Fiverr’s introduction of new stores for the ecommerce industry as well as for architects and designers will bode well for the company. The firm is anticipated to benefit from the rising gig economy which is expected to see rapid growth in the coming years. Fiverr also rolled out gaming services to benefit from the popularity of this industry.
Fiverr is focusing on international expansion and the company is seeing significant growth in Germany. The firm is also rolling out additional payment options for international buyers. However, the company’s lack of profitability and its low-price business model are causes for concerns.
In the second quarter of 2019, Fiverr reported a 41% growth in revenues to $25.9 million, surpassing Wall Street estimates. Adjusted net loss came in narrower than expected at $0.19 per share from $0.25 per share a year ago. Both active buyers and spend per buyer saw double-digit growth in the quarter.
Fiverr has guided for revenue growth of 30-35% in the third quarter while for the full year of 2019, the company expects an increase of 34-37% in revenue.
Fiverr’s shares have gained over 6% in the past one month. The stock was slightly down in afternoon hours on Monday.