Fiverr Stock passes out on disappointing prospects. Blame it on the vaccines.

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Fiverr stock fell sharply after the publication of earnings. The time of dreams

Fiverr’s stock fell sharply on Thursday, after the independent professional services market warned that results for the rest of the year would be reduced by a reopening of the economy as more vaccinated people leave their homes and return to more normal work and leisure activities.

Fiverr shares plunged 20.4% to $ 183.45 on Thursday morning.

In short, Fiverr International (ticker: FVRR) reacts badly to Covid-19 vaccines. Plus, your desire to take a vacation seems to interfere with their outlook.

For the second quarter, Fiverr posted revenue of $ 75.3 million, up 60% from a year ago. He was ahead of both the company’s forecast range of $ 73 million to $ 75 million and Street’s consensus forecast of $ 74.8 million. Active buyers rose 43% to $ 4 million, while spend per buyer jumped 23% to $ 226. Non-GAAP earnings were 19 cents per share, well ahead of Street’s estimate of 10 cents per share. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $ 7.4 million, up from $ 3.1 million a year ago.

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But disappointing forecasts weigh on Fiverrs shares.

CEO Micha Kaufman said the company lowered its forecast out of caution, based on recent trends.

Most of the world has been homebound for the past 18 months, CEO Micha Kaufman said in remarks prepared for the company’s conference call with analysts on Thursday. When Covid restrictions were lifted in the United States and Europe around the second half of May, people desperately needed to get out of their homes and spend time off-screen. Coinciding with summer and school vacations, people take vacations, which is a really healthy thing to do, and that translates to less time spent online.

Fiverr is forecasting third-quarter revenue of $ 68-72 million, below Street’s consensus of $ 80 million, with adjusted EBITDA of $ 2.5 million to $ 3.5 million. For the full year, Fiverr now has revenue ranging from $ 280 million to $ 320 million, with adjusted EBITDA of $ 12 million to $ 14 million. The forecast for the previous fiscal year predicted revenue of $ 302 million to $ 308 million with adjusted EBITDA of $ 19.5 million to $ 24.5 million.

Our fundamentals remain very strong, much stronger than before the pandemic, Kaufman added, but the reduction in online activity translates into new cohorts of smaller customers and less activity for those who take vacations.

Write to Eric J. Savitz at [email protected]

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