Should I buy Fiverr International shares after Q1 results?

Fiverr International Ltd. (NYSE: FVRR) reported solid first-quarter results this Wednesday, and the company’s management updated financial guidance for the 2022 fiscal year.

Fiverr finished the fourth quarter with 4.2 million active buyers, which represents an increase of 11% year over year.

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Spending per buyer reached $251

Fiverr International Ltd enables sellers to sell their services and buyers to buy them via its platform. The company’s platform includes approximately 500 categories in eight verticals, including design, translation, digital marketing, technology, video, music, business, and lifestyle.

The company reported solid first-quarter results this Wednesday; total revenue has increased by 26.9% Y/Y to $86.7 million, while the non-GAAP earnings per share were $0.11 (beats by $0.04). Micha Kaufman, CEO of Fiverr International, said:

We are making progress on our goals for the year and continue to invest in Fiverr Business. While the small business or consumer-driven part of our business is feeling the impact of the macro shift, Fiverr Business is gaining momentum.

Fiverr continues to improve its position in the market, and it is important to say that Fiverr finished the first quarter with 4.2 million active buyers compared to 3.8 million at the end of the first quarter of 2021.

This represents an increase of 11% year over year while spending per buyer as of March 31, 2022, reached $251, compared to $216 as of March 31, 2021. Positive information is that adjusted EBITDA in the first quarter of 2021 grew to $3.9 million, compared to -$0.7 million in the first quarter of 2021.

The company’s management expects revenue to be between $86 million and $87.5 million for the second fiscal quarter, while adjusted EBITDA should be between $3 million and $4 million.

The company’s management also updated financial guidance for the full 2022 fiscal year and announced that revenue should be between $345 million and $355 million, while adjusted EBITDA should be between $10 million and $17 million.

Technical analysis

Fiverr International shares have weakened more than 60% since the beginning of the 2022 year, but the current price could be a good entry-level for long-term investors.

If the price jumps above $45, it will signal to trade Fiverr shares, and the next target could be $50.

On the other side, if the price falls below the current support that stands at $30, it would be a “sell” signal, and we have the open way to $25.

Summary

Fiverr International reported solid first-quarter results this Wednesday, and the company’s management updated financial guidance for the 2022 fiscal year. Fiverr shares remain under pressure, but the current price could be a good entry-level for long-term investors.

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