In this video, I will go over Fiverr's (FVRR 3.67%) fourth-quarter earnings, and talk about how well the business is performing in an unpredictable environment. You can find the video below but here are some highlights.
- Revenue for the quarter was $79.8 million, up 43% year over year. Active buyers reached 4.2 million, and spend per buyer is up 18% year over year to $242.
- The most impressive metrics to me are take rate and gross margin, which stand at 29.2% and 83.4% (non-GAAP), respectively. What made this earnings report even better is that it beat guidance comfortably.
- Revenue for the fiscal year 2021 grew 57% to $297.7 million above prior guidance of $284 million.
- The company expects Q1 revenue to grow 25.5% at the midpoint to $86 million, overlapping tough year-over-year comps in the first half of the year. But it expects growth to accelerate in the second half of 2022.
- Big spenders are the fastest-growing buyer segment and big earners are the fastest-growing seller segment. This shows Fiverr's success going upmarket, which will increase spend per buyer over time.
- In 2020, all older cohorts, those who joined on or before 2018, on average retained 115% of revenue from 2019. This shows how highly efficient Fiverr is in terms of buyer acquisition.
I believe Fiverr is a long-term buy-and-hold stock and have covered it previously. Those willing to go through short-term pain with Fiverr will enjoy long-term gains.
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*Stock prices used were the closing prices of Feb. 16, 2022. The video was published on Feb. 17, 2022.
