Fiverr (FVRR) to Report Q3 Earnings: What's in the Cards?

Fiverr International Ltd. FVRR is set to report third-quarter 2020 results on Oct 28.

For the third quarter, it expects revenues in the range of $48-$49 million, indicating 72-76% year-over-year growth. The Zacks Consensus Estimate for the same stands at $49.32 million, suggesting growth of 76.96% from the prior-year quarter.

Further, the Zacks Consensus Estimate for the bottom line for the third quarter is pegged at 8 cents per share, suggesting growth of 166.7% from the prior-year reported figure.

The company beat estimates in each of the trailing four quarters, with the average surprise being 116.7%.

Third-Quarter Forecasts

For the third quarter, the company expects revenues in the range of $48-$49 million, representing year-over-year growth of 72-76%.

The Zacks Consensus Estimate for revenues is currently pegged at $49.32 million, indicating growth of 76.96% from the year-ago quarter. For earnings, the Zacks Consensus Estimate is currently pegged at 8 cents per share, indicating an increase of 166.67% from the year-ago quarter.

Factors to Note

Fiverr’s platform — which connects people offering logo, poster and brochure designing, photoshop editing, content marketing, web analytics, translation and other services with people outsourcing such work to freelancers — might have benefited from the increasing remote working trend owing to the coronavirus outbreak.

Further, its strong focus on product and technology enhancements is expected to get reflected in the to-be-reported quarter’s results.

Also, the company’s marketing efficiency — courtesy of positive trends in both organic and paid channels — may have contributed to its performance in the quarter to be reported.

Moreover, the company’s focus on international expansion might have acted as a tailwind in the to-be-reported quarter. It expanded its global marketplace to two new languages — French and Spanish.

Strong momentum in performance marketing is also expected to have aided the company in acquiring new buyers in the to-be-reported quarter.

During the quarter, it launched second semi-annual Small Business Needs Index, which offers different services that are useful for small businesses to digitally transform in today’s world.

These are likely to have benefited the company in expanding catalog and gaining momentum across larger businesses during the quarter under review.

Furthermore, Fiverr’s accelerated Artificial Intelligence efforts through personalization and customer support might have driven its third-quarter performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Fiverr this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Fiverr has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Alphabet GOOGL has an Earnings ESP of +7.40% and a Zacks Rank of 2.

TE Connectivity Ltd. TEL has an Earnings ESP of +5.40% and a Zacks Rank #2.

Netflix, Inc. NFLX has an Earnings ESP of +11.35% and holds a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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