Fiverr's Marketplace For Designs And More Is Reaching Maturity

Jan. 15, 2023 2:20 AM ETFiverr International Ltd. (FVRR)1 Comment
Leo Imasuen profile picture
Leo Imasuen
6.97K Followers

Summary

  • Fiverr's pandemic era growth is over and the company is moving to a new era set to be characterized by high profitability and cash generation.
  • The company's strong SaaS like gross margins are set to improve on the back of management initiatives to reduce their cost structure.
  • Whilst future growth will continue to be contained as Fiverr moves into relative maturity, the success of initiatives to reduce costs and increase spend per buyer will determine shareholder value.

Web design desktop

milindri

Fiverr's (NYSE:FVRR) business is straightforward. The company has built a marketplace where freelancers can offer a range of different services from web design, video editing, and copywriting. This drives gross merchandise value that has a service fee charged to it. Critically, by making

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Fiverr Active Buyers

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Fiverr Spend Per Buyer

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This article was written by

Leo Imasuen profile picture
6.97K Followers
The equity market is an incredibly powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. These two polarising forces lay at the core of my stock coverage. The aim is to avoid wealth destruction and embrace wealth creation. I primarily focus on sustainable companies, growth stocks, deSPACs, and income investing.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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.

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