Shares of Fiverr International (FVRR) - Get Fiverr International Ltd. Report slumped after the gig-work platform reported second-quarter results that topped estimates, but third-quarter guidance missed the mark.
In the second quarter the Tel Aviv company earned 19 cents a share on revenue of $75.3 million. Analysts surveyed by FactSet were expecting earnings of 14 cents a share on revenue of $74.8 million.
"We are accelerating the pace of investments" to enable "more buyers and sellers to participate in the digital service economy," Chief Executive Micha Kaufman said.
For the third quarter, the company expects a "post-COVID effect" to weigh on results as restrictions are lifted in different parts of the world. The company expects more time out of the home to result in "less time on screens."
For the third quarter, Fiverr expects revenue of $68 million to $72 million. For the year the company expects revenue between $280 million and $288 million.
Analysts are expecting revenue of $80.3 million for the third quarter and $307 million for the year.
The company says that the reduced screen time will translate into "modest new customer cohorts and less activity for older cohorts."
Shares of Fiverr at last check dropped 24% to $175.75.
Active buyers in the second quarter grew to 4 million from 2.8 million in the year-earlier quarter, a 43% increase. Spending per buyer rose 23% to $226 from $184 a year earlier.
During the quarter the company unveiled partnerships with customer-relationship-management-software giant Salesforce (CRM) - Get salesforce.com, inc. Report and website-design platform Wix (WIX) - Get Wix.com Ltd. Report, aiming to streamline Fiverr's operations.