Fiverr Announces First Quarter 2024 Results

• Strong start to the year with Q1 results ahead of expectations. We executed on our key strategic priorities, delivering revenue at the top end of our guidance, and Adjusted EBITDA ahead of our guidance range.
• GMV acceleration led by SPB expansion. Strong execution on Fiverr Business Solutions and our push into complex services enabled us to drive GMV acceleration amid a continued challenging hiring environment. SPB grew 8% y/y, the strongest growth in more than a year.
• Announced authorization of share repurchase program of up to $100M. We recently announced our first-ever stock repurchase program, demonstrating our confidence in Fiverr's long-term opportunity and commitment to creating shareholder value. Our strong balance sheet and cash flow generation enable us to return capital to shareholders and also support long-term strategic investments.
• Well on track to deliver 2024 guidance. We are raising the low end of our 2024 guidance range for both revenue and Adjusted EBITDA. We continue to navigate the current macro cycle with discipline and pragmatism, while investing strategically in upmarket, complex services and AI to drive long-term growth.

NEW YORK, May 09, 2024 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE:FVRR), the company that is changing how the world works together, today reported financial results for the first quarter 2024. Additional operating results and management commentary can be found in the Company's shareholder letter, which is posted to its investor relations website at investors.fiverr.com.

"We are off to a good start in 2024. While we continue to operate in a very challenging macro with a weak hiring environment and the lowest SMB sentiment in over a decade, our efforts in going upmarket and driving growth in complex services are paying off," said Micha Kaufman, founder and CEO of Fiverr. "As we think about building the next leg of growth for Fiverr, we are putting trust as our north star, and embracing AI to deepen our relationship with our customers and deliver the next-gen matching experience on our marketplace."

"Our financial performance this quarter reflects the strength of our underlying business and the discipline and efficiency in our execution strategy," said Ofer Katz, President and CFO of Fiverr. "We also announced our first-ever share repurchase program as we optimize our capital allocation strategy to deliver shareholder value while investing into the long-term growth of the company. For the remainder of 2024, we look to build on the momentum across our product portfolio and are on track to deliver on our full year guidance."

First Quarter 2024 Financial Highlights

• Revenue in the first quarter of 2024 was $93.5 million, compared to $88.0 million in the first quarter of 2023, an increase of 6.3% year over year.
• Active buyers¹ as of March 31, 2024 was 4.0 million, compared to 4.3 million as of March 31, 2023, a decrease of 6% year over year.
• Spend per buyer¹ as of March 31, 2024 reached $284, compared to $262 as of March 31, 2023, an increase of 8% year over year.
• Take rate¹ for the period ended March 31, 2024 was 32.3%, up from 30.4% for the period ended March 31, 2023, an increase of 190 basis points year over year.
• GAAP gross margin in the first quarter of 2024 was 83.5%, an increase of 130 basis points from 82.2% in the first quarter of 2023. Non-GAAP gross margin¹ in the first quarter of 2024 was 84.9%, an increase of 100 basis points from 83.9% in the first quarter of 2023.
• GAAP net income in the first quarter of 2024 was $0.8 million, or $0.02 basic and diluted net income per share, compared to ($4.3) million net loss, or ($0.11) basic and diluted net loss per share, in the first quarter of 2023.
• Non-GAAP net income¹ in the first quarter of 2024 was $21.7 million, or $0.56 basic non-GAAP net income per share¹ and $0.52 diluted non-GAAP net income per share¹, compared to $14.6 million non-GAAP net income, or $0.39 basic non-GAAP net income per share¹ and $0.36 diluted non-GAAP net income per share¹, in the first quarter of 2023.
• Adjusted EBITDA¹ in the first quarter of 2024 was $16.0 million, compared to $11.3 million in the first quarter of 2023. Adjusted EBITDA margin¹ was 17.1% in the first quarter of 2024, compared to 12.8% in the first quarter of 2023.

Financial Outlook

Our Q2'24 outlook and updated full year 2024 guidance reflects the recent trends on our marketplace and is largely consistent with our prior expectations.

Conference Call and Webcast Details

Fiverr's management will host a conference call to discuss its financial results on Thursday, May 9, 2024, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr's Investor Relations website. An archived version will be available on the website after the call. To participate in the Conference Call, please register at the link here.

About Fiverr

Fiverr's mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, over 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture.

Don't get left behind - come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on X, Instagram, and Facebook.

Investor Relations:
Jinjin Qian
investors@fiverr.com

Press:
Siobhan Aalders
press@fiverr.com