It is doubtless a positive to see that the Fiverr International Ltd. (NYSE:FVRR) share price has gained some 35% in the last three months. But over the last three years we've seen a quite serious decline. Indeed, the share price is down a tragic 63% in the last three years. So it's good to see it climbing back up. After all, could be that the fall was overdone.

Since Fiverr International has shed US$93m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

Check out our latest analysis for Fiverr International

We don't think that Fiverr International's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Over three years, Fiverr International grew revenue at 8.8% per year. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 18% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.

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

Fiverr International is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. If you are thinking of buying or selling Fiverr International stock, you should check out this free report showing analyst consensus estimates for future profits.

A Different Perspective

We're pleased to report that Fiverr International shareholders have received a total shareholder return of 26% over one year. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. You could get a better understanding of Fiverr International's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.