Fiverr International Posts Q4 Beat, Analysts Expect Services And AI To Drive 2025 Growth

Shares of Fiverr International Ltd FVRR tanked in early trading on Thursday, despite the company reporting upbeat fourth-quarter results.

Here are some key analyst takeaways.

• Needham analyst Bernie McTernan reaffirmed a Buy rating
• RBC Capital Markets analyst Brad Erickson reiterated a Sector Perform rating and price target of $35.
• JPMorgan analyst Doug Anmuth reiterated a Neutral rating and price target of $33.

Check out other analyst stock ratings.

Needham: Fiverr International reported its quarterly adjusted EBITDA roughly in-line with consensus, with better-than-expected revenues offsetting lower margins, McTernan said. The revenue outperformance was driven by the take rate exceeding expectations by 38 basis points, he added.

The GMV (gross merchandise value) came in 2.4% below expectations, with lower active buyers and spend per buyer relative to consensus, the analyst stated. "Similar to 4Q results, guidance for 1Q and ’25E are better than consensus expected for revenue but below on adj. EBITDA," he further wrote.

RBC Capital Markets: Fiverr International's non-Marketplace segment, called Services, recorded 63% revenue growth in 2024 and 102% in the fourth quarter, Erickson said. The Services segment is expected to generate more than 30% of total revenues in 2025, he added.

"The introduction of the company’s Services segment will also shine a brighter light on continued nascent Marketplace growth," the analyst wrote. New AI products rolling out could support the performance of Marketplace going ahead, he further stated.

JPMorgan: Fiverr reported and guided to solid topline trends. Services revenue offset weaker macro-impacted Marketplace revenue, Anmuth wrote. Against a challenging operating backdrop, Fiverr is investing in Services and AI to drive growth, he added.

Fiverr Go provides tools to freelancers to build personalized AI models and allows them to scale faster, the analyst stated. With a push in Services, the company is poised to benefit as the SMB (small and medium business) environment improves, resuming "a healthy growth trajectory with stronger profitability," he further said.

Price Action: Shares of Fiverr International had declined by 8.9% to $27.54 at the time of publication on Thursday.

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