Fiverr (NYSE: FVRR) stock is down today, after the company announced its fourth quarter and full year results. For the fourth quarter, Fiverr reported revenue of $66.7 million, which was up 58% year-over-year and beat the analyst consensus estimate of $61.5 million. The company’s net loss for the quarter was $7.8 million, or $0.16 per share, which was also better than the analyst consensus estimate of $0.24 per share.
For the full year, Fiverr reported revenue of $222.3 million, which was up 53% year-over-year. The company’s net loss for the year was $32.5 million, or $0.69 per share.
Why Is Fiverr Stock Down Today?
Fiverr stock is down today because investors are worried about the company’s future growth prospects. In its fourth quarter earnings report, Fiverr said that it expects revenue to grow in the mid-to-high 40% range in 2021. While this is still strong growth, it is below the company’s previous guidance of 50%-60% growth for the year.
Additionally, Fiverr said that it expects to be profitable on an adjusted EBITDA basis in the second half of 2021. This is later than investors were expecting.
The stock of Fiverr International Ltd. (NYSE: FVRR) is down 5.73% as of 1:43 PM EDT on May 26, 2020. The stock has been down as much as 7.14% today.
The reason for the stock decline appears to be related to the company’s first-quarter results. Fiverr reported revenue of $66.6 million, which was up 59% year-over-year but below the $68.5 million that analysts were expecting. The company also posted a net loss of $5.2 million, or $0.12 per share, which was wider than the $0.09 per share loss that analysts were expecting.
Investors are also worried about the company’s valuation. After today’s decline, Fiverr stock is now trading at around 20 times expected 2021 revenue. This is not an unreasonable multiple for a high-growth company, but it does imply that investors are expecting strong growth from Fiverr in the coming years.
The Bottom Line
Fiverr stock is down today because investors are worried about the company’s future growth prospects and valuation. While Fiverr remains a strong growth story, the stock may be due for a period of consolidation in 2021.
Why Is Fiverr Stock Down Today?
Fiverr stock is down today because investors are worried about the company’s future growth prospects and valuation.
