Fiverr International (FVRR) AI Stock Analysis

• Market Cap: $1.07B
• Dividend Yield: N/A
• Average Volume (3M): 583.27K
• Price to Earnings (P/E): 62.3
• Beta (1Y): 1.14
• Revenue Growth: 10.41%
• EPS Growth: 122.27%
• Country: US
• Employees: 762
• Sector: Communication Services
• Sector Strength: 89
• Industry: Internet Content & Information
• EPS (TTM): 0.64
• Shares Outstanding: 35,909,225
• 10 Day Avg. Volume: 454,201
• 30 Day Avg. Volume: 583,275
• PEG Ratio: -2.09
• Price to Book (P/B): 4.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 38.72
• Enterprise Value/Market Cap: 1.35
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: -243.29
• 1Y Price Target: $37.00
• Price Target Upside: 24.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: $33.00 ▲(11.41%Upside)

Fiverr International boasts a robust financial position with strong profitability and cash flow generation. Bullish technical indicators reflect positive market sentiment, although high valuation presents a potential risk. Recent earnings call highlights further reinforced positive outlook, despite a stable macroeconomic environment. These factors contribute to a strong overall score.

Positive Factors

Contract Wins

Fiverr Pro signed multiple $100K+ contracts and Spend per Buyer increased by 9% year-over-year.

Product Strategy

The launch of FVRR Go addresses investor concerns around AI risk by providing tools to freelancers to build personalized AI models and allows them to scale faster.

Upmarket Strategy

Fiverr signed several $100K+ multi-month contracts with mid-sized companies, showcasing potential size, scale, and visibility benefits from the upmarket strategy.

Negative Factors

GMV Outlook

The muted GMV outlook and modest EBITDA flow through were key reasons for the stock's decline.

Revenue Challenges

The operating backdrop remains challenging, impacting the company's marketplace revenue.

Volatility Concerns

Volatility in SMB spend on the platform is expected over the next few quarters.

Fiverr International Business Overview & Revenue Model

Company Description

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes approximately 550 categories in nine verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and technology, business, data, and lifestyle. It also offers Fiverr Workspace, which provides freelancers a software solution to manage invoicing, contracts, time tracking, and organizing workflow; Fiverr Learn and CreativeLive that offers learning and development offerings for freelancers; ClearVoice, a subscription based content marketing platform; and Stoke Talent, a freelancer management system. In addition, the company provides back office and creative talent platforms. Its buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and small businesses. The company was incorporated in 2010 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Fiverr generates revenue primarily through transaction fees and service fees. When a buyer purchases a Gig on the platform, Fiverr charges a service fee, typically a percentage of the Gig's value. Additionally, Fiverr retains a percentage of the Gig's price as a commission from the seller, which is deducted before the freelancer receives payment. The company also offers Fiverr Business, a subscription service for larger teams, which provides a tailored experience and additional tools for managing freelance projects. Furthermore, Fiverr has expanded its monetization strategies through partnerships and acquisitions that enhance its service offerings, such as the acquisition of online learning platform CreativeLive, which broadens Fiverr's educational content and engagement with its freelance community.

Fiverr International Financial Statement Overview

Summary

Fiverr demonstrates strong financial performance with high gross profit margins and improved net profitability. Revenue growth is steady, though operational efficiency challenges persist. The balance sheet shows moderate leverage, which requires careful management. Strong free cash flow generation highlights effective cash management.

Income Statement

For TTM (Trailing-Twelve-Months), Fiverr demonstrated a notable Gross Profit Margin of 81.14%, indicating strong profitability from core operations. The Net Profit Margin improved significantly from previous years to 4.51%, showing improved control over expenses. The Revenue Growth Rate for TTM was 3.49%, reflecting steady, albeit slow, growth. The EBIT and EBITDA margins were -4.16% and 0.62% respectively, indicating challenges in achieving operational efficiency despite improvements in profitability.

Balance Sheet

Fiverr's Debt-to-Equity Ratio stands at 1.28, indicating a balanced capital structure with moderate leverage. The Return on Equity (ROE) at 4.82% reflects moderate profitability relative to shareholder equity. The Equity Ratio of 34.25% suggests a healthy equity position relative to total assets, providing stability. However, the moderate leverage might pose risks if not managed carefully.

Cash Flow

The company shows strong cash management with a Free Cash Flow Growth Rate of 6.14% for TTM. The Operating Cash Flow to Net Income Ratio of 4.92 reflects robust cash generation relative to net earnings, and a Free Cash Flow to Net Income Ratio of 4.75 further supports the company's capability to generate cash efficiently.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
405.14M	391.48M	361.38M	337.37M	297.66M	189.51M
	Gross Profit
328.81M	320.92M	299.53M	271.42M	245.94M	156.32M
	EBIT
-16.85M	-15.82M	-15.11M	-46.91M	-45.34M	-11.81M
	EBITDA
2.53M	25.06M	13.77M	-57.60M	-38.46M	-5.87M
	Net Income Common Stockholders
18.26M	18.25M	3.68M	-71.49M	-65.01M	-14.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
647.63M	567.26M	417.37M	462.05M	323.30M	487.40M
	Total Assets
1.11B	1.07B	1.02B	923.80M	931.57M	861.20M
	Total Debt
484.28M	463.21M	462.36M	463.73M	400.98M	373.80M
	Net Debt
297.18M	329.74M	278.68M	376.98M	329.83M	105.77M
	Total Liabilities
726.95M	707.32M	667.83M	658.07M	584.70M	515.80M
	Stockholders Equity
378.61M	362.65M	355.77M	265.73M	346.87M	345.40M
Cash Flow		Free Cash Flow
86.78M	81.77M	82.07M	27.74M	35.46M	13.10M
	Operating Cash Flow
89.84M	83.07M	83.19M	30.11M	38.04M	17.14M
	Investing Cash Flow
-12.17M	-28.82M	9.78M	-14.62M	-229.47M	-326.36M
	Financing Cash Flow
-104.63M	-104.22M	2.85M	-1.64M	-2.40M	551.81M

Fiverr International Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 29.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FVRR, the sentiment is Neutral. The current price of 29.62 is below the 20-day moving average (MA) of 31.97, above the 50-day MA of 29.25, and above the 200-day MA of 28.55, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.30 is Neutral, neither overbought nor oversold. The STOCH value of 13.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FVRR.

Fiverr International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	80 Outperform	$1.65B	25.02	9.18%	4.20%	26.71%	-23.67%
FVRR	76 Outperform	$1.07B	62.32	4.85%	―	10.41%	122.27%
EVER	74 Outperform	$880.05M	23.85	32.17%	―	113.43%	―
YELP	71 Outperform	$2.21B	16.67	19.74%	―	5.93%	29.17%
ANGI	66 Neutral	$721.72M	14.41	5.05%	―	-16.79%	―
Sector *	61 Neutral	$14.57B	5.94	-3.83%	7.78%	2.79%	-33.24%
GRPN	55 Neutral	$1.47B	35.54	-90.27%	―	-5.76%	21.27%