Here's Why I Bought Fiverr After It Crashed 24%
In this video I will be covering Fiverr's (NYSE: FVRR) Q2 earnings report, which was outstanding, and discussing the main reason the stock crashed 24%. I believe Fiverr is a long-term hold and have covered it previously. Those willing to go through short-term pain will enjoy long-term gains. You can find the full video below.
Despite the stock's being down close to 25%, the company reported outstanding earnings. Revenue for the quarter was $75.3 million, up 60% year over year, active buyers reached 4 million, and spend per buyer is up 23% YOY to $226. The most impressive metrics to me are take rate and gross margins, which stand at 27.8% and 84.4% (non-GAAP) respectively. Fiverr Business, which caters to larger businesses, a bit like Upwork, already represents 5% of Fiverr's marketplace revenue.
The main reason the stock is down heavily is that the company lowered guidance for the year after raising it in the previous quarter. As the company noted during the call, "The seasonality in the second half of this year was expected when we provided guidance in May; however, we didn't have the visibility to the unprecedented nature of post-pandemic hyper-seasonality."
Source Fool.com
