If You Had Bought Fiverr International (NYSE:FVRR) Shares A Year Ago You'd Have Earned 650% Returns

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you find (and hold) a big winner, you can markedly improve your finances. For example, the Fiverr International Ltd. (NYSE:FVRR) share price is up a whopping 650% in the last year, a handsome return in a single year. Also pleasing for shareholders was the 84% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

It really delights us to see such great share price performance for investors.

Check out our latest analysis for Fiverr International

Because Fiverr International made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Fiverr International grew its revenue by 54% last year. That's stonking growth even when compared to other loss-making stocks. But the share price seems headed to the moon, up 650% as previously highlighted. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. You can see what analysts are predicting for Fiverr International in this interactive graph of future profit estimates.

A Different Perspective

Fiverr International shareholders should be happy with the total gain of 650% over the last twelve months. The more recent returns haven't been as impressive as the longer term returns, coming in at just 84%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Fiverr International is showing 2 warning signs in our investment analysis , you should know about...

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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