investorscraft@gmail.com

Intrinsic Value of Fiverr International Ltd. (FVRR)

Previous Close$27.23
Intrinsic Value
Upside potential
Previous Close
$27.23

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2024 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

Fiverr International Ltd. operates a leading global online marketplace for freelance services, connecting businesses with skilled professionals across diverse categories such as graphic design, digital marketing, programming, and writing. The company’s platform facilitates transactions through a gig-based model, where freelancers offer fixed-price services, enabling scalability and flexibility for both buyers and sellers. Fiverr’s revenue is primarily driven by service fees, which include a commission on transactions and additional value-added services like Fiverr Business and Promoted Gigs. Positioned in the rapidly growing gig economy, Fiverr competes with platforms like Upwork and Freelancer.com but differentiates itself through a user-friendly interface, curated talent pools, and a focus on micro-services. The company has expanded its offerings to cater to enterprise clients, enhancing its market reach and monetization potential. Fiverr’s ability to adapt to evolving workforce trends and its investments in AI-driven matching algorithms strengthen its competitive edge in the freelance services sector.

Revenue Profitability And Efficiency

Fiverr reported revenue of $391.5 million for FY 2024, reflecting its ability to monetize its platform effectively. The company achieved a net income of $18.2 million, with diluted EPS of $0.48, marking a transition toward profitability. Operating cash flow was robust at $83.1 million, indicating strong cash generation capabilities, while capital expenditures remained modest at $2.5 million, underscoring efficient asset utilization.

Earnings Power And Capital Efficiency

Fiverr’s earnings power is supported by its scalable platform, which requires minimal incremental costs to onboard new freelancers and buyers. The company’s capital efficiency is evident in its high operating cash flow relative to revenue, driven by its asset-light business model. This allows Fiverr to reinvest in growth initiatives while maintaining healthy margins.

Balance Sheet And Financial Health

Fiverr’s balance sheet shows $133.5 million in cash and equivalents, providing liquidity for operations and strategic investments. Total debt stands at $463.2 million, which warrants monitoring, though the company’s strong cash flow generation mitigates near-term refinancing risks. The absence of dividends aligns with its growth-focused strategy.

Growth Trends And Dividend Policy

Fiverr’s growth is fueled by increasing adoption of freelance services and expansion into higher-value segments. The company does not pay dividends, opting instead to reinvest cash flows into platform enhancements, marketing, and geographic expansion to capture market share in the evolving gig economy.

Valuation And Market Expectations

Fiverr’s valuation reflects investor confidence in its ability to sustain growth in the freelance services market. Market expectations are likely centered on its profitability trajectory, scalability, and potential to penetrate enterprise markets further, though competition and macroeconomic factors remain key considerations.

Strategic Advantages And Outlook

Fiverr’s strategic advantages include its first-mover brand recognition, scalable technology platform, and diversified service offerings. The outlook remains positive, supported by secular trends toward remote work and flexible labor, though execution risks and competitive pressures could impact long-term performance. The company’s focus on innovation and customer acquisition will be critical to maintaining its market position.

Sources

10-K, Investor Presentations

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049

INCOME STATEMENT

Revenue growth rate, %NaN
Revenue, $NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $mNaN
Operating income, $mNaN
EBITDA, $mNaN
Interest expense (income), $mNaN
Earnings before tax, $mNaN
Tax expense, $mNaN
Net income, $mNaN

BALANCE SHEET

Cash and short-term investments, $mNaN
Total assets, $mNaN
Adjusted assets (=assets-cash), $mNaN
Average production assets, $mNaN
Working capital, $mNaN
Total debt, $mNaN
Total liabilities, $mNaN
Total equity, $mNaN
Debt-to-equity ratioNaN
Adjusted equity ratioNaN

CASH FLOW

Net income, $mNaN
Depreciation, amort., depletion, $mNaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $mNaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $mNaN
Free cash flow, $mNaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $mNaN
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
HomeMenuAccount