FVRR - Fiverr: The Worst May Be Priced In. Focus On Upmarket And Complex Services Look Promising
2024-05-05 05:31:32 ET
Summary
- Fiverr's Q4 FY23 earnings showed revenue growth of 7.1% YoY, with increased spend per buyer and growth in complex services, while earnings grew 142% driven by margin expansion.
- I believe that the company’s strategy to progress upmarket and unlock opportunities in complex services should drive long-term growth and improve profitability.
- The company is expected to grow its revenue and earnings by 5.9% and 17% YoY respectively in FY24.
- While a weakening labor market and competition from platform like Upwork can derail Fiverr’s growth prospects, I believe that the stock is attractively priced, making it a “buy”.
Introduction & Investment Thesis
Fiverr ( FVRR ) is a digital marketplace that connects freelancers to businesses looking to hire. The company has severely underperformed the S&P 500 and Nasdaq 100 YTD. The company reported its Q4 FY23 earnings in February, where revenue and earnings grew 7.1% and 142% YoY, respectively....
Fiverr: The Worst May Be Priced In. Focus On Upmarket And Complex Services Look Promising