Fiverr's Q4 2024 Earnings: Revenue Up, EPS Falls Short

Fiverr International reports mixed earnings for Q4 2024, with revenue exceeding estimates but adjusted EPS falling below expectations, raising concerns over user engagement.

Date: 19-02-2025

AI Rating: 5

Earnings Analysis
Fiverr's adjusted earnings per share (EPS) for Q4 2024 came in at $0.64, lower than the anticipated $0.72. This shortfall indicates profitability challenges faced by the company despite seeing revenue growth. Investors may view this as a concerning trend, suggesting that while revenue is increasing, profitability is not keeping pace.

Revenue Growth
The company reported a revenue of $103.7 million, which exceeded analyst estimates of $101 million and represented a year-over-year growth of 13.3%. This positive revenue growth is a strong sign for the company, especially relative to its prior year's revenue of $91.5 million. Investors may find this encouraging as it suggests that Fiverr's marketplace is expanding, albeit with caution due to other metrics.

Free Cash Flow (FCF)
Fiverr's free cash flow for the quarter reached $29.6 million, an 8.1% year-over-year increase from $27.4 million. Positive free cash flow is a good indicator of operational efficiency and could inspire confidence among investors as it may signal potential for reinvestment and growth opportunities.

Net Income
GAAP net income notably improved from $4.7 million in Q4 2023 to $12.8 million in Q4 2024. This is a significant increase that could positively impact investor perception, showcasing improved profitability compared to last year.

Even with these positive indicators, the report also highlights a major decline in active buyers—down 10% from 4.0 million to 3.6 million—raising concerns about long-term user engagement. Additionally, the mixed expansion figures in marketplace revenue, contrasted with the substantial growth in services revenue, demonstrate a shifting landscape in Fiverr’s business operations that may necessitate closer scrutiny by investors moving forward.

Stocks: FVRR