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On Thursday, Goldman Sachs analyst Eric Sheridan updated the investment firm’s outlook on Fiverr International Ltd . (NYSE:FVRR), raising the price target from $41.00 to $47.00 while maintaining a Buy rating on the shares. The company, currently valued at approximately $1.05 billion, has shown impressive momentum with an 11.5% gain in the past week alone. According to InvestingPro analysis, Fiverr appears undervalued based on its Fair Value calculation. Sheridan’s assessment followed Fiverr’s first-quarter earnings release for 2025, which showcased several key developments within the company.
Fiverr reported a robust revenue performance for the first quarter of 2025 and provided a second-quarter revenue forecast that slightly exceeded Goldman Sachs’ expectations at the midpoint. With impressive gross profit margins of 82% and a solid revenue growth of 8.3% over the last twelve months, the company’s Marketplace continued to grow, reflecting Fiverr’s strategy to move upmarket and attract higher-quality buyers.
The growth in Fiverr’s Services segment was also notable, driven by the success of Fiverr Ads, Seller Plus, and AutoDS. Expectations for further growth are supported by the upcoming expansion of Fiverr Go into additional categories and the broader reach of the Personal Assistant feature in the second half of 2025. Fiverr Pro, the platform’s premium service, is gaining momentum as well, with management highlighting several six-figure, multi-month contracts signed across various professional services. InvestingPro data reveals that the company holds more cash than debt on its balance sheet, providing financial flexibility for these expansion initiatives.
In addition to these operational highlights, Fiverr reiterated its medium-term financial targets, including a 25% adjusted EBITDA margin by 2027 and a 14% compound annual growth rate (CAGR) in free cash flow (FCF) through the same year. This reaffirmation underscores the management’s confidence in the company’s strategic direction amidst broader economic uncertainties.
Finally, Fiverr’s capital allocation priorities remain consistent, with the authorization of a new $100 million stock buyback program. InvestingPro analysis highlights management’s aggressive share buyback strategy as a key strength, with 10+ additional exclusive insights available to subscribers. Sheridan’s updated price target reflects the latest earnings data and management’s forward-looking statements, indicating continued optimism for Fiverr’s growth trajectory.
In other recent news, Fiverr International Ltd. reported its fourth-quarter 2024 earnings, surpassing analyst expectations with a revenue of $103.7 million, a 13% increase year-over-year, and an earnings per share of 0.64, exceeding the forecast of 0.61. The company has also filed its annual report for 2024, highlighting its financial performance and strategic initiatives. In a move to enhance shareholder value, Fiverr announced a $100 million share repurchase program, aimed at optimizing its balance sheet and driving growth. Meanwhile, Goldman Sachs maintained a Buy rating for Fiverr, with a $41 price target, citing the company’s transition to a platform-centric approach and its potential for long-term growth in the freelancer economy. Conversely, Citizens JMP downgraded Fiverr’s stock from ’Market Outperform’ to ’Market Perform’ due to concerns over a projected decline in Gross Services Volume for 2025. Despite these mixed analyst opinions, Fiverr continues to focus on service expansion and monetization strategies, including the launch of Fiverr Go, an AI-driven platform. These developments reflect Fiverr’s ongoing efforts to adapt and grow in a challenging economic landscape.
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