Core Insights - Fiverr International Ltd. has launched a Freelancer Equity Program aimed at granting shares to top-performing, eligible freelancers based in the U.S. [1][2] - The initiative is designed to enhance the financial value for freelancers, who are projected to make up half of the U.S. workforce by 2027 [1][2] - The program will provide eligible freelancers with equity grants of up to $10,000 in Fiverr shares over a four-year period, contingent on meeting annual eligibility requirements [2][3] Company Commitment - The CEO of Fiverr, Micha Kaufman, emphasized that this program reflects the company's commitment to innovation and investment in its talent community [2][3] - The initiative aims to foster continued growth and excellence among top freelancers while inspiring emerging talent on the platform [2][3] Market Context - Fiverr's mission is to democratize access to talent and provide opportunities for individuals to grow their businesses and brands [6] - The platform has served nearly 4 million customers globally in the past year, showcasing its role in maintaining flexible and adaptive workforces [6]

Core Insights - Fiverr International Ltd. filed its annual report on Form 20-F for the fiscal year ending December 31, 2024, with the SEC on February 19, 2025 [1] - The annual report includes audited consolidated financial statements and is available for shareholders upon request [2] Company Overview - Fiverr aims to democratize access to talent and provide opportunities for individuals to grow their businesses, brands, or dreams [3] - The platform served nearly 4 million customers globally in the past year, facilitating flexible and adaptive workforces [3] - Fiverr offers over 700 skills across various domains, including programming, digital marketing, and content creation [3]

Financial Performance - The company reported a total Gross Merchandise Value (GMV) of $1.5 billion for the fiscal year 2023, representing a 20% increase year-over-year[30]. - Annual active buyers reached 4 million, an increase of 15% compared to the previous year[30]. - The annual spend per buyer was $375, reflecting a 5% growth from the prior year[30]. - The marketplace take rate for the year was 20%, consistent with the previous year[30]. - The company anticipates revenue growth of 15% to 20% for fiscal 2024, driven by increased marketing efforts and product enhancements[30]. - In 2024, the company incurred an operating loss of $15.8 million but achieved a net income of $18.2 million and operating net cash flow of $83.1 million[48]. - The company has a substantial balance of cash and other liquid investments, which are considered passive assets for PFIC determination[192]. - The company's marketable securities totaled $411.0 million as of December 31, 2024, reflecting its substantial liquid investment portfolio[169]. Strategic Initiatives - The company plans to expand its market presence in Europe and Asia, targeting a 25% increase in user acquisition in these regions[30]. - New product features aimed at enhancing user experience are expected to launch in Q2 2024, with an estimated development cost of $10 million[30]. - A strategic partnership with a leading technology firm is expected to enhance service offerings and improve operational efficiency[30]. - The company has allocated $5 million for research and development in new technologies for the upcoming fiscal year[30]. - The company acquired AutoDS Ltd. and Praetolia Ltd. in 2024, indicating a focus on expanding its business through acquisitions[158]. User Engagement and Retention - The management emphasized a focus on improving customer retention rates, aiming for a 10% increase in the next year[30]. - User engagement on the platform may decline if the quality of user experience does not meet expectations, impacting revenue growth[47]. - The company emphasizes the need to maintain and improve platform quality to attract and retain users, highlighting the importance of effective support and user experience[56]. - The company faces challenges in maintaining user engagement on mobile devices, which are increasingly important for accessing the platform[88]. Market and Competitive Landscape - The company faces significant competition, which may weaken its market position and adversely affect results of operations[41]. - Established internet companies and social networks are increasingly targeting the freelance services market, intensifying competition[62]. - The competitive landscape includes various online and offline platforms, with local competitors potentially having stronger brand recognition and cultural understanding[60]. - The market for freelancers is rapidly evolving, and if it does not achieve widespread adoption, the company's business prospects could be adversely affected[53]. Regulatory and Compliance Risks - Compliance with evolving privacy and data protection laws, such as the GDPR, is critical, with significant penalties for noncompliance[75]. - The company is subject to a complex regulatory environment regarding data privacy, which may impact its ability to operate effectively in various markets[76]. - Compliance with evolving privacy laws may increase operational costs and affect user trust, potentially leading to significant liability[80]. - The company must adapt to evolving regulatory frameworks, including the Digital Services Act in the EU, which could impose fines of up to 6% of total annual worldwide turnover for non-compliance[107]. - The company may face significant compliance costs due to new regulations, such as the EU AI Act, which could impose fines of up to 7% of worldwide annual turnover for breaches[113]. Economic and Market Conditions - Adverse macroeconomic conditions, including inflation and recession, could materially affect consumer spending and demand for the company's services[41]. - The Israeli annual rate of inflation was 3.2%, 3.0%, and 5.3% for the years ended December 31, 2024, 2023, and 2022, respectively, impacting operational costs[167]. - The NIS depreciated against the U.S. dollar by 0.6%, 3.1%, and 13.2% for the years ended December 31, 2024, 2023, and 2022, respectively, affecting financial results[167]. Operational Risks - The company faces payment and fraud risks that could result in significant financial liabilities, including chargebacks and fines from credit card networks[139]. - Errors or disruptions in the platform could harm the brand and lead to significant operational impacts[95]. - The fulfillment of orders on the company's dropshipping platform is heavily dependent on third-party suppliers, and any disruptions could lead to customer dissatisfaction[135]. - The company relies on Amazon Web Services (AWS) for its platform operations, and any disruption in AWS services could impair its ability to meet financial targets[133]. Tax and Financial Liabilities - The company may face adverse tax implications due to evolving indirect tax laws and regulations affecting e-commerce platforms[161]. - The OECD's BEPS initiative has led to the implementation of international tax reforms, with 136 countries agreeing to a global minimum tax rate of at least 15% for multinational enterprises with revenue exceeding €750 million[173]. - The U.S. Inflation Reduction Act of 2022 introduced a 15% corporate minimum tax on certain corporations, which may impact the company's tax liabilities[176]. - The company may face increased audit activity from tax authorities due to the evolving international tax landscape, potentially affecting its effective tax rate[173]. Leadership and Management - The company’s future success is dependent on the leadership of its senior management, with no key man insurance policies in place[117]. - The company may struggle to enforce non-competition agreements with employees, potentially allowing competitors to benefit from the expertise of former employees[118]. Geopolitical Risks - The ongoing military conflicts in Israel may adversely affect the company's operations and limit its ability to market products, potentially leading to decreased revenues[207]. - The war has led to a downgrade in Israel's credit rating by agencies such as Moody's, S&P Global, and Fitch, which could impact the company's financial standing[211]. - The global perception of Israel may lead to increased sanctions and negative measures against Israeli companies, potentially impacting business operations[214]. - The absence of employees due to military service may materially and adversely affect the company's ability to conduct operations[212]. Intellectual Property and Data Security - The company has not sought patent protection for its platform, relying instead on confidentiality agreements and trade secret protections to safeguard its intellectual property[120]. - The company may face challenges in protecting its intellectual property rights, which could adversely affect its competitive position and financial condition[123]. - There is a risk of third parties misappropriating the company's data through various means, potentially impacting its operations[124]. - The company faces risks related to cybersecurity, including potential data breaches that could harm reputation and user trust[66].

Group 1 - Fiverr International Ltd. (NYSE: FVRR) is experiencing a sell-off following its earnings report, which presents a potential buying opportunity for investors [1] - The company provides a platform that connects freelancers with clients seeking various services [1] Group 2 - The article promotes a service that offers high-conviction investment ideas and strategies aimed at enhancing savings and retirement timelines through a blended trading and income approach [2]

Core Insights - Fiverr's fourth-quarter earnings exceeded guidance, with revenue at $103.7 million, a 13.3% increase compared to expectations of 9% to 12% growth [2] - Services revenue experienced significant growth, soaring over 102% year-over-year to $30.1 million [2] - Despite positive revenue growth, shares fell by 7% due to lower-than-expected EBITDA guidance and a decrease in active buyers from 4 million to 3.6 million [3] Revenue Performance - The company reported a revenue increase of 13.3% for the fourth quarter, surpassing the guided range [2] - Current quarter revenue growth is projected to accelerate to 11% to 16% year-over-year [2] - Spend per buyer increased by 9% year-over-year to $302 [3] Buyer Dynamics - The number of active buyers decreased to 3.6 million, down from 4 million the previous year [3] - New buyers in 2024 are increasingly coming from complex project needs, particularly in the Programming and Tech vertical, which rose from 7% to 11% over five years [4] Business Strategy and Growth - Fiverr's CEO highlighted the importance of service diversification in driving growth amid macroeconomic challenges [4] - The launch of Fiverr Go, an AI tool platform, aims to enhance freelancer capabilities and improve client interactions [5] - The CFO noted that while macro conditions remain challenging, the company is positioned for growth through strong execution and value-added products [5] Future Outlook - The company anticipates continued healthy double-digit growth in services revenue during 2025 [5] - Growth in marketplace revenue is expected to remain muted until macroeconomic conditions improve, but the company is optimistic about future rebounds [5]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $103.7 million, up 13% year-over-year, accelerating from 8% growth in Q3 2024 [25] - Adjusted EBITDA for Q4 was $20.7 million, with an adjusted EBITDA margin of 20%, an improvement of 240 basis points from a year earlier [25][26] - For the full year 2024, Marketplace revenue was $303.1 million, with a 27.6% take rate [28] - Services revenue was $88.4 million, representing year-over-year growth of 62% and contributing 23% to total revenue [30] Business Line Data and Key Metrics Changes - Marketplace revenue growth is expected to be muted in 2025 due to macroeconomic conditions, but larger projects are showing robust growth [29] - Services revenue is anticipated to continue growing at a healthy double-digit rate, with contributions to total revenue expected to exceed 30% in 2025 [31] Market Data and Key Metrics Changes - The number of annual active buyers was 3.6 million, with an annual spend per buyer of $302 [28] - Buyers spending over $10,000 showed resilient growth, while overall active buyers did not grow due to macro headwinds [28] Company Strategy and Development Direction - The company aims to pursue quality of revenue and upmarket opportunities in the Marketplace segment while expanding offerings in the Services segment [8] - Fiverr Go was launched as an open platform for personalized AI tools, designed to empower freelancers and reshape the power dynamic between creators and AI [13][14] - The Freelancer Equity Program was introduced to give top-performing freelancers equity shares in Fiverr, fostering loyalty and engagement [22][114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2025, despite macroeconomic challenges [7][26] - The company believes that a macro rebound will eventually benefit Marketplace revenue growth [29] - Management highlighted the importance of maintaining a talent-focused approach and empowering freelancers amid economic pressures [10][12] Other Important Information - Fiverr hosted about 100 community events in 2024, with over 100,000 registrations, emphasizing its commitment to the freelancer community [11] - The company is focused on optimizing the quality of revenue and expanding into larger buyers and complex projects [26] Q&A Session Summary Question: How will Fiverr Go help conversion and what is the impact on margins? - Fiverr Go is designed to enhance conversion by providing instant responses to customer inquiries, which is crucial for conversion rates [37] - Investments in Fiverr Go will continue, but guidance reflects expected improvements in EBITDA despite these investments [42] Question: Will Fiverr Go expand to all categories? - Currently, Fiverr Go operates in 60 categories, with plans to expand further as technology develops [48][50] Question: What drives higher spend per buyer in newer cohorts? - Factors include quality improvements, complex projects handled by Dynamic Matching, and a focus on high-value buyers [56] Question: How does Fiverr Go impact pricing and deflationary aspects? - Fiverr Go allows freelancers to maintain control over pricing, ensuring that human involvement remains integral to the creative process [102] Question: What is the outlook for Services revenue and advertising? - Services revenue is expected to grow significantly, with advertising products evolving and providing additional monetization opportunities [100] Question: Is there seasonality in Services revenue? - Services revenue is expected to exhibit flat behavior throughout the year, with no significant seasonality identified [107]

Fiverr International (FVRR) came out with quarterly earnings of $0.64 per share, missing the Zacks Consensus Estimate of $0.69 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.25%. A quarter ago, it was expected that this online marketplace for freelance services would post earnings of $0.62 per share when it actually produced earnings of $0.64, delivering a surprise of 3.23%.Ove ...

Fiverr International posted strong Q4 revenue growth, but challenges in marketplace engagement continue.Fiverr International (FVRR -0.90%), a leading online services marketplace, announced its fourth-quarter 2024 earnings on February 19, 2025.The report highlighted a revenue surpassing expectations while underscoring challenges within its core business. The company reported revenue of $103.7 million, exceeding analyst estimates of $101 million and surpassing the management's guidance range. However, the adj ...

Exhibit 99.1 Fiverr Announces Fourth Quarter and Full Year 2024 Results NEW YORK, February 19, 2025 - Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the fourth quarter and full year 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. ● Delivered an outstanding year of growth and profitabi ...

NEW YORK, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Fiverr (NYSE:FVRR) today announced the launch of Fiverr Go, a groundbreaking AI platform that fundamentally reimagines the relationship between human creativity and artificial intelligence. As AI increasingly harvests creative work without compensation or recognition, Fiverr Go introduces a sustainable, human-centric model that protects and amplifies creator rights while helping them scale their businesses. In an era where AI tools often exploit human creativity w ...