Fiverr tops Q3 revenue expectations despite 16% drop, raises FY guidance
Overview
Israel-based freelance marketplace's Q3 revenue fell 15.8% yr/yr but beat analyst expectations
Q3 pretax profit missed analyst expectations
Company raises FY 2026 guidance on tailwinds from high-profile AutoDS campaign and cost management
Outlook
Fiverr raises full-year 2026 revenue guidance to $374 mln-$380 mln
Company expects Q4 2026 revenue of $80 mln-$86 mln
Company anticipates ongoing demand and search traffic headwinds to continue through 2027
Result Drivers
SERVICES SEGMENT - Co said stronger than expected performance in services segment, driven by AutoDS and e-commerce expansion, helped results
SEARCH TRAFFIC HEADWINDS - Co said ongoing demand and search traffic headwinds across the marketplace, stemming from AI-related disruption to traditional SEO and SEM, weighed on results
STRICT EXPENSE MANAGEMENT - Co said continued strict expense management supported results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $90.90 mln | $83.83 mln (9 Analysts) |
Q3 EPS | $0.03 | ||
Q3 Net Income | $1.27 mln | ||
Q3 Pretax Profit | Miss | $2.32 mln | $7.93 mln (4 Analysts) |
Q3 Gross Profit | $73.86 mln | ||
Q3 Operating Income | -$662,000 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Fiverr International Ltd is $10.00, about 23.8% above its October 28 closing price of $8.08
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)