Shares of Fiverr International (NYSE: FVRR) surged 17.9% on Wednesday, following the release of the online freelance marketplace's blockbuster second-quarter results.
Fiverr's revenue rocketed 82% to $47.1 million. The gains were driven by a 28% year-over-year surge in active buyers of freelance services, to 2.8 million, and an 18% rise in average spend per buyer, to $184.
Better still, Fiverr's profitability metrics improved as it expanded its revenue base. The company delivered positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first time, which management expects to continue in the quarters ahead.
"Fiverr has reached an inflection point in Q2, having achieved adjusted EBITDA profitability and brought our topline scale to the next level," CFO Ofer Katz said in a press release. "While the global macroeconomic conditions remain highly uncertain, we are confident that our business model, strong execution ability, and financial discipline will continue to drive our growth forward."
With tens of millions of Americans unemployed in part because of the COVID-19 crisis, many people are becoming freelancers to rebuild their income. It's a massive $750 billion market, of which Fiverr is currently targeting $100 billion. In turn, management sees an enormous opportunity for continued expansion.
"I'm incredibly proud that Fiverr has been playing an important role in the livelihoods of individuals and businesses everywhere during this challenging global environment," CEO Micha Kaufman said. "As businesses endeavor to reshape their team structures and accelerate the pace of digital transformation, I believe there is a tremendous amount of growth runway ahead of us."
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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fiverr International. The Motley Fool has a disclosure policy.
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