Freelancers and employers can connect through Fiverr, a platform that connects freelancers with jobs. Professionals from over 550 categories can access over 160 countries in the company’s Talent Cloud platform.
With continued revenue growth and an increased customer base, Fiverr’s 2Q2022 was a strong quarter. According to the company’s annual report, revenue grew 13% to US$85 million during the 12 months ending June 30, with a take rate of 29.8%.
Fiverr’s platform saw an increase of 6% year-on-year in active buyers, and spending per buyer increased 14% to $259, an increase of 6% year-on-year.
Menu design, social media, and 3D animation are a few categories where the company continues to improve its offerings to attract more clients.
As a result of Fiverr’s service-as-a-product model, businesses could engage with freelancers in a more meaningful way, and a higher conversion rate was achieved.
Reasons to avoid
Fiverr’s revenue guidance for the full year has been again lowered, which is why the drop. In Q2’22, management is guiding growth at 12-14%, down from 25-27% in Q4’21, 16-23% in Q1’22, and 12-23% in Q2’21.
There are some questions about how accurate the management team is at forecasting and understanding their industry after such rapid deterioration.
Technical analysis
(OTC: FVRR) Fiverr is projected to grow its revenues by 12.99% per year, beating the average revenue growth rate forecast for the US Internet Content & Information industry of 4.2% and also beating the average revenue growth rate forecast for the US market of 8.53 percent.
Five Wall Street analysts covering FVRR (NYSE: FVRR) recommend buying the stock. You can find here the Live Prices for FVRR Stock.
FVRR is recommended as a Strong Buy by 1 (20%) of analysts, a Buy by 2 (40%) analysts, a Hold by 2 (40%) analysts, a Sell by 0 (0%) analysts, and a Strong Sell by 0 (0%) analysts.
