FVRR - Fiverr stock flies higher on stronger than expected profits

Fiverr International ( NYSE: FVRR ) shares rose about 5.5% in premarket trading after exceeding Q3 expectations and promoting a profit focus moving forward.

For the third quarter, $0.21 in adjusted earnings per share came in well above the analyst consensus of $0.05 as $82.5M in revenue narrowly exceeded expectations. Active buyers on the platform also increased by about 100K from the prior year quarter.

“The secular trend of moving toward freelancing, and the opportunity of using technology to upend the old-school industry remains intact,” CEO Micha Kaufman commented. “And with our scale, differentiated solution, efficient go-to-market strategy and strong financial profile, I believe no one is better positioned than us to lead the change in the future of work.”

CFO Ofer Katz added that the increased focus on efficiency and profits helped push the bottom line report that came in more than four times stronger than analysts had expected.

“Our decision to realign our focus and cost structure earlier in the year put Fiverr’s Adjusted EBITDA on an accelerated growth trajectory,” he said. “Our Adjusted EBITDA is indicative of the strong cash flow we generate, and together with a healthy balance sheet, we are in a strong financial position to navigate near term macroeconomic volatility and continue focusing on long-term value creation.”

Moving to the fourth quarter, the company anticipates revenue in the range of $79.8M to $85.8M, in line with the Wall Street consensus of $83.66M while full-year guidance of $334.0M to $340.0M was also in accordance with the expectation of $336.5M.

Read more on the details of the results .

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