Fiverr's (FVRR +4.21%) stock price dropped over 20% after the company reported its second-quarter 2021 earnings on Aug. 5, 2021. In today's video I look at Fiverr's and Upwork's (UPWK +1.43%) most recent earnings and news. Here are some highlights from the video.
- Fiverr announced 60% year-over-year (YoY) revenue growth when it reported its second-quarter 2021 earnings on Aug. 5. The revenue growth was driven by the increase in active buyers and the average spend per buyer. Unfortunately, due to COVID-19 restrictions being lifted and people spending more time out of the home, Fiverr had to reduce its full-year guidance. Fiverr had previously guided for YoY revenue growth of roughly 61% and now expects only 50% growth for the full year 2021.
- Upwork announced 42% YoY revenue growth when it reported its second-quarter 2021 earnings on July 29. Unlike Fiverr, which downgraded its full-year guidance, Upwork did the opposite and increased its 2021 guidance. The updated guidance is also in line with Wall Street expectations, which might be a bullish case for Upwork.
- Even though Fiverr and Upwork have similar business styles, they are growing at different levels and are valued accordingly. Fiverr's and Upwork's forward price-to-sales ratios are roughly 16.3 and 9.1, respectively. Still, investors need to note that Fiverr is growing at faster levels and has higher gross margins than Upwork, which could be a reason for the higher valuation.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of Aug. 11, 2021. The video was published on Aug. 11, 2021.
