Core Insights - Small businesses face significant marketing challenges, particularly in brand awareness and customer retention, yet 70% spend less than five hours weekly addressing these issues [1][2] - The survey highlights three critical digital marketing priorities: building brand awareness (42%), creating engaging content (40%), and retaining customers (33%) [2] - There is a growing reliance on freelancers and AI tools among small business owners to manage marketing efforts due to limited time and resources [3] Digital Marketing Trends - Nearly half (46%) of small business owners utilize freelance services for their primary business, while 48% use them for side hustles [3] - Freelancers are primarily engaged for visual brand elements (45%) and strategic marketing services (28%), which are essential for establishing a business's marketing presence [3] - Small businesses plan to prioritize digital marketing investments through 2025, with 49% focusing on digital marketing and social media, 39% on branding, and 34% on content creation [8] AI Adoption - A significant majority (77%) of small business owners are currently using generative AI for various business needs, with only 17% not planning to incorporate AI tools within the next year [8]

For the quarter ended March 2025, Fiverr International (FVRR) reported revenue of $107.18 million, up 14.6% over the same period last year. EPS came in at $0.64, compared to $0.52 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $105.53 million, representing a surprise of +1.57%. The company delivered an EPS surprise of -4.48%, with the consensus EPS estimate being $0.67.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $107.2 million, up 15% year over year, accelerating from 30% year over year growth in Q4 2024 [15] - Adjusted EBITDA for Q1 was $19.4 million, representing an adjusted EBITDA margin of 18%, an improvement of 100 basis points from a year earlier [15] - Free cash flow totaled $27.4 million, up 31.6% year over year [15] Business Line Data and Key Metrics Changes - Marketplace revenue reached $77.7 million, driven by 3.5 million active buyers and a spend per buyer of $3.09, with a marketplace take rate of 27.7% [16] - Services revenue was $29.5 million, representing year over year growth of 94%, driven by Fiverr Ads, SellerPlus, and AutoDS [18] Market Data and Key Metrics Changes - The overall demand for freelancing has been stable, with no direct exposure to tariffs [7] - Fiverr's strategic focus on high-value buyers has allowed the company to maintain growth despite a flat macroeconomic environment [61] Company Strategy and Development Direction - The company has set three strategic priorities for 2025: strengthening the marketplace by going upmarket, expanding value-added services, and investing in AI [8] - Fiverr Pro has been a key growth driver, with successful large deals closed without a traditional sales organization [9] - Fiverr Go has shown strong engagement, with over 6,000 sellers activated and 200,000 buyers interacting with the product [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business for the remainder of the year, raising guidance for both revenue and adjusted EBITDA [19] - The company anticipates services revenue to exceed 30% of total revenue for the full year 2025 [18] - Management noted that the macroeconomic environment remains stable, with no significant changes expected [60] Other Important Information - The Board authorized an additional $100 million for the stock repurchase program, reflecting confidence in long-term opportunities [16] - The company is on track to reach a 25% adjusted EBITDA target by 2027 and aims for a 14% CAGR in free cash generation for the three years ending in 2027 [20] Q&A Session Summary Question: Insights on Fiverr Go and broader demand environment - Management highlighted that Fiverr Go is designed to enhance customer satisfaction and conversion, with strong initial results [27] - The demand for freelancing is stable, with Q1 showing better opportunities than in previous years [31] Question: Dynamics for buyers using Fiverr Go - Buyers appreciate the always-on nature of Fiverr Go, which provides instant results and enhances their confidence in decision-making [42] Question: Sustainability of services revenue growth - Management confirmed that services revenue growth is sustainable and expected to increase as more value-added services are introduced [52] Question: Impact of macroeconomic volatility on freelancing - Management noted that enterprises are increasingly seeking freelancers to complement their internal teams, especially during times of market volatility [59] Question: Sales and marketing opportunities in Q1 - Management indicated that they seized marketing opportunities based on geo, channel, and category analysis, which will continue into Q2 [89] Question: Incentives for Fiverr Pro customers - Fiverr Pro offers a unique experience with high-touch services and exclusive products, incentivizing buyers to engage and spend more [90]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $107.2 million, up 15% year over year, accelerating from 30% year over year growth in Q4 2024 [15] - Adjusted EBITDA for Q1 was $19.4 million, representing an adjusted EBITDA margin of 18%, an improvement of 100 basis points from a year earlier [15] - Free cash flow totaled $27.4 million, up 31.6% year over year [15] Business Line Data and Key Metrics Changes - Marketplace revenue reached $77.7 million, driven by 3.5 million active buyers and a take rate of 27.7% [16] - Services revenue was $29.5 million, representing year over year growth of 94%, and accounted for 27.5% of total revenue in Q1 [18] Market Data and Key Metrics Changes - The overall demand for freelancing has been stable, with no direct exposure to tariffs [7] - The company has seen strong engagement for Fiverr Go, with over 6,000 sellers activated and more than 200,000 buyers interacting with the product [11] Company Strategy and Development Direction - The company’s strategic priorities include strengthening the marketplace by going upmarket, expanding value-added services, and investing in AI [8] - Fiverr Pro has been a focus, with enhancements to the product offerings aimed at driving buyer conversion and maximizing customer engagement [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business for the remainder of the year, raising guidance for both revenue and adjusted EBITDA [19] - The macroeconomic environment is viewed as stable, with opportunities for growth identified in business solutions [30] Other Important Information - The board authorized an additional $100 million for the stock repurchase program, reflecting confidence in long-term business opportunities [16] - The company expects services revenue to exceed 30% of total revenue for the full year 2025 [18] Q&A Session Summary Question: Insights on Fiverr Go and broader demand environment - Management highlighted that Fiverr Go is designed to enhance customer satisfaction and conversion rates, with strong initial results [26][30] Question: Dynamics for buyers using Fiverr Go - Buyers appreciate the always-on nature of the service, which provides instant results and enhances their confidence in decision-making [41] Question: Sustainability of services revenue growth - Management confirmed that services revenue growth is sustainable and expected to increase as more value-added services are introduced [50] Question: Impact of macroeconomic volatility on freelancing - Management noted that enterprises are increasingly seeking freelancers to complement their internal teams, especially during periods of market volatility [58] Question: Sales and marketing opportunities in Q1 - The company capitalized on various opportunities across different channels and geographies, which contributed to strong performance in Q1 [88] Question: Incentives for Fiverr Pro customers - Customers are incentivized to engage with Fiverr Pro through exclusive services, account management, and rewards for spending above a certain threshold [90]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $107.2 million, up 15% year over year, accelerating from 30% year over year growth in Q4 2024 [15] - Adjusted EBITDA for Q1 was $19.4 million, representing an adjusted EBITDA margin of 18%, an improvement of 100 basis points from a year earlier [15] - Free cash flow totaled $27.4 million, up 31.6% year over year [15] Business Line Data and Key Metrics Changes - Marketplace revenue reached $77.7 million, driven by 3.5 million active buyers and a take rate of 27.7% [16] - Services revenue was $29.5 million, representing year over year growth of 94%, and accounted for 27.5% of total revenue in Q1 [18] Market Data and Key Metrics Changes - The overall demand for freelancing has been stable, with no direct exposure to tariffs [6] - The company has seen strong engagement for Fiverr Go, with over 6,000 sellers activated and over 200,000 buyers interacting with the product [11] Company Strategy and Development Direction - The company’s strategic priorities for 2025 include strengthening the marketplace by going upmarket, expanding value-added services, and investing in AI [7] - Fiverr Pro has been a key focus, with enhancements to product offerings aimed at driving buyer conversion and maximizing customer leads [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business for the remainder of the year, citing a stable demand environment and successful execution of strategic initiatives [6][19] - The company raised its full-year 2025 revenue guidance to a range of $425 million to $438 million, reflecting a year-over-year growth of 9% to 12% [19] Other Important Information - The Board authorized an additional $100 million for the stock repurchase program, indicating strong confidence in long-term opportunities [16] - The company is on track to reach a 25% adjusted EBITDA target by 2027 and aims for a 14% CAGR in free cash generation for the three years ending in 2027 [20] Q&A Session Summary Question: Insights on Fiverr Go and broader demand environment - Management highlighted that Fiverr Go is designed to enhance customer satisfaction and conversion, with strong initial results and plans for scaling across more categories [24][25] - The demand for freelancing remains stable, with Q1 showing better opportunities than in the past two years [29] Question: Dynamics for buyers using Fiverr Go - Buyers appreciate the always-on nature of Fiverr Go, which provides instant responses and enhances their confidence in decision-making [39] Question: Sustainability of services revenue growth - Management confirmed that services revenue growth is sustainable and expected to increase as a percentage of total revenue [46] Question: Impact of macroeconomic volatility on freelancing - Management noted that enterprises are increasingly seeking freelancers to complement their internal teams, especially during times of market volatility [54] Question: Sales and marketing opportunities in Q1 - The company capitalized on various opportunities across geographies and channels, which contributed to strong performance in Q1 [84] Question: Incentives for Fiverr Pro customers - Customers are incentivized to engage with Fiverr Pro through exclusive access to high-tier sellers and additional services that enhance their experience [85]

Core Viewpoint - Fiverr International (FVRR) reported quarterly earnings of $0.64 per share, missing the Zacks Consensus Estimate of $0.67 per share, but showing an increase from $0.52 per share a year ago, indicating a mixed performance in earnings expectations [1][2]. Financial Performance - The company posted revenues of $107.18 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.57% and showing a year-over-year increase from $93.52 million [2]. - Over the last four quarters, Fiverr has exceeded consensus revenue estimates three times, but has only surpassed EPS estimates once [2]. Stock Performance - Fiverr shares have declined approximately 15.6% since the beginning of the year, contrasting with the S&P 500's decline of 4.7% [3]. - The current Zacks Rank for Fiverr is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $104.93 million, and for the current fiscal year, it is $2.88 on revenues of $426.19 million [7]. - The trend of estimate revisions for Fiverr is mixed, which could change following the recent earnings report [6]. Industry Context - The Internet - Commerce industry, to which Fiverr belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Fiverr's stock performance [5].

Core Insights - Fiverr International Ltd. reported strong financial results for Q1 2025, with revenue and margins exceeding expectations, driven by stable Marketplace performance and robust Services revenue growth [2][4][5] - The company is optimistic about its AI product expansion and has raised its revenue and Adjusted EBITDA guidance for 2025, reflecting confidence in navigating a volatile macro environment [2][4][6] Financial Performance - Q1 2025 revenue was $107.2 million, a 14.6% increase from $93.5 million in Q1 2024 [5] - Marketplace revenue slightly declined to $77.7 million, down 0.8% year over year, while Services revenue surged by 94.0% to $29.5 million [5][22] - Annual active buyers decreased to 3.5 million, a decline of 10.6% from 4.0 million in the previous year, but annual spend per buyer increased by 8.8% to $309 [5][22] - GAAP net income for Q1 2025 was $0.8 million, consistent with the previous year, while non-GAAP net income rose to $25.0 million from $21.7 million [5][25] Operational Highlights - The launch of Fiverr Go has improved buyer conversion rates, leading to faster and higher-quality purchase decisions [2][4] - Fiverr Pro is gaining traction with multi-month contracts in various sectors, enhancing the company's land-and-expand strategy [4] - The company is focused on maintaining expense discipline and capital allocation to achieve its three-year targets for Adjusted EBITDA and free cash flow [2][4] Guidance and Outlook - For Q2 2025, Fiverr expects revenue between $105 million and $109 million, with full-year 2025 revenue guidance set at $425 million to $438 million, reflecting year-over-year growth of 9% to 12% [7] - Adjusted EBITDA for Q2 2025 is projected to be between $20 million and $22 million, with full-year guidance of $84 million to $90 million [7]

Wall Street analysts forecast that Fiverr International (FVRR) will report quarterly earnings of $0.67 per share in its upcoming release, pointing to a year-over-year increase of 28.9%. It is anticipated that revenues will amount to $105.53 million, exhibiting an increase of 12.8% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 3.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, ha ...

Company Performance - Fiverr International's stock closed at $26.55, reflecting a +1.65% increase compared to the previous day, outperforming the S&P 500's gain of 1.47% [1] - Over the past month, Fiverr's stock has risen by 11.43%, significantly surpassing the Retail-Wholesale sector's gain of 0.12% and the S&P 500's loss of 0.47% [1] Upcoming Financial Results - Fiverr International is set to announce its earnings on May 7, 2025, with projected earnings of $0.67 per share, indicating a year-over-year growth of 28.85% [2] - The consensus estimate for revenue is $105.53 million, representing a 12.84% increase compared to the same quarter of the previous year [2] Full Year Estimates - Analysts expect Fiverr to report earnings of $2.88 per share and revenue of $426.19 million for the full year, marking increases of +21.01% and +8.87% respectively from the previous year [3] Analyst Estimates and Outlook - Recent changes to analyst estimates for Fiverr suggest a favorable outlook on the company's business health and profitability [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Fiverr International at 3 (Hold) [6] Valuation Metrics - Fiverr International is trading with a Forward P/E ratio of 9.09, which is significantly lower than the industry average of 23.12, indicating it is trading at a discount [7] - The Internet - Commerce industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 92, placing it in the top 38% of over 250 industries [7]

Core Viewpoint - Fiverr International (FVRR) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates [1][2]. Earnings Estimates and Stock Price Impact - Changes in a company's future earnings potential, reflected in earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors often use earnings estimates to calculate the fair value of a company's shares, leading to significant stock transactions that influence price movements [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Fiverr suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and near-term stock movements, making tracking these revisions crucial for investment decisions [5]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks, providing valuable insights for investors [6]. Specific Earnings Estimates for Fiverr - Fiverr is expected to earn $2.88 per share for the fiscal year ending December 2025, representing a year-over-year change of 21% [7]. - Over the past three months, the Zacks Consensus Estimate for Fiverr has increased by 20.3%, indicating a positive trend in earnings expectations [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced proportion of 'buy' and 'sell' ratings across its universe of over 4000 stocks, with only the top 20% receiving favorable ratings [8][9]. - Fiverr's upgrade to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].