Fiverr Slashes Revenue Outlook, Stock Plunges 16% as AI Disrupts Freelance Market
FVRR is trading near its 52-week low of $9.58 (0.6% above the low).
Summary
Fiverr cut its full-year revenue guidance to $356M-$372M from $380M-$420M, citing faster-than-expected AI adoption eroding demand for low-value freelance services. Q2 revenue fell 10% to $97.8M, missing the $99.7M consensus, and adjusted EPS of $0.50 was $0.02 light. The stock is down 16% premarket, near its 52-week low. CEO Micha Kaufman said the company is repositioning toward higher-value work, but the CFO warned the transformation will take time to show in financials. This follows a Reuters report earlier today on the Q2 miss and guidance cut, but adds the specific guidance range, premarket price action, and management's strategic pivot. The sharp guidance reduction and structural headwind from AI signal a material deterioration in the business outlook.
At the time of this announcement, FVRR was trading at $9.64 on NYSE in the Trade & Services sector, with a market capitalization of approximately $416.7M. The 52-week trading range was $9.58 to $28.00. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.