Fiverr reported soft earnings but powerful sales growth in the third quarter, and future business prospects look robust. Here's how the freelance services vendor is moving forward. Freelance marketplace operator Fiverr International (FVRR 11.97%) reported fantastic third-quarter results on Wednesday morning, sending the stock skyward. Share prices rose as much as 30.4% in the morning session, retreating to a still-impressive 15% gain by 12:45 p.m. ET. Fiverr's mixed Q3 results Fiverr's third-quarter revenue ...

Financial Performance - For the quarter ended September 2024, Fiverr International reported revenue of $99.63 million, which is an increase of 7.7% year-over-year [1] - Earnings per share (EPS) for the quarter was $0.64, up from $0.55 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $96.37 million by 3.38% [1] - The EPS also surpassed the consensus estimate of $0.62 by 3.23% [1] Key Metrics - Active buyers reached 3.8 million, exceeding the average estimate of 3.73 million from three analysts [3] - The take rate was reported at 33.9%, slightly above the average estimate of 33.8% [3] - Spend per buyer was $296, compared to the average estimate of $297.72 [3] Stock Performance - Fiverr's shares have returned +3.3% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

[Management Commentary and Q3 Highlights](index=1&type=section&id=Management%20Commentary%20and%20Q3%20Highlights) Management highlighted strong Q3 results, exceeding guidance and raising full-year outlook, driven by value-added services and strategic focus on larger customers - CEO Micha Kaufman emphasized the success of value-added products and the integration of GenAI to build new experiences for larger customers[3](index=3&type=chunk) - CFO Ofer Katz noted that top and bottom lines exceeded expectations, putting the company on track for its three-year targets, alongside a disciplined capital allocation strategy[3](index=3&type=chunk) - Key strategic initiatives include growing wallet share with a **9% YoY increase in spend per buyer**, enabling complex projects with tools like Dynamic Matching, and raising full-year guidance[4](index=4&type=chunk) [Third Quarter 2024 Financial Highlights](index=2&type=section&id=Third%20Quarter%202024%20Financial%20Highlights) Q3 2024 revenue grew 8% to $99.6 million, driven by increased spend per buyer and take rate, despite fewer active buyers Q3 2024 Key Financial & Operational Metrics (YoY Comparison) | Metric | Q3 2024 | Q3 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue ($M) | $99.6 | $92.5 | +8% | | Active Buyers (M) | 3.8 | 4.2 | -9% | | Spend per Buyer ($) | $296 | $271 | +9% | | Take Rate (%) | 33.9% | 31.3% | +260 bps | | GAAP Net Income ($M) | $1.4 | $3.0 | -53% | | Non-GAAP Net Income ($M) | $24.6 | $22.6 | +8.8% | | Adjusted EBITDA ($M) | $19.7 | $16.5 | +19.4% | | Adjusted EBITDA Margin (%) | 19.7% | 17.9% | +180 bps | [Financial Outlook](index=3&type=section&id=Financial%20Outlook) Fiverr projects Q4 2024 revenue of $100.2M-$102.2M and raised full-year 2024 guidance to $388.0M-$390.0M revenue Financial Outlook for Q4 and Full Year 2024 | Metric | Q4 2024 Guidance | FY 2024 Guidance | | :--- | :--- | :--- | | Revenue ($M) | $100.2 - $102.2 | $388.0 - $390.0 | | YoY Growth (%) | 9% - 12% | 7% - 8% | | Adjusted EBITDA ($M) | $19.5 - $21.5 | $73.0 - $75.0 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Detailed unaudited consolidated financial statements for Q3 2024, including Balance Sheets, Statements of Operations, and Cash Flows [Consolidated Balance Sheets](index=4&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased to $1.035 billion, while total liabilities rose to $710.3 million, leading to a decrease in shareholders' equity Consolidated Balance Sheet Summary (in thousands) | Account | Sep 30, 2024 (Unaudited, $ thousands) | Dec 31, 2023 (Audited, $ thousands) | | :--- | :--- | :--- | | **Total Current Assets** | **$696,618** | **$594,476** | | Cash and cash equivalents | $159,245 | $183,674 | | **Total Assets** | **$1,034,810** | **$1,023,604** | | **Total Current Liabilities** | **$232,906** | **$205,425** | | Convertible notes | $457,220 | $455,305 | | **Total Liabilities** | **$710,324** | **$667,830** | | **Total Shareholders' Equity** | **$324,486** | **$355,774** | [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Q3 2024 revenue reached $99.6 million, but GAAP net income declined to $1.4 million due to increased operating expenses Consolidated Statement of Operations Summary (in thousands) | Account | Q3 2024 (Unaudited, $ thousands) | Q3 2023 ($ thousands) | | :--- | :--- | :--- | | Revenue | $99,628 | $92,532 | | Gross Profit | $80,735 | $77,457 | | Total Operating Expenses | $84,211 | $79,802 | | Operating Loss | $(3,476) | $(2,345) | | Net Income | $1,353 | $3,025 | | Diluted Net Income Per Share ($) | $0.04 | $0.07 | [Consolidated Statements of Cash Flows](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operations decreased to $10.9 million, with significant cash used in investing and financing activities Consolidated Statement of Cash Flows Summary (in thousands) | Activity | Q3 2024 (Unaudited, $ thousands) | Q3 2023 ($ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,867 | $23,399 | | Net cash provided by (used in) investing activities | $(13,774) | $(55,673) | | Net cash provided by (used in) financing activities | $(26,682) | $198 | | Decrease in cash and cash equivalents | $(29,484) | $(32,362) | [Key Performance Metrics](index=7&type=section&id=KEY%20PERFORMANCE%20METRICS) Active buyers decreased to 3.77 million, but annual spend per buyer increased to $296 for the LTM period Key Performance Metrics (LTM as of Sep 30) | Metric | 2024 | 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Annual active buyers (thousands) | 3,773 | 4,164 | -9.4% | | Annual spend per buyer ($) | 296 | 271 | +9.2% | [Reconciliation of GAAP to Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Detailed reconciliations of GAAP to non-GAAP financial measures, adjusting for non-cash and non-recurring items for clarity [Gross Profit Reconciliation](index=7&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20GROSS%20PROFIT) Non-GAAP gross profit reached $83.7 million (84.0% margin) in Q3 2024, adjusted from GAAP gross profit of $80.7 million Q3 2024 Gross Profit Reconciliation (in thousands) | Account | Amount ($ thousands) | | :--- | :--- | | GAAP gross profit | $80,735 | | Add: Share-based compensation | $514 | | Add: Depreciation and amortization | $2,415 | | **Non-GAAP gross profit** | **$83,675** | | **Non-GAAP gross margin (%)** | **84.0%** | [Net Income Reconciliation](index=7&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20INCOME%20%28LOSS%29%20TO%20NON-GAAP%20NET%20INCOME%20AND%20NET%20INCOME%20PER%20SHARE) Q3 2024 Non-GAAP net income was $24.6 million ($0.64 per share), adjusted from GAAP net income of $1.4 million Q3 2024 Net Income Reconciliation (in thousands) | Account | Amount ($ thousands) | | :--- | :--- | | GAAP net income | $1,353 | | Add: Depreciation and amortization | $3,392 | | Add: Share-based compensation | $18,464 | | Add: Other adjustments | $1,402 | | **Non-GAAP net income** | **$24,611** | | **Non-GAAP diluted net income per share ($)** | **$0.64** | [Adjusted EBITDA Reconciliation](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20INCOME%20%28LOSS%29%20TO%20ADJUSTED%20EBITDA) Q3 2024 Adjusted EBITDA was $19.7 million (19.7% margin), reconciled from GAAP net income of $1.4 million Q3 2024 Adjusted EBITDA Reconciliation (in thousands) | Account | Amount ($ thousands) | | :--- | :--- | | GAAP net income (loss) | $1,353 | | Less: Financial income, net | $(6,881) | | Add: Income taxes | $2,052 | | Add: Depreciation and amortization | $3,392 | | Add: Share-based compensation | $18,464 | | Add: Other adjustments | $1,273 | | **Adjusted EBITDA** | **$19,653** | | **Adjusted EBITDA margin (%)** | **19.7%** | [Operating Expenses Reconciliation](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20OPERATING%20EXPENSES) Non-GAAP operating expenses were lower across R&D ($16.3M), S&M ($38.6M), and G&A ($9.2M) after adjustments Q3 2024 Operating Expenses Reconciliation (in thousands) | Expense Category | GAAP ($ thousands) | Non-GAAP ($ thousands) | | :--- | :--- | :--- | | Research and development | $22,424 | $16,261 | | Sales and marketing | $42,970 | $38,577 | | General and administrative | $18,817 | $9,184 | [Free Cash Flow Reconciliation](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20CASH%20FROM%20OPERATING%20ACTIVITIES%20TO%20FREE%20CASH%20FLOW) Q3 2024 free cash flow was $10.6 million, derived from $10.9 million in operating cash flow less capital expenditures Q3 2024 Free Cash Flow Reconciliation (in thousands) | Account | Amount ($ thousands) | | :--- | :--- | | Net cash provided by operating activities | $10,867 | | Less: Purchase of property and equipment | $(290) | | Less: Capitalization of internal-use software | $0 | | **Free cash flow** | **$10,577** | [Supplementary Information](index=11&type=section&id=Supplementary%20Information) Provides definitions for key non-GAAP and operational metrics, alongside standard forward-looking statements and risk disclaimers [Definitions of Key Metrics and Non-GAAP Measures](index=11&type=section&id=Key%20Performance%20Metrics%20and%20Non-GAAP%20Financial%20Measures) Defines key performance metrics like active buyers, spend per buyer, and take rate, along with non-GAAP measures - Active buyers: Buyers who have ordered a service on the platform within the last 12-month period[31](index=31&type=chunk) - Spend per buyer: Calculated by dividing Gross Merchandise Value (GMV) within the last 12-month period by the number of active buyers[31](index=31&type=chunk) - Free cash flow: Defined as net cash provided by operating activities less capital expenditures (property/equipment purchases and capitalized software)[30](index=30&type=chunk) [Forward-Looking Statements](index=12&type=section&id=Forward%20Looking%20Statements) Standard disclaimer on forward-looking statements, highlighting risks like political instability, economic conditions, and competition - The statements are not guarantees and involve significant risks and uncertainties[37](index=37&type=chunk) - Key risk factors mentioned include political/military instability in Israel, adverse economic conditions, competition, ability to attract/retain users, and data security[37](index=37&type=chunk)

Delivered both revenue and Adjusted EBITDA above guidance range: We continue to execute with focus and efficiency, delivering exceptional results amid a challenging macro environment. Our strategy to lean into value-added services to drive take rate expansion continues to pay off, and we continue to invest in going upmarket to unlock long-term growth opportunities. Growing a high-quality buyer base: We continue to grow wallet share among our customers, with spend per buyer up 9% y/y in Q3'24. The recently r ...

Core Insights - Fiverr International Ltd. released its Fall 2024 Business Trends Index, analyzing millions of inquiries to identify trending digital services with increased demand from businesses [1][2] - The data highlights the pivotal role of freelancers in adapting to traditional and future workplace models, providing specialized skills and flexibility [2][3] Trending Services - The top business services experiencing demand include: - **Architecture Office Renovation**: Increased demand for construction planning and cost estimation due to shifts in work environments [4] - **Email Marketing Revitalization**: A renewed focus on email marketing as a key communication strategy, with significant increases in related searches [5] - **New Platform Integration**: Small and medium businesses are moving towards no-code solutions and unified platforms, increasing the demand for freelancers skilled in integrating these solutions [6] Notable Search Increases - **Floor Plan Design**: +3,116% [5] - **City Permit**: +1,896% [5] - **Material Take Off**: +1,526% [5] - **Email Leads**: +1,674% [5] - **Beehiiv Newsletter**: +1,123% [5] - **Instantly AI**: +939% [5] - **Clixlo Software**: +12,560% [6] - **Bubble SaaS**: +3,352% [6] - **GHL**: +2,511% [6] Geographic Insights - The Business Trends Index also provides a breakdown of the fastest-growing searches for businesses in various countries, including the U.S., Australia, France, Germany, Italy, Israel, and the U.K. [7] Company Overview - Fiverr aims to democratize access to talent and opportunities, serving nearly 4 million customers worldwide, from small businesses to Fortune 500 companies [8]

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Wall Street analysts expect Fiverr International (FVRR) to post quarterly earnings of $0.62 per share in its upcoming report, which indicates a year-over-year increase of 12.7%. Revenues are expected to be $96.37 million, up 4.2% from the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Prior to a company' ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fiverr International. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Fiverr International (FVRR) ended the recent trading session at $23.62, demonstrating a +0.25% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%. Shares of the online marketplace for freelance services have depreciated by 3.44% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 7.36% and the S&P 500's gain of 5.41%. The invest ...

In the latest market close, Fiverr International (FVRR) reached $24.50, with a +0.99% movement compared to the previous day. This change outpaced the S&P 500's 0.01% gain on the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.08%. Heading into today, shares of the online marketplace for freelance services had gained 1.21% over the past month, lagging the Retail-Wholesale sector's gain of 5.59% and trading in line with the S&P 500. Investors will be eagerly watching for the performa ...