Fiverr International's (FVRR) exposure to AI continues to be mixed as it moves to cut 30% of its headcount to be more of an AI-first organization, RBC Capital Markets said in a note Monday.

"We admire management's thought leadership in how it aims to transform its org structure to be leaner, move faster etc.," the report said.

"However, we also believe AI remains something of a headwind with this latest move pointing to AI leading to persistent staffing challenges which is negative for digital freelancing."

"We continue to look for a clearer path to Marketplace re-acceleration in order to get more constructive," the note said.

On Monday, Fiverr said it will reduce its workforce by about 250 positions as part of its plan to become an AI-focused company.

Fiverr also said it now expects to hit its long-term adjusted EBITDA margin of 25% in 2026, a year ahead of target.

RBC kept its sector perform rating and $28 price target.

Price: 23.48, Change: +0.55, Percent Change: +2.41