I don’t post my numbers because I’m “only” doing about 40% YTD. It would’ve been about ZERO YTD, if it wasn’t for you guys, so “Thanks!”
Here’s what I’ve found about FVRR, with info taken from:
Fiverr is a global online marketplace for freelancers in creative industries. Buyers can typically go to Fiverr in search of logo designs, website building, video editors, article writers, and so forth.
The company has pioneered the Service-as-a-Product (“SaaP”) model to create an on-demand, e-commerce-like experience that makes working with freelancers easy and straightforward. The benefits to both buyers and sellers are substantial in comparison with the old offline model.
Other similar platforms such as Upwork (UPWK) mostly price the transactions by the hour, which generates more uncertainty for buyers and more complications overall. Upwork is also focused mostly on corporate buyers, while Fiverr is more oriented towards small businesses, entrepreneurs, and self-employed professionals.
The numbers for the second quarter of 2020 are truly impressive, with Fiverr reporting an acceleration in demand and expanding profitability levels. Revenue during the quarter reached $47.13 million, surpassing analyst’s expectations by $10.59 million and growing by 82% year over year. The number represents an explosive acceleration versus a 44% increase in revenue during the first quarter of 2020.
The size of the total addressable market is very hard to quantify because Fiverr operates in a wide variety of categories, including logo design, translations, game development, and podcast marketing, for example. However, it is easy to see that the company is barely scratching the tip of the iceberg when it comes to its long-term opportunities.
Management considers that the size of the U.S. freelancer market is currently above $750 billion, and the categories currently relevant to Fiverr are around $100 billion. Fiverr’s 2019 total revenue was only $107 million.
The pandemic has clearly produced an acceleration in demand for Fiverr, and the company is benefitting from a powerful flywheel effect as it gains size over time. More buyers and sellers create better opportunities for both sides, so the platform becomes more valuable as it gains more size over time.