Fiverr’s earnings top estimates in FQ4 but shares slide on soft guidance

Fiverr International (NYSE:) unveiled the financial results for the fiscal fourth quarter, beating expectations for earnings per share (EPS), but revenue guidance fell short, sending shares sliding more than 3% in premarket trading Thursday.

The freelance services provider reported Q4 EPS of $0.56, surpassing consensus estimates of $0.48. Revenue came in at $91.5 million, missing the projected $92.56 million.

Fiverr’s adjusted gross margin in the quarter rose to 84.6% from 83.1% in the same period last year, and almost meeting the consensus projection of 84.7%.

The take rate increased to 31.8% from 30.2% a year ago, and slightly above the expected 31.7%.

Looking ahead to the first quarter of 2024, Fiverr expects revenue to be between $91.5 million and $93.5 million, which is below the analyst consensus of $97.4 million.

The company’s forecast for adjusted EBITDA ranges from $12.5 million to $14.5 million, compared to analysts’ expectations of $15.5 million.

For the full year of 2024, Fiverr is projecting revenues to be in the range of $379 million to $387 million, short of the $408.6 million expected by analysts.

The adjusted EBITDA is anticipated to be between $65.0 million and $73.0 million, also under the forecasted $75.2 million.

“We expect to take a balanced approach to drive profitable growth in 2024, with accelerating GMV, sustainable take rate, and continued expansion in Adjusted EBITDA,” the company said in a statement.