Fiverr sees Covid-19 accelerating growth

Fiverr founders Micha Kaufman and Shai Wininger

The gig economy platform now targets turning EBITDA positive in the second half of 2021.

Gig economy platform Fiverr International Ltd. (NYSE: FVRR) has reported first quarter revenue of $34.2 million, representing an increase of 44% year over year.

On a GAAP basis, the company posted a net loss in the first quarter of $6.2 million, or $0.19 per share, which compares with a loss of $8.3 million, or $1.26 in the corresponding quarter of 2019. The non-GAAP net loss in the first quarter of 2020 was $2.6 million, or $0.08 per share, which compares with $5.2 million, or $0.20 per share, in the first quarter of 2019.

Revenue and non-GAAP loss per share are well ahead of the consensus analysts' estimate of $33.23 million and $0.13. 

Adjusted EBITDA in the first quarter of 2020 improved to minus $2.9 million, compared with minus $5.4 million in the first quarter of 2019.

"I am immensely proud of the team at Fiverr and what they have achieved in the first quarter, especially under the backdrop of a global pandemic that has impacted the world in the last few months." said Fiverr founder and CEO Micha Kaufman. "Together, we delivered a number of COVID-19 related initiatives to help our community, introduced Promoted Gigs ahead of schedule, launched full localization in Germany, Spain and France, and our marketing strategy continued to power strong growth with agility and efficiency."

At the end of the first quarter, Fiverr had 2.5 million active buyers, which compares with 2.1 million a year previously.

Looking ahead, Fiverr's announcement states: "Given the strong momentum we have seen in recent weeks, we are raising our full year 2020 revenue and EBITDA expectations from prior guidance. However, given these unprecedented times and impact of COVID-19 on economies globally, we will update business trends as they evolve. We are also accelerating our timing to profitability and target turning EBITDA positive in the second half of 2021. We expect that our strong cash position, together with revenue growth momentum and path to profitability, will allow us to continue to make long-term investments to drive growth."

Fiverr sees revenue of $35.5-36.5 million for the second quarter, representing growth of 37-41% over the second quarter of 2019, with adjusted EBITDA of minus $2.5-1.5 million. For 2020 as a whole, revenue is expected to be $145.5-147.5, representing annual growth of 36-38%, with adjusted EBITDA of minus $9.0-7.0 million.The current analysts' consensus is annual revenue of $141.04 million in 2020.

Fiverr's share price is currently up about 5% on the New York Stock Exchange.

Published by Globes, Israel business news - en.globes.co.il - on May 7, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Fiverr founders Micha Kaufman and Shai Wininger
Fiverr founders Micha Kaufman and Shai Wininger
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