Fiverr is a potential winner takes most marketplace, although it is still early in its evolution. It is transforming the traditional freelancer hiring workflow into an e-commerce-like experience. If one is feeling generous, it is Amazon for services.
Some things to know, before you dismiss it as another expensive WFH stock:
Fiverr brings labour arbitrage to SMB, who have never had access to this before.
Most of the services that Fiverr sells are for digitisation.
New avenues for monetisation, such as advertising are just starting up.
Fiverr brings standardisation to a non-standard product set. We believe this is disrupting the current RFP workflow, and a meaningful contributor to Fiverr's success.
Competition is low.
Given a TAM>>10x revenue, if marketplace is successful the company could be multiple times larger than today.
Potential Upside: $182 (+48%)
Sensible Downside: $98 (-20%)
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