Fiverr International (FVRR) AI Stock Analysis

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Fiverr International

(NYSE:FVRR)

Rating:76Outperform

Price Target:

$33.00

▲( 2.45% 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

Market Expansion

Fiverr's shift upmarket has resulted in an increase in annual spend per buyer, indicating attraction of high-value buyers.

Product Innovation

The introduction of newer products like Dynamic Matching is driving a 3-4x greater conversion rate and improving job matching efficiency.

Strategic Investments

Fiverr is strategically investing in upmarket, complex services, and AI to drive growth.

Negative Factors

Operating Challenges

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

Stock Decline Factors

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

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)

Market Cap

$1.13B

Dividend YieldN/A

Average Volume (3M)599.17K

Price to Earnings (P/E)67.3

Beta (1Y)1.18

Revenue Growth10.41%

EPS Growth122.27%

CountryUS

Employees762

SectorCommunication Services

Sector Strength81

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.64

Shares Outstanding35,909,225

10 Day Avg. Volume815,879

30 Day Avg. Volume599,168

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)3.06

Price to Sales (P/S)0.00

P/FCF Ratio13.33

Enterprise Value/Market Cap1.28

Enterprise Value/Revenue0.94

Enterprise Value/Gross Profit4.42

Enterprise Value/Ebitda-243.76

Forecast

1Y Price Target

$36.50

Price Target Upside13.32% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering7

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 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 Key Performance Indicators (KPIs)

Any

Buyers

Buyers
Tracks the number of active buyers on the platform, highlighting user growth and market penetration, which are crucial for revenue expansion and competitive positioning.

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 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

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

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

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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

Positive

Last Price32.21

Price Trends

50DMA

26.62

Positive

100DMA

28.46

Positive

200DMA

27.86

Positive

Market Momentum

MACD

1.75

Negative

RSI

69.32

Neutral

STOCH

80.69

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FVRR, the sentiment is Positive. The current price of 32.21 is above the 20-day moving average (MA) of 29.16, above the 50-day MA of 26.62, and above the 200-day MA of 27.86, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 69.32 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	80 Outperform	$1.63B	24.72	9.18%	4.24%	26.71%	-23.67%
YELP	77 Outperform	$2.46B	18.56	19.74%	―	5.93%	29.17%
FVRR	76 Outperform	$1.13B	67.25	4.85%	―	10.41%	122.27%
EVER	71 Outperform	$855.10M	21.97	32.17%	―	113.43%	―
ANGI	69 Neutral	$783.63M	15.20	5.05%	―	-16.79%	―
Sector *	60 Neutral	$14.06B	6.51	-3.76%	3.69%	2.48%	-35.40%
GRPN	60 Neutral	$1.06B	35.54	-90.27%	―	-5.76%	21.27%

* Communication Services Sector Average

Performance Comparison

FVRR

Fiverr International

32.21

7.61

30.93%

ANGI

Angi

15.86

-4.64

-22.63%

GRPN

Groupon

26.17

9.82

60.06%

YELP

Yelp

38.02

1.62

4.45%

EVER

EverQuote

22.61

-1.12

-4.72%

OPRA

Opera

17.90

5.34

42.52%

Fiverr International Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q1-2025)

% Change Since: 20.23%|

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.

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.