Fiverr (FVRR) to Post Q2 Earnings: What's in the Offing?

Fiverr International Ltd. FVRR is set to report second-quarter 2023 results on Aug 3.

For the second quarter, the company expects revenues of $88-$90 million, reflecting growth of 4% to 6% year over year. The Zacks Consensus Estimate for the same is pegged at $89.16 million, suggesting growth of 4.9% from the prior-year quarter’s reported number.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 41 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 12 cents.

Fiverr earnings beat estimates in all the trailing four quarters, the average being 37.9%.

Fiverr International Price and EPS Surprise

Fiverr International price-eps-surprise | Fiverr International Quote

Factors to Consider

Fiverr’s strong position in the freelancing market is likely to have continued aiding its second-quarter performance.

The company's strong focus on product and technology enhancements is expected to get reflected in the to-be-reported results.

The company’s growing take rate, driven by value-added services, is expected to have been a positive. The Zacks Consensus Estimate for the second quarter take rate is pegged at 30.6%, up from 29.8% reported in the prior-year quarter.

Its marketing efficiency, courtesy of positive trends in both organic and paid channels, is likely to have contributed to the performance in the quarter to be reported. Channel diversification is expected to have been a positive.

Fiverr’s deepening focus on international expansion is expected to have benefited its second-quarter performance. The growing momentum across its global marketplace, with the expansion to regional languages, is anticipated to have contributed well.

Fiverr’s increasing traction in performance marketing is likely to have aided it in acquiring buyers in the to-be-reported quarter.

The company’s accelerated Artificial Intelligence (AI) efforts through personalization and customer support are anticipated to have driven the upcoming results.

Growing momentum across Promoted Gigs, Seller Plus and cash advance programs is expected to have aided the company in gaining traction among freelancers during the second quarter, which in turn is likely to have driven its top-line growth.

Also, strength in Fiverr Enterprise is expected to have aided the company in gaining momentum among various enterprises during the quarter under review.

However, macroeconomic uncertainties are anticipated to have been a concern in the second quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Fiverr International this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here, as mentioned below.

Fiverr has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

FVRR has a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Itron ITRI has an Earnings ESP of +7.61% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.  

Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.

CACI International CACI has an Earnings ESP of +2.36% and a Zacks Rank #2.

CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, suggesting growth of 6.8% from the prior-year quarter’s reported figure.

Docebo DCBO has an Earnings ESP of +6.67% and has a Zacks Rank #3 at present.

Docebo is set to report its second-quarter fiscal 2023 results on Aug 10. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 8 cents per share. The company reported a loss of 5 cents per share in the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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