Fiverr (NYSE:FVRR) has seen its stock price fall to $29.31 over the past six months, a decline of 12.1% for shareholders. This drop has left some investors wondering if now is the right time to buy into the global freelance marketplace for digital services.
Positive Attributes:
- Eye-Popping Growth in Customer Spending: Fiverr's average revenue per buyer (ARPB) has grown by 17.4% over the last two years, despite a decline in active buyers. This demonstrates the company's ability to successfully increase monetization from existing buyers, which is a key indicator of the platform's value.
- Outstanding Long-Term EPS Growth: Fiverr's earnings per share (EPS) have grown at a staggering 52.1% compounded annual growth rate over the last three years, outpacing its 8.6% annualized revenue growth. This shows that the company is becoming more profitable as it expands.
One Reason to be Careful:
- Declining Active Buyers Reflect Product Weakness: Fiverr has struggled with new customer acquisition over the last two years, with active buyers declining by 6.6% annually to 3.54 million in the latest quarter. This suggests that there may be unaddressed market opportunities that Fiverr needs to address to accelerate growth.
Final Judgment:
Despite the recent decline, Fiverr's positive attributes outweigh the negatives. The stock currently trades at 12.3× forward EV/EBITDA, or $29.31 per share. Is now the right time to initiate a position? Our full research report, available for free, can help you make an informed decision.
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