Afternoon Coffee: Freelancer Marketplace Fiverr Is Going Public; Google Cools on Doing Business with Huawei

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Another freelance work/services platform enters the public spotlight.

Fiverr, the Tel Aviv-based online marketplace for digital creative services, has announced that it has filed its Form F-1 with the U.S. Securities and Exchange Commission on May 16, 2019. The company, which was founded in 2010, began by attacking the low end of the market (famously offering $5 tasks).

Today, according to the Form F-1 registration document, Fiverr offers over 200 categories of “productized service listings,” with prices ranging from $5 to thousands of dollars. Since Fiverr’s inception in 2010, 50 million transactions between more than 5.5 million buyers and more than 830,000 sellers have been facilitated on the platform, and the company has raised $111 million in private equity 5 rounds (the last in November 2015).

Full-year 2017 and 2018 GMV (Gross Merchandise Value) was $213.0 million and $293.5 million, respectively (a period-over-period 38% increase). Revenue in the same years was $52.1 million and $75.5 million (representing a 45% increase period-over-period). Adjusted EBITDA declined from ($17.0) million in 2017 to ($21.0) million in 2018.

Fiverr’s filing will be the third online work/services platform IPO — preceded by Upwork in October 2019 (NASDAQ: UPWK) and Freelancer.com in October 2013 (ASX: FLN), perhaps providing some further legitimization for online marketplace types of business in the work/services domain. The three platforms feature different go-to-market models, and the IPO will also offer analysts yet another opportunity to delve into and compare performance details, et al.

Spend Matters will provide further analysis of Fiverr in the course of the week.

Google partially suspends business with Huawei

Reuters reports that Google had deferred doing business with Huawei in some areas like the transfer of hardware, software and technical services. Google will keep only open source licensing going with the Chinese company, the report quoted a source as saying.

Wall Street fears trade war will disrupt Apple’s tech supply chain

Seeing the massive jump in tariffs, big investors in Apple's iPhone and its supply chain are evidently bailing. One of them is investor Thornburg Investment Management.

More trade war fallout: Companies moving production

President Donald Trump told Fox News that the new tariffs on Chinese goods were making companies move production from China to other Asian nations like Vietnam, according to Reuters. Aired on Sunday night, Trump blamed China for changing the deal terms, thereby forcing his hand.

Jet Support Services signs agreement with Contour Aviation

One of the biggest companies in aircraft maintenance work, JSSI, has said it had signed a supply-chain agreement with Contour Aviation for the latter's business jets.

As per the deal, JSSI will give parts procurement, logistics, and billing support to Contour’s business jet fleet.

California company tests autonomous driving truck in Florida

San Francisco-based Starsky Robotics and the Tampa Hillsborough Expressway Authority completed tests with a self-driving truck, albeit with a driver behind the wheel, on a section of the Lee Roy Selmon Expressway near Tampa, Florida.

“We are testing our safety architecture,” Stefan Seltz-Axmacher, chief executive and co-founder of Starsky Robotics, told FreightWaves. “What we are doing is basically telling our truck that some part of it is failing, so that we can measure and make sure our truck knows it’s failing and takes appropriate action.”

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