Fiverr Gains 15.2% on Upbeat Q3 Results

Fiverr International Ltd. (FVRR), an online marketplace for freelance services, has delivered better-than-expected third-quarter results, as both earnings and revenues surpassed consensus estimates. Shares of the company gained 15.2% in Wednesday’s early trading session.

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Revenues during the quarter jumped 42% year-over-year to $74.3 million, surpassing the Street’s estimate of $71.1 million. Adjusted earnings of $0.19 per share increased 58.3% year-over-year, beating analysts’ expectations of a loss of $0.01 per share.

Active buyers during the quarter increased 33% year-over-year to 4.1 million. Also, per buyer spend, as of September 30, 2021, reached $234, up 20%.

Adjusted EBITDA margin was up 180 basis points to 9.8%. It stood at 8% a year ago. (See Fiverr stock charts on TipRanks)

The President and CFO of Fiverr, Ofer Katz, said, “Fiverr continues to deliver strong financial results amidst the still uncertain backdrop of the pandemic. The underlying strength and scale of our business, together with secular trends towards digital transformation will drive long-term growth for the company.”

Outlook

For the fourth quarter, the company expects revenues in the range of $74.5 million to $77.5 million. Adjusted EBITDA is projected to be between $5.5 million and $7 million.

For 2021, Fiverr expects to post revenues in the range of $292.4 million to $295.4 million, as compared to previous guidance of $280 million to $288 million. Also, the company expects to post adjusted EBITDA in the range of $19.5 million to $21.0 million against the prior estimate of $12 million to $14 million.

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Analyst Recommendation

The stock has a Moderate Buy consensus rating based on 1 Hold and 1 Buy. The average Fiverr price target of $197.5 implies 22.7% upside potential from current levels. Shares have gained 17.9% over the past year.

Website Traffic

TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into FVRR’s performance.

The Fiverr website traffic record a 4.6% monthly increase in visits in October against the same quarter last year. Meanwhile, year-to-date website traffic grew 10.4% against the same period last year.