The Fiverr International Ltd (NYSE: FVRR) stock price rallied 6.44% after the company generated $82.5 million in revenues during Q3 2022 compared to the $74.3 million generated in Q3 2021. The company’s revenues also beat analysts’ consensus estimates of $81.1 million.
The global company that provides an online platform for freelance services saw its earnings per share rise to $0.21 from the $0.19 recorded in a similar period last year. Investors cheered the excellent financial results, as evidenced by the rally in Fiverr shares.
The freelance marketplace saw the number of buyers on its platform rise to 4.2 million users in Q3 from 4.1 million in Q2 2022. In addition, the average spend per buyer rose 12% to $262 at the end of September 2022 compared to $234 in September 2021.
The company’s financial metrics improved from every angle as more people embraced the freelance working arrangement instead of in-office employees. Furthermore, businesses and organizations have embraced freelancers for many functions instead of hiring full-time employees for the same roles.
Many former employees have also embraced freelance work as they seek control over their time and earnings. In addition, freelancers can work from anywhere in the world with a stable internet connection, which is why many people have embraced the lifestyle while abandoning the traditional 9-5 jobs.
Micha Kaufman, Fiverr’s founder and CEO, said: “I am proud that our business has remained strong in a slowing macroeconomy. Our focus on driving the flywheel of our marketplace and investing in going upmarket is paying off as over 4.2 million businesses continue to make Fiverr the go-to place for digital services.”
Fiverr believes it is well positioned to continue leading the change in the future of work driven by the secular trend towards freelancing.
Despite boasting a high margin of over 81%, Fiverr is still a loss-making company and registered a net loss of $11.4 million in Q3 2022, compared to a $14.3 million net loss in Q3 2021. The company seems to be no closer to turning a profit than last year.
*This is not investment advice.
Fiverr stock price.
The Fiverr stock price was trading up 6.44% at $30.25, rising from Tuesday’s closing price of $28.42.