Fiverr (FVRR) Q3 Earnings Report Preview: What To Look For

Petr Huřťák /
2022/11/08 2:12 am EST

Online freelance marketplace Fiverr (NYSE: FVRR) will be reporting results tomorrow before market hours. Here's what you need to know.

Last quarter Fiverr reported revenues of $85 million, up 12.9% year on year, missing analyst expectations by 1.85%. It was a weak quarter for the company, with underwhelming revenue guidance for the full year. The company reported 4.2 million active buyers, up 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 9.16% year on year to $81.1 million, slowing down from the 41.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 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 missed Wall St's revenue estimates twice over the last two years.

Looking at Fiverr's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Lyft delivered top-line growth of 21.9% year on year, missing analyst estimates by 0.75% and Uber reported revenues up 72.1% year on year, exceeding estimates by 2.72%. Lyft was down 8.26%, and Uber was up 8.31%. Read our full analysis of Lyft's results here and Uber's results here.

Tech stocks have been under pressure since the end of last year and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 5.52% over the last month. Fiverr is down 7.63% during the same time, and is heading into the earnings with analyst price target of $43.9, compared to share price of $27.35.

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.