FVRR - Fiverr International: Still Lackluster

2024-06-28 05:31:38 ET

Summary

• Fiverr's first quarter results were deemed quite positive at first glance, but when delving deeper, the picture is still gloomy.
• The marketplace is still stagnating, and no change is expected throughout 2024 as much of the Spend Per Buyer growth is offset by the Active Buyers decline.
• The $100 million stock buyback program may have a much less profound impact on the stock price, and may even negatively affect its earnings.
• Fiverr still needs to prove its growth story is intact. Until that happens, I maintain my 'Sell' rating for the stock.

Fiverr International Ltd. ( FVRR ), the online marketplace for freelance services, announced its Q1-2024 financial results on May 9th, enjoying approximately a 10% increase in its stock price in the subsequent trading session, on an above-average trading volume. In the following weeks, the stock continued to experience positive momentum, and by the end of May was up by more than 24%. However, the stock has cooled since then and is down by more than 10% in June, flirting with its post-earnings price of ~$22.00....

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