Faber cancels capital raising following the fall of the stock on Wall Street – Global

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The Israeli is shelving the plan to raise capital. The move follows the fall in the stock that lost 13% yesterday on the Nasdaq trading day. Now, and even after the announcement of the cancellation of the raising, the stock continues to fall by another 3%.

Faber has announced that it will raise $ 700 million in equity that was to be led by JPMorgan. The investment bank, like the other underwriters in the raising, was given an option to purchase an additional 15% of the issue volume, so that if it did materialize, the total number of shares offered could reach 2.9 million – which would dilute the existing shareholders by 8%.

Faber, which has developed a trading arena for freelancers from various fields, planned to take advantage of the positive momentum created by the strong forecast it provided with the publication of the reports: the company expected 87-90% growth in the current quarter to $ 63-65 million (still negative adjusted EBITDA of 3-4 Million) and annual growth of 46-50% to revenue in the range of $ 277-284 million, with adjusted EBITDA of $ 16-21 million.

Revenue for the quarter was $ 55.9 million, 89% higher than in the corresponding quarter and higher than analysts’ forecasts for revenue of $ 54.1 million for the quarter. Earnings for the quarter were $ 4.8 million, or $ 0.13 per share ($ 0.12 fully diluted), compared to $ 2.7 million in the same quarter last year ($ 0.08 per share), and similar to analysts’ average earnings forecasts of $ 0.12 per share.

For the full year, revenues increased by 77% to $ 189.5 million, beating analysts’ forecasts for revenue of $ 187.7 million. Non-GAAP earnings for the period totaled $ 10.4 million, which is $ 0.32 per share (0.29 fully diluted), compared to a loss of $ 16.8 million ($ 0.58 per share) in 2019, which is similar to analysts’ earnings forecast. $ 0.3 per share.

Faber was founded by Micha Kaufman and Shai Weininger and was issued in 2019 at a value of $ 650 million after the money, after raising about $ 110 million. Faber’s trading arena is active in 160 countries with services such as graphic design, digital marketing, programming , Video editing and animation, music production, accounting, etc. Faber’s economic model is based on a commission that the company takes from each transaction between a client and a freelancer who provides the service.