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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Considering the current market trend and Fiverr's consistent revenue growth, even amidst a slowdown in freelance platform user spending elsewhere due to pandemic concerns; its unique value proposition for sellers stands solidly as an investment opportunity worth exploring now.
Fiverr Stock Analysis under the Microscope - Dive in before Jumping with Some Key Considerations
Nowadays, buying Fiverr stock seems irresistible given its meteoric rise; however refractive questions remain to be answered.
Considering the recent upswing in Fiverr's Q3 earnings and growing market demand for its platform services amidst rising digital economy trends, now seems like a prudent time to invest. However, it is crucial that investors conduct individual analysis given changing economic conditions.
