Amsterdam-based WeTransfer, an online file-sharing platform, announced on Wednesday that it has intentions to launch an initial public offering of shares and listing on Amsterdam‘s Euronext stock exchange.
WeRock NV, the owner of WeTransfer, has reported that its offer, for which a date has not yet been confirmed, is expected to include both a primary and secondary offering of shares.
About WeTransfer
Founded in 2009 by Bas Beerens, Nal den, Rinke Visser, and Ronald Hans, WeTransfer offers a way to send files around the world through its platform. Its products are used by over 87 million monthly active users across 190 countries and have around 387,000 paying subscribers.
In addition to the file-sharing services, WeTransfer also offers Paste, a feature to design and present decks online. Besides, the company also has the Collect app, which enables users to take screenshots, scribble, and save anything they need. It is said to be the go-to app for saving and sharing all the stuff one may need.
Finally, the company offers Paper, a software solution to enable sketch, type, paint, and draw options.
Let’s talk numbers
According to the company, it recorded an adjusted EBITDA of €21.3M on revenue of €72M for the first nine months of FY 2021.
The company reports a track record of profitable growth and high cash conversion, with revenues growing at a compound annual growth rate of 31 per cent from 2018 to 2020. This revenue growth continued into 2021, with constant currency revenue growth of 68 per cent year-on-year for the nine months ending 30 September 2021.
Besides, WeTransfer has also been able to increase its profitability during the period to deliver an adjusted EBITDA margin of 30 per cent for the nine months ending 30 September 2021 with cash conversion of 95 per cent, supported by its low-cost freemium business model.
Currently, the company expects total revenue from contracts with customers of between €32.4M and €33.5M for the three months ending 31 December 2021 with year-on-year growth in subscription revenue of between 25-27 per cent.
In the case of advertising revenue, the year-on-year growth is between 79-87 per cent compared to the same period last year. This results in total revenues from contracts with customers of between €104.3M and €105.4M for the financial year ending December 2021, an increase of 60-62 per cent compared to €65M for the financial year ended 31 December 2020.
What does WeTransfer expect from the offer?
According to a statement from the company, the offer will consist of a private placement of newly issued shares, in an amount of approx €160M, as well as existing shares held by some of the company’s investors including Highland Europe Technology Growth Limited Partnership and HPE Institutional Fund II HoldCo BV, among others.
With the proceeds from this offer, the company looks to further invest in marketing and to finance acquisitions of, or investments in, businesses, creative and engineering teams, technologies, services, products, software, intellectual property rights, and other assets in the future.
The company is also looking to expand its operations in Latin America and the Asia Pacific.
Gordon Willoughby, CEO of WeTransfer, says, “We’ve delivered a revenue CAGR of 31 per cent from 2018 to 2020, and expect revenue for 2021 to exceed €100M. Meanwhile, global megatrends – from fast digitalisation and an explosion in content creation to the accelerated growth in freelancers and people working from home – are shaping the creative industry. We are well-positioned to benefit from this large and growing market opportunity, and to leverage these trends as we continue our growth trajectory.”
Becoming a B-Corp
In June 2020, WeTransfer obtained its B Corporation certificate, with which the company joined the ranks of ‘most’ ethically and sustainably responsible companies. CEO Willoughby says that it took a lot of hard work to obtain the status and that the 10th anniversary of the company was a perfect occasion to aim for certification.
As per the B Corporation’s website, companies that are certified “meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.” Willoughby says, “For us, the certification embeds the purpose in the company. It’s a good rallying point.”