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Fiverr International Ltd FVRR stock is trading higher Friday after Goldman Sachs analyst Eric Sheridan upgraded the stock rating from Neutral to Buy and a $43 price target.
The re-rating reflected continued re-acceleration of revenue in 2024 driven by stabilizing macro (net adds improving through the year), spend per buyer growth, international progress, and continued Promoted Listing & Seller Plus adoption.
The analyst also flagged incremental improvements in profitability with a focus on marketing efficiency and higher-value buyers (higher Day 1 spending, higher LTV driven by frequency and retention).
Sheridan also highlighted product innovation and focus as the company continues to position its platform and products for increased levels of personalization and matching capabilities, along with more complex projects, with many of those initiatives driven by AI.
Looking long term, Sheridan noted Fiverr is building operating momentum as a two-sided marketplace business with ample runway for growth on a normalized basis with the management executing against a large and growing total addressable market as the future of work evolves, continuing to scale both the freelancer and buyer side of the marketplace, product innovation as a driver of adoption, retention & share of wallet, and geographic expansion.
The analyst projected fourth-quarter revenue and EPS of $94.8 million (vs. consensus of $92.5 million) and $(0.06) (vs. consensus of $0.04).
Price Actions: FVRR shares traded higher by 5.36% at $26.03 on the last check Friday.
