Israeli gig economy platform Fiverr raises guidance 40%

Fiverr IPO

The company reported higher revenue but is still a lossmaking concern.

Israeli gig economy platform Fiverr International Ltd. (NYSE: FVRR) today reported financial results for the third quarter of 2019. Revenue in the third quarter of 2019 was $27.9 million, an increase of 42% year over year. GAAP net loss in the third quarter of 2019 was $8.4 million ($0.26per share) compared with $7.2 million ($1.10 per share) in the third quarter of 2018. Non-GAAP net loss in the third quarter of 2019 was $4 million, ($0.12 per share), compared with $3.8 million ($0.17 per share), in the third quarter of 2018.

Based on its results for the first nine months of 2019 and the strong momentum Fiverr see across its platform, the company raised its revenue guidance for the year to 40-41% with continued progress towards profitability.

Fiverr CEO Micha Kaufmann said, "It is gratifying to see another quarter of stellar performance and rapid growth and that our continued investment in the platform experience is paying off. Importantly, we are also making great strides on our path to profitability. Recent strategic initiatives that highlight our multiple growth levers continue to focus on enhancing our value proposition to both buyers and sellers globally while simultaneously growing our addressable market."

Fiverr CFO Ofer Katz added, "The growth of our active buyer base was driven by continued and consistent cohort behavior, further gains in performance marketing efficiency, and our latest product and technology enhancements. The strong growth in spend per buyer highlights our continued success in moving upmarket, and we continued to expand our industry-leading take rate. We look forward to ending 2019 on a strong note."

On Wall Street, Fiverr's share price is up 1.77% at $22.17, giving a market cap of $687 million. Fiverr completed its IPO in June, raising $110 million at a valuation of $650 million and share price of $21.

Published by Globes, Israel business news - en.globes.co.il - on November 13, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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