Fiverr International Ltd. (FVRR) is set to report first-quarter 2020 results on May 7. In the last reported quarter, the company delivered a positive earnings surprise of 46.7%.

Its earnings topped the Zacks Consensus Estimate in the trailing three quarters, delivering average surprise of 49.4%.

First-Quarter Expectations

Fiverr expects revenues in the range of $32-$33 million, indicating 35-39% year-over-year growth. The Zacks Consensus Estimate for the same is pegged at $33.32 million.

The company expects Adjusted EBITDA in the range of ($4.5)-($5.5) million.

Let’s see how things have shaped up for this announcement.

Performance in the Last Reported Quarter

Fiverr had reported fourth-quarter 2019 non-GAAP loss of 8 cents per share, beating the Zacks Consensus Estimate by 46.7%.

Revenues of $29.5 million also surpassed the Zacks Consensus Estimate by 2.7%.

Factors to Note

Fiverr’s marketing efficiency, and strong focus on product and technology enhancements remain major positives.

Further, the launch of four industry stores namely Gaming, E-commerce, Architecture and Politics is expected to have aided the company in expanding catalog and gaining momentum across larger businesses.

Fiverr’s accelerated Artificial Intelligence efforts through personalization and customer support are expected to have enhanced sales.

In addition, the company’s focus on international expansion is expected to have been a tailwind in the to-be-reported quarter. It expanded its websites to other languages, namely German and Spanish.

The above endeavors are expected to have expanded both active buyers and spend per buyer in the quarter to be reported.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Fiverr this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Fiverr has a Zacks Rank #3.

Stocks to Consider

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise in the upcoming releases.

Ericsson ERIC has an Earnings ESP of +25.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Baidu, Inc. BIDU has an Earnings ESP of +10.27% and a Zacks Rank of 2.

Inphi Corporation IPHI has an Earnings ESP of +20.04% and a Zacks Rank #2.

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Baidu, Inc. (BIDU) : Free Stock Analysis Report
 
Ericsson (ERIC) : Free Stock Analysis Report
 
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Fiverr International Lt. (FVRR) : Free Stock Analysis Report
 
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