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IPO Outlook For The Week: Airbnb, DoorDash Lead Highly Anticipated Week

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IPO Outlook For The Week: Airbnb, DoorDash Lead Highly Anticipated Week

The highly anticipated debuts of Airbnb and DoorDash are among the seven IPOs markets could see this coming week.

Airbnb: Vacation rental company Airbnb is scheduled to go public on Thursday, Dec. 10 under the Nasdaq ticker symbol ABNB. The company plans to sell 51.9 million shares at a price point of $44 to $50. The company could be valued at up to $35 billion in its IPO.

Airbnb had 54 million active bookers and 247 million guest arrivals in 2019. Gross booking revenue and company revenue were up 29% and 32% respectively year-over-year in fiscal 2019.

The company saw gross booking revenue and company revenue fall 39% and 32% year-over-year respectively for the first nine months of 2020.

Airbnb saw low bookings in the first half of 2020 but then a recovery in July, August and September, with night bookings down 28% year-over-year compared to triple digit declines in the earlier 2020 months.

C3.ai Inc: Enterprise artificial intelligence company C3.ai Inc plans to sell 15.5 million shares at a price point of $31 to $34. It will use the NYSE symbol of AI. The IPO is expected for Wednesday, Dec. 9.

The SaaS company says it has partnerships with Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), IBM (NYSE: IBM) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). It projects a total addressable market of $271 billion by 2024.

C3.ai Inc saw revenue grow 71% year-over-year to $157 million for fiscal 2020. Eighty-six percent of the company’s revenue came from subscriptions.

Certara: This company makes biosimulation software for the drug discovery and development market.

Certara has over 1,600 customers in 60 countries and saw revenue grow 27% year-over-year in 2019, to $208.5 million. 

The company is planning to offer 24.4 million shares at a price point of $19 to $22 when it lists on the Nasdaq under the symbol CERT.

DoorDash: This is one of the companies that has most benefited from the shift to food delivery during the COVID-19 pandemic. 

DoorDash holds the number-one market share position in the food delivery market, with a share of 50% as of October. The company’s market share was 17% in January 2018. DoorDash competes with Uber Eats, owned by Uber Technologies (NYSE: UBER), Grubhub Inc (NYSE: GRUB) and Postmates, which is merging with Uber Eats.

In 2019, DoorDash had total transaction volume of $8 billion and 263 million orders placed. In the first nine months of 2020, 543 million orders were placed through DoorDash, including 236 million in the third quarter.

DoorDash had revenue of $1.9 billion for the first nine months of 2020, compared to $587 million in the same period the previous year. Fiscal 2019 revenue was $885 million.

The company plans to sell 33 million shares at a price point of $90 to $95, under the Nasdaq symbol DASH.

Related Link: 6 IPOs To Watch In December: Airbnb, DoorDash And More

Hydrofarm Holdings: Controlled environment agriculture company Hydrofarm Holdings plans to sell 8.7 million shares at a price point of $14 to $16, using the symbol HYFM on the Nasdaq.

The company sells products for hydroponic farming. Controlled environment agriculture refers to growing crops in places such as greenhouses, warehouses, rooftops and in vertical farms. It is popular with urban food entrepreneurs and cannabis growers because it requires less land and results in less runoff.

“Hydrofarm sits at the intersection of two of the most compelling market opportunities of our time," the company said in its filing.

Hydrofarm had revenue of $308.5 million in the trailing twelve months ended Sept. 30. The company says it has grown revenue at a compounded annual growth rate of 16% from 2005 to 2019.

Hydrofarm said the U.S. cannabis segment is expected to grow at 21% CAGR from $12.2 billion in 2019 to $31.1 billion in 2024.

Pubmatic: Cloud based advertising company Pubmatic is set to debut this week with a 5.9 million offering at an expected price point of $16 to $18. It will list under the symbol PUBM on the Nasdaq.

The company competes in the global digital advertising market, which is expected to grow from $647 billion in 2019 to $841 billion by 2024.

Pubmatic had revenue of $113.9 million in fiscal 2019 and $92.5 million in the first nine months of 2020. The company’s revenue over the last 12 months of $126.9 million was a 33% year-over-year improvement. Net income over the last 12 months was $11.9 million.

The company counts companies such as Verizon Communications (NYSE: VZ), AMC Networks (NASDAQ: AMCX) and News Corporation (NASDAQ: NWSA) among its customers. Pubmatic serves both publishers and buyers and had over 1,100 customers in the third quarter.

Vivos Therapeutics: With two FDA approved medical devices, Vivos Therapeutics (NASDAQ:VVOS) makes products to help people with sleep disorders, such as sleep apnea.

Vivos offers training and incentives to encourage dentists to become "ambassadors" for its products.

In 2019, the company had revenue of $11.4 million, up from $3.8 million in the prior year. Revenue came to $9.8 million for the first nine months of 2020.

The company is planning to offer 3.33 million ADS at a price point of $5 to $7.

It will list on the NYSE under the symbol VVOS.

 

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