Fiverr Announces Second Quarter 2024 Results

Core Insights - Fiverr International Ltd. reported solid financial results for Q2 2024, with revenue of $94.7 million, a 6% increase year-over-year, and strong Adjusted EBITDA near the top end of guidance [4][3][2] - The company is expanding its product portfolio, including a new profession-based catalog and a subscription-based software business through the acquisition of AutoDS, which is expected to enhance growth potential [1][3] - Fiverr is optimizing its capital allocation strategy, having completed a $100 million buyback program and aiming for a steady increase in free cash flow over the next three years [1][3] Financial Performance - Revenue for Q2 2024 was $94.7 million, compared to $89.4 million in Q2 2023, reflecting a 6% year-over-year growth [4] - Active buyers decreased to 3.9 million from 4.2 million year-over-year, an 8% decline [4] - Spend per buyer increased to $290, up 10% from $265 in the previous year [4] - The take rate improved to 33.0%, a 230 basis point increase from 30.7% [4] - GAAP net income for Q2 2024 was $3.3 million, compared to $0.01 in Q2 2023, while non-GAAP net income rose to $23.8 million from $20.0 million [4] - Free cash flow increased to $20.7 million, a 12.5% rise from $18.4 million in Q2 2023 [4] Strategic Initiatives - The company is focused on moving upmarket and expanding into complex services, which is expected to unlock long-term growth opportunities [1][3] - Fiverr's management reiterated its full-year guidance, raising the bottom end for both revenue and Adjusted EBITDA [1][3] - The introduction of new products and services is aimed at enhancing Fiverr's value proposition to the creator community and increasing market share [1][3] Market Outlook - The outlook for Q3 2024 and the full year 2024 reflects recent trends in the marketplace, indicating a cautious but optimistic approach to future growth [5][6] - The company continues to navigate a volatile SMB and freelancer hiring space while maintaining operational efficiency [3][1]