Freelancing

Freelancing platform Fiverr’s (FVRR) revenues expand 42% – Capital.com

Summary

Fiverr International showed significant revenue growth in its third quarter financial report released Wednesday.

The online freelancing platform reported a 42% jump in revenue for the three months ended 30 September from the same period last year. Revenues of $74.3m (£55.35m) were mainly driven by a 33% growth in active buyers to more than 4 million, plus an increase in the average amount the buyers spent.

Although Fiverr’s revenues were up, its losses also grew. The net loss …….

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Fiverr International showed significant revenue growth in its third quarter financial report released Wednesday.

The online freelancing platform reported a 42% jump in revenue for the three months ended 30 September from the same period last year. Revenues of $74.3m (£55.35m) were mainly driven by a 33% growth in active buyers to more than 4 million, plus an increase in the average amount the buyers spent.

Although Fiverr’s revenues were up, its losses also grew. The net loss widened to $14.3m, or $0.39 per share, compared to a loss of $454k, or $0.01 per share, a year ago.

Adjusted EBITDA – earnings before interest, taxes, depreciation and amortisation – was $7.3m, compared to $4.2m in Q3 2020.

Explosive growth

Headquartered in Tel Aviv, Fiverr was founded in 2010 to offer a global marketplace where freelancers can sell their services to companies and individuals. Its explosive revenue growth is indicative of the rise of the gig economy in recent years, a trend that was accelerated with the onset of the coronavirus pandemic as companies embraced digital tools that enable a remote workforce.

The current US labour shortage also provides a boost to the demand for freelancers as companies search beyond the borders of their cities – and even their countries – to find workers with the desired skills.

500 work categories

Fiverr’s platform hosts freelancers from 160 countries in more than 500 categories of work. Some of the services offered include graphic design, writing and editing, digital marketing, animation and programming. Buyers on Fiverr’s platform spent an average of $234 in Q3 2021, a 20% increase over the same period last year.

The company went public on the New York Stock Exchange on 13 June 2019, pricing its initial public offering at $21 per share. Its shares began trading at $26 each. In the past year, the share price has ranged dramatically from $129.21 to $336. On Wednesday when this story was published, it had reached a low of $175.02 and a high of $197.22.

Word-of-mouth more common

In a conference call, Fiverr co-founder and CEO Micha Kaufman spoke to analysts about the Q3 earnings report and discussed the company’s future, stating that “We believe the secular trends of remote work and the need for digital transformation are here to stay well beyond the pandemic.”

Despite the popularity of freelance platforms such as Fiverr, Kaufman explained they still represent just a fraction of the market.

“The majority of freelancing activity happens offline – about 95% of it is offline – which means that it’s mainly based on word-of-mouth and references from people,” Kaufman said. “When people are looking for talented freelancers to work with, they use their networks mostly to get in touch with them. And over time, businesses are building groups or cohorts of freelancers that the organisation has used before, and they become a resource for the organisation.”

Fiverr is stoked about Stoke

To address that untapped segment of the market, Fiverr announced on 2 November that it was …….

Source: https://capital.com/freelancing-platform-fiverr-s-fvrr-revenues-expand-42