| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
FVRR Stock Overview
Fiverr International Ltd. operates an online marketplace worldwide.
Fiverr International Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$42.60 |
| 52 Week High | US$210.55 |
| 52 Week Low | US$29.04 |
| Beta | 1.85 |
| 1 Month Change | 36.67% |
| 3 Month Change | 14.98% |
| 1 Year Change | -75.17% |
| 3 Year Change | 96.49% |
| 5 Year Change | n/a |
| Change since IPO | 6.77% |
Recent News & Updates
Fiverr International: An Opportunity For Long-Term Investors
Fiverr International Ltd. is a global marketplace connecting freelancers with individuals and businesses. Freelancing is picking up at becoming a real alternative to a full-time job. Individuals increasingly wanting to decide where, when and what they do for work. Current conditions represent an opportunity to be part of a great idea with an enormous potential at a reasonable price. Editor's note: Seeking Alpha is proud to welcome Enrique Boente as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Summary It seems workers are wary of marrying with a company for life and instead are seeking changes and new challenges. As of January 2020, the median number of years that wage and salary workers had been with their current employer was just 4.1 years. The success of the streaming video and music platforms is based on allowing users to decide what to see or what to listen and when to do it. Similarly, the work industry is experiencing a significant transformation thanks to the rise of the “Gig Economy” or “Freelance Economy." On one side, people increasingly want to have the opportunity to decide when, where and how to work, and on the other side, companies are looking for flexibility, light capital models and an on-demand workforce. As a result, and accelerated by the COVID-19 pandemic, freelancing is challenging the traditional concept of a full-time job. Based on this secular trend, Fiverr International Ltd (FVRR) presents an opportunity for investors. Fiverr is an online marketplace offering on-demand freelance services to individuals and businesses. Founded in 2010, it has been exponentially growing thanks to the rise in the gig economy. Currently, Fiverr, with its more than 4 million active users and +$1b GMV, is seen as having a lot of potential to become a key player in the future as it is the first in the queue and it has, already, a considerable network of early-adapters loyal buyers and sellers. Throughout this investment thesis we would like to help the reader understand the secular trend backing the long-term growth of the industry, Fiverr's historical performance and its long-term strategy, and why do we think Fiverr is a good opportunity by translating our expectations into numbers and by carrying out what we believe is a reasonable intrinsic valuation of Fiverr. Gig Economy – As the main driver The Gig economy is projected to growth at a double-digit annual rate, with drivers from both the supply and demand side gig platforms continuously expanding geographically and offering new services to consumers. In 2018, according to the report release by Mastercard in May19, the market size was estimated to amount to $204b globally and it was expected to growth at least at a 17.4% CARG until FY23E. “Mastercard Gig Economy Industry Outlook and Needs Assessment” report Currently, the Gig Economy in itself can be divided into four different sectors. Transportation-based services: including platforms as UBER, Lyft, Grab, etc. (57.8% of the total Gig economy in 2018). Asset-sharing services: major players include Airbnb, Tripadvisor rentals, etc. (30.% of the total Gig economy in 2018). Handmade Goods, Household and Miscellaneous Services: mostly comprised by niche platforms focused on on-demand services like TaskRabbit or Etsy among others. (8.2% in 2018). Professional services: companies like Fiverr or Upwork will belong to this sector. (3.8% in 2018). As it can be observed, transportation-based and asset-sharing services are the current leaders as they were the forerunners of the industry. Nevertheless, other verticals as professional services should catch-up over time. Fiverr's TAM and industry outlook The penetration of the freelance model is rising at an exponential rate year by year. According to Fiverr and supported by other relevant industry reports, the freelance economy represents a large market opportunity with still very low online penetration. Just in the US, according to the latest US Census Bureau Nonemployer Statistics data, the estimated US total freelance income amounted to $815b out of which $115b includes professions subject to be penetrated by Fiverr and other freelancing platforms. Company website What is Fiverr? Business model Fiverr is an online marketplace where people and businesses buy freelance services, similarly to the way people buy physical goods on an e-commerce marketplace. The company aims to provide an “on-demand, e-commerce-like experience that makes working with freelancers as easy as buying something on Amazon”. Customers can easily find and purchase services, such as logo design, video creation and editing, website development and blow writing, voice-overs, and translation, with prices ranging from $5 to thousands of dollars. Company website and annual filing Where does Fiverr's revenue come from? Fiverr generates revenue primarily through fees based on the value of the transacted service. When an order is placed, buyers pay Fiverr the Gig (service) price plus a 5.5% service fee; upon successful completion of an order, Fiverr makes 80% of the Gig price available to the seller of the Gig while retaining the 20% as a selling fee. Although Fiverr’s current take rate starts from 25.5% (5.5% from the buyer and 20% from the seller), the actual take rate reported in 1Q22A amounted to 29.6%, thanks to additional revenues streams. Company website How things have been going so far and what is next? As one could expect, Fiverr meets the profile of a high growth company with double digit revenue growth rates but still negative margins. Over the historical period (FY17A-FY21A) Fiverr's total turnover increase by 5.7x (54.6% CAGR) mainly driven by: An increase in the number of active buyers from #1.8m to #4.2m (23.9% CAGR). Company website An increase in the average spend per buyer from $119 to $242 (19.4% CAGR). An increase in take rate from 24.47% in FY17A to 29.17% in FY21A (4.5% CAGR). In terms of margins, although still negative, top-line growth has been translated into an operating leverage expecting to breakeven in the short-medium term. Gross margin improved from 74% in FY17A to 82.6% in FY21A. EBITDA margin also improved in terms of revenue from -c.35.4% in FY17A to -10.9% in FY21A. In the long-term, as stated by management, Fiverr’s strategy involves going upmarket into more business-oriented service buyers and expanding its geographical presence. Fiverr's is currently involved in a transition process through which, once it has developed a loyal and consolidated based of freelancers (assets) interacting with a large number of SME and individuals, its main focus will be going after bigger companies, representing an attractive opportunity in terms of volume and recurrence. Who are Fiverr's main competitors? Fiverr faces competition from a number of online and offline platforms and services that offer freelancing services. Nevertheless, its more comparable competitors are other online freelancer platforms, such as Upwork (UPWK) or Freelancer.com. Company filings and own analysis As shown in the table above, Fiverr differentiates against its peers mainly through its business model and its customer base. Business model: Fiverr uses a “clients come” instead of “go to clients” strategy, which means that in case of Fiverr freelancers offer and quote their services for potential buyers. Both Upwork and Freelancer work mainly the other way around, with freelancers applying to projects posted by clients. Customer base: In the case of Fiverr it is mainly comprised of individuals and SME customers while Upwork, which could be considered its main competitor, is focused on recurrent "big" enterprises. Nevertheless, as previously explained, Fiverr is currently targeting this market segment. Fiverr’s intrinsic value Now that we understand Fiverr and its potential, how much is it worth? Industry growth prospects First of all, in order to get an estimate of Fiverr’s current intrinsic value there are a few key points which every investor should reassess: (1) current market size and future market growth and (2) Fiverr’s current and long-term market share. Current market size and future market growth For the purpose of estimate the current market size and its future growth rate, we can refer to Mastercard’s (research estimates of the total global Gross Volume ((GV)) generated by the Gig Economy and, specifically, the GV generated by the professional services sector as our starting point. We believe this is a good estimate of the current market size. However, in order to incorporate the effect we consider COVID-19 has had on the market, we have slightly changed the given assumption by bringing forward estimated figures by half a year. The result is: a current GV equal to c.$14.5b in FY21E (vs $13.5b as per the Mastercard report) for the professional services sector and, an estimated 12% growth rate from FY21A to FY26E. Thereafter, we assume a linear decreasing annual growth rate up to 3.0% (FY30E-FY31E) approximating the current risk-free rate. We consider this figure to be reasonable given Fiverr’s own estimations of the TAM of just the US to be c. $115B, which implies that the current market would still have a huge penetration potential (at least 7.9x our estimated current market size). Fiverr’s current and long-term market share Based on the previous point, we get that Fiverr’s current market share would be around c. 7% (Fiverr’s GMV of $1b in FY21A). Going forward, our assumption is that Fiverr should be able to increase its share over time based, in part, on a strong networking effect, which we consider its main competitive advantage. Consequently, we estimate Fiverr’s market share will be able to reach c.10% in FY26E and c.15% in FY31E. The result from the previous market growth and share estimations is that Fiverr’s GMV (the total value of transactions ordered through the platform) grows at a c.20% CAGR from FY21A to FY26E. Although this rate is higher than the estimated growth rate of the industry (c.12%), it is explained by the increase in Fiverr’s market share resulting from a progressive market concentration. Translating our Fiverr’s business expectations into numbers Revenues: Fiverr’s revenues will be driven by the Fiverr’s GMV and its projected take rate.
Fiverr International Q2 2022 Earnings Preview
Fiverr International (NYSE:FVRR) is scheduled to announce Q2 earnings results on Thursday, August 4th, before market open. The consensus EPS Estimate is $0.09 (-52.6% Y/Y) and the consensus Revenue Estimate is $86.71M (+15.2% Y/Y). Over the last 2 years, FVRR has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 2 upward revisions and 4 downward. Revenue estimates have seen 0 upward revisions and 8 downward.
Shareholder Returns
| FVRR | US Online Retail | US Market | |
|---|---|---|---|
| 7D | 6.4% | 1.6% | 3.2% |
| 1Y | -75.2% | -26.8% | -10.2% |
Return vs Industry: FVRR underperformed the US Online Retail industry which returned -26.8% over the past year.
Return vs Market: FVRR underperformed the US Market which returned -10.2% over the past year.
Price Volatility
| FVRR volatility | |
|---|---|
| FVRR Average Weekly Movement | 13.3% |
| Online Retail Industry Average Movement | 12.5% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: FVRR is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: FVRR's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2010 | 787 | Micha Kaufman | https://www.fiverr.com |
Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company’s platform includes approximately 550 categories in nine verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and technology, business, data, and lifestyle.
Fiverr International Fundamentals Summary
| FVRR fundamental statistics | |
|---|---|
| Market Cap | US$1.58b |
| Earnings (TTM) | -US$92.71m |
| Revenue (TTM) | US$325.77m |
4.9x
P/S Ratio-17.1x
P/E RatioIs FVRR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| FVRR income statement (TTM) | |
|---|---|
| Revenue | US$325.77m |
| Cost of Revenue | US$62.15m |
| Gross Profit | US$263.62m |
| Other Expenses | US$356.33m |
| Earnings | -US$92.71m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -2.50 |
| Gross Margin | 80.92% |
| Net Profit Margin | -28.46% |
| Debt/Equity Ratio | 190.3% |
How did FVRR perform over the long term?
See historical performance and comparisonValuation
Is FVRR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FVRR?
Other financial metrics that can be useful for relative valuation.
| What is FVRR's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$1.58b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 4.3x |
| Enterprise Value/EBITDA | -28.6x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does FVRR's PS Ratio compare to its peers?
| FVRR PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 1.2x | ||
OSTK Overstock.com | 0.6x | 3.0% | US$1.4b |
RVLV Revolve Group | 2x | 13.1% | US$2.1b |
NEGG Newegg Commerce | 0.6x | n/a | US$1.4b |
FTCH Farfetch | 1.7x | 14.3% | US$3.9b |
FVRR Fiverr International | 4.9x | 17.2% | US$1.6b |
Price-To-Sales vs Peers: FVRR is expensive based on its Price-To-Sales Ratio (4.9x) compared to the peer average (1.2x).
Price to Earnings Ratio vs Industry
How does FVRR's PE Ratio compare vs other companies in the US Online Retail Industry?
Price-To-Sales vs Industry: FVRR is expensive based on its Price-To-Sales Ratio (4.9x) compared to the US Online Retail industry average (0.9x)
Price to Sales Ratio vs Fair Ratio
What is FVRR's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 4.9x |
| Fair PS Ratio | 3.6x |
Price-To-Sales vs Fair Ratio: FVRR is expensive based on its Price-To-Sales Ratio (4.9x) compared to the estimated Fair Price-To-Sales Ratio (3.6x).
Share Price vs Fair Value
What is the Fair Price of FVRR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FVRR ($42.6) is trading above our estimate of fair value ($31.96)
Significantly Below Fair Value: FVRR is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is Fiverr International forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score
5/6Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
82.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FVRR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: FVRR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: FVRR is expected to become profitable in the next 3 years.
Revenue vs Market: FVRR's revenue (17.2% per year) is forecast to grow faster than the US market (7.9% per year).
High Growth Revenue: FVRR's revenue (17.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FVRR's Return on Equity is forecast to be high in 3 years time (22%)
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Past Performance
How has Fiverr International performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-28.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FVRR is currently unprofitable.
Growing Profit Margin: FVRR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FVRR is unprofitable, and losses have increased over the past 5 years at a rate of 28.5% per year.
Accelerating Growth: Unable to compare FVRR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FVRR is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-37.5%).
Return on Equity
High ROE: FVRR has a negative Return on Equity (-38.99%), as it is currently unprofitable.
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Financial Health
How is Fiverr International's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: FVRR's short term assets ($577.0M) exceed its short term liabilities ($213.9M).
Long Term Liabilities: FVRR's short term assets ($577.0M) exceed its long term liabilities ($460.4M).
Debt to Equity History and Analysis
Debt Level: FVRR's net debt to equity ratio (14.9%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if FVRR's debt to equity ratio has reduced over the past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable FVRR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: FVRR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 78.6% per year.
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Dividend
What is Fiverr International current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FVRR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FVRR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FVRR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FVRR's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as FVRR has not reported any payouts.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.1yrs
Average management tenure
CEO
Micha Kaufman
12.58yrs
Tenure
US$7,167,000
Compensation
Mr. Micha Kaufman is a Co-Founder of Fiverr International Ltd. since 2010 and serves as its Chief Executive Officer and Director since 2010. He serves as Chairman of the Board at Fiverr International Ltd....
CEO Compensation Analysis
Compensation vs Market: Micha's total compensation ($USD7.17M) is above average for companies of similar size in the US market ($USD5.40M).
Compensation vs Earnings: Micha's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: FVRR's management team is seasoned and experienced (5.1 years average tenure).
Board Members
Experienced Board: FVRR's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Fiverr International Ltd.'s employee growth, exchange listings and data sources
Key Information
- Name: Fiverr International Ltd.
- Ticker: FVRR
- Exchange: NYSE
- Founded: 2010
- Industry: Internet and Direct Marketing Retail
- Sector: Retail
- Implied Market Cap: US$1.581b
- Shares outstanding: 37.12m
- Website: https://www.fiverr.com
Number of Employees
Location
- Fiverr International Ltd.
- 8 Eliezer Kaplan Street
- Tel Aviv
- 6473409
- Israel
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/14 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.