As you might know, Fiverr International Ltd. (NYSE:FVRR) just kicked off its latest first-quarter results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$34m leading estimates by 2.8%. Statutory losses were smaller than the analystsexpected, coming in at US$0.19 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fiverr International after the latest results.
Following the latest results, Fiverr International's seven analysts are now forecasting revenues of US$147.2m in 2020. This would be a major 25% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 33% to US$0.79. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$141.0m and losses of US$1.00 per share in 2020. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a loss per share in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for Fiverr International 49% to US$52.50 on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Fiverr International at US$55.00 per share, while the most bearish prices it at US$28.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Fiverr International shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fiverr International's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Fiverr International's revenue growth will slow down substantially, with revenues next year expected to grow 25%, compared to a historical growth rate of 42% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 17% next year. Even after the forecast slowdown in growth, it seems obvious that Fiverr International is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Fiverr International analysts - going out to 2022, and you can see them free on our platform here.
You still need to take note of risks, for example - Fiverr International has 2 warning signs we think you should be aware of.
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