The Stock of Fiverr Company Collapsed Huge! What awaits Investors?
Fiverr International (NYSE: FVRR) stocks are under massive pressure in US trading on the NYSE on Thursday after the online marketplace issued a weak business outlook. According to Fiverr, people travel more, take more vacations, and spend less time online.
The reason: the reopening of the economy in many parts of the world. As a result, FVRR had to scale back its financial outlook after growing 60% in the second quarter. Fiverr expects sales of $ 68.0 million to $ 72.0 million in the third quarter.
By consensus, it was estimated at $ 80.2 million. For the full year, the company reduced its revenue forecast to between $ 280.0 million and $ 288 million. When the Q1 figures were presented, sales were still expected to be $ 302.0 to 308.0 million.
Adjusted EBITDA forecast was lowered from $ 19.5 to $ 24.5 million to $ 12.0 to $ 14.0 million.
Commenting on the update to the outlook, Fiverr said, "The lower online activity translates into fewer new customers and lower activity among the older generation. We are making this forecast accordingly.
Given the uncertainty about the ongoing impact of the COVID-19 pandemic on economies worldwide we will inform investors about the further development of the business, depending on the development of the situation. "
Fiverr shares lost almost a quarter of their value around 4:04 p.m. CET. In mid-February, the paper had reached a record high of $ 336. The paper currently only changes hands for $ 182.