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Fiverr announced buyback of $100M of its own shares


smashradio

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A user just made me aware of this: 

Fiverr International Ltd. has announced a plan to repurchase up to $100 million of its ordinary shares, a move that may be contested by the company’s creditors within a 30-day period. If no objections are filed, the buyback will proceed without the need for court approval. The execution of this share buyback plan will depend on market conditions and other factors, and the company reserves the right to adjust or cancel the program at any time.

Source: Fiverr Announces $100 Million Share Buyback - TipRanks.com

As I said to them:

I'm willing to bet that they think it's undervalued and is a good buy. I'd say they're right, but it depends on their plans in the future, and we don't really know what they are. But they must think it will go back up again at some point. That, or they're just trying to improve earnings per share. Another reason to hold, I'd say, but then again, I'm no expert trader, even though I have a bit of stock in Fiverr. 

Perhaps someone with a better grasp on the stock market want to speculate? 

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I asked ChatGPT! Also, that website is a horrifying collection of ads everywhere. 

Quote

The statement outlines a corporate action by Fiverr International Ltd., a company, to buy back up to $100 million of its own shares from the market. This plan is notable for a few key points:

  1. Share Buyback Explained: When a company buys back its own shares, it's essentially investing in itself. By reducing the number of shares available on the market, the value of the remaining shares may increase, and it can also be a sign that the company believes its stock is undervalued. It's a way for the company to return value to shareholders.

  2. Creditor Contestation Period: The mention of a 30-day period during which creditors can contest the buyback is interesting. This suggests there are legal or contractual mechanisms in place that allow creditors (entities that have lent money to the company or have other financial claims against it) to object to the buyback. Their concerns might stem from fears that the buyback could weaken the company's financial position, thereby affecting its ability to repay debts.

  3. No Court Approval Needed if Uncontested: If no objections are raised by creditors during the specified period, the company can proceed with the share buyback without needing to go through a court process. This implies a streamlined process for the buyback, contingent on creditor acquiescence.

  4. Conditional Execution: The plan's execution is subject to market conditions and other factors. This means the company is leaving itself room to maneuver based on how the market evolves. If the market conditions are unfavorable, or if other strategic needs arise, the company may choose to adjust or even cancel the buyback plan.

  5. Flexibility: The statement that the company reserves the right to adjust or cancel the program at any time underscores the flexibility the company is giving itself in managing the buyback. This could be crucial for reacting to changes in its financial health or in overall market conditions.

Overall, this announcement indicates that Fiverr is taking a strategic step to potentially enhance shareholder value but is also carefully balancing this move with its financial health and obligations to creditors. The conditions and caveats highlight the complexity of such financial maneuvers, especially for a publicly traded company with multiple stakeholders to consider.

 

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Posted (edited)
5 minutes ago, emmaki said:

I asked ChatGPT! Also, that website is a horrifying collection of ads everywhere. 

 

So GPT agrees with me! Yey! I must be smart...erchild.

I wouldn't know about the ads. I use Adblock. 

Edited by smashradio
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As an example...
image.png.f212164fe83ef93ad7ba16e1d90a883e.png

I was using adblock but then YT started shouting at me. Really need to find a new one soon, although seeing all the terrible unoptimized ads out there has been entertaining. 

But back OT, do you think Fiverr is raiding the SPP piggy bank for funds to pay for this buyback? Probably not, but the thought flitted through my female brain. I was probably distracted by the hot grandads. 

Edited by emmaki
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That's interesting. Well, as a shareholder (more like bagholder) I like this. Give me that sweet exit liquidity pls.

 

On the other hand... they announce they are going to buy back 1/8th of their entire stock (100M when they're valued at 800M) and the stock is totally flat, just 0.10% up in afterhours? That ain't good, this should be an immediate spike.

Edited by visualstudios
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34 minutes ago, emmaki said:

As an example...
image.png.f212164fe83ef93ad7ba16e1d90a883e.png

I was using adblock but then YT started shouting at me. Really need to find a new one soon, although seeing all the terrible unoptimized ads out there has been entertaining. 

I couldn't live without Youtube Premium. I pay what, 12 bucks a month for it and have no ads, it helps the creators I like earn more, and I get Youtube Music, meaning I don't have to pay another 15 bucks to Spotify every month. 

36 minutes ago, emmaki said:

 

But back OT, do you think Fiverr is raiding the SPP piggy bank for funds to pay for this buyback? Probably not, but the thought flitted through my female brain. I was probably distracted by the hot grandads. 

Probably not. But nothing surprises me anymore.. Well.. Except the female brain, that is. 

 

34 minutes ago, visualstudios said:

That's interesting. Well, as a shareholder (more like bagholder) I like this. Give me that sweet exit liquidity pls.

 

On the other hand... they announce they are going to buy back 1/8th of their entire stock (100M when they're valued at 800M) and the stock is totally flat, just 0.10% up in afterhours? That ain't good, this should be an immediate spike.

I'll wait for the ticker tomorrow before I make up my mind, but you might be right. 

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1 hour ago, emmaki said:

As an example...
image.png.f212164fe83ef93ad7ba16e1d90a883e.png

I was using adblock but then YT started shouting at me. Really need to find a new one soon, although seeing all the terrible unoptimized ads out there has been entertaining. 

But back OT, do you think Fiverr is raiding the SPP piggy bank for funds to pay for this buyback? Probably not, but the thought flitted through my female brain. I was probably distracted by the hot grandads. 

You should use uBlock Origin extension for chrome. It works with the Ads block and is working fine since Youtube asked to remove the Ads Block. There is a tutorial for uBlock on Youtube as well.

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the price has moved after hours and sold after hours as well. if i had to speculate looking at the recent charts it looks like there are a number of puts in place between 20.85 and 21$. there hasn't been a buyback yet & I Dont want to comment on anything else except to say I dont think seller plus is going to cover this /s

 

image.png.be9583e653a7a562264a78d1f5389d9f.png

 

 

 

 

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41 minutes ago, visualstudios said:

It's a buyback for $100 million. If they get even 1/10 of that with these new fees, I'll be VERY surprised.

I'm not saying this alone is paying for it. I am saying it's a factor. I don't like being someone else's factor against my will. 

Edited by levinewman
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Idk if this even ties to that in any way, honestly. This is small change, I bet. Are there any public numbers of people subscribing to seller plus?

If I had to hazard a guess, I would say the extra 10 bucks will probably be going towards paying for SM's and the like, since that has been a total s*itshow, tons of people on the program can't get calls or even e-mails, they don't have enough people. A lot of backlash because of that, people dropping out of the program, etc.

They realized they needed more people, that means more costs, and they're passing the cost on. The extra 10 bucks per user could help to hire a few more support staff, that would make sense. On the other hand, it would also drop the number of subscribers, by making it more expensive, also helping to control the load on the existing staff. This makes sense.

But for a $100M purchase... the extra $10 per subscriber is nothing.

Edited by visualstudios
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5 hours ago, visualstudios said:

Are there any public numbers of people subscribing to seller plus?

The Q3 23 shareholder letter mentions that SP has over 25,000 subs, but that's all I know. They didn't mention any numbers in Q4, only that they expected the program's expansion to "moderate" (i.e. stall) this year along with Gig Promotion.

Which may or may not play into the price "alignment". 

Edited by emmaki
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12 hours ago, smashradio said:

A user just made me aware of this: 

Fiverr International Ltd. has announced a plan to repurchase up to $100 million of its ordinary shares, a move that may be contested by the company’s creditors within a 30-day period. If no objections are filed, the buyback will proceed without the need for court approval. The execution of this share buyback plan will depend on market conditions and other factors, and the company reserves the right to adjust or cancel the program at any time.

Source: Fiverr Announces $100 Million Share Buyback - TipRanks.com

As I said to them:

I'm willing to bet that they think it's undervalued and is a good buy. I'd say they're right, but it depends on their plans in the future, and we don't really know what they are. But they must think it will go back up again at some point. That, or they're just trying to improve earnings per share. Another reason to hold, I'd say, but then again, I'm no expert trader, even though I have a bit of stock in Fiverr. 

Perhaps someone with a better grasp on the stock market want to speculate? 

Most likely means more fees for sellers + buyers in the future. Defo more Ad fees. 

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14 hours ago, smashradio said:

A user just made me aware of this: 

Fiverr International Ltd. has announced a plan to repurchase up to $100 million of its ordinary shares, a move that may be contested by the company’s creditors within a 30-day period. If no objections are filed, the buyback will proceed without the need for court approval. The execution of this share buyback plan will depend on market conditions and other factors, and the company reserves the right to adjust or cancel the program at any time.

Source: Fiverr Announces $100 Million Share Buyback - TipRanks.com

As I said to them:

I'm willing to bet that they think it's undervalued and is a good buy. I'd say they're right, but it depends on their plans in the future, and we don't really know what they are. But they must think it will go back up again at some point. That, or they're just trying to improve earnings per share. Another reason to hold, I'd say, but then again, I'm no expert trader, even though I have a bit of stock in Fiverr. 

Perhaps someone with a better grasp on the stock market want to speculate? 

It's interesting timing for this announcement.  Fiverr has 30 days to follow through, which takes us to May 3rd - 6 days before Q1 results are expected to be published.  Today's market cap is just under $805m, so $100m is a significant portion of the current value.  

Are they really expecting share price to rise as a result of Q1 results? 

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Not even that - it didn't specify whether that was SP/SPP and AFAIK there's no public documentation on how many sellers are in SPP as opposed to SP. And it's an extra $20 for some sellers who were promised lifetime discount rate (until unsub) as a reward for being the first 200 to sign up. It's a shame the stock market doesn't run on morals, but I suppose that's fortunate for Fiverr. 

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I thought the price increase for SPP was only for those who originally got a discount? So that would be way less than 25k, and I'm guessing less than half of those have Premium in the first place. 

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I was one of the first 200 to get it, so I got the $19 SP. SPP didn't come until like, a year later or something and the early-birders like me retained the old pricing as a thank you - I don't seem to have the email anymore but my memory is all talk of "grandfathering" and "don't worry" and "we value you". Basically, really giving the impression that this was a long-term thing - until cancellation - rather than just 3 years until Fiverr needed to shake down its customer-assets for few extra dollars to pay the electricity bill.

I THINK that the $29 crew were also promised that they'd keep the $29 rate, but I wasn't in that so idk. In the end, it was all sleazeball marketing with the morals and sincerity of an alley cat. Presumably the smell, too.

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16 minutes ago, emmaki said:

I was one of the first 200 to get it, so I got the $19 SP. SPP didn't come until like, a year later or something and the early-birders like me retained the old pricing as a thank you - I don't seem to have the email anymore but my memory is all talk of "grandfathering" and "don't worry" and "we value you". Basically, really giving the impression that this was a long-term thing - until cancellation - rather than just 3 years until Fiverr needed to shake down its customer-assets for few extra dollars to pay the electricity bill.

I THINK that the $29 crew were also promised that they'd keep the $29 rate, but I wasn't in that so idk. In the end, it was all sleazeball marketing with the morals and sincerity of an alley cat. Presumably the smell, too.

I feel like you're dragging alley cats into an even bigger mess.

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4 minutes ago, levinewman said:

I feel like you're dragging alley cats into an even bigger mess.

That's true. 

I would like to apologize for the world's alley cats for this terrible slur against  their community. I hope that they will find it in their hearts to forgive me so we can move on from this unfortunate incident. 

 

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49 minutes ago, emmaki said:

I THINK that the $29 crew were also promised that they'd keep the $29 rate

Yes, we were.

49 minutes ago, emmaki said:

In the end, it was all sleazeball marketing with the morals and sincerity of an alley cat. Presumably the smell, too.

Alley cats still clean themselves as much as they can, so there isn't much of a smell, at least not usually.

And I'd say that they're far more sincere than Fiverr (plus they don't bother with being subtle, you know exactly where you stand with them), not to mention far more ethical.

30 minutes ago, emmaki said:

I hope that they will find it in their hearts to forgive me so we can move on from this unfortunate incident. 

That might depend on whether you have tuna.

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New freelance site idea: Catrr (not to be confused with catarrh). People will be paid in cans of ethically-sourced tuna by benevolent cat overlords sharing their plenty. Instead of a reviewing system, people who please buyers will be given high quality catnip. Business will be conducted through meiowing, purring, and hissing. Rude cat related jokes are only allowed if they're funny. 

Dogs not allowed and extremely discriminated against. 

Edited by emmaki
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