Fiverr (FVRR) Stock Trades Up, Here Is Why

Published 2024-10-30, 02:18 p/m
© Reuters.  Fiverr (FVRR) Stock Trades Up, Here Is Why
FVRR
-

Stock Story -

What Happened?

Shares of online freelance marketplace Fiverr (NYSE:FVRR) jumped 24.3% in the morning session after the company reported a "beat and raise" quarter. Third-quarter earnings beat analysts' revenue, EBITDA, and EPS expectations. Efforts to improve value-added services paid off as take rate improved and the average spend per buyer rose 9% from the prior year. Notably, Fiverr introduced an AI-powered matching tool for buyers with complex job requirements. As a result, the number of buyers spending over $10K on Fiverr also increased.

Given these improvements, the company was able to comfortably raise full-year revenue and EBITDA guidance, which put the business on track to meet and perhaps exceed the three-year targets on Adjusted EBITDA and free cash flow provided in the previous quarter.

Holding aside expectations, its number of buyers declined, which is a negative. Overall, though, this quarter was solid.

Is now the time to buy Fiverr? Find out by reading the original article on StockStory, it’s free.

What The Market Is Telling Us

Fiverr’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Fiverr and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 17.9% on the news that the company reported a "beat and raise" quarter. Second quarter earnings results beat analysts' revenue, adjusted EBITDA, and EPS estimates. The company also slightly raised full-year revenue guidance, showing that topline trends are better than just a few months ago. Overall, this was a solid quarter for Fiverr.

Fiverr is up 10.1% since the beginning of the year, and at $28.84 per share, it is trading close to its 52-week high of $30.50 from February 2024. Investors who bought $1,000 worth of Fiverr’s shares 5 years ago would now be looking at an investment worth $1,278.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.