Shares of Fiverr International Ltd. (FVRR) tumbled 6.24% in pre-market trading on Wednesday following the company's release of its second-quarter financial results and third-quarter guidance. Despite reporting strong Q2 earnings that beat analyst expectations, investors appeared to focus on the company's outlook for the upcoming quarter.
Fiverr reported Q2 non-GAAP earnings of $0.69 per diluted share, surpassing the FactSet analyst consensus of $0.67. Revenue for the quarter reached $108.6 million, a 15% increase year-over-year and slightly above the $107.7 million expected by analysts. The company's performance was driven by solid execution across its Marketplace and Services segments, with notable growth in AI-related categories and continued momentum in Fiverr Pro's Managed Services.
However, the stock's sharp decline appears to be primarily due to Fiverr's Q3 revenue guidance, which fell short of market expectations. The company projects Q3 revenue between $105 million and $110 million, while analysts were anticipating $109 million. This guidance suggests a potential slowdown in growth, which may have spooked investors. Despite reiterating its full-year 2025 revenue outlook of $425 million to $438 million, the market's reaction indicates concerns about the company's near-term growth trajectory in an evolving economic landscape.
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