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Fiverr (FVRR) Q2 Earnings Report Preview: What To Look For


Jabin Bastian /
2022/08/03 4:08 am EDT
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Online freelance marketplace Fiverr (NYSE: FVRR) will be reporting results tomorrow before the bell. Here's what investors should know.

Last quarter Fiverr reported revenues of $86.6 million, up 26.8% year on year, missing analyst expectations by 0.01%. It was a weak quarter for the company, with revenue guidance for both the next quarter and the full year below analysts' estimates. The company reported 4.2 million active buyers, up 10.5% 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 15.2% year on year to $86.7 million, slowing down from the 59.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.65%.

Looking at Fiverr's peers in the consumer internet segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Uber delivered top-line growth of 105% year on year, beating analyst estimates by 9.49% and Roku reported revenues up 18.4% year on year, missing analyst estimates by 5%. Roku was down 26.9% on the results, and Uber traded up 15.4% on the results. Read our full analysis of Uber's results here and Roku's results here.

There has been positive sentiment among investors in the consumer internet segment, with the stocks up on average 2.86% over the last month. Fiverr is down 9.82% during the same time, and is heading into the earnings with analyst price target of $43.8, compared to share price of $34.7.

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.