Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $108.6 million, representing a 15% year-over-year growth [14] - Adjusted EBITDA for Q2 was $21.4 million, with an adjusted EBITDA margin of 20%, an improvement of 80 basis points from the previous year [14] - Free cash flow totaled $25 million, up 21% year-over-year [14] Business Line Data and Key Metrics Changes - Marketplace revenue was $74.7 million, driven by 3.4 million active buyers and a spend per buyer of $318 [15] - Services revenue reached $34 million, representing a year-over-year growth of 8431% [16] - Over 50% of GMV on the Marketplace came from transactions over $200, indicating a shift towards larger, more complex projects [16] Market Data and Key Metrics Changes - Strong demand for AI-related services was noted, with categories such as AI agents and workflow automation experiencing five to tenfold growth over the past six months [6][75] - The company is seeing robust growth in key verticals such as programming and tech, digital marketing, and video animation [5][64] Company Strategy and Development Direction - The company is focused on leveraging AI to enhance its marketplace, with plans to integrate Fiverr's talent network into AI-driven workflows [9] - Fiverr aims to expand its value-added services and maintain a balanced approach between growth and profitability [15] - The company is committed to reaching a 25% adjusted EBITDA margin by 2027 and achieving a 40% CAGR in free cash generation for the three years ending in 2027 [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural tailwinds within the marketplace segment, particularly around AI and upmarket adoption, which are expected to offset broader economic headwinds [16] - The company reiterated its revenue and adjusted EBITDA guidance for the full year 2025, expecting revenue to be in the range of $425 million to $438 million [17] Other Important Information - The company is actively exploring strategic partnerships to enhance its AI capabilities and improve customer experiences [58] - Fiverr Go, an AI assistant for freelancers, has shown strong engagement and conversion uplift [12] Q&A Session Summary Question: What key investments are needed to unlock continued scaling of service revenue? - Management expects service revenue to continue growing at a healthy double-digit rate, driven by value-added services and synergies between AutoDS and Fiverr [23] Question: Can you elaborate on the managed services offering and the progress in upmarket strategy? - Managed services are part of the upmarket strategy, with over 50% of business coming from transactions over $200, indicating a shift towards more sophisticated customer needs [28] Question: How is the balance of supply and demand in the marketplace? - The company is in a good position regarding supply and demand, with AI-native freelancers enhancing service offerings [36] Question: What is the outlook for marketplace growth? - Management believes that efforts around AI and upmarket strategies will lead to growth, even without macroeconomic improvements [38] Question: How does AI impact entry-level jobs and demand for Fiverr services? - AI is elevating the capabilities of entry-level workers, allowing them to perform more complex tasks, which benefits Fiverr's service offerings [42] Question: Can you provide insights on the mix of recurring versus transactional revenue in services? - Services revenue is primarily from promoted gigs, Seller Plus, and AutoDS, with ongoing momentum in all areas [46] Question: What is the visibility on marketplace growth and the mix shift between complex and simple services? - Management is optimistic that the mix shift towards complex services will eventually lead to marketplace growth, despite current macroeconomic conditions [54]

Company Overview and Financial Performance - Fiverr's mission is to change how the world works together[11] - In 2024, Fiverr's revenue reached $391.5 million, with an adjusted EBITDA margin of 19% and GMV of $1.1 billion[12] - This is a significant increase from 2019, where revenue was $107.1 million, with an adjusted EBITDA margin of 16.8% and GMV of $293.5 million[12] Market Opportunity and Business Model - Fiverr estimates a $247 billion U S addressable market across creative, technical, and professional services[27] - The company operates with a marketplace take rate of 27.7% as of Q1 2025[96] - 68% of revenue in 2024 came from repeat buyers[63] Growth Strategies and Future Outlook - Strategic priorities include going upmarket, expanding services, and investing in AI to drive double-digit revenue growth in 2025[55] - The company is targeting a 25% adjusted EBITDA margin by 2027[78] - Fiverr aims to generate $300 million in cumulative free cash flow between 2025 and 2027, representing a 14% free cash flow CAGR from 2024 to 2027[78] Q1 2025 Financial Results - Marketplace revenue for Q1 2025 was $77.7 million with 3.536 million annual active buyers[96] - Services revenue for Q1 2025 was $29.5 million[96]

Core Insights - The freelance economy is rapidly evolving, with Upwork Inc. (UPWK) and Fiverr International (FVRR) at the forefront, each adopting distinct strategies to leverage AI and cater to enterprise clients [1][5] Upwork Overview - Upwork reported record first-quarter results for 2025, with revenues of $193 million, a 1% year-over-year increase, and adjusted EBITDA of $56 million, reflecting a 29% margin [6] - The company is transitioning to an AI-native platform, utilizing its in-house AI assistant, Uma, which has seen a 52% increase in user engagement and a 58% rise in proposal-writing usage [7] - Upwork has access to over 80,000 AI specialists, addressing the talent gap as 63% of employers report a lack of skilled personnel [8] - For 2025, Upwork reaffirmed its revenue target of $740-$760 million and raised its adjusted EBITDA guidance to $190-$200 million, with EPS forecasted at $1.14-$1.18 [10] Fiverr Overview - Fiverr's first-quarter 2025 revenues increased by 15% year-over-year to $107.2 million, with an adjusted EBITDA margin of 18% [11] - The classic marketplace revenue declined by 0.8% to $77.7 million, while service revenues surged by 94% to $29.5 million, now representing 27.5% of total revenues [12] - Fiverr is evolving into a full-service work platform, focusing on larger clients and enhanced tools like Fiverr Pro and Fiverr Go, which are designed to improve buyer-seller interactions [13][15] - The company anticipates full-year revenues between $425-$438 million, with adjusted EBITDA margins expected to reach 20% in 2025 [11] Comparative Analysis - Upwork is positioned as a leader in AI integration within the freelance market, while Fiverr is gaining traction in high-margin services but faces challenges with a shrinking active buyer base [19][20] - Upwork's focus on AI and operational strength makes it a more compelling investment choice, currently rated as a Zacks Rank 1 (Strong Buy), compared to Fiverr's Zacks Rank 3 (Hold) [21]

Summary of Fiverr (FVRR) FY Conference Call - May 13, 2025 Company Overview - Fiverr is a global marketplace connecting freelancers and businesses through digital services across more than 700 categories, including graphic design, copywriting, voice-over, music, and AI services [1][2]. Market Potential - The total addressable market (TAM) for freelancing in the U.S. is estimated at approximately $250 billion, with significant international expansion potential [4]. - Awareness of the efficiency of digital marketplaces is growing, as traditional methods of finding freelancers remain fragmented and outdated [5][6]. Strategic Focus - Fiverr has shifted its focus from micro services to engaging larger customers with complex needs, resulting in transactions ranging from tens to hundreds of thousands of dollars [7]. - The company aims to enhance its margins by expanding its Fiverr Pro offering and targeting mid-market to enterprise customers [8][9]. Product Development and AI Integration - Fiverr is evolving from a marketplace to a platform, offering a suite of tools for project management and engagement with talent [9][10]. - The introduction of AI tools aims to improve customer experience and streamline the search and engagement process within the marketplace [15][18]. - Fiverr Go, a new product, serves as a personalized AI assistant for creators, significantly improving conversion rates and customer interactions [33][34]. Financial Performance and Growth - Fiverr has seen strong growth in service revenue, driven by seller tools, promoted leads, and app integrations [45][46]. - The company expects seller plus revenue to contribute approximately 30% of overall revenue in the current year [48]. - Revenue growth outlook for 2025 is projected at 10%, with potential for double-digit growth as macroeconomic conditions improve [49][50]. Profitability and Expense Management - Fiverr maintains a disciplined approach to managing expenses while improving EBITDA, with a long-term target of 25% net margin by 2027 [53][55]. - The company is focused on optimizing marketing spend and increasing lifetime value for customers [54]. Market Sentiment and SMB Focus - The sentiment in the small and medium-sized business (SMB) sector is currently negative, impacting growth, but Fiverr believes that as market conditions improve, SMBs will invest more in their growth [40][41]. - The average spend for SMBs is approximately $15,000 per year, indicating significant room for growth in both spend and active buyers [51]. Future Outlook - Fiverr's leadership emphasizes the importance of adapting to changing market dynamics and leveraging AI to enhance the marketplace experience [36][37]. - The company is optimistic about the future, believing that the evolution of work and the integration of AI will create new opportunities for entrepreneurs and businesses [60][61]. Additional Insights - The CEO's candid communication about the impact of AI on jobs highlights the need for professionals to adapt and leverage technology to remain relevant [20][21][22]. - Fiverr's approach to AI aims to empower creators rather than replace them, fostering a collaborative environment for innovation [31][32].

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 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]

Core Insights - Fiverr International Ltd. has launched a new advertising campaign featuring Brett Gelman to promote Fiverr Go, a suite of tools designed for creators to train personalized AI using their own work [1][4]. Advertising Campaign - The campaign adopts a comedic "mockumentary" style reminiscent of "The Office," showcasing Gelman as "Another AI," who produces generic content and copies others' work, ultimately being trained by an artist [2]. - The ad emphasizes how Fiverr Go can transform generic AI into a personalized creative assistant, enhancing productivity while allowing creators to maintain control over their artistic output [3]. Product Features - Fiverr Go is currently available to vetted talent with exceptional reviews and has recently added features such as commercial licensing for voiceovers, improved watermarking, and consultation scheduling capabilities [5]. - The platform aims to expand into additional graphics and music categories in the future [5]. Company Vision - Fiverr's CMO, Matti Yahav, stated that Fiverr Go empowers freelancers to reclaim their creative power in an AI-driven environment, contrasting with dystopian narratives [4]. - Gelman expressed appreciation for Fiverr's focus on putting artists first and positioning AI as a new creative tool rather than a replacement [5]. Company Overview - Fiverr's mission is to transform global collaboration by connecting top talent with cutting-edge technology across various skilled categories, including software development, digital marketing, and more [7][8].