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Fiverr Earnings Reflect Long-Term Potential Despite Quarterly Headwinds
Stock Analysis & Ideas

Fiverr Earnings Reflect Long-Term Potential Despite Quarterly Headwinds

Fiverr International Ltd. (NYSE: FVRR) is an Israeli online marketplace for freelance services. It serves as an ecommerce platform for freelancers and companies to sell their services by through gigs. 

Amid the ongoing tough macroeconomic environment, investors are drifting away from high-growth stocks and moving toward safe havens. This, in turn, resulted in a significant loss in the value of pandemic-led stocks such as Fiverr, which plunged 62.68% year-to-date. 

Earnings Snapshot 

Recently, Fiverr has reported adjusted earnings of $0.11 per share in the first quarter of 2022, surpassing analysts’ expectations of $0.02. Also, earnings compared favorably with the adjusted loss of $0.01 per share recorded in the same quarter last year. 

Total revenues generated during the quarter grew 27% year-over-year and stood at $86.7 million, in line with the consensus estimate. Additionally, adjusted EBITDA improved to $3.9 million, compared with a negative $0.7 million in the first quarter of 2021. 

For 2022, the company expects revenue in the range of $345 million to $365 million, while second-quarter revenues are forecast to land between $86 million and $87.5 million. 

Following the update, shares of the company have lost over 6% in pre-market trading, at last check. 

Conclusion 

Though Fiverr’s updated guidance reflects a rise in uncertainty in the post-pandemic macro-environment, particularly in Europe, a strong balance sheet and underlying opportunities are expected to unlock long-term value for shareholders. For long-term value, investors might consider Fiverr to add to their shopping basket given its strong earnings performance, vigorous financial strategy, and ongoing business momentum. 

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