Jonathan Kolber’s comeback: Faber shares worth about NIS 1.3 billion

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The share of the Israeli Internet company Faber Continues to climb, and is already approaching $ 100 a share. At the end of the week, the stock closed at a price of about $ 93.4 – an increase of 15.8% in the last trading week and 26.6% in July. Since the initial public offering on the New York Stock Exchange, in June 2019, the stock has soared by 345%, and since the secondary issue made about two months ago, it has already risen by 56%. Faber’s current market capitalization stands at $ 3.3 billion.

Faber, managed by the company’s founder Micha Kaufman, Has developed an online trading arena with the aim of connecting freelancers from different fields to potential clients. Faber has been singled out as one of the companies that may benefit from the trend of moving from work to home in the wake of the Corona crisis because its platform allows for closing deals without any physical encounter between the customer and the service provider.

The biggest gainers “on paper” from the sharp rise in Faber stock are businessman Jonathan Colbert, who owns 11.9% of Faber, Bessemer Fund, Excel London Fund SquarePeg Group, ION with 5% -11% holdings and founders Kaufman (6.7%) and Shay Weininger ( 4.9%). The value of CEO Kaufman’s holdings in Faber shares stands at $ 216 million.

Colbert holds Faber shares at a current value of $ 383 million (approximately NIS 1.3 billion). He invested in the company at the lime stage, and participated in all stages of the recruitment before Faber became a public company.

Jonathan Colbert, a native of Canada and the son of a former senator and leading businessman in Canada, came to Israel about 30 years ago as a representative of businessman Charles Bronfman, and remained in the country. He served in a number of positions at the Bronfman Group, including CEO of the Koor Concern. Kolber moved Koor from a focus on traditional industries to the high-tech industry, but following the crisis in the early 2000s and amid ECI losses, Koor suffered heavy losses. 2006, when it was sold to IDB, which was controlled by Nochi Dankner. He is currently a partner in the Viola Investment Fund Group.

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Weininger, who founded Faber with Kaufman but left before it became a public company, now owns 4.9% of Faber’s shares, meaning his holding value is $ 157 million (more than half a billion shekels).

Another technology company founded by Weininger and recently issued in the US is the digital insurance company Lemonade, which was issued a month ago at $ 29 per share, and is currently trading at $ 58.2 per share (after already soaring to a peak of about $ 86), and at a value of $ 3.2 billion Weininger holds shares in Monayed worth about $ 230 million (about NIS 780 million).

Last week, Faber launched a new solution, Promoted Gigs, that allows users of its platform to promote themselves for a fee on the site, and gain higher exposure. A beta version of the product came out before that, and according to the company, it was received sympathetically. According to Kaufman, “We continue to enhance the user experience, and it is important for us to provide freelancers on our site with the opportunity to invest in the growth of their online business. The response so far has been very positive. Promoted Gigs are a great way for quality, talented and motivated freelancers to stand out, earn more and build a business Stronger in fiber. ”

Oppenheimer Investment Bank recently estimated ahead of the launch that the launch of the solution would lead to an improvement in Faber’s profitability beyond expectations, along with other factors including the launch of Faber’s platform in other languages ​​(German, Spanish and French) and increasing market share in freelancers.

A stock’s fast run Faber This has led to the fact that today the average target price that analysts set is 28% lower than the price on the stock exchange, although most analysts are positive about the stock and recommend buying it.

44% growth in the first quarter

Faber posted revenue of $ 34.2 million in the first quarter of this year, a figure that reflects 44% growth. According to GAAP, the net loss was $ 6.2 million, and on a non-GAAP basis, less various items, including capital gains for the company’s employees, the loss was $ 2.6 million – improved over analysts’ forecasts.

Adjusted EBITDA for the first quarter (excluding interest, tax, depreciation and amortization) was negative by $ 2.9 million. The company continues the trend of reducing EBITDA loss, and expects negative EBITDA of $ 7-9 million this year, compared to $ 18 million in 2019. According to the company forecast, EBITDA is expected to become positive in the second half of 2021.

Not only does Faber enjoy the trends that are growing against the backdrop of the corona plague, of course. The Internet company Wix, which has developed a platform that allows it to set up and manage websites, and caters mainly to small and medium-sized businesses, is already trading at a value of more than $ 15 billion and is approaching $ 300 per share, after rising 137% since the beginning of the year.

Wix became the second largest Israeli company on Wall Street after the $ 17.6 billion cyber security company, and ahead of the technology company NICE ($ 12.7 billion) and the pharmaceutical company Teva ($ 12.4 billion).

Both Faber and Wix will publish their second quarter reports this week, and it will be interesting to see if the positive trend in the stock continues after them as well.

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