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FVRR

Fiverr International NYSE:FVRR Stock Report

Last Price

US$39.36

Market Cap

US$1.5b

7D

13.4%

1Y

-77.2%

Updated

09 Aug, 2022

Data

Company Financials +
FVRR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

FVRR Stock Overview

Fiverr International Ltd. operates an online marketplace worldwide.

Fiverr International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Fiverr International
Historical stock prices
Current Share PriceUS$39.36
52 Week HighUS$210.55
52 Week LowUS$29.04
Beta1.85
1 Month Change0.31%
3 Month Change29.52%
1 Year Change-77.15%
3 Year Change80.80%
5 Year Changen/a
Change since IPO-1.35%

Recent News & Updates

Aug 03

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.

Jul 20

Fiverr: A Strong Buy

Shares of Fiverr have shed two-thirds of their value this year, accelerated especially after the company's Q1 earnings release. Revenue growth decelerated, and the company cut its guidance for 2022, citing macro headwinds, particularly in Europe. Still, Fiverr is growing at an impressive mid-20s pace while at the same time boosting its take rate on its marketplace revenue. It also hit adjusted EBITDA profitability for the first time ever in a fiscal Q1. Trading under Appetite for a rebound seems to be heating up, and the stocks that are best-positioned to bounce are those high-quality names that have shed the most value since the start of the year. The best move for investors now, in my view, is to shift more allocation away from cash and defensive plays and start banking on growth again. Fiverr (FVRR), in particular, is an excellent choice for a rebound play. This gig-work marketplace has shed two-thirds of its market value since the start of the year. Part of this drop, of course, has been driven by deceleration - both natural deceleration as the business scales as well as fading tailwinds from the pandemic as workplace routines normalize. But the overwhelming majority of the decline, to me, owed exclusively to weakened sentiment, and Fiverr is now trading at incredibly attractive valuation multiples. Data by YCharts I remain bullish on Fiverr, in keeping with my prior view on the stock back in March. Though I did not anticipate the guidance cut that sent the stock spiraling in May, I think Fiverr's risk-reward profile has now tilted heavily in favor of bulls. Yes, the company is no longer growing or performing as well as it did in 2021 - but it is still an expanding business, and one that is padding its margins - as well as trading at an incredibly new low price. The bullish thesis for Fiverr As a reminder for investors who are not fully familiar with Fiverr, the key reasons to be bullish on Fiverr are: The gig economy is growing; Fiverr is expanding the types of gigs available on its marketplace. Americans are quitting their jobs at a greater rate than ever, and more people are supporting themselves through means of gig-based or freelance jobs. In addition, Fiverr itself is acknowledging the wider diversity of skills and gigs and is adding/featuring more services on its site (in its most recent quarter, one of the biggest growth areas was 3D animation). Employers are taking note of the shifts. Widespread labor shortages have been well-documented across industries. While some employers are sweetening their employees' packages to reduce churn, many employers are also shifting their hiring mindset and filing many positions with contract-based or gig-based roles. Fiverr's clout is growing. The company is expanding upmarket into more business-oriented service buyers, growing its take rates, and expanding its geographical presence. Subscriptions. Though the majority of Fiverr's gigs are done on a one-time contract basis, for its larger buyers, the company has introduced the concept of subscriptions, or being able to order the same recurring service on a set schedule. Profitability expansion made possible by huge growth margins. Fiverr generates positive and growing adjusted EBITDA, which is a relative rarity for a stock of Fiverr's scale. Fiverr also carries a very high mid-80s pro forma gross margin. When a company is still growing revenue at a mid-20s pace, at that gross margin profile, the opportunities for operating leverage are dramatic. Incredibly cheap valuation compensates for reduced guidance Despite these strengths, the dramatic slide in Fiverr's share price has rendered its valuation more attractive than ever. Yes, the company cut its guidance for the year - but this is more than compensated for by the lower price. At current share prices near $38, Fiverr trades at a market cap of just $1.41 billion. After we net off the $504.0 million of cash and $450.9 million of debt on Fiverr's most recent balance sheet, the company's resulting enterprise value is $1.36 billion. Fiverr's updated guidance calls for $345-$365 million in revenue, representing 16-23% y/y growth - a huge comedown from 25-27% y/y growth in its prior outlook. Fiverr guidance (Fiverr Q1 shareholder letter) The company cited primarily macro factors as the driver. Per CEO Ofer Katz's prepared remarks on the Q1 earnings call: In March we started to see the impact of the shifting macro landscape within our marketplace, particularly in Europe [...] We have reduced and widened our guidance range to reflect the higher variability in the changing macro landscape as Micha discussed at the start of the call. January and February were solid as expected. In March and April, our business was impacted by a mix of macro factors, with Europe being particularly vulnerable. Compared to what we expected at the beginning of the year, in March our European revenue was below trend by low double-digits and the U.S. by a few percentage points. In April, Europe revenue was further impacted although more moderately and the U.S. was stable. As a reminder, Europe contributed to just under 30% of our revenue and the U.S. approximately half. Our direct exposure to Russia and Ukraine was less than 1%." My point here, however, is that even against this lower range, Fiverr trades at incredibly attractive multiples of 3.8x EV/FY22 revenue - which is very cheap for a company that A) is still growing in the mid-20s, B) has 80%+ gross margins, and C) is capable of pulling off adjusted EBITDA profitability. Q1 results Now, obviously, Fiverr's business started slowing down in Q1, particularly in March. That being said, there were still positive highlights from the company's Q1 earnings print. Take a look at the Q1 earnings summary below: Fiverr Q1 results (Fiverr Q1 shareholder letter) Fiverr's revenue grew 27% y/y to $86.7 million in the quarter, basically in line with Wall Street's $86.8 million expectations - but decelerating sharply from 43% y/y growth in Q4. Again, the primary factor here was a slowdown in business confidence and spend that hit in the back half of Q1. A lot of gig workers make up non-core, discretionary project activity, and hence spending for these types of jobs can be quickly cut to pare down a budget.

Jun 29

Fiverr unit CreativeLive acquires Wildist.co

CreativeLive, an entrepreneurial learning platform owned by Fiverr (NYSE:FVRR), has acquired Wildist.co, a platform which provides online courses in outdoor and adventure photography. Terms of the deal were not disclosed. The acquisition covers the content and website of Wildist.co and further expands CreativeLive's online photography course portfolio. All Wildist.co students will have full access to their workshops and subscriptions through the CreativeLive platform, and the Wildist.co domain redirects to CreativeLive.

Shareholder Returns

FVRRUS Online RetailUS Market
7D13.4%3.3%1.1%
1Y-77.2%-30.2%-13.0%

Return vs Industry: FVRR underperformed the US Online Retail industry which returned -30.2% over the past year.

Return vs Market: FVRR underperformed the US Market which returned -13% over the past year.

Price Volatility

Is FVRR's price volatile compared to industry and market?
FVRR volatility
FVRR Average Weekly Movement15.8%
Online Retail Industry Average Movement12.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: FVRR is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: FVRR's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2010787Micha Kaufmanhttps://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

How do Fiverr International's earnings and revenue compare to its market cap?
FVRR fundamental statistics
Market CapUS$1.46b
Earnings (TTM)-US$92.71m
Revenue (TTM)US$325.77m

4.5x

P/S Ratio

-15.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FVRR income statement (TTM)
RevenueUS$325.77m
Cost of RevenueUS$62.15m
Gross ProfitUS$263.62m
Other ExpensesUS$356.33m
Earnings-US$92.71m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.50
Gross Margin80.92%
Net Profit Margin-28.46%
Debt/Equity Ratio190.3%

How did FVRR perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is FVRR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation 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.

FVRR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA-26.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does FVRR's PS Ratio compare to its peers?

FVRR PS Ratio vs Peers
The above table shows the PS ratio for FVRR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.1x
OSTK Overstock.com
0.6x3.0%US$1.3b
NEGG Newegg Commerce
0.6xn/aUS$1.3b
RVLV Revolve Group
1.9x13.1%US$2.0b
FTCH Farfetch
1.5x14.3%US$3.4b
FVRR Fiverr International
4.5x17.2%US$1.5b

Price-To-Sales vs Peers: FVRR is expensive based on its Price-To-Sales Ratio (4.5x) compared to the peer average (1.1x).


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 (4.5x) compared to the US Online Retail industry average (0.8x)


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.

FVRR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.5x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: FVRR is expensive based on its Price-To-Sales Ratio (4.5x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).


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 ($39.36) is trading above our estimate of fair value ($31.69)

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

5/6

Future 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

0/6

Past 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 (-36.3%).


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

5/6

Financial 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

0/6

Dividend 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 ($USD7.17M) is above average for companies of similar size in the US market ($USD5.45M).

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$1.461b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/09 00:00
End of Day Share Price2022/08/09 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.