Citizens cuts Fiverr stock rating on weak demand visibility

Investing.com -- Citizens downgraded Fiverr International Ltd (NYSE: FVRR) to "Market Perform" from "Market Outperform" given the ongoing macroeconomic headwinds and limited visibility into demand recovery for freelancers.

While Fiverr reported solid fourth-quarter 2024 results with revenue 2% above consensus and EBITDA in line, the company guided for another year of gross services volume (GSV) contraction in 2025. Revenue guidance was 3% ahead of expectations, but EBITDA was projected 2% lower.

Citizens noted that while Fiverr is increasing monetization through ad products and new services like Fiverr Go, total take rates are approaching 40% in 2025, raising concerns about sustainability. The firm acknowledged Fiverr's view that AI will ultimately drive job creation but said near-term disruptions to workflows remain a challenge.

Until there is clearer evidence of a demand recovery, Citizens sees Fiverr shares as fairly valued.

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