FVRR
📉 Positioned as the second-largest freelance platform, directly competing with Upwork but generally considered less favorable due to smaller overall transaction volume (GSV).
💼 Charges significantly higher commission rates (20% to freelancers vs. Upwork’s 10%) and operates without a formal escrow system, potentially impacting user trust and preference.
❌ Despite having four times more active clients than Upwork, lower spending per client results in only half the revenue, suggesting a focus on smaller, potentially less lucrative projects and a weaker overall market position.
@Invierteygana:
“The second stock is Fiverr, which is Upwork’s main competitor. Both stocks have had similar trajectories. The company is very similar; most of its revenue comes from commissions charged for using the platform, and it also has a small portion of revenue from services to businesses, a revenue breakdown practically identical to Upwork’s. Since they are similar companies and we’ve already analyzed the business, let’s look at the differences to see which is better. Regarding commissions, Fiverr charges 20% to freelancers and 5.5% to clients, making its commissions considerably higher. Fiverr doesn’t operate with an escrow deposit; instead, it holds client payments for 14 days to ensure freelancers are paid once the work is completed. Fiverr invests this money and earns returns, which is why we also see significant financial income for Fiverr. The evolution of revenue and profits is also very similar to Upwork’s, recently becoming profitable. Looking at the number of active clients on the platform, we see two years of declines, with a 10% drop in 2024, compared to the 2% drop seen in Upwork. Still, Fiverr has four times more active clients than Upwork. This is because Upwork focuses more on larger projects and longer-term relationships, while Fiverr is geared towards smaller, one-off jobs. Consequently, Fiverr’s revenue is half of Upwork’s despite having four times the clients, as these clients spend much less. This makes Upwork the larger platform and Fiverr the second largest. This allows Upwork to have a stronger network effect and dedicate twice as much money to R&D. For these reasons—greater client retention and more competitive fees—I consider Upwork a better investment than Fiverr, especially since their valuations are similar, with almost the same price-to-sales ratio. Otherwise, they are very similar companies.”
Watch the exact part of the video where @Invierteygana talks about Fiverr International Ltd. here:
Watch the video on YouTube
Read more articles analyzing Fiverr International Ltd. (FVRR) at the provided link. FVRR stock.
