Fiverr (FVRR) Q1 Earnings Report Preview: What To Look For

Kayode Omotosho /
2022/05/10 7:01 am EDT

Online freelance marketplace Fiverr (NYSE: FVRR) will be announcing earnings results tomorrow before the bell. Here's what to expect.

Last quarter Fiverr reported revenues of $79.7 million, up 42.7% year on year, beating analyst revenue expectations by 3.81%. It was a strong quarter for the company, with an exceptional revenue growth and growing number of users. The company reported 4.2 million active buyers, up 23.5% year on year.

Is Fiverr buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Fiverr's revenue to grow 26.9% year on year to $86.6 million, slowing down from the 100% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.08 per share.

Fiverr Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.99%.

Looking at Fiverr's peers in the gig economy segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Lyft delivered top-line growth of 43.7% year on year, beating analyst estimates by 3.46% and Angi reported revenues up 12.6% year on year, exceeding estimates by 0.75%. Lyft traded down 25%, and Angi was flat on the results. Read our full analysis of Lyft's results here and Angi's results here.

There has been a stampede out of high valuation technology stocks and gig economy stocks have not been spared, with share price down on average 26.4% over the last month. Fiverr is down 38.6% during the same time, and is heading into the earnings with analyst price target of $114.8, compared to share price of $42.65.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.