Fiverr's Services Revenue Soars 102% on Subscription Demand

Core Insights - Fiverr's fourth-quarter earnings exceeded guidance, with revenue at $103.7 million, a 13.3$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]