NEW YORK - Fiverr International Ltd . (NYSE:FVRR), an online marketplace for freelance services, has initiated a share repurchase program, with plans to buy back up to $100 million of its ordinary shares. The announcement came Monday, with the company expressing confidence in its long-term growth and commitment to delivering shareholder value.
The share repurchase authorization, the first in the company's history, reflects Fiverr's belief in the value of its stock and its financial strength. Ofer Katz, Fiverr's President and CFO, stated, "We have built a healthy balance sheet enabling us to continue to invest in our strategic initiatives while also returning capital to shareholders."
The buyback program is set to proceed unless the company's creditors object by May 4, 2024. If objections arise, the program will require court approval. Should no objections be filed, the repurchase plan will become effective without further delay.
Fiverr's platform, which aims to democratize access to talent and opportunities, has connected over 4 million customers with freelancers in the past year. The company offers a range of over 700 skills, from digital marketing to content creation, and provides tools tailored to the needs of large companies through Fiverr Business Solutions.
The information for this article is based on a press release statement from Fiverr International Ltd.
InvestingPro Insights
Fiverr International Ltd. (NYSE:FVRR) has shown a strong commitment to its shareholders with the initiation of its share repurchase program. The current market data from InvestingPro underlines several key financial metrics that may interest investors considering Fiverr's recent announcement. As of the last twelve months as of Q4 2023, Fiverr's market capitalization stands at approximately $743.85 million, with a high price-to-earnings (P/E) ratio of 196.29. Despite what some might consider a lofty valuation, the company has demonstrated an impressive gross profit margin of 82.89%, reflecting its ability to maintain profitability in its operations.
Two InvestingPro Tips that are particularly relevant to Fiverr's current financial context include the expectation of net income growth this year and the company's impressive gross profit margins. These insights suggest a positive outlook for the company's financial health, which is further supported by the fact that Fiverr's liquid assets exceed its short-term obligations, indicating a strong liquidity position.
Investors should note that while the stock price has experienced significant volatility, with a 44.28% decrease in the 1-year price total return, Fiverr is trading near its 52-week low. This could potentially present a buying opportunity, especially considering that analysts predict the company will be profitable this year. Additionally, with Fiverr's next earnings date slated for May 9, 2024, investors will be keen to observe any shifts in market sentiment following the company's financial updates.
For those looking for more in-depth analysis and additional insights, InvestingPro offers a total of 13 InvestingPro Tips for Fiverr, which can be accessed at https://www.investing.com/pro/FVRR. To further enhance your investment strategy, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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