Fiverr Pops 10.8% on Strong Q4 Performance

Shares of Fiverr International Ltd. (FVRR) surged 10.8% at the time of writing after the company reported strong performance for the fourth quarter of 2021. The company develops an e-commerce platform that allows people to buy and sell digital services.

Revenues during the quarter jumped 43% year-over-year to $79.8 million, surpassing the Street’s estimate of $76.8 million. Adjusted earnings of $0.22 per share increased 83.3% year-over-year, beating analysts’ expectations of a loss of $0.12 per share.

Active buyers during the quarter increased 23% year-over-year to 4.2 million. Also, per buyer spend, as of December 31, 2021, reached $242, up 18%. Adjusted EBITDA margin was up 280 basis points to 11.1%. It stood at 8.3% a year ago.

For full-year 2021, Fiverr reported revenues of $297.7 million, up 57% year-over-year. Also, adjusted earnings of $0.60 per share more than doubled from $0.29 per share in the same quarter last year.

The President and CFO of Fiverr, Ofer Katz, said, “Our growth has been exceptional over the last two years at 178%, and our fourth quarter alone saw an increase in revenue of 43% year over year to $79.8 million. Fiverr continues to see growth across all metrics with predictable cohort behavior, giving us confidence to provide strong guidance for the year ahead.”

Outlook

For the first quarter of 2022, the company expects revenues in the range of $85 million to $87 million. Adjusted EBITDA is projected to be between $1.5 million and $3.5 million.

For 2022, Fiverr expects to post revenues in the range of $373 million to $379 million. Also, the company expects to post adjusted EBITDA in the range of $27 million to $33 million.

Price Target

The stock has a Moderate Buy consensus rating based on 2 Buys and 4 Holds. The average Fiverr price target of $136.50 implies 80% upside potential from current levels. Shares have tanked 71.6% over the past year.

Blogger Opinion

TipRanks data shows that financial blogger opinions are 100% Bullish on FVRR, compared to a sector average of 69%.

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