Fiverr plunges after cutting guidance

Micah Kaufmann Photo: Omer Hacohen

The Israeli freelance platform says it is being harmed by the post-Covid effect and the easing of restrictions.

Israeli gig economy platform company Fiverr International (NYSE: FVRR) beat the analysts' expectations in its second quarter financial results for 2021 but has cut the guidance for its third quarter because of what it terms the 'post-Covid effect,' and reduced worldwide restrictions.

Fiverr, founded by CEO Micha Kaufman and Shai Wininger, has developed a platform that connects freelancers with potential customers. In the second quarter of 2021, Fiverr reported revenue of $75.3 million, up 59.7% from the corresponding quarter of 2020. Revenue in the first half of 2021 was $144 million, up 76.7% from the first half of 2020.

GAAP net loss in the second quarter of 2021 was $13.3 million compared with break even in the corresponding quarter of 2020. In the first half of the year GAAP net profit was $31.1 million, compared with $6.3 million in the first half of 2020. Non-GAAP net profit in the second quarter of 2021 was $7.9 million, 117% up from the corresponding quarter of 2020. Earnings per share was $0.19, considerably higher than the analysts' forecast of $0.10.

In the third quarter of 2021, Fiverr sees revenue of $68-72 million, 30%-38% higher than the corresponding quarter of 2020 but below the analysts' forecast of $80.2 million.

Kaufman said, "Fiverr delivered another great quarter as we saw robust revenue growth of 60% y/y driven by strong active buyer growth as businesses continue turning to Fiverr to access digital service providers. We are accelerating the pace of investments to make Fiverr into a powerhouse that enables more buyers and sellers to participate in the digital service economy."

Fiverr, which held its IPO in 2019 saw its share price rise 0.20% yesterday to $230.58, giving a market cap of $8.265 billion. But after publishing its results the share price is down 22.3% in premarket trading at $179.

Published by Globes, Israel business news - en.globes.co.il - on August 5, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Micah Kaufmann Photo: Omer Hacohen
Micah Kaufmann Photo: Omer Hacohen
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