Is Fiverr Stock a Buy After Strong Earnings?
In this video, I will go over Fiverr's (NYSE: FVRR) Q3 earnings report and share my thoughts as to why it has just proven the doubters wrong. 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 video below, but here are some highlights.
Revenue for the quarter was $73.3 million, up 42% year over year, active buyers reached 4.1 million, and spend per buyer is up 20% year over year (YOY) to $234. The most impressive metrics to me are take rate and gross margins, which stand at 28.4% and 84.4% (non-GAAP) respectively. What made this earnings report even better is that it beat guidance comfortably and that management raised its full-year guidance. Last quarter, management lowered guidance for Q3 and for the year because it didn't yet realize the unprecedented nature of post-pandemic hyper-seasonality.
What this quarter showed me is that management can adapt to tricky situations and still overdeliver, which is what shareholders love to see. It also showed that Fiverr as a business is not just a COVID play that will disappear once we return to "normal."
Source Fool.com
