Fiverr (NYSE: FVRR) is a global online marketplace offering services from freelance professionals, or “gigs”, in more than 300 categories. Headquartered in Tel Aviv, Israel, the company was founded in 2010 by Shai Wininger and Micha Kaufman.
Fiverr has been growing rapidly since its inception, with annual revenue increasing from $12 million in 2012 to $200 million in 2018. The company went public in 2019 and is now valued at over $3 billion.
Despite its strong growth, Fiverr has faced some challenges in recent years. In 2019, the company cut its prices by 50% in an effort to compete with cheaper alternatives such as UpWork and Fiverr’s own lower-priced “Fiverr Pro” service.
This price cut led to a decrease in gross margin, which fell from 61% in 2018 to 54% in 2019.
Another challenge for Fiverr has been managing customer expectations. The company offers a money-back guarantee if buyers are not satisfied with their purchase, but this has led to an increase in refund requests and chargebacks.
In 2018, refunds and chargebacks totaled $5 million, or 2% of total revenue.
Despite these challenges, Fiverr remains a strong growth stock with a bright future. The company is continuing to invest heavily in marketing and expansion, and recently launched a new service called “Fiverr Learn” to help freelancers improve their skills.
With over 60 million users worldwide, Fiverr is well-positioned to continue its growth trajectory in the years ahead.
Is Fiverr a good stock to invest in?
Overall, Fiverr is a good stock to invest.
