Fiverr: Long Growth Runway But Valuation Is Steep

Oct. 22, 2021 4:13 AM ETFiverr International Ltd. (FVRR) StockFVRR
WideAlpha
5.8K Followers

Summary

  • Fiverr is one of our favorite platform businesses, with attractive characteristics including a high take rate and quick growth.
  • The company has several promising initiatives that should add to growth the next few years, in addition to the tailwind of the growing freelance market.
  • Unfortunately shares are not cheap and at this time we can only recommend adding shares to the watch-list to buy during a significant correction.
  • We are bullish on the company's growth prospects but worry it will take time for the company to grow into its current valuation.
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We are big fans of strong platform businesses that benefit from a network effect moat. One such company is Fiverr (NYSE:FVRR) which is a global marketplace that connects freelancers and businesses for digital services. The business is growing at a

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