In its maiden earnings announcement as a public company, Fiverr International (NYSE: FVRR) reported 41% growth in revenues to $25.9 million, higher than $24.09 million expected by the Wall Street.
Meanwhile, net loss for the second quarter of 2019 narrowed to 19 cents per share from 25 cents per share a year ago, even as analysts were expecting a wider net loss of 42 cents per share.
Fiverr shares jumped 2.4% post the earnings announcement.
The number of active buyers increased 14% in Q2, while spend per buyer was $157, up 16% year-over-year.
The Israeli company added that its revenues for the full year are expected to grow 34%-37% and adjusted EBITDA loss is anticipated in the range of $20.5 million to $21.5 million.
For the third quarter, the online freelancing platform expects 30-35% growth in revenue and adjusted EBITDA loss between $5 million and $6 million.
Almost two months back, Fiverr witnessed a spectacular initial public offering. The company had issued 5.3 million shares for $21 apiece, and at the end of its first trading day, the stock price had climbed almost 90%.
However, the stock failed to hold investor interest post this. Currently, it is trading 17% above its trading price.
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To Fiverr critics, lack of profitability is the biggest turn-off factor. And the company has been trying to overcome this through a number of innovative ways – including a “studio” feature that allows freelancers to come together as teams to work on bigger projects, as well as the introduction of gaming services to benefit from the rising popularity of this industry.
Recently the company had announced that PUBG and Fortnite experts who will be available to coach players on the platform. These new additions are expected to boost overall results in Q2.