In the past ten years, the best performing initial public offerings were tech-based brands like Snap (2017), Alibaba (2014), and Facebook (2012). This makes sense, of course, as the human species continues to become more reliant on technology, not only for improving efficiency in the business world, but in our everyday lives, as well. This year, though, the best performing IPO is not tech-based; at least, not entirely.
This year’s best performing initial public offering uses technology to change the food industry. This company is better known as the plant-based meat substitute company Beyond Meat; and they recently reported revenue topped analyst expectations in its first quarterly report since going public.
And on this simple, little bit of news, shares of the company soared 15 percent in after-hours trading.
Beyond Meat CEO Ethan Brown comments, “We are very pleased with our successful IPO during the month of May and our strong first quarter financial results that we believe demonstrate mainstream consumers’ desire for plant-based meat products in the United States and internationally.”
Now, it should be noted that Beyond Meat’s financial report shows a first-quarter net loss of $6.6 million. This is the equivalent of 95 cents per share, which widens its net losses to $5.7 million—about 98 cents per share—from last year. After adjustments for stock warrant conversion, the report shifts to a loss of 14 cents per share, in the first quarter.
On the other hand, net sales grew 215 percent, to $40.2 million. This greatly topped expectations of $38.9 million. Another way to look at this would be to recognize prior to market open, on Thursday, Beyond Meat’s share value was more than $100. This is 301 percent higher than its IPO price of $25 and 118 percent higher than its $46 per share price at the top of May.
At the end of the day, it appears that Beyond Meat surged at least 160 percent in its first day, still roughly 300 percent higher than its IPO price. In all, then, this gives the company a total overall market value of $5.8 billion.