Fiverr International (FVRR) AI Stock Analysis

• Market Cap: $812.49M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 1.13
• Revenue Growth: 12.60%
• EPS Growth: 64.81%
• Country: US
• Employees: 762
• Sector: Communication Services
• Sector Strength: 92
• Industry: Internet Content & Information
• EPS (TTM): 0.69
• Shares Outstanding: 36,864,433
• 10 Day Avg. Volume: 1,439,012
• 30 Day Avg. Volume: 1,031,457
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 2.41
• Enterprise Value/Ebitda: 69.58
• 1Y Price Target: $31.33
• Price Target Upside: 42.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 67 Neutral
• Price Target: $24.00 ▲(8.89% Upside)

Fiverr's strong financial performance and positive earnings call are significant strengths, driven by revenue growth and strategic focus on AI services. However, technical analysis indicates bearish trends, and the high P/E ratio suggests potential overvaluation. The overall score reflects a mix of strong fundamentals and challenging technical conditions.

Positive Factors

AI Investments

Investments in AI, Fiverr Go, Neo, Dynamic Matching, and Agents can return the marketplace to consistent GMV growth.

Market Expansion

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

Revenue Growth

Services revenues increased by 84% year-over-year, driven by Promoted Gigs, Seller Plus, and AutoDS adoption.

Negative Factors

GMV Trends

The stock continues to be a show me story with the bear narrative winning as GMV trends remain challenged, including the year-over-year declines getting worse this quarter.

Growth Challenges

It still appears too early in the crossover for growth in more complex gigs to offset the weakness in simple gigs leaving the marketplace.

Macroeconomic Pressure

The year-over-year trend in GMV continued to worsen with management calling out pressure from the macro and hiring environment remaining slow.

Fiverr International Business Overview & Revenue Model

Company Description

Fiverr International Ltd. is a global online marketplace that connects freelancers with businesses seeking digital services. Founded in 2010, the platform spans various sectors, including graphic design, digital marketing, writing, video production, programming, and more. Fiverr operates on a gig-based model, allowing users to offer and purchase services at various price points, fostering an accessible way for freelancers to monetize their skills while providing businesses with a vast pool of talent.

How the Company Makes Money

Fiverr generates revenue primarily through transaction fees charged on each service sold through its platform. When a freelancer completes a gig, Fiverr takes a percentage of the sale, typically ranging from 5% to 20%, depending on the total order value. Additionally, the company offers premium services like Fiverr Pro, which features vetted professionals for higher-quality work, and Fiverr Business, tailored for teams and companies, which comes with subscription fees. Strategic partnerships with other platforms and integrations further enhance its offerings, while increased user engagement and a growing number of freelancers contribute to additional revenue growth.

Fiverr International Financial Statement Overview

Summary

Fiverr exhibits a solid financial position with high gross margins and improving net profitability. Although 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	419.13M	391.48M	361.38M	337.37M	297.66M	189.51M
Gross Profit	339.25M	320.92M	299.53M	271.42M	245.94M	156.32M
EBITDA	11.77M	25.06M	13.77M	-57.60M	-37.81M	-5.87M
Net Income	18.18M	18.25M	3.68M	-71.49M	-65.01M	-14.81M
Balance Sheet
Total Assets	1.14B	1.07B	1.02B	923.80M	931.57M	861.20M
Cash, Cash Equivalents and Short-Term Investments	725.72M	567.26M	417.37M	462.05M	323.30M	487.40M
Total Debt	463.52M	463.21M	462.36M	463.73M	387.88M	373.80M
Total Liabilities	733.74M	707.32M	667.83M	658.07M	584.70M	515.80M
Stockholders Equity	404.86M	362.65M	355.77M	265.73M	346.87M	345.40M
Cash Flow
Free Cash Flow	91.73M	81.77M	82.07M	27.74M	35.46M	13.10M
Operating Cash Flow	94.67M	83.07M	83.19M	30.11M	38.04M	17.14M
Investing Cash Flow	55.99M	-28.82M	9.78M	-14.62M	-229.47M	-326.36M
Financing Cash Flow	-25.29M	-104.22M	2.85M	-1.64M	-2.40M	551.81M

Fiverr International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 22.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 22.04 is below the 20-day moving average (MA) of 23.35, below the 50-day MA of 26.79, and below the 200-day MA of 28.86, indicating a bearish trend. The MACD of -1.43 indicates Negative momentum. The RSI at 36.78 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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	73 Outperform	$852.58M	18.81	34.34%	―	92.91%	―
OPRA	73 Outperform	$1.47B	22.30	9.18%	4.78%	26.71%	-23.67%
YELP	70 Outperform	$1.96B	14.09	20.13%	―	5.37%	13.08%
FVRR	67 Neutral	$812.49M	46.41	5.00%	―	12.60%	64.81%
ANGI	66 Neutral	$779.98M	15.34	5.86%	―	-15.79%	―
Sector *	60 Neutral	$44.04B	1.92	-11.93%	4.00%	2.47%	-38.33%
GRPN	49 Neutral	$1.19B	35.54	-19.11%	―	-4.72%	84.11%