Fiverr: Rating Changed From Buy To Hold, With Valuation Risks Rising


  • Fiverr’s Q1 earnings showed growth in revenue and earnings, with progress in upmarket expansion and complex services, leading to higher spend per buyer and increasing profitability.
  • FVRR continues to innovate its Fiverr Business Solutions by improving seller visibility and accountability, while adding flexible payment options for high-value buyers.
  • At the same time, the management is doubling down on agencies to scale its presence in complex services which have higher transaction values.
  • Although fundamentals are improving, the recent surge in the stock prices has squeezed its valuation from a risk-reward perspective, making it a Hold.

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Images By Tang Ming Tung/DigitalVision via Getty Images

Introduction & Investment Thesis

I initiated a “buy” rating on Fiverr International (NYSE:FVRR) in early May before its Q1 earnings, where I believed that the worst had been priced in for

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