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Background: $FVRR is a fast-growing marketplace which connects contract workers (logo designers, social media specialists, translators, illustrators etc) with companies in need of their services.
(1) Network Effects - $FVRR ‘s platform has strong, reinforcing network effects. As more buyers (companies) use the platform, more sellers (specialists) are incentivized to join. As more sellers join, buyers are more enticed to use the platform, and so on.
(2) Total Addressable Market - $FVRR is operating in what they estimate to be a $115B TAM in the US alone. With just $52M in revenue last quarter, this company has a huge growth runway, even if they are not the only winner in this market.
(3) Revenue Growth - $FVRR is growing revenue at 88% Y/Y, continuing their streak of quarterly growth and accelerating their growth further.
(4) Optionality - $FVRR has a lot of different markets that it can expand into. The company has tons of room for international growth, and can also continue to expand gigs, increase offerings, and find new ways to bring buyers onto the platform.
(5) Management - Both of $FVRR ‘s co-founders are still involved, with the CEO @michakaufman having a 96% approval rating on Glassdoor. In addition, employees give the company a 4.5/5 star rating.
(6) Spending Per Buyer - In the last quarter, spending per buyer increased by 20%, meaning that existing buyers are spending more and more on the platform.
(7) Net Promoter Score - $FVRR has a buyer NPS of 67 and as seller NPS of 78, both world-class numbers showing that buyers and sellers are highly satisfied with the platform.
(8) Recurring Revenue - $FVRR ‘s revenue is largely recurring, as they take a cut of every transaction completed on their platform.
(9) Gross Margins - $FVRR also has high gross margins of 83%, an impressive number that continues to grow.
(10) New Buyers - In 2019, 42% of $FVRR ‘s revenue came from new buyers. These numbers have only been accelerated by the pandemic, exposing lots of new customers to the @fiverr platform.
Overall, I am very excited about this company’s growth prospects, and I was excited to start a small position this week. I will be looking to add to that position over the coming weeks and months. Would love to hear everyone’s thoughts!
Long $FVRR
Long $FVRR
