Stryker shares tumble despite strong Q2 results and raised guidance
On Thursday, Goldman Sachs reaffirmed its confidence in Fiverr International Ltd . (NYSE:FVRR), maintaining a Buy rating and a $41.00 price target for the company’s shares. The endorsement follows Fiverr’s Q4 2024 earnings report, which presented a positive outlook and revealed the company’s evolution from a marketplace-centric to a platform-centric approach, particularly with the recent announcement of Fiverr Go. According to InvestingPro data, the stock appears undervalued at its current price of $30.23, with analysts’ targets ranging from $30 to $41.
The company acknowledged the ongoing macroeconomic pressures that have impacted the growth of Active Buyers looking into 2025. However, Fiverr also noted that any recovery in buyer activity levels could lead to stronger revenue performance and provide opportunities for further growth investments. Despite challenges, InvestingPro analysis shows the company maintains impressive gross profit margins of 82% and achieved 8.3% revenue growth in the last twelve months. The behavior of new buyer cohorts was highlighted as a promising indicator of the company’s future growth trajectory in a more normalized economic environment.
Fiverr’s Q4 2024 report also underscored the company’s continued investment in growth initiatives. Goldman Sachs analysts support this strategy, expressing a bullish long-term view on the freelancer economy’s potential to drive significant growth, margin expansion, and free cash flow (FCF) generation. The analysts view the current valuation as attractive and believe that Fiverr is gaining operating momentum as it transitions into a broader platform with substantial growth prospects. InvestingPro data reveals strong FCF of $81.77 million and a solid financial health score, with 12 additional ProTips available for subscribers.
Goldman Sachs anticipates that Fiverr’s healthy FCF generation will provide the flexibility needed for further investments or capital returns. The firm’s reiterated Buy rating and steady 12-month price target reflect confidence in Fiverr’s ability to capitalize on these opportunities and its position as a two-sided marketplace business. The company maintains a strong balance sheet with more cash than debt, and analysts expect net income growth this year.
In other recent news, Fiverr International Ltd. reported its fourth-quarter 2024 earnings, surpassing analyst expectations with a revenue of $103.7 million, which marked a 13% year-over-year increase. The company’s earnings per share came in at 0.64, exceeding forecasts of 0.61. Despite these positive results, Citizens JMP downgraded Fiverr’s stock from ’Market Outperform’ to ’Market Perform’, citing concerns over a projected decline in Gross Services Volume (GSV) for 2025 due to ongoing macroeconomic challenges. Fiverr’s forecast anticipates a 3% revenue increase above consensus estimates for 2025, though EBITDA is expected to be 2% lower.
Fiverr has been focusing on expanding its service offerings, including the launch of FiverrGo, an AI-driven platform to enhance its services. The company projects 8-12% revenue growth in 2025, with a significant emphasis on AI and platform development. Fiverr’s annual report, filed with the SEC, highlights the company’s growth, serving nearly 4 million customers worldwide and offering over 700 skills. The company remains committed to improving its ad monetization strategies and introducing new offerings to drive revenue growth amidst a competitive landscape.
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