Back to top

Image: Bigstock

Fiverr (FVRR) to Post Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

Fiverr International Ltd. (FVRR - Free Report) is set to report first-quarter 2024 results on May 9.

For the first quarter, the company expects revenues of $91.5-$93.5 million, indicating year-over-year growth of 4-6%. The Zacks Consensus Estimate for the same is pegged at $92.5 million, suggesting a rise of 5.1% from the prior-year quarter’s reported number.

The Zacks Consensus Estimate for first-quarter earnings is pegged at 52 cents per share, indicating a jump of 44.4% from the prior-year quarter’s reported figure. The estimate has remained unchanged over the past 30 days.

Fiverr’s earnings beat estimates in all the trailing four quarters, the average being 22.4%.

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

Fiverr International Price and EPS Surprise

Fiverr International Price and EPS Surprise

Fiverr International price-eps-surprise | Fiverr International Quote

Factors to Consider

Fiverr’s growing investments in AI and complex services and its expanding value-added products are expected to have continued driving its top-line growth in the first quarter.

The company’s growing marketing efforts and accelerating upmarket investments are expected to have positively impacted its spend per buyer during the quarter under review.

The Zacks Consensus Estimate for first-quarter spend per buyer is pegged at $280.96, indicating growth of 7.2% from the year-ago reported figure.

Fiverr’s solid momentum in its core marketplace is likely to have contributed well to top-line growth in the to-be-reported quarter.

The company’s growing take rate, driven by strength in seller monetization programs, is expected to have been a positive.

The consensus estimate for first-quarter take rate stands at 32.1%, indicating a 170 basis points expansion from the year-ago quarter.

Strong momentum across its dedicated AI services vertical, which creates a hub for businesses to hire AI talent, is expected to have boosted the top-line growth during the quarter under review.

Growing demand for more complex services, such as mobile app development, e-commerce management, or financial consulting, is likely to have bolstered Fiverr’s profitability during the first quarter.

The growing adoption of Fiverr Business Solutions, on the back of its expanding offerings, is expected to have acted as a tailwind.

Strength in Fiverr Enterprise, owing to its redesigned pricing and go-to-market strategies to drive more talent sourcing and engagement volume, is expected to have aided the company in gaining momentum among various enterprises in the quarter under review.

Growing momentum across Fiverr Pro, driven by its AI-assisted brief and match functionalities, is likely to have been a positive.

However, macroeconomic uncertainties are anticipated to have been concerning in the first quarter.

What Our Model Says

According to the Zacks model, 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. But that’s not the case here.

Fiverr has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

NVIDIA (NVDA - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

NVIDIA is scheduled to release first-quarter fiscal 2025 results on May 22. The Zacks Consensus Estimate for ANET’s earnings is pegged at $5.49 per share, suggesting a significant jump from the prior-year quarter’s reported figure of $1.09 per share.

Docebo (DCBO - Free Report) has an Earnings ESP of +8.00% and a Zacks Rank #3 at present.

Docebo is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 17 cents per share, indicating growth of 88.89% from the year-ago quarter’s reported figure.

Blink Charging (BLNK - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank #3 at present.

Blink Charging is set to report its first-quarter 2024 results on May 9. The Zacks Consensus Estimate for BLNK’s loss is pegged at 26 cents per share, suggesting a significant rise from the prior-year quarter’s loss of 49 cents per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in