What Happened:
Shares of online freelance marketplace Fiverr (NYSE: FVRR) jumped 10.9% in the after-market session after the company reported first-quarter revenue that narrowly beat analysts' estimates. Fiverr also exceeded projections in key areas, including free cash flow, adjusted EBITDA, and earnings per share (EPS). Management reminded the market that it was the "highest quarterly adjusted EBITDA with double digit adjusted EBITDA margin, even as Q1 seasonally marks the heaviest investment outlay across the entire year." The company also raised full year guidance for revenue and adjusted EBITDA, both of which were better than expectations at the midpoint. Additionally, next quarter's revenue and adjusted EBITDA similarly beat. This was a nice "beat and raise" quarter for the company which should leave investors optimistic.
What is the market telling us:
Fiverr's shares are very volatile and over the last year have had 75 moves greater than 5%. But moves this big are very rare even for Fiverr and that is indicating to us that this news had a significant impact on the market's perception of the business.
Fiverr is up 10.3% since the beginning of the year, but at $31.70 per share it is still trading 32.1% below its 52-week high of $46.71 from February 2023. Investors who bought $1,000 worth of Fiverr's shares at the IPO in June 2019 would now be looking at an investment worth $792.48.
Is now the time to buy Fiverr? Access our full analysis of the earnings results here, it's free.