Fiverr Reports Disappointing Q2 Results, Sending Shares Down
Shares of Fiverr International (NYSE: FVRR) fell sharply on July 29 after the company reported second-quarter results that missed Wall Street's expectations. Revenue declined by 10% year-over-year to $97.8 million and came in below analysts' estimates of $99.8 million. Adjusted non-GAAP earnings also disappointed, at $0.50 per share versus a forecast of $0.52. Investor concerns have been growing due to the potential impact of AI on freelance work that Fiverr facilitates. CEO Micha Kaufman acknowledged this challenge and noted the company is shifting toward higher-value projects worth $1,000 or more. The stock has already dropped about 63% over the past year. Fiverr also cut its full-year revenue guidance to a midpoint of $364 million from previously expected $400 million. Adjusted EBITDA is now projected at $57 million, down significantly from earlier estimates of $72 million.