Fiverr International's Accrual Ratio and Unusual Items: A Closer Look at the Company's Earnings and Cash Flow

Fiverr International's (NYSE:FVRR) earnings release was robust, but the market didn't seem to notice. The company's accrual ratio of -0.43 indicates high-quality earnings, with statutory earnings significantly lower than free cash flow. Free cash flow improved over the last twelve months, and unusual items reduced profit by $16m. The accrual ratio reflects the impact of unusual items on statutory profit, and analysts forecast future profitability.