What happened
Shares of Fiverr International (FVRR -0.96%) rose by 13.6% in November, according to data provided by S&P Global Market Intelligence.
Despite the rise, shares of the freelancer platform are still down more than two-thirds year to date.
Image source: Getty Images.
So what
Fiverr released its third-quarter earnings and reported an 11% year-over-year increase in revenue to $82.5 million. Investors were impressed with not just the rise in revenue, but also other operating metrics such as take rate and spend per buyer. Fiverr's active buyer population inched up 3% year over year to 4.2 million, while the take rate grew to 30% for the 12 months ended Sept. 30, up from 28.4% in the prior 12 months. Spend per buyer continued its upward trajectory, hitting $262, up 12% year over year and 1.2% quarter over quarter.
Investors also cheered the fact that Fiverr revised its prior guidance upward. The freelancer platform now expects a slightly higher revenue of $334 million to $340 million for the full year, up from $332 million to $340 million. For its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), the company has also upped its guidance from between $19.5 million and $21.5 million to between $22 million and $23 million. Its fourth-quarter forecast also projects around 4% year-over-year revenue growth at its midpoint.
Now what
Although the pandemic-driven surge in business has subsided, Fiverr continues to work on initiatives to make its platform more attractive and to create sticky customers. During Q3, the company introduced Project Partner, a value-added service for its business buyers that assists with the management of large projects.
The company's moves to go upmarket are bearing fruit as it builds awareness through social media and podcast channels to reach out to business audiences. Last month, Fiverr signed a partnership with England football star Bukayo Saka to publish video content showcasing testimonials from U.K. business owners who successfully use Fiverr. Saka will also speak about why he decided to partner with Fiverr and the company plans to tap into his popularity to reach out to a wider segment of business owners.
Elsewhere, Fiverr is also pushing for international expansion, with the U.K., Germany, and France being first in line for growth as these countries have large existing freelancing markets. The company's efforts may take time to bear fruit, but it's heading in the right direction by tapping into marketing and internationalization.
