Artificial intelligence (AI) is currently a major trend, with Nvidia being a top beneficiary as its stock has surged nearly 200% this year. However, investors might consider other promising companies benefiting from AI's rise, such as Fiverr (FVRR -1. 75%), a prominent player in the gig economy. Fiverr's stock recently jumped by around 30% in one day following strong third-quarter results. While a single strong quarter isn't everything, there's reason to hold onto Fiverr's shares for the coming decade. Fiverr and AI Developments Fiverr operates as a freelancing platform, connecting companies and individuals with talent across various specialties. The platform's use of freelancers offers cost-effective and flexible staffing solutions, with portfolios, ratings, and reviews enhancing the selection process. As AI gains prominence, many businesses realize its value but lack the resources to hire full-time AI specialists. Fiverr addresses this need by connecting businesses with AI experts on its platform and has also launched AI-based tools like Dynamic Matching to assist businesses with complex job requirements. The company is developing additional AI tools aimed at boosting productivity and efficiency. Sustaining Profitable Growth While AI presents growth opportunities for Fiverr, the company has also focused on becoming more cost-effective and efficient. These efforts are yielding positive results, as seen in its profitability over several periods. In the third quarter, Fiverr's revenue rose nearly 8% year over year to $99. 6 million, despite a 9% drop in active buyers.

Remaining buyers, however, increased their spending per order by 9%. Fiverr's GAAP net earnings per share fell to $0. 04 from $0. 07 in the previous year, but adjusted EPS rose 16% to $0. 64. Today, investors seek financial discipline alongside growth, and Fiverr is progressing well in this direction. Long-term Outlook Fiverr is in the early stages of its AI initiatives and remains a key entity in the growing gig economy. Although the gig economy has retreated from its pandemic-era highs, it holds promising long-term prospects. Businesses benefit from freelancers due to their flexibility, enabling workers to enjoy time at home, avoid commuting, be self-employed, and potentially travel while working remotely. This flexibility is why the gig economy is anticipated to keep expanding. Fiverr's AI tools, combined with rising demand for AI services, will likely serve as enduring growth drivers. Moreover, Fiverr's acquisition of dropshipping specialist AutoDS positions it within another rapidly growing sector. Despite a recent rise in its stock following earnings, Fiverr's shares continue to present a worthwhile investment opportunity.