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Fiverr International (FVRR)
NYSE:FVRR
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Fiverr International
(NYSE:FVRR)
63Neutral
Positive Factors
Product Innovation
Fiverr Go is believed to have the potential to be a transformative product and represents upside to the '25 guide.
Strategic Investments
FVRR is strategically investing in upmarket, complex services, and AI to drive growth.
Negative Factors
Market Challenges
The operating backdrop remains challenging, impacting the company's marketplace revenue.
Fiverr International (FVRR) vs. S&P 500 (SPY)
Market Cap
$947.64M
Dividend YieldN/A
Average Volume (3M)832.62K
Price to Earnings (P/E)56.5
Beta (1Y)1.38
Revenue Growth8.33%
EPS Growth436.49%
CountryUS
Employees762
SectorCommunication Services
Sector Strength82
IndustryInteractive Multi-Media
Share Statistics
EPS (TTM)0.47
Shares Outstanding35,909,225
10 Day Avg. Volume798,752
30 Day Avg. Volume832,619
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)N/A
Price to Sales (P/S)2.42
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.75Price Target Upside34.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Fiverr International Business Overview & Revenue Model
Company DescriptionFiverr International Ltd. develops an e-commerce platform that allows the people to buy and sell digital services. It operates through the following geographical segments: U.S., Europe, Asia Pacific, Rest of the World, and Israel. The firm offers digital marketing, graphics and design, video and animation, writing and translation, and music and audio. The company was founded by Micha Kaufman and Shai Wininger in 2009 and is headquartered in Tel Aviv, Israel.
How the Company Makes MoneyFiverr makes money primarily through transaction and service fees charged on its platform. When a freelancer completes a job for a client, Fiverr takes a percentage of the transaction value as a commission. This fee structure includes a 20% commission from the freelancer's earnings and a service fee from the buyer. Additionally, Fiverr offers subscription-based services like Fiverr Business and Fiverr Pro, which provide enhanced features and services for a monthly fee. The company also generates revenue from its 'Promoted Gigs' feature, allowing freelancers to pay for better visibility on the platform. Key partnerships and integrations with other digital platforms also contribute to its revenue by expanding its reach and service capabilities.
Fiverr International Financial Statement Overview
Summary
Fiverr International demonstrates strong revenue growth and cash flow generation. Despite a negative EBIT margin, profitability metrics are improving, and the balance sheet is stable with moderate leverage. The return on equity is modest, indicating potential for enhanced efficiency.Income Statement
Fiverr International has demonstrated consistent revenue growth with a notable increase from $361.4M in 2023 to $391.5M in 2024, reflecting a growth rate of 8.34%. The gross profit margin is strong at 81.97%. Despite the negative EBIT margin of -4.04%, the company has improved its net income, resulting in a positive net profit margin of 4.66% in 2024. EBITDA margin also shows positive signs at 5.71%. The ongoing challenge remains achieving consistent EBIT profitability.78
Positive
Balance Sheet
Fiverr maintains a moderate debt-to-equity ratio of 1.28, indicating a balanced leverage situation. The equity ratio stands at 33.90%, suggesting a stable asset base supported by equity. Return on equity is modest at 5.03%, reflecting moderate efficiency in utilizing shareholder funds. Overall, the balance sheet shows stability, but there is room for improving equity efficiency.70
Positive
Cash Flow
The company exhibits strong cash flow generation, with operating cash flow of $83.1M substantially exceeding net income, resulting in an excellent operating cash flow to net income ratio of 4.55. Free cash flow remains robust at $81.8M, with a slight decline in growth rate compared to the previous year. The free cash flow to net income ratio is high at 4.48, indicating effective cash management. Overall, Fiverr's cash flow position is strong and supportive of its operations.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 391.48M | 361.38M | 337.37M | 297.66M | 189.51M | Gross Profit |
| 320.92M | 299.53M | 271.42M | 245.94M | 156.32M | EBIT |
| -15.82M | -15.11M | -46.91M | -45.34M | -11.81M | EBITDA |
| 22.36M | 13.77M | -57.60M | -38.46M | -5.87M | Net Income Common Stockholders |
| 18.25M | 3.68M | -71.49M | -65.01M | -14.81M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 568.58M | 417.37M | 462.05M | 323.30M | 487.40M | Total Assets |
| 1.07B | 1.02B | 923.80M | 931.57M | 861.20M | Total Debt |
| 463.21M | 462.36M | 463.73M | 400.98M | 373.80M | Net Debt |
| 328.43M | 278.68M | 376.98M | 329.83M | 105.77M | Total Liabilities |
| 707.32M | 667.83M | 658.07M | 584.70M | 515.80M | Stockholders Equity |
| 362.65M | 355.77M | 265.73M | 346.87M | 345.40M |
| Cash Flow | Free Cash Flow | |||
| 81.77M | 82.07M | 27.74M | 35.46M | 13.10M | Operating Cash Flow |
| 83.07M | 83.19M | 30.11M | 38.04M | 17.14M | Investing Cash Flow |
| -28.82M | 9.78M | -14.62M | -229.47M | -326.36M | Financing Cash Flow |
| -104.22M | 2.85M | -1.64M | -2.40M | 551.81M |
Fiverr International Technical Analysis
Negative
26.60
Price Trends
30.05
Negative
30.14
Negative
27.10
Negative
Market Momentum
-1.40
Negative
39.39
Neutral
68.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FVRR, the sentiment is Negative. The current price of 26.6 is below the 20-day moving average (MA) of 27.22, below the 50-day MA of 30.05, and below the 200-day MA of 27.10, indicating a bearish trend. The MACD of -1.40 indicates Negative momentum. The RSI at 39.39 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $16.06B | 16.51 | 68.48% | ― | 7.52% | 1855.81% | |
75 Outperform | $188.60B | 35.35 | 47.28% | ― | 10.65% | 44.84% | |
70 Outperform | $1.81B | 8.85 | 45.08% | ― | 11.64% | 363.49% | |
67 Neutral | $64.62B | 123.48 | 6.15% | ― | 17.04% | -62.24% | |
63 Neutral | $947.64M | 56.45 | 5.08% | ― | 8.33% | 436.49% | |
59 Neutral | $29.20B | 0.14 | -12.92% | 4.06% | 2.18% | -51.74% | |
45 Neutral | $161.42M | ― | -75.62% | 17.16% | -10.32% | -3860.81% |
* Communication Services Sector Average
Performance Comparison
FVRR
Fiverr International
25.45
3.64
16.69%
ADBE
Adobe
377.84
-192.61
-33.76%
TTEC
TTEC Holdings
3.12
-7.22
-69.83%
WDAY
Workday
237.22
-34.82
-12.80%
DOCU
DocuSign
74.70
17.24
30.00%
UPWK
Upwork
12.34
0.09
0.73%
Fiverr International Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -19.54% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
Fiverr's earnings call highlighted strong revenue growth, the successful launch of Fiverr Go, and new initiatives like the Freelancer Equity Program. However, challenges such as muted Marketplace revenue growth and ongoing macroeconomic headwinds were also noted. The overall sentiment is cautiously optimistic, with a focus on innovation and strategic growth.Highlights
Strong Revenue Growth and EBITDA Margin
Fiverr reported a 13% year-over-year revenue growth in Q4, with total revenue of $103.7 million. The adjusted EBITDA was $20.7 million, representing a 20% margin, an improvement of 240 basis points compared to the previous year.
Launch of Fiverr Go
Fiverr launched Fiverr Go, an open platform for Personalized AI tools that allows freelancers to build AI models, enhancing their productivity and revenue potential. The platform includes a Personalized AI Assistant and AI Creation Model.
Freelancer Equity Program
Fiverr announced a new Freelancer Equity Program, an industry-first initiative allowing top-performing freelancers to own equity shares in the company.
Services Revenue Growth
Services revenue grew by 62% year-over-year to $88.4 million, and is expected to contribute over 30% of total revenue in 2025.
Innovative Developer Platform
Fiverr Go includes an open developer platform for creating generative AI applications, leveraging Fiverr’s massive data assets and providing a new revenue avenue for developers.
Lowlights
Muted Marketplace Revenue Growth
While Services revenue is growing, Marketplace revenue growth is expected to remain muted due to macroeconomic headwinds affecting GMV and active buyer numbers.
Macro Headwinds Impact
Despite positive execution, Fiverr has not seen significant improvements in macroeconomic factors affecting SMB sentiment or freelancer hiring demand.
Limited Active Buyer Growth
Fiverr reported stagnant growth in overall active buyers due to broader market conditions, although there was resilient growth among high-spending buyers.
Company Guidance
In the recent Fiverr Q4 earnings call, the company provided guidance for 2025, highlighting expected revenue growth in the range of 8% to 12%, translating to $422 million to $438 million. Fiverr anticipates an adjusted EBITDA of $82 million to $90 million, with a margin of 20% at the midpoint. For Q1 2025, revenue is projected between $103.5 million and $108.5 million, representing 11% to 16% year-over-year growth, while adjusted EBITDA is expected to be $18 million to $20 million, with an 18% margin at the midpoint. The company also noted that, despite macroeconomic headwinds impacting SMB sentiment and freelancer hiring demand, they continue to drive growth through strong execution, innovation, and expansion into value-added services. Fiverr's Services revenue segment, which includes products like Fiverr Ads and AutoDS, is expected to grow significantly, contributing over 30% to total revenue in 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.