FVRR - Why Fiverr Stock Was Flying High Today
2024-05-09 13:47:15 ET
Shares of freelance marketplace Fiverr International (NYSE: FVRR) were flying higher on Thursday after the company reported financial results for the first quarter of 2024. Results were just OK but expectations were low, which explains why investors are so enthusiastic today. As of 1 p.m. ET, Fiverr stock was up 9%, but it had been up almost 16% earlier in the day.
In Q1, Fiverr generated revenue of $93.5 million, which was up 6% year over year. That was the high point of management's previous guidance, but it was within guidance nonetheless. Active buyers spent more money on the platform on average, and the company increased its take rate -- the amount of money it keeps relative to its sales volume.
However, Fiverr's active buyers dropped from 4.1 million in the fourth quarter to just four million in Q1. As a marketplace business, investors would ideally see both buyers and sellers increasing. The drop in active buyers is discouraging considering the platform first surpassed 4 million buyers back in 2021.
For further details see:
Why Fiverr Stock Was Flying High Today