Stock to watch: Fiverr International Ltd (NYSE: FVRR)

Free $100 Forex No-Deposit Bonus

Fiverr International Ltd (NYSE: FVRR), one of the five largest B2B-focused human cloud platforms, stock surged 29.36% on April 8th, 2020 (Source: Google finance) and lost over 2.7% in the pre market session of April 9th, 2020 (Source: Google finance). The company sees its business activity rebound after an initial impact from Covid-19 in March. The activity across the platform had temporarily declined in March by 10-15% compared to the previous week. In the fourth week the decline had stabilized and exhibited a meaningful rebound, with the growth continuing robustly into the beginning of April. The COVID-19 pandemic is far from being over, but, the company is encouraged after seeing so far and freelancers are signing on to the platform in record numbers. The Tel Aviv, Israel-headquartered company has also prioritized product initiatives to help its community amid the Covid-19 crisis. Fiverr’s revenue & adjusted EBITDA for the first quarter is anticipated to come in slightly above its guidance. However, it is too early to draw conclusions looking forward because Covid-19’s impact remains uncertain. Further, Needham analyst Brad Erickson has maintained a Buy rating on Fiverr International (FVRR) and has set a price target of $38.00.

For the first quarter of 2020, the company expects revenue to be in the range of $32.0 – $33.0 million, which reflects y/y growth between 35% – 39% and for fiscal 2020, the company expects revenue to be in the range of  $139 – $141 million, which reflects y/y growth 30% – 32%

For the first quarter of 2020, the company expects adjusted EBITDA to be in the range of ($5.5) – ($4.5) million and for fiscal 2020, the company expects adjusted EBITDA to be in the range of  ($15.0) – ($13.0) million

Meanwhile, the company has reported Adjusted EBITDA to be ($3.3) million, or (11.3%) of revenue in Q4 2019, compared to ($4.1) million or (19.7%) in the prior year period. The improved EBITDA margin was on the back of improved leverage in operating expenses.  The company has delivered the net loss on a GAAP basis in Q4’19 was ($7.4) million, compared to ($5.9) million. The company’s Non-GAAP gross margin decreased by 130 bps 80.8% in Q4’19, from 82.1% in Q4’18. The reduction in gross margin was mainly due to the growth of the content marketing subscriptions business, which has a higher take rate but lower gross margin compared to the overall marketplace.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.