- 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.
For further details see:
Fiverr: After Crushing Losses, It's Time For The Rebound Rally