Why Fiverr International Lost Nearly 19% in June
Shares of freelance platform Fiverr International (NYSE: FVRR) dropped nearly 19% in June according to data provided by S&P Global Market Intelligence. There wasn't any news specific to Fiverr, but the stock price continues to fall as growth slows down, losses increase, and the market remains hostile toward tech stocks.
Between people returning to offices, difficult year-over-year comparisons, and volatile macroeconomic conditions, Fiverr's business has been decelerating. Sales increased 27% year over year in the first quarter of 2022 after accelerating to 100% year-over-year growth in the first quarter of 2021.
It's making solid progress in almost all areas. Active buyers increased 11% over last year in the first quarter to 4.2 million, and spend per buyer continues to increase, rising 17% over last year to $251. One number that's significant is the take rate, which continues to climb, having risen from 27.2% last year to 29.6% this year. The take rate is the amount of money Fiverr takes from the seller's fee, and nearly 30% is very high for its industry. Competitor Upwork, for example, has a 14.1% take rate, less than half of Fiverr's. That translates into huge amounts of revenue.
Source Fool.com
