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Is Fiverr Stock a Buy After Strong Earnings?

By Neil Rozenbaum – Nov 11, 2021 at 10:30AM

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The company and management showed doubters that Fiverr isn't just a COVID thing.

In this video, I will go over Fiverr's (FVRR -4.35%) Q3 earnings report and share my thoughts as to why it has just proven the doubters wrong. I believe Fiverr is a long-term hold and have covered it previously. Those willing to go through short-term pain will enjoy long-term gains. You can find the video below, but here are some highlights. 

Earnings summary

Revenue for the quarter was $73.3 million, up 42% year over year, active buyers reached 4.1 million, and spend per buyer is up 20% year over year (YOY) to $234. The most impressive metrics to me are take rate and gross margins, which stand at 28.4% and 84.4% (non-GAAP) respectively. What made this earnings report even better is that it beat guidance comfortably and that management raised its full-year guidance. Last quarter, management lowered guidance for Q3 and for the year because it didn't yet realize the unprecedented nature of post-pandemic hyper-seasonality.

What this quarter showed me is that management can adapt to tricky situations and still overdeliver, which is what shareholders love to see. It also showed that Fiverr as a business is not just a COVID play that will disappear once we return to "normal."

With the recent acquisitions of Stoke Talent and CreativeLive, as well as the launch of Fiverr Workspace, it is clear that Fiverr wants to improve freelancers' experience as well as help them with all aspects of their business, whether offline or online. 

For the full insights, do watch the video below, and consider subscribing. 

*Stock prices used were the closing prices of Nov. 10, 2021. The video was published on Nov. 11, 2021.

Neil Rozenbaum owns shares of Fiverr International. The Motley Fool owns shares of and recommends Fiverr International. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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