To buy, you just create a profile and purchase said gigs. You can message the sender through the site and when you project is complete you receive it via attachment or a range of different means depending on what you've bought. Fiverr is a meca for interesting things that people will do for $5. I have used it myself for photoshop files when I am not able to do them myself. The site has everything from video editing, programming, powerpoint making, all the way to "holding up a sign with your company name" all starting at $5. Fiverr makes money by taking a part of each transaction. For sellers Fiverr takes 20%. Meaning if you sell one $5 gig Fiverr takes $1 and you make $4. For buyers a processing fee of $1 is charged for purchases up to and including $20. For orders more than $20, Fiverr charges 5% of the total. So honestly not terrible. Fiverr is still losing money. Shocker there. its net losses grew from $19.3 million in 2017 to $36.1 million in 2018, an 87% increase. At the same time, revenue grew by nearly 45%, from $52.1 million to $75.5 million. So with time I expect the losses to decrease and revenue to increase. 

So what about the competitors? We spoke briefly a few month ago about one of Fiverr's competitors that IPO'd recently as well. You might know them as Upwork. You can click here to see that article. It would seem that online marketplaces for freelancing are becoming quite popular. It seems like Freelancers are entering the market from every which way, and with a world that is so connected by the internet, freelancers can connect with buyers from all over the world. Other popular sites in this realm are Freelancer, Guru, and TaskRabbit. Each of these websites they have their own specialty. TaskRabbit: More household projects. Guru and Freelancer: Projects. Fiverr on the other hand, in my own experience, is more oriented towards one off quick projects. Hence why they are so cheap. But keep in mind, there are still larger gigs you can get, but most won't be from companies.

Now let's get to what you are really interested in: The Charts! Like virtually every other IPO out there, after a quick spike up for a few days we saw a sharp drop for the next month. At this point, we are looking at a great buy low, sell high strategy. Right now she is trudging along pretty sideways around the $23 - $25 mark. I will likely wait for a double bottom around the $23 mark and buy around there. 

Well that's about it for today. I hope you enjoyed this little quip! So excited to get started on the next one! You rock and see you again soon!

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