Group 1 - The Q3 earnings season has shown that investors are difficult to satisfy, with stocks fluctuating near all-time highs despite less-than-ideal results indicating overvalued valuations [1] - Gary Alexander, with extensive experience in technology and startups, has been actively contributing to discussions on industry trends since 2017 [1] Group 2 - The article does not provide specific financial data or performance metrics related to companies or the industry [2][3]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $107.9 million, representing an 8% year-over-year growth [10] - Adjusted EBITDA for Q3 was $24.2 million, with an adjusted EBITDA margin of 22%, an improvement of 260 basis points from the previous year [10] - Free cash flow totaled $29.1 million in Q3, indicating strong cash flow generation [10] Business Line Data and Key Metrics Changes - Market-based revenue was $73.6 million, driven by 3.3 million active buyers and a spend per buyer of $330, with a market-based take rate of 27.6% [11] - Service revenue reached $34.3 million, showing a year-over-year growth of 40% and accounting for 32% of total revenue in Q3 [11] - Dynamic matching GMV grew 22% year over year, with 15% of job reads having a budget over $1,000 and an average order value of $2,200 [5] - Managed services GMV grew 65% year over year, with an average product size of $17,000 [5] Market Data and Key Metrics Changes - The programming and tech vertical grew 14% year over year in Q3, reflecting strong demand for AI-related services [6] - The overall market environment remains uneven, with mixed trends in labor markets and hiring recovery [7] Company Strategy and Development Direction - The company is focusing on up-market expansion and AI enablement as part of its growth strategy [7] - A strategic restructuring was announced to streamline operations and enhance focus on AI integration [7] - The transformation is anchored on four key pillars: strengthening go-to-market execution, building a next-gen AI-powered buyer experience, evolving matching technology, and investing in talent [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy despite macroeconomic uncertainties, emphasizing long-term trends that are macro-agnostic [7] - The company aims to reach a long-term adjusted EBITDA margin of 25% by 2026 [13] Other Important Information - The company expects full-year 2025 revenue to be in the range of $428-$436 million, representing a year-over-year growth of 9%-11% [12] - Q4 2025 revenue is expected to be between $104.3 million and $112.3 million, reflecting a year-over-year growth of 1%-8% [13] Q&A Session Summary Question: How is the company reimagining the marketplace to be AI-first? - The CEO highlighted that AI allows for better matching of experts to projects, enhancing customer satisfaction and project complexity [16][18] Question: What are the key assumptions for Q4 revenue guidance? - The company indicated that service revenue will continue to grow, while marketplace revenue will depend on GMV trends, which may see a slight decline [19][20] Question: How does the reorganization affect the SMB opportunity? - The management does not assume a return of SMB demand in the near term, focusing instead on larger projects and clients [23][25] Question: What key investments are needed for 2026 to transform into an AI-first company? - Investments will focus on talent acquisition, infrastructure improvements, and enhancing market-based experiences [28][30] Question: What is the confidence level for returning to growth in the marketplace business in 2026? - The management expressed confidence that AI-driven products will lead to growth, with larger projects becoming a significant portion of the business [35][36] Question: How are other major categories benefiting from AI? - The programming and tech category is growing rapidly, along with digital marketing and video, as customers become more educated and precise in their needs [45][47]

Core Insights - Fiverr International (NYSE: FVRR) reported its Q3 2025 results, highlighting significant financial performance and growth metrics [1] Financial Performance - The company achieved a revenue of $XX million in Q3 2025, representing a YY% increase compared to the same quarter last year [1] - Gross profit for the quarter was reported at $XX million, with a gross margin of ZZ% [1] - Operating income showed a notable improvement, reaching $XX million, which is an increase of AA% year-over-year [1] User Metrics - Fiverr's active buyer base grew to XX million, reflecting a YY% increase from the previous year [1] - The number of completed orders reached XX million, indicating a growth of ZZ% compared to Q3 2024 [1] Strategic Initiatives - The company has launched new features aimed at enhancing user experience and increasing engagement on the platform [1] - Fiverr is focusing on expanding its service offerings to attract a broader range of freelancers and buyers [1] Market Position - Fiverr continues to strengthen its position in the online freelance marketplace, competing effectively against other platforms [1] - The company is leveraging data analytics to optimize its service delivery and improve customer satisfaction [1]

Core Insights - Fiverr International (FVRR) reported quarterly earnings of $0.77 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, and up from $0.64 per share a year ago, representing an earnings surprise of +10.00% [1] - The company posted revenues of $107.9 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.13%, but up from $99.63 million year-over-year [2] - Fiverr shares have declined approximately 31.8% year-to-date, contrasting with the S&P 500's gain of 15.1% [3] Earnings Outlook - The future performance of Fiverr's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.74 on revenues of $108.91 million, and for the current fiscal year, it is $2.80 on revenues of $432.78 million [7] Industry Context - The Internet - Commerce industry, to which Fiverr belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Fiverr's stock performance [5][6]

Core Insights - Fiverr International Ltd. reported strong financial results for Q3 2025, highlighting a commitment to AI transformation and operational efficiency, with the highest-ever Adjusted EBITDA and margin for a quarter [2][6]. Financial Performance - Q3 2025 revenue reached $107.9 million, an increase of 8.3% year-over-year from $99.6 million in Q3 2024 [7]. - Marketplace revenue was $73.6 million, down 2.0% from $75.1 million in Q3 2024 [7]. - Services revenue grew significantly to $34.3 million, a 39.6% increase from $24.6 million in Q3 2024 [7]. - Adjusted EBITDA for Q3 2025 was $24.2 million, compared to $19.7 million in Q3 2024, with an Adjusted EBITDA margin of 22.4%, up from 19.7% [7][21]. Key Metrics - Annual active buyers as of September 30, 2025, were 3.3 million, down 11.7% from 3.7 million a year earlier [7]. - Annual spend per buyer increased to $330, up 11.7% from $295 in the previous year [7]. - The marketplace take rate for the twelve months ended September 30, 2025, was 27.6%, a slight decrease from 27.8% [7]. Future Outlook - The company provided guidance for Q4 2025 revenue between $104.3 million and $112.3 million, reflecting year-over-year growth of 1% to 8% [5]. - Full-year 2025 revenue is expected to be between $428 million and $436 million, indicating a growth of 9% to 11% [5]. - Continued investments in AI and upmarket services are anticipated to drive future growth [6][7].

Core Insights - Fiverr International (FVRR) is expected to report third-quarter 2025 results on November 5, with projected revenues between $105 million and $110 million, indicating year-over-year growth of 5% to 10% [1][9] - The Zacks Consensus Estimate for third-quarter revenues is $108.04 million, reflecting an 8.44% year-over-year growth, while earnings are estimated at 70 cents per share, showing a 9.38% increase [2] Revenue and Earnings Expectations - Fiverr anticipates adjusted EBITDA in the range of $21.5 million to $23.5 million, with an adjusted EBITDA margin of 21% at the midpoint [1] - The company has a history of mixed earnings performance, beating the Zacks Consensus Estimate once in the last four quarters, with an average negative surprise of 3.17% [2][8] Growth Drivers - The company is expected to benefit from increasing demand in AI-related categories, such as AI agents and workflow automation, which are driving gross merchandise value growth in sectors like technology and digital marketing [4] - Fiverr's Pro Managed Services segment is gaining traction due to rising demand for high-value projects from repeat clients, leading to higher average order values [5] Product Innovation - Ongoing product innovations, including enhancements to the Dynamic Matching engine and the expansion of Fiverr Go's Personal Assistant, are likely to improve marketplace efficiency and engagement [6] Challenges - Fiverr faces challenges from a declining buyer base, with annual active buyers down approximately 11% year-over-year to 3.4 million, and marketplace revenues falling by 2% [7] - Management has indicated that marketplace revenues for the second half of 2025 may remain flat to slightly negative year-over-year, which could impact top-line growth [7]

Group 1 - Fiverr International's stock closed at $23.20, reflecting a +1.05% change, which underperformed compared to the S&P 500's gain of 1.23% on the same day [1] - Over the past month, Fiverr's shares have decreased by 9.18%, contrasting with the Retail-Wholesale sector's loss of 1.39% and the S&P 500's gain of 2.45% [1] Group 2 - The upcoming earnings release on November 5, 2025, is anticipated to show an EPS of $0.7, representing a 9.38% increase year-over-year, with revenue projected at $108.04 million, indicating an 8.44% growth [2] - For the full year, analysts expect earnings of $2.8 per share and revenue of $432.78 million, marking increases of +17.65% and +10.55% respectively from the previous year [3] Group 3 - Recent modifications to analyst estimates for Fiverr International reflect evolving short-term business trends, with positive revisions indicating analyst optimism regarding the company's profitability [4] - The Zacks Rank system, which assesses stock performance based on estimate changes, currently ranks Fiverr International as a 1 (Strong Buy) [6] Group 4 - Fiverr International's Forward P/E ratio is 8.21, which is significantly lower than the industry average Forward P/E of 23.26, indicating a valuation discount [7] - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 88, placing it in the top 36% of over 250 industries [7]

Core Viewpoint - Fiverr International Ltd. is set to release its third quarter financial results for the period ending September 30, 2025, on November 5, 2025, before market opening, followed by a conference call to discuss the results [1][4] Company Overview - Fiverr's mission is to transform the way the world creates and works together, connecting top talent and technology with businesses globally [2] - The platform offers services from expert freelancers across over 750 skilled categories, including software and AI development, digital marketing, finance, and more [3] Conference Call Details - The conference call will take place on November 5, 2025, at 8:30 a.m. ET, with registration required for participation [4] - A live and archived webcast of the conference call will be available on the investor relations section of Fiverr's website [4]

Core Insights - The article highlights three companies that are expected to grow significantly in the long term despite being undervalued in the current market environment Group 1: Unity Software - Unity Software is experiencing a return to strong growth after a period of stagnation, with shares still 82% below their previous peak [2][3] - The company is a leading provider of software for video game developers, particularly in mobile gaming, and its AI-powered advertising platform, Unity Vector, is driving growth in its ad network [3][4] - Unity reported a slight year-over-year decline in total revenue in Q2 but is expected to return to growth by 2026, with free cash flow projected to grow at an annualized rate of 25% [3][6] - The company has seen double-digit growth in subscriptions for its game development software and has expanded into non-gaming markets, including partnerships with automakers like BMW [5] Group 2: Roku - Roku's shares fell sharply in 2021 due to a slowdown in the advertising market but have since rebounded, although they still trade 80% below their all-time high [7][8] - The company has a strong competitive position in the streaming market, with nearly 90 million user accounts as of the end of 2024, representing a 12% increase from Q4 2023 [9] - Roku's platform revenue grew 18% year-over-year in Q2 2025, driven by a large and growing audience, and the connected-TV advertising market is expected to grow from $29 billion in 2024 to $38 billion in 2027 [10] Group 3: Fiverr International - Fiverr International's shares are trading 93% below their previous high, yet the company continues to increase free cash flow and focus on AI initiatives [12] - Despite economic volatility affecting the gig economy, Fiverr reported a 15% year-over-year revenue increase in Q2, with strong demand for AI-related services, particularly a 37% increase in demand for AI consultants [13][14] - The recent launch of its AI-powered Shopify Store Builder contributed to an 84% year-over-year increase in services revenue, and the stock is trading at a low price-to-free cash flow multiple of 9, indicating a potential bargain for investors [15][16]

Core Viewpoint - Fiverr International's stock performance has been underwhelming recently, with a notable decline compared to broader market indices, yet upcoming earnings projections indicate potential growth in both earnings per share (EPS) and revenue [1][2][3]. Company Performance - Fiverr's stock closed at $22.10, reflecting a decrease of 2.69% from the previous day, underperforming the S&P 500, which fell by 0.63% [1]. - Over the past month, Fiverr's shares have decreased by 6.74%, which is worse than the Retail-Wholesale sector's decline of 4.1% and the S&P 500's gain of 0.92% [2]. Earnings Projections - The upcoming EPS for Fiverr is projected at $0.7, representing a 9.38% increase year-over-year, while revenue is expected to reach $108.04 million, indicating an 8.44% increase compared to the same quarter last year [3]. - For the full year, earnings are estimated at $2.8 per share and revenue at $432.78 million, reflecting increases of 17.65% and 10.55% respectively from the prior year [4]. Analyst Sentiment - Recent revisions to analyst estimates for Fiverr suggest a positive outlook, with upward adjustments indicating optimism about the company's business and profitability [4]. - The Zacks Rank system currently rates Fiverr as 1 (Strong Buy), with a 5.69% upward shift in the consensus EPS estimate over the past month [6]. Valuation Metrics - Fiverr's Forward P/E ratio stands at 8.13, which is significantly lower than the industry average Forward P/E of 21.91, suggesting a valuation discount [7]. - The Internet - Commerce industry, to which Fiverr belongs, ranks in the top 32% of all industries according to the Zacks Industry Rank [7].