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Fiverr (FVRR) to Report Q4 Earnings: What's in the Cards?

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Fiverr International Ltd. (FVRR - Free Report) is set to report fourth-quarter 2020 results on Feb 18. In the last reported quarter, it delivered an earnings surprise of 50%.

The stock outperformed earnings estimates in the last four quarters, with the average surprise being 118.5%.

Trend in Estimate Revision

For the fourth quarter, the Zacks Consensus Estimate for earnings has remained stable at 12 cents per share over the past 30 days. This indicates growth of 250% from the year-ago reported figure.

The consensus mark for revenues is pegged at $54million, implying growth of 82.7% from the year-ago reported figure.

Let’s see how things have shaped up for this announcement.

Fiverr International Lt. Price and EPS Surprise

Fiverr International Lt. Price and EPS Surprise

Fiverr International Lt. price-eps-surprise | Fiverr International Lt. Quote

Factors to Note

Fiverr’s platform — which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation and other services with people outsourcing such work to freelancers — might have benefited from the increasing remote working trend amid the coronavirus pandemic.

Further, its strong focus on product and technology enhancements is expected to get reflected in the to-be-reported quarter’s results.

Also, the company’s marketing efficiency — courtesy of positive trends in both organic and paid channels — may have contributed to its performance in the quarter to be reported.

Moreover, the company’s focus on international expansion might have acted as a tailwind in the to-be-reported quarter. It expanded its global marketplace to two new languages —French and Spanish.

Strong momentum in performance marketing is also expected to have aided the company in acquiring new buyers in the to-be-reported quarter.

During the quarter, the company expanded into new international markets, namely, Brazil and Mexico. It has also offered local payment options for buyers in the form of Boleto and Reis.

These efforts are expected to have increased brand awareness and therebythe customer base of the company.

Furthermore, Fiverr’s accelerated Artificial Intelligence efforts through personalization and customer support might have driven its fourth-quarter performance.

For the fourth quarter, the company expects revenues in the range of $52.4-$53.4 million, indicating year-over-year growth of 77-81%.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Fiverr this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Fiverr has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks you may consider as our proven model shows that these have the right combination of elements to post an earnings beat in their upcoming release

Rocket Companies, Inc. (RKT - Free Report) has an Earnings ESP of +3.12% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +1.16% and a Zacks Rank #2.

Lattice Semiconductor Corporation (LSCC - Free Report) has an Earnings ESP of +2.94% and holds a Zacks Rank of 3.

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