FVRR - Fiverr: After Crushing Losses It's Time For The Rebound Rally

• Shares of Fiverr have lost more than 30% year to date and more than 70% from all-time highs.
• Much of Fiverr's fall is due to a valuation correction and weakened sentiment toward growth stocks, not due to fundamentals.
• The company continues to grow revenue north of >40% y/y, with multiple drivers for continued growth in 2022 including gig expansion and focusing on upmarket buyers.
• Profitability margins are also expanding, thanks to the economies of scale inherent in a business generating ~80% gross margins.
• Fiverr's <7x forward revenue multiple looks quite reasonable for a company with its growth profile.

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