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Fiverr dives 25% as the freelancing company lowers outlook

Ethan Wu   

Fiverr dives 25% as the freelancing company lowers outlook
Stock Market1 min read
  • Fiverr dropped 24.9% on Thursday after the company offered a gloomier outlook for the rest of the year.
  • "...Reduced online activity translates into more modest new customer cohorts," said CEO Micha Kaufman.
  • In the second quarter of the year, revenue came in at $75.3 million, up 60% year-on-year and above expectations.

Freelancer platform Fiverr dropped 24.9% on Thursday after the company offered a gloomier outlook for the rest of the year.

The stock fell as low as $173.20 from a closing price of $230.58 the day prior.

Despite relatively strong earnings results, Fiverr projected some bottom-line weakness in the coming months, as consumers spend less time online and more outside - especially would-be freelancers going on vacation.

"Our fundamentals continue to be very strong, far stronger than pre-pandemic," CEO Micha Kaufman said on the company's earnings call, "but the reduced online activity translates into more modest new customer cohorts and less activity for those who are taking vacation."

In the second quarter of the year, revenue came in at $75.3 million, up 60% year-on-year and above expectations. Adjusted earnings per share notched up to 19 cents, nearly double analyst estimates.

"Fiverr continues to deliver strong results across all metrics as we continue expanding market share and executing on our long-term strategic initiatives," CFO Ofer Katz said in a statement. "Our business is well positioned to successfully navigate the uncertain environment."

Fiverr was trading at $172.98 as of 2:29 p.m. ET, down about 25% so far on Thursday.

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