Fiverr’s Active Buyers Fall as Analysts See Revenue Decline

StockStory’s post-Q2 assessment of Fiverr was cautious, citing a 14% annual decline in active buyers to 2.7 million in the latest quarter. The publisher said the drop points to challenges attracting customers and sustaining growth.

Sell-side analysts expect Fiverr’s revenue to fall 23% over the next 12 months, StockStory said, compared with annualized growth of 6.8% over the past three years. The publisher said the forecast suggests demand headwinds.

Fiverr spent 49.2% of its gross profit on sales and marketing over the past year, according to StockStory. The publisher described that spending as evidence of the cost of acquiring users in a competitive market.

Fiverr shares had fallen 13.1% over six months to $8.54, while the S&P 500 gained 21.1%, the article said. StockStory said the shares traded at 1.2 times forward price-to-gross profit, but viewed the company’s fundamentals as a source of risk.

As of 15:41 UTC on Sept. 30, Fiverr traded at $8.78, up 2.63% since the previous close.