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Fiverr International Q3 Earnings: Is NYSE:FVRR Expensive at 791.7x Forward P/E?

in EARNINGS/INVESTING IDEAS by

Fiverr International Ltd. (NYSE:FVRR) is scheduled to report Q3 earnings results before markets open for trading on October 28, 2020.

The company is expected to report earnings of $0.06/share on revenue of $48.861 million. The consensus earnings per share (EPS) of $0.06/share is based on a poll of 8 analysts and represents a growth in eps of 153.5% over the same quarter last year, when the company reported earnings of -$0.12/share.

The revenue forecast of $48.861 million based on a poll of 7 analysts implies a year-over-year (YoY) growth in revenue of 75.3%. Last year the company reported $27.867 million in revenue for the quarter.

Expected to report EPS of $0.06/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $48.86 $27.87 75.3%
EPS $0.06 -$0.12 −153.5%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 5 tracked quarters of exceeding earnings guidance.

What are your expectations from Fiverr International Ltd. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 -$0.07 $0.10 241.5% Beat
Q1, 2020 -$0.13 -$0.08 39.7% Beat
Q4, 2019 -$0.12 -$0.08 35.8% Beat
Q3, 2019 -$0.22 -$0.12 45.6% Beat
Q2, 2019 -$0.70 -$0.46 34.7% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 15.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $104.22 $120.06 15.2% Increase
May 7, 2020 $45.01 $48.81 8.4% Increase
February 19, 2020 $28 $35.11 25.4% Increase
November 13, 2019 $21.78 $22.77 4.5% Increase

Fundamentals And Technical Analysis

Fiverr International Ltd. is currently trading at $155.25/share, down −2.3% for the day. The company is trading at approximately 83.9% of its 52-week high of $184.99/share. The company’s stock price is up 29.3% since the last earnings report and down −12.3% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 51.33 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:FVRR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of −246.12 and a forward P/E multiple of 791.67.

Fiverr International Ltd.’s current share price also implies a price-to-book (P/B) multiple of 19.23. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $155.25
P/E Ratio −246.1x
P/E Ratio (Fwd) 791.7x
PEG Ratio −3.0
Total Debt / Total Capital 0.0%
Levered Free Cash Flow -$1.147 million
EV / EBITDA −312.4x

Finbox

Fiverr International Ltd. is a mid-cap stock with a market capitalization of $5.452 billion and a total enterprise value of $5.165 billion. The company operates in the Consumer Discretionary sector and the Internet & Direct Marketing Retail industry.

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company’s platform includes approximately 300 categories in eight verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and technology, business, and lifestyle. It also offer And.Co, a platform for online back office service to assist freelancers with invoicing, contracts and task management; Fiverr Learn, an online learning platform with original course content in categories such as graphic design, branding, digital marketing, and copywriting; and ClearVoice, a subscription based content marketing platform for medium to large businesses. Its buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and small businesses. The company was founded in 2010 and is headquartered in Tel Aviv, Israel.

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