Fiverr authorizes $100 million share repurchase

NEW YORK - Fiverr International Ltd (NYSE: FVRR), an online marketplace for freelance services with a market capitalization of $889 million, announced Monday that its Board of Directors has approved an additional $100 million share repurchase program. The decision is part of the company’s broader capital allocation strategy, which includes driving growth and optimizing their balance sheet. According to InvestingPro data, management has been consistently buying back shares while maintaining a strong cash position relative to debt.

Ofer Katz, President and CFO of Fiverr, noted the company’s intention to strategically deploy capital across various priorities, including growth initiatives, debt management, and shareholder value enhancement. Fiverr plans to use its strong cash position and cash flow generation to pay down convertible notes due in November 2025 and to engage in share repurchases. The company has demonstrated solid financial performance with impressive gross profit margins of 82% and revenue growth of 8.3% over the last twelve months.

The repurchase program is subject to potential objections from the company’s creditors until April 10, 2025, as per Israeli law. If objections are raised, the program will require court approval to proceed. Absent any objections, the repurchase program will become effective without further legal impediment.

Fiverr’s share repurchases may occur in the open market, through Rule 10b5-1 trading plans, in privately negotiated transactions, or by other means. The timing and volume of buybacks will depend on market conditions and other factors at the company’s discretion. The company also reserves the right to suspend, modify, or discontinue the repurchase program at any time without prior notice.

This announcement follows Fiverr’s mission to revolutionize the way the world works together by connecting businesses of all sizes with skilled freelancers offering a wide array of services. Over the past year, nearly 4 million customers worldwide have engaged with freelancers on Fiverr to maintain flexible and adaptive workforces.

The information disclosed in this news article is based on a press release statement from Fiverr International Ltd. and does not constitute an offer to buy or a solicitation of an offer to sell any securities.

In other recent news, Fiverr International Ltd. reported its fourth-quarter 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of 0.64 and revenue of $103.7 million, a 13% year-over-year increase. The company has launched FiverrGo, an AI-driven platform, as part of its strategic initiatives to enhance service offerings. Despite these positive results, Citizens JMP downgraded Fiverr’s stock from ’Market Outperform’ to ’Market Perform,’ citing a projected decline in Gross Services Volume (GSV) for 2025 due to ongoing macroeconomic challenges. Goldman Sachs, however, maintained a Buy rating, expressing confidence in Fiverr’s long-term growth prospects and its transition to a platform-centric approach. The company’s annual report highlighted its role in facilitating collaborations among nearly 4 million customers and offering over 700 different skills. Fiverr anticipates 8-12% revenue growth in 2025, driven by AI and platform development, while also projecting services revenue to comprise 30% of total revenue. The company’s strategic focus remains on expanding service offerings and improving ad monetization strategies to navigate a competitive economic landscape.

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