Kaufman framed the company’s strategy around structural changes in work driven by AI. He said AI compresses task duration, increases project ambition, and “democratizes capability,” but does not eliminate the need for human talent. In his view, value shifts toward “context, judgment, orchestration, trust, and ownership of outcomes,” while lower-value transactional work faces displacement.Katz also noted that a convertible note with a principal amount of $460 million was fully repaid during the fourth quarte ...

Fiverr (NYSE:FVRR) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsMali Greenstein - VP of Investor RelationsMicha Kaufman - Founder and CEOOfer Katz - President and CFOConference Call ParticipantsBernie McTernan - AnalystEric Sheridan - Equity Research AnalystMarvin Fong - Equity Research AnalystMatthew Condon - AnalystNat Schindler - Senior AnalystRohit Kulkarni - Equity Research AnalystRonald Josey - Equity Research AnalystNone - AnalystNone - AnalystNone - AnalystOperator``Please ...

Fiverr (NYSE:FVRR) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Company ParticipantsMali Greenstein - VP of Investor RelationsMicha Kaufman - Founder and CEOOfer Katz - President and CFOConference Call ParticipantsBernie McTernan - AnalystEric Sheridan - Equity Research AnalystMarvin Fong - Equity Research AnalystMatthew Condon - AnalystNat Schindler - Senior AnalystRohit Kulkarni - Equity Research AnalystRonald Josey - Equity Research AnalystNone - AnalystNone - AnalystNone - AnalystOperator``Please ...

Fiverr (NYSE:FVRR) Q4 2025 Earnings call February 18, 2026 08:30 AM ET Speaker9Please note this event is being recorded. I would now like to turn the conference over to Emily Greenstein, Investor Relations. Please go ahead.Speaker2Thank you, operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the fourth quarter that ended December 31, 2025. Joining me on the call today are Micha Kaufman, Founder and CEO, and Ofer Katz, President and CFO. Before we start, I ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $107.9 million, representing an 8% year-over-year growth [10] - Adjusted EBITDA for Q3 was $24.2 million, with an adjusted EBITDA margin of 22%, an improvement of 260 basis points from the previous year [10] - Free cash flow totaled $29.1 million in Q3, indicating strong cash flow generation [10] Business Line Data and Key Metrics Changes - Market-based revenue was $73.6 million, driven by 3.3 million active buyers and a spend per buyer of $330, with a market-based take rate of 27.6% [11] - Service revenue reached $34.3 million, showing a year-over-year growth of 40% and accounting for 32% of total revenue in Q3 [11] - Dynamic matching GMV grew 22% year over year, with 15% of job reads having a budget over $1,000 and an average order value of $2,200 [5] - Managed services GMV grew 65% year over year, with an average product size of $17,000 [5] Market Data and Key Metrics Changes - The programming and tech vertical grew 14% year over year in Q3, reflecting strong demand for AI-related services [6] - The overall market environment remains uneven, with mixed trends in labor markets and hiring recovery [7] Company Strategy and Development Direction - The company is focusing on up-market expansion and AI enablement as part of its growth strategy [7] - A strategic restructuring was announced to streamline operations and enhance focus on AI integration [7] - The transformation is anchored on four key pillars: strengthening go-to-market execution, building a next-gen AI-powered buyer experience, evolving matching technology, and investing in talent [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy despite macroeconomic uncertainties, emphasizing long-term trends that are macro-agnostic [7] - The company aims to reach a long-term adjusted EBITDA margin of 25% by 2026 [13] Other Important Information - The company expects full-year 2025 revenue to be in the range of $428-$436 million, representing a year-over-year growth of 9%-11% [12] - Q4 2025 revenue is expected to be between $104.3 million and $112.3 million, reflecting a year-over-year growth of 1%-8% [13] Q&A Session Summary Question: How is the company reimagining the marketplace to be AI-first? - The CEO highlighted that AI allows for better matching of experts to projects, enhancing customer satisfaction and project complexity [16][18] Question: What are the key assumptions for Q4 revenue guidance? - The company indicated that service revenue will continue to grow, while marketplace revenue will depend on GMV trends, which may see a slight decline [19][20] Question: How does the reorganization affect the SMB opportunity? - The management does not assume a return of SMB demand in the near term, focusing instead on larger projects and clients [23][25] Question: What key investments are needed for 2026 to transform into an AI-first company? - Investments will focus on talent acquisition, infrastructure improvements, and enhancing market-based experiences [28][30] Question: What is the confidence level for returning to growth in the marketplace business in 2026? - The management expressed confidence that AI-driven products will lead to growth, with larger projects becoming a significant portion of the business [35][36] Question: How are other major categories benefiting from AI? - The programming and tech category is growing rapidly, along with digital marketing and video, as customers become more educated and precise in their needs [45][47]

Financial Data and Key Metrics Changes - For the full year 2021, revenue reached $298 million, representing a 57% year-over-year growth and a 178% growth on a two-year basis [4] - The company achieved $1 billion in annual GMV for the first time and generated an adjusted EBITDA of $23 million, implying an adjusted EBITDA margin of 7.7%, compared to 4.8% a year ago and negative 16.8% two years ago [5] Business Line Data and Key Metrics Changes - In Q4 2021, revenue was $79.8 million, up 43% year-over-year, driven by a 23% growth in active buyers and an 80% increase in spending buyers [16] - The company saw a 210 basis points expansion in take rate during the quarter [16] - Mature cohorts experienced over 110% year-over-year retention for the second consecutive year [17] Market Data and Key Metrics Changes - Non-English speaking countries contributed to 32% of total revenue [7] - E-commerce related categories showed strong performance as businesses invested in content and marketing during the holiday season [16] Company Strategy and Development Direction - The company aims to become an all-in-one talent cloud solution for businesses of all sizes, focusing on building a robust seller ecosystem and integrating acquired companies into its platform [6][7] - The management emphasized the importance of transitioning from a static workforce to a dynamic talent cloud solution, similar to the shift from on-premise IT to cloud computing [12][13] Management's Comments on Operating Environment and Future Outlook - The management noted that the way people work is undergoing a fundamental transformation, with more individuals leaving traditional jobs to become freelancers [8][10] - The company expects to remain disciplined with its financial strategy while continuing to invest in growth initiatives [15][22] Other Important Information - The company plans to accelerate investments in brand marketing and performance marketing, with a focus on driving higher quality buyers and improving marketing efficiency [19][70] - The gross margin is expected to see a shortfall of approximately 1% throughout the year due to hiring catch-up [73] Q&A Session Summary Question: Drivers of the take rate upside and competition - The increase in take rate is attributed to added value services and products, including promoted gigs and subscription services [26][28] - The management has not observed any significant impact from competitors like Upwork and LinkedIn on their business [32] Question: Visibility for 2022 trends and adoption curve of freelancing - The company guides based on known factors and has seen a stabilized business reminiscent of pre-pandemic trends [38] - The overall freelancing market is expected to grow, with a significant portion of the American workforce projected to be freelancers by 2030 [42] Question: New product introductions and acquisitions - Recent acquisitions are seen as strategic building blocks for the talent cloud, with a focus on integrating offline freelancer relationships [50][51] Question: Offline opportunity and marketplace curation - The management highlighted the need for standardization in how freelancers are integrated into organizations, addressing both offline and online opportunities [55] - Quality remains a key focus, with efforts to better match buyers and sellers through improved data and segmentation [57] Question: Brand marketing investments and NFT demand - Brand marketing is viewed as a long-term investment, with significant growth in unaided brand awareness [70] - The supply on the platform is expected to meet the rising demand for services related to NFTs and other emerging technologies [72] Question: Gross margin and hiring impacts - The fourth quarter gross margin is expected to reflect a shortfall due to hiring, with a projected 1% decrease throughout the year [73] Question: Tailwinds from labor shortages - The company is experiencing tailwinds from the labor shortage, with increased engagement from larger businesses seeking freelancers [82]

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]