In this video, I will go over Fiverr's (FVRR 0.90%) 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.
