Key points:
- Fiverr stock has fallen 77% from its pandemic peak, now might be the time to buy
- The company more than tripled EPS expectations of $0.04
- Perfectly poised for the changing face of the workplace, Fiverr's outlook remains positive
Fiverr was one of the company’s to flourish over the pandemic. Digital working trends played handsomely into the hands of Fiverr’s freelance work model, and soon Fiverr was a popular figurehead in the reimagining of traditional work models. Since the height of the pandemic, Fiverr stock has fallen 77% from its peak.
The rotation out of high-growth stocks in favor of stability and proven longevity hasn’t been kind to stocks like Fiverr, but that didn’t stop the company from smashing analyst expectations in the company’s Q4 and FY21 earnings.
The company posted fourth-quarter revenue of $79.8M, a 43% year-on-year increase. On a non-GAAP basis, Fiverr made a net profit of $9.2M and $0.25 basic earnings per share, compared to $4.8M and $0.13 the previous year. That’s a staggering 93.8% increase in net profit, absolutely smashing analyst expectations of a mere $0.04. Total annual revenue came in at $297.7M, representing an increase of 57% year-on-year.
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Q4 also saw a noticeable rise in Fiverr’s take rate – the commission that the company takes on each platform. The rate was 29.2%, up 210 basic points from 27.1% in Q420.
Fiverr Founder and CEO Micha Kaufman commented:
“We live in a dynamic and ever-evolving work environment in which the world has embraced the vision Fiverr had 12 years ago…Our perpetual focus on our community and improving our platform has allowed us to deliver a strong finish to 2021 and exceptional retention trends.”
Sitting well below its peak highs, Fiverr is an attractive play on the digitalization of workflow; illustrative of the changing face of workplace interaction and efficiency. Dominating the space along with Upwork, it’s hard to find reasons why Fiverr won’t continue to grow. FVRR stock soared 13% on today’s earnings; investors should keep a keen eye on the freelance innovator.
