Freelance services platform provider Fiverr International (NYSE: FVRR) has beaten the analysts' estimates in revenue and profit for the third quarter of 2020 and sees continued strong growth in the fourth quarter.
The Israeli company is benefitting from the Covid-19 pandemic. More freelance work is being handed out online rather than through face to face meetings and many of the new unemployed have turned to the gig economy for some income. Consequently Fiverr's share price has risen 663% this year although it closed last night down 5.96% at $146, giving a market cap of $5.127 billion. Following publication of its third quarter results, the share price is up 6.08% in premarket trading.
Fiverr reported third quarter revenue of $52.3 million, up 88% from the corresponding quarter of 2019. GAAP net loss in the third quarter of 2020 was $0.5 million, or $0.01 net loss per share, compared with a net loss of $8.4 million, or $0.26 net loss per share, in the third quarter of 2019. Non-GAAP net profit in the third quarter of 2020 was $4.7 million, or $0.13 and $0.12 basic and diluted net profit per share, respectively, compared with a loss of $4.0 million, or $0.12 basic and diluted net loss per share, in the third quarter of 2019.
The analysts' consensus was $49 million revenue, GAAP loss per share of $0.07 and non-GAAP earnings per share of $0.08.
In the fourth quarter, Fiverr sees revenue of $52.4-53.4 million, a rise of between 77% and 81% from the corresponding quarter of 2019 and above the analysts' predictions of $49.7 million.
Fiverr cofounder and CEO Micha Kaufman said, "The third quarter represented another quarter of record-setting growth. The strong momentum seen in Q2 carried into Q3 and we delivered accelerated topline growth of 88% y/y and Adjusted EBITDA margin of 8.0% in Q3’20. We continue to see sustainable trends in businesses upping their investments into digital transformation and their increasing willingness to adopt a remote and flexible workforce. I’m also incredibly excited and proud to launch our new brand and new brand campaign. Fiverr is staying true to our ethos, our culture and our promise to our community, while looking forward to embarking on the next chapter as a leader in the future of work."
Published by Globes, Israel business news - en.globes.co.il - on October 28, 2020
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