Fiverr (FVRR -2.00%) stock's growth has been slowing down, but this was to be expected. In this Motley Fool Live segment from "Ask Us Anything," recorded on June 1, Fool.com contributor Jamie Louko shares the reasons behind his continued conviction in Fiverr stock.
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Jamie Louko: The revenue growth has changed. I'm just going to share my screen to show this a little bit. Compared to just Q1 2021, they grew revenue 100 percent, they doubled it. Then for the full year they were expecting about 60 percent growth a little over. Jump to this year, Q1 2022, revenue growth grew 27 percent year-over-year, they are expecting roughly 20 percent year-over-year. What has changed? Their revenue growth has changed. Now, I think for a lot of investors, that is totally expected, you can't keep up a 100 percent growth rate, especially coming out of such a booming period like 2020 and 2021 were for Fiverr.
Now, I think the big question was, how many investors were expecting this to change? Because in April 2020/2021 and the middle portion of 2021, there were a lot of investors that weren't necessarily thinking about growth slowing down. They were saying, Oh, I see high growth, I subconsciously believe that it's going to continue into eternity and I'm going to buy it. That just wasn't the reality, I think we expected growth to slow, but there were some investors that weren't expecting it to slow, and therefore, now that it's actually happening, a lot of investors are selling out. However, for me, and I'm sure for a lot of other Fools, and I would love for you guys to pop in after this, I still have conviction in Fiverr. I'm still holding Fiverr, I'm looking to buy it, but I talk about it at a decent amount, so I haven't been able to buy it, and my clock restarts today, I have to wait two more days to add at a minimum. But I haven't lost conviction in Fiverr. I do believe in the gig economy.
