Why Online Market Place Fiverr Stock Is Soaring On Wednesday

Fiverr International Ltd FVRR reported second-quarter fiscal 2024 sales growth of 6% year-on-year to $94.66 million, marginally beating the analyst consensus estimate of $94.62 million.

Revenue was above the midpoint of Fiverr’s guidance despite macro volatility, as it continued to expand customer wallet share and drive an increase in take rate. 

The online marketplace for freelance services reported an adjusted EPS of $0.58, beating the analyst consensus estimate of $0.55. The stock gained after the print.

As of June 30, 2024, there were 3.9 million active buyers versus 4.2 million last year, and the Spend per buyer rose 10% year over year to $290. The take rate expanded by 230 bps to 33.0%.

The adjusted gross margin expanded 20 basis points to 84.4%, while the adjusted EBITDA margin expanded 180 basis points to 18.9%.

The operating loss for the quarter was $(2.30) million, compared to a loss of $(4.01) million last year.

Fiverr generated $21.0 million in operating cash flow and held $371.3 million in cash and equivalents as of June 30, 2024.

M&A: Fiverr announced its acquisition of AutoDS, a subscription-based end-to-end solution for drop shippers that includes product research and sourcing, inventory management, and automated fulfillment. The financial terms of the deal remain undisclosed.

The global dropshipping market was evaluated at $285 billion in 2023 and is expected to reach over $2 trillion by 2033.

Outlook: Fiverr expects third-quarter fiscal 2024 revenue of $95.0 million – $97.0 million, against the consensus of $97.73 million. Adjusted EBITDA of $17.0 million – $19.0 million.

Fiverr projects fiscal 2024 revenue of $383.0 million – $387.0 million (prior $381.0 million – $387.0 million) versus the consensus of $384.49 million. Adjusted EBITDA of $69.0 million – $73.0 million (prior $67.0 million – $73.0 million).

Fiverr International stock lost over 27% in the last 12 months.

On July 2, UBS analyst Kunal Madhukar downgraded the rating on Fiverr International to Neutral from Buy with a Neutral rating and lowered the price target from $37 to $25.

Price Action: FVRR shares traded higher by 17.20% at $25.66 at the last check Wednesday.