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Fiverr sees business rebound after initial Covid-19 decline

Fiverr sees business rebound after initial Covid-19 decline

April 8, 2020

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Fiverr International Ltd. (NYSE: FVRR), one of the five largest B2B-focused human cloud platforms, reported business activity rebounded after the company felt an initial impact from Covid-19 in March, founder and CEO Micha Kaufman wrote in a letter to shareholders.

“In the third week of March, we felt the impact of the pandemic for the first time with activity across our platform temporarily declining by 10-15% versus the previous week,” Kaufman wrote. “The following week the decline stabilized and exhibited a meaningful rebound, with the growth continuing robustly into the beginning of April.”

While the pandemic is far from being over, he wrote, the company is encouraged by what it is seeing so far and freelancers are signing on to the platform in record numbers. The Tel Aviv, Israel-headquartered company has also prioritized product initiatives aimed at helping its community amid the Covid-19 crisis.

“Our takeaway is simple - people are turning to Fiverr to explore new income sources as they now have more time at home and as global unemployment increases,” Kaufman wrote.

Fiverr’s revenue for the first quarter is expected to come in slightly above its guidance. However, Kaufman cautioned that is too early to draw conclusions looking forward because Covid-19’s impact remains uncertain.