Tech companies are lining up to go public — here’s what we learned from the most recent wave of IPO

guest · Nov 22, 2020

Tech companies are lining up to go public — here’s what we learned from the most recent wave of IPO filings
Among the coming IPOs, DoorDash, Roblox and Affirm have gained the most from the pandemic
November 21, 2020
https://www.cnbc.com/2020/11/21/key-points-from-doordash-airbnb-roblox-wish-affirm-s-1-filings.html

Tech investors have plenty of reading to do over the Thanksgiving holiday in the form of IPO filings. DoorDash, Airbnb, Affirm, Roblox and Wish all unveiled their prospectuses in the past eight days, with plans to go public before year-end.

All five companies serve consumers and can expect a busy holiday season in the face of surging coronavirus cases and a drastically altered economy. It’s a very different slate of entrants to the market than the previous rush in September, when a number of enterprise software companies like Snowflake and Palantir made their debuts.
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DoorDash revenue more than tripled in the third quarter as many restaurants turned to delivery as their primary source of business. Kids gaming platform Roblox reported 91% revenue growth in the most recent quarter (measured vs. last year), as it benefitted from school closures and more users looking for ways to stay entertained away from their friends.

Affirm, which offers point-of-sale online loans for consumers buying apparel, electronics, home goods and other items, almost doubled revenue in the latest quarter as people increasingly turned to the internet for their purchases. Wish, an online discount retail marketplace, is also benefiting from the ecommerce boom.

Airbnb is the company most hurt by the pandemic, which has flattened the travel economy.
Here’s what we learned from each company’s S-1 filing, listed in the order of when they were filed:
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guest · Dec 2, 2020

Airbnb hopes to raise up to $2.6B in mid-December IPO
December 1, 2020
https://www.washingtonpost.com/busi...22a31a-33f6-11eb-9699-00d311f13d2d_story.html

Airbnb hopes to raise as much as $2.6 billion in its initial public stock offering this month, betting investors will see its home-sharing model as the future of travel.

Including stock options, restricted stock units and other classes of securities, Airbnb will have approximately 696 million shares. That would value the company at nearly $35 billion at the high end of its offering price, or $31 billion at the low end.
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It’s a remarkable comeback for the company that delayed its IPO when the coronavirus pandemic crippled global travel in the spring. Airbnb has more than 7 million listings on its platform, run by 4 million hosts worldwide.
Its revenue fell 32% to $2.5 billion in the first nine months of this year as travelers canceled their plans.

But Airbnb has recovered more quickly than traditional hotels as travelers seek whole homes in rural areas far from crowds. The number of nights and experiences booked, which plummeted 72% April, were down about 20% in July, August and September.
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guest · Dec 9, 2020

The pandemic created the hottest IPO market of all time
December 8, 2020
https://qz.com/1943490/airbnbs-ipo-caps-the-hottest-year-for-us-stock-listings-ever/

In the second week of December, three tech firms—rental booking giant Airbnb, food delivery titan Doordash, and AI software-maker C3.ai—are set to go public. Each of them has raised their IPO price ranges in recent days in anticipation of ravenous market demand. If they hit the upper end of their targets, the trio will raise a cool $6.7 billion.

That’s on top of the $149 billion that US firms have already raised on the IPO market this year. Accounting for inflation, that sum teeters right on the edge of breaking 2000’s record for public listings.

“A lot of these IPOs really benefited from the pandemic,” said Danielle Shay, director of operations at investor education site Simpler Trading.
“These companies started taking off, and it became a snowball effect because investors saw that 2019 IPOs were doing really well and then they started doing even better at the beginning of 2020.”
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Time will tell whether they—and the millions of new investors who will doubtless buy a piece of Airbnb, Doordash, and C3.ai this week at towering valuations—are right.
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Tech companies are lining up to go public — here’s what we learned from the most recent wave of IPO

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