DOS_patos
Unverified Legion of Trill member
Two household-name tech startups are poised to go public this week, adding to 2020’s influx of initial public offerings.
Shares of Airbnb are slated to begin trading on the Nasdaq on Dec. 10 under the ticker “ABNB.” DoorDash, which will trade on the New York Stock Exchange under the ticker “DASH,” is set to see shares start trading one day earlier.
Food delivery company DoorDash has been a beneficiary of this year’s stay-in-place orders and social distancing, as customers increasingly turned to digital food delivery services. DoorDash’s latest operating results for 2020 have reflected that boom in demand: Revenue during the first nine months of this year more than tripled over the same period last year to $1.9 billion. And over the same time frame, its net loss narrowed to $149 million, down significantly from $533 million in 2019.
In a testament to heightened demand for its public offering, the San Francisco-based company boosted its IPO fundraising goal on Friday to as much as $3.1 billion, up from its previous high-end goal of $2.8 billion. According to the filing, it will market 33 million shares for between $90 to $95 apiece, up from its previous range of $75 to $85 per share. At the high end, this suggests DoorDash will have a fully diluted valuation of more than $35 billion.
Still, the company faces stiff competition from an array of other players in the food delivery space, though it remains the leader domestically for now. DoorDash gobbled up the most U.S. market share in April of this year during the height of stay-in-place orders, enjoying a lead of nearly 20 percentage points ahead of UberEats (UBER), according to data from EdisonTrends. The latter has since completed an acquisition of rival delivery company Postmates to try and bridge the gap in market share.
Airbnb, on the other hand, has seen business slide this year as the pandemic decimated travel demand.
The home-rental software platform saw revenue drop 32% to $2.5 billion during the first nine months of this year versus 2019, though its top line decline improved to 18% in the third quarter specifically. Like DoorDash, the company remains unprofitable, and its net losses more than doubled to $697 million for the first nine months of this year.
The company had been growing strongly leading up to 2020, and its revenue jumped by more than 30% in fiscal 2019. However, it hinted at an uncertain post-virus future in its prospectus, noting that, “Even after shelter-in-place orders and travel advisories are lifted, demand for our offerings, particularly those related to cross-border travel, may remain depressed for a significant length of time, and we cannot predict if and when demand will return to pre-COVID-19 levels.”
Airbnb said in a filing last week that it planned to offer 51.9 million shares in its initial public offering at between $44 to $50 apiece. This would mean the IPO would raise about $2.6 billion on the high end, and give the company a fully diluted valuation of about $35 billion.
Shares of Airbnb are slated to begin trading on the Nasdaq on Dec. 10 under the ticker “ABNB.” DoorDash, which will trade on the New York Stock Exchange under the ticker “DASH,” is set to see shares start trading one day earlier.
Food delivery company DoorDash has been a beneficiary of this year’s stay-in-place orders and social distancing, as customers increasingly turned to digital food delivery services. DoorDash’s latest operating results for 2020 have reflected that boom in demand: Revenue during the first nine months of this year more than tripled over the same period last year to $1.9 billion. And over the same time frame, its net loss narrowed to $149 million, down significantly from $533 million in 2019.
In a testament to heightened demand for its public offering, the San Francisco-based company boosted its IPO fundraising goal on Friday to as much as $3.1 billion, up from its previous high-end goal of $2.8 billion. According to the filing, it will market 33 million shares for between $90 to $95 apiece, up from its previous range of $75 to $85 per share. At the high end, this suggests DoorDash will have a fully diluted valuation of more than $35 billion.
Still, the company faces stiff competition from an array of other players in the food delivery space, though it remains the leader domestically for now. DoorDash gobbled up the most U.S. market share in April of this year during the height of stay-in-place orders, enjoying a lead of nearly 20 percentage points ahead of UberEats (UBER), according to data from EdisonTrends. The latter has since completed an acquisition of rival delivery company Postmates to try and bridge the gap in market share.
Airbnb, on the other hand, has seen business slide this year as the pandemic decimated travel demand.
The home-rental software platform saw revenue drop 32% to $2.5 billion during the first nine months of this year versus 2019, though its top line decline improved to 18% in the third quarter specifically. Like DoorDash, the company remains unprofitable, and its net losses more than doubled to $697 million for the first nine months of this year.
The company had been growing strongly leading up to 2020, and its revenue jumped by more than 30% in fiscal 2019. However, it hinted at an uncertain post-virus future in its prospectus, noting that, “Even after shelter-in-place orders and travel advisories are lifted, demand for our offerings, particularly those related to cross-border travel, may remain depressed for a significant length of time, and we cannot predict if and when demand will return to pre-COVID-19 levels.”
Airbnb said in a filing last week that it planned to offer 51.9 million shares in its initial public offering at between $44 to $50 apiece. This would mean the IPO would raise about $2.6 billion on the high end, and give the company a fully diluted valuation of about $35 billion.