Friday 14 July 2023

Fiverr – Investing in the King of Platform for Freelancers

Contributed by: The Big Fat Whale

It has been a treasure-hunting time for battered growth stocks. After our
previous article on Teladoc, this time round we would like to touch on Fiverr. We are trying to shortlist companies that have a proof of concept, a runway for sustainable growth and a sound business model.

Fiverr is a platform that connects freelancers with business owners looking for services in various digital projects, including website design, content writing, and voice-overs. In recent times, even artificial intelligence and data analytics is added to their portfolio of services. Their main competitor would be Upwork and


Growth of the Freelance Market

According to a report by Growth Market Reports, the online market was valued at USD 5.1 billion in 2022 and is expected to reach USD 18.3 billion, expanding at a CAGR of 15.1% by the end of 2031.

The market growth is attributed to the rising adoption of freelance platforms by established companies around the world increasing the talent pool for businesses and providing secured jobs and payments to freelancers.

Source: Fiverr Investor Deck

There is a huge addressable market for freelance services of 247 billion US dollars just in the US and we have not touched the other parts of the world yet which Fiverr have a foothold on. To put things in perspective, Fiverr's revenue for 2022 is just 337 million US dollars.


What is Going Well?

With the world moving more into an open work concept where freelancers and remote working could be part of the human resource set-up. Adding on, the migration of traditional freelancing activity to the online world is just in its infancy with a good growth runway.  The prospect of Fiverr's business model as a platform marketplace for freelancers and employers looks sustainable and viable.

Source: Fiverr Investor Deck

Also, Fiverr has one of the most recognisable brands in the freelance marketplace. Their bigger competitors are Upwork and Their growth metrics such as active buyers and spend per buyer have also been on a good upward trajectory. The average spend is 262 dollars which is lower than their main competitors as Fiverr clients are usually acquiring a one-off service rather than on a long-term project basis.

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Saturday 1 July 2023

Is Teladoc a Buy Now?- Revisiting Investment Thesis

Contributed by: The Big Fat Whale

With the growth stocks being in a slum, it is a time for value-oriented investors to go through the rampage and see if there are any potential multi-baggers to be found.  We love to search in out-of-favour sectors and themes, as the margin of safety would be more prevalent.

Previously, we published our research on Teladoc which is almost 1.5 years ago, our closing thoughts were that it was in a sunrise industry with a bright outlook, but despite them falling 60% from $300 to $125, we have our reservations and preferred to stay on the sidelines. We advise you to go through our previous article so as to have a better comprehension of the issues we will be touching on in this article.


It has since fallen by another 80%, from $125 to its current level of $25. The dramatic fall has attracted our attention and we decided to revisit it to see if there could be a change to our initial thesis of staying on the sidelines.

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