What happened 

Shares of freelance network company Fiverr International (FVRR -1.84%) have jumped 16.5% this week as of 11:20 a.m. EST, according to data provided by S&P Global Market Intelligence. The company reported earnings from the third quarter of 2021, providing fuel for the gains. Results beat expectations, which is great, but they also showed that the freelance economy is thriving although many working-from-home stocks may be slowing down. 

So what 

Revenue was up 42% from a year ago to $74.3 million and non-GAAP net income was $7.7 million, or $0.21 per share, which both easily beat estimates. But it's guidance that should really leave investors encouraged. 

Person working at a desk in a home office.

Image source: Getty Images.

Revenue in the fourth quarter is expected to be $74.5 million to $77.5 million, up 33% to 39% from a year ago. That's only up slightly sequentially, but that's positive news because Fiverr is now building on a bigger revenue base than it ever has before. 

We may start to see revenue growth slow on a sequential level, but the biggest fear from investors is that freelance activity would actually decline as the pandemic slowed and people went back to the office, but activity remains strong. 

Now what 

This is really the kind of technology stock that's enabling new business models to be built. Outsourcing a little work during the pandemic or paying for a project or two could make a nice business, but the true transformation will happen when freelancers are built into the business model of growing businesses. We may be starting to see that if revenue grows sequentially in 2022, albeit at a slower rate than the past year. 

Long-term, this is a company that could enable new businesses to form and the upside from that is still years away. For now, it's good to see revenue growing and profits improving, which indicates that freelancing is here to stay.