Fiverr International Ltd. Just Beat Revenue Estimates By 8.5%
Fiverr International Ltd. (NYSE:FVRR) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 8.5% to hit US$91m. Statutory earnings per share (EPS) came in at US$0.03, some 4.7% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the recent earnings report, the consensus from ten analysts covering Fiverr International is for revenues of US$296.8m in 2027. This implies a concerning 26% decline in revenue compared to the last 12 months. The company is forecast to report a statutory loss of US$0.43 in 2027, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$316.1m and earnings per share (EPS) of US$0.10 in 2027. The analysts have made an abrupt about-face on Fiverr International, administering a minor downgrade to to revenue forecasts and slashing the earnings outlook from a profit to loss.
See our latest analysis for Fiverr International
The consensus price target fell 11% to US$9.42, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Fiverr International at US$10.00 per share, while the most bearish prices it at US$9.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 21% by the end of 2027. This indicates a significant reduction from annual growth of 7.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.1% per year. It's pretty clear that Fiverr International's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts are expecting Fiverr International to become unprofitable next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Fiverr International going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 2 warning signs for Fiverr International (1 is significant!) that you should be aware of.
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