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  • Writer's pictureAbacus Research

Fiverr (FVRR): Winning marketplace?

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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