Fiverr International Picks Up Speed For 2020

Summary

• Fiverr International went public in June 2019.
• The firm operates an online marketplace that connects service providers with buyers who need low cost service tasks completed.
• FVRR has grown impressively and is pursuing international and SMB expansion in a favorable macro distributed work trend environment, so my bias is Bullish.
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Quick Take

Fiverr International (NYSE:FVRR) went public in June 2019, selling 5.26 million shares of stock at $21.00 per share. The firm operates an online marketplace connecting service providers with companies and individuals needing service tasks completed.

FVRR is well positioned to move upmarket, go after the SMB segment, and continue its international expansion, so I'm Bullish on the stock at its current level.

Company

Tel Aviv, Israel-based Fiverr was founded in 2010 to connect freelance workers with people and organizations looking for them through an online marketplace.

Management is headed by Co-Founder, CEO and Director Micha Kaufman, who is also a contributor at WIRED and Forbes.

Fiverr's platform was developed with the goal of making the purchase of services from individuals as simple as an e-commerce transaction, something the company refers to as the Service-as-a-Product [SaaP] model.

Using machine learning and its database of over 830,000 workers, the company helps reduce the inefficiencies associated with the search for, contracting and collaborating with freelancers, such as the reliance on intermediaries.

On the Fiverr platform, buyers can browse over 200 categories of productized service listings, which Fiverr refers to as Gigs.

For the 12 months ended March 31, 2019, the company served about 2.1 million active users looking to hire freelance workers and about 255,000 active freelancers, or sellers, offering their services through the Fiverr platform.

Market And Competition

According to a 2017 market research report by Ask Wonder, the total number of freelancers available in 2017 was about 154 million people worldwide.

The main factors driving market growth are the need to escape corporate environment demands and the rise of digitization, such as smartphone apps that have made it easy for workers to find jobs, whether full-time or part-time.

North America accounted for 77 million freelancers in 2017, more than half

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.