2020 was an excellent year for Israeli freelance platform Fiverr International Ltd. (NYSE: FVRR) and 2021 is shaping up to be even better. Boosted by the shift online forced by the Covid-19 pandemic, the company saw its share price skyrocket 730% in 2020 and a further 57% in 2021 so far, giving a market cap of $10.8 billion.
The company has now reported its fourth quarter financials in which it topped the analysts on revenue and met expectations on profit, and provided positive guidance in which it sees 50% revenue growth in the first quarter of 2021.
Fiverr’s revenue in the fourth quarter was $55.9 million, up 89.2% from the corresponding quarter of 2019. GAAP net loss widened to $8.1 million from $7.4 million in the corresponding quarter of 2019. Non-GAAP net profit in the fourth quarter was $4.8 million ($0.12) compared with a net loss of $2.7 million in the corresponding quarter of 2019.
Total revenue in 2020 was $190 million, up 77% from 2019. GAAP net loss was $14.8 million, narrowing 55.8% from 2019, and non-GAAP net profit was $10.4 million in 2020 ($0.29) compared with a net loss of $16.8 million in 2019.
In the first quarter of 2021, Fiverr sees revenue of $63-65 million, up 84%-90% from the first quarter of 2020, and above the analysts’ estimates of $57.8 million. The company sees 2021 revenue of $277-284 million, up 46%-50% from 2020. Fiverr sees adjusted EBITDA of $3-$4 million in the first quarter of 2021 and $16-21 million for the entire year – in other words, growth of 76%-130% from 2020.
Fiverr cofounder and CEO Micha Kaufman said, “2020 was a landmark year for our business with 77% year over year revenue growth driven largely by bringing more freelancers and businesses together during a critical time of global change. We are carrying that momentum into the new year and I’m thrilled about what lies ahead for us in 2021. We started this year with our first Super Bowl campaign, which allowed us to reach millions of people in a way that was unprecedented for our brand. In the year ahead, we also expect to continue to roll out significant products, features and capabilities and continue to help lead and power the global trend towards digital transformation and remote work.”
Published by Globes, Israel business news – en.globes.co.il – on February 18, 2021
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