Fiverr International's Q3 revenue misses estimates

Overview

• Fiverr Q3 revenue rises 8.3% yr/yr, missing analyst expectations

• Company, which provides online marketplace for freelance services, says adjusted EBITDA margin reached highest-ever level, highlighting operational efficiency

• Marketplace revenue declines 2% yr/yr, active buyers fall 11.7%

Outlook

• Company projects Q4 2025 revenue between $104.3 mln and $112.3 mln

• Fiverr expects FY 2025 revenue of $428 mln to $436 mln

• Company anticipates FY 2025 adjusted EBITDA between $88 mln and $93 mln

Result Drivers

• AI AND VALUE-ADDED SERVICES - Co cites growth in AI, upmarket, and value-added services as key drivers of revenue strength

• SPEND PER BUYER - Increase in spend per buyer driven by AI-related categories and expansion of Managed Services and Dynamic Matching

• SERVICES REVENUE - Robust growth in services revenue, driven by Fiverr Go and expansion of Fiverr Ads into Fiverr Pro catalog

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "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 $32.00, about 32.4% above its November 4 closing price of $21.63

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX23j12m

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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.)