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Fiverr International (FVRR)
NYSE:FVRR

Fiverr International (FVRR) AI Stock Analysis

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FV

Fiverr International

(NYSE:FVRR)

Rating:76Outperform
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 (FVRR) vs. SPDR S&P 500 ETF (SPY)

Fiverr International Business Overview & Revenue Model

Company DescriptionFiverr 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 MoneyFiverr 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 Key Performance Indicators (KPIs)

Any
Any
Buyers
Buyers
Counts the number of active users purchasing services, highlighting customer base growth and market penetration.
Chart InsightsFiverr's active buyers have declined from their peak in 2022, reflecting challenges in expanding the user base amid a stable macroeconomic environment. Despite this, the company has achieved significant revenue growth, driven by increased spend per buyer and robust services revenue. Strategic initiatives like Fiverr Pro and Fiverr Go are showing promising engagement, suggesting a focus on enhancing value from existing buyers. The raised revenue guidance and stock repurchase program underscore management's confidence in long-term growth, even as buyer numbers decrease.
Data provided by:Main Street Data

Fiverr International Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 10.56%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong start to 2025 with significant growth in key financial metrics and successful product launches. While the macroeconomic environment remains stable, Fiverr's strategic initiatives have led to robust growth in services revenue and successful large contracts in Fiverr Pro. The positive developments in Fiverr Go and raised guidance for 2025 contribute to an overall positive sentiment.
Q1-2025 Updates
Positive Updates
Strong Q1 Revenue Growth
Fiverr's revenue for Q1 was $107.2 million, marking a 15% increase year-over-year and an acceleration from 13% year-over-year growth in Q4.
Adjusted EBITDA Improvement
Adjusted EBITDA for Q1 was $19.4 million with a margin of 18%, improving by 100 basis points from the previous year.
Record Free Cash Flow
Free cash flow totaled $27.4 million, representing a 31.6% increase year-over-year.
Significant Growth in Services Revenue
Services revenue reached $29.5 million, a 94% year-over-year growth, driven by Fiverr Ads, Seller Plus, and AutoDS.
Successful Large Deals in Fiverr Pro
Closed large deals, including a $200,000 engagement with a book publishing company and collaboration with an online education company transitioning its YouTube video production to Fiverr.
Encouraging Launch of Fiverr Go
Over 6,000 sellers activated Fiverr Go, and 200,000 buyers interacted with the product, showing strong early engagement and conversion improvement.
Raised Guidance for Full Year 2025
Updated guidance reflects confidence with expected revenue growth of 9% to 12% and adjusted EBITDA growth of up to 20% at the midpoint.
Negative Updates
Flat Macro Demand Environment
The macroeconomic environment remains stable without significant changes in freelancing demand, presenting challenges in achieving higher marketplace growth.
Company Guidance
During the Q1 2025 earnings call, Fiverr provided several key performance metrics and guidance updates. Revenue for the first quarter was reported at $107.2 million, marking a 15% year-over-year increase. The adjusted EBITDA was $19.4 million, with an adjusted EBITDA margin of 18%, showing a 100 basis point improvement from the previous year. The company generated a strong free cash flow of $27.4 million, up 31.6% year-over-year. Fiverr's marketplace revenue reached $77.7 million, supported by 3.5 million active buyers and a spend per buyer of $309. The marketplace take rate was 27.7%. Services revenue was $29.5 million, representing a significant year-over-year growth of 94%. For full-year 2025, Fiverr raised its revenue guidance to a range of $425 million to $438 million, translating to a year-over-year growth of 9% to 12%. Adjusted EBITDA for the year is projected to be between $84 million and $90 million, with an adjusted EBITDA margin of 20% at the midpoint. For Q2 2025, revenue is expected to be between $105 million and $109 million, with adjusted EBITDA ranging from $20 million to $22 million, maintaining a 20% margin at the midpoint. Fiverr also authorized an additional $100 million for its stock repurchase program, reflecting confidence in its long-term prospects.

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
75
Positive
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
70
Positive
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
80
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
405.14M391.48M361.38M337.37M297.66M189.51M
Gross Profit
328.81M320.92M299.53M271.42M245.94M156.32M
EBIT
-16.85M-15.82M-15.11M-46.91M-45.34M-11.81M
EBITDA
2.53M25.06M13.77M-57.60M-38.46M-5.87M
Net Income Common Stockholders
18.26M18.25M3.68M-71.49M-65.01M-14.81M
Balance SheetCash, Cash Equivalents and Short-Term Investments
647.63M567.26M417.37M462.05M323.30M487.40M
Total Assets
1.11B1.07B1.02B923.80M931.57M861.20M
Total Debt
484.28M463.21M462.36M463.73M400.98M373.80M
Net Debt
297.18M329.74M278.68M376.98M329.83M105.77M
Total Liabilities
726.95M707.32M667.83M658.07M584.70M515.80M
Stockholders Equity
378.61M362.65M355.77M265.73M346.87M345.40M
Cash FlowFree Cash Flow
86.78M81.77M82.07M27.74M35.46M13.10M
Operating Cash Flow
89.84M83.07M83.19M30.11M38.04M17.14M
Investing Cash Flow
-12.17M-28.82M9.78M-14.62M-229.47M-326.36M
Financing Cash Flow
-104.63M-104.22M2.85M-1.64M-2.40M551.81M

Fiverr International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price29.62
Price Trends
50DMA
29.25
Positive
100DMA
28.37
Positive
200DMA
28.55
Positive
Market Momentum
MACD
-0.04
Positive
RSI
42.30
Neutral
STOCH
13.67
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 Risk Analysis

Fiverr International disclosed 65 risk factors in its most recent earnings report. Fiverr International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Fiverr International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.65B25.029.18%4.20%26.71%-23.67%
76
Outperform
$1.07B62.324.85%10.41%122.27%
74
Outperform
$880.05M23.8532.17%113.43%
71
Outperform
$2.21B16.6719.74%5.93%29.17%
66
Neutral
$721.72M14.415.05%-16.79%
61
Neutral
$14.57B5.94-3.83%7.78%2.79%-33.24%
55
Neutral
$1.47B35.54-90.27%-5.76%21.27%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FVRR
Fiverr International
29.62
7.86
36.12%
ANGI
Angi
15.04
-3.16
-17.36%
GRPN
Groupon
37.03
22.38
152.76%
YELP
Yelp
34.65
-1.35
-3.75%
EVER
EverQuote
24.52
5.13
26.46%
OPRA
Opera
18.58
5.38
40.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.