Freelancer platform Fiverr (NYSE: FVRR) posted a higher than expected profit for 2022, and has provided mixed guidance for 2023. On the one hand, the company sees revenue growing by less than market estimates; on the other hand, EBITDA is projected to double in comparison with 2022.
Fiverr has a market cap of $1.4 billion after an 88% decline in it share price since the peak it reached two years ago, although the price is up 33% in 2023 so far. In the fourth quarter of 2022, the company’s revenue was $83.1 billion, 4.2% more than in in the corresponding quarter of 2021. For 2022 as a whole, revenue totaled $337 million, up 13.3% in comparison with 2021.
On a GAAP basis, Fiverr narrowed its operating loss by 84% in the fourth quarter to $2.2 million, and it posted a net loss of $1.3 million, which compares with a loss of $19.5 million in the corresponding quarter of 2021.
On a non-GAAP basis, excluding certain accounting items, chiefly stock-based employee compensation of $17 million, Fiverr posted a $10.7 million net profit for the fourth quarter, 16.2% higher than in the corresponding quarter. Earnings per share were $0.26, which is higher than the consensus analysts’ estimate. Quarterly EBITDA rose 5.8% to $9.4 million.
For 2022 as a whole, Fiverr posted a net loss on a GAAP basis of $71.5 million, 10% larger than the loss in 2021. On a non-GAAP basis, the company posted a net profit of $28.9 million, or $0.71 per share. Annual EBITDA was $24.4 million, up 6.8%. The company said that "cost reduction and efficient execution drove improvement in operating leverage," leading to EBITDA that was higher than the top end of its guidance range.
For the first quarter of 2023, Fiverr projects revenue of $86.5-88.5 million, which is similar to the analysts’ consensus estimate, and represents growth of 0-2% in comparison with the first quarter of 2022. EBITDA is expected to be $9-10.5 million. For 2023 as a whole, the guidance is for revenue of $350-365 million, whereas the analysts’ estimate is $366 million. EBITDA for the year is expected to be $45-55 million.
"We are proud to deliver a strong finish to a challenging year. With a shift in the macro environment and SMB spending sentiment, we quickly adjusted our business focus to drive efficiency, which is reflected in us delivering the most profitable quarter in the company’s history in terms of Adjusted EBITDA1," Fiverr founder and CEO Micha Kaufman said. "That said, our strategy and ambition to change the future of work remains unwavering. We have a strong roadmap for 2023 and we will execute with intensified focus and efficiency to become more profitable," he added.
Published by Globes, Israel business news - en.globes.co.il - on February 22, 2023.
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