The freelance marketplace provider Fiverr International has launched a new platform called Fiverr Business, which will help larger companies manage their projects with freelancers. The new platform will be offered free for the first year and will then cost $149 per year for up to 50 users.
Israel-based Fiverr (FVRR) said that the Fiverr Business platform will enable corporate teams and departments to collaborate with each other while managing projects with freelancers. Highlighting the demand for freelance services amid the pandemic, the company said that its survey of over 2,000 businesses globally indicated that 52% were allocating more budget to freelance services.
The company’s CEO Micha Kaufman explained, “Fiverr Business was designed to integrate into a companies’ workflow and become a part of the digital onboarding experience for employees — they get access to email, Slack, and Dropbox, as well as their Fiverr Business team account wherein all of their projects can be managed.”
Amid the pandemic, Fiverr has been experiencing solid growth in its freelance service platform with 2Q revenue rising 82% Y/Y. The company expects its 2020 revenue to grow between 66% to 68%.
Speaking about Fiverr Business, Needham analyst Brad Erickson stated, “An important initiative as the company looks to go up market and work with larger companies with bigger wallets for outsourced/freelanced work. Fiverr’s inflection seen through the early part of the pandemic was a function of SMB’s forced to move online.”
The analyst added, “To the degree that larger enterprises become increasingly cost-conscious with existing full-time employee capacity on the margin, Fiverr Business appears extremely well-positioned to benefit from that trend, particularly given all the organic customer discovery and acquisition that occurred just in the past 6 months as a result of the pandemic.” Erickson has a Buy rating and a price target of $155 for Fiverr. (See FVRR stock analysis on TipRanks)
Fiverr stock has already advanced by a staggering 440% year-to-date and so the average analyst price target of $127.14 does not indicate further upside potential. A cautiously optimistic Moderate buy consensus for Fiverr is based on 4 buys, 3 Holds and no Sell ratings.