Fiverr International (FVRR) AI Stock Analysis

• Market Cap: $934.36M
• Dividend Yield: N/A
• Average Volume (3M): 605.31K
• Price to Earnings (P/E): 55.0
• Beta (1Y): 1.02
• Revenue Growth: 10.41%
• EPS Growth: 122.27%
• Country: US
• Employees: 762
• Sector: Communication Services
• Sector Strength: 82
• Industry: Internet Content & Information
• EPS (TTM): 0.64
• Shares Outstanding: 35,909,225
• 10 Day Avg. Volume: 724,911
• 30 Day Avg. Volume: 605,314
• PEG Ratio: N/A
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.01
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 3.77
• Enterprise Value/Ebitda: -207.88
• 1Y Price Target: $37.00
• Price Target Upside: 42.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 67 Neutral
• Price Target: $28.00 ▲(7.61%Upside)

Fiverr's overall stock score of 67 reflects a solid financial performance with strong free cash flow and improved profitability. The positive sentiment from the earnings call, including raised guidance and strategic initiatives, contributes significantly to the score. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which tempers the overall score.

Positive Factors

Contract Wins

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

Product Innovation

Fiverr Go showed early conversion benefits with a 10% lift in 14-day conversion rates compared to historical averages.

Strategic Initiatives

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

Negative Factors

Investor Concerns

Investors focused on the 4Q TTM GMV deceleration, although the rate of quarterly GMV growth actually improved in 4Q.

Market Challenges

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

Revenue and EBITDA Outlook

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

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 International exhibits a solid financial position, marked by high gross margins and improving net profitability. While revenue growth is steady, operational efficiency remains a challenge. The balance sheet reveals moderate leverage, which should be monitored to avoid potential financial risks. Strong free cash flow generation reflects effective cash management and supports ongoing growth and investment opportunities.

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	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
EBITDA	25.06M	13.77M	-57.60M	-38.46M	-5.87M
Net Income	18.25M	3.68M	-71.49M	-65.01M	-14.81M
Balance Sheet
Total Assets	1.07B	1.02B	923.80M	931.57M	861.20M
Cash, Cash Equivalents and Short-Term Investments	567.26M	417.37M	462.05M	323.30M	487.40M
Total Debt	463.21M	462.36M	463.73M	400.98M	373.80M
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

• Technical Analysis Sentiment: Negative
• Last Price: 26.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 26.02 is below the 20-day moving average (MA) of 27.47, below the 50-day MA of 29.94, and below the 200-day MA of 28.89, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 33.31 is Neutral, neither overbought nor oversold. The STOCH value of 35.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FVRR.

Fiverr International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	75 Outperform	$935.19M	25.13	32.17%	―	113.43%	―
OPRA	73 Outperform	$1.58B	23.92	9.18%	4.57%	26.71%	-23.67%
YELP	71 Outperform	$2.24B	16.87	19.74%	―	5.93%	29.17%
ANGI	69 Neutral	$814.82M	16.27	5.05%	―	-16.79%	―
FVRR	67 Neutral	$934.36M	55.05	4.85%	―	10.41%	122.27%
Sector *	62 Neutral	$42.18B	-1.51	-12.07%	2.79%	2.09%	-71.01%
GRPN	56 Neutral	$1.36B	35.54	-90.27%	―	-5.76%	21.27%