Fiverr(US:FVRR)2022-08-04 16:05Financial Data and Key Metrics Changes - In Q2 2022, Fiverr reported revenue of $85 million, representing a year-over-year growth of 13% [7][24] - Adjusted EBITDA for Q2 was $4.6 million, with an adjusted EBITDA margin of 5.4% [10][25] - The take rate increased to 29.8%, up 200 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Active buyers reached 4.2 million, up 6% year-over-year, with spend per buyer increasing to $259, up 14% year-over-year [8] - Fiverr Business has seen a 60% increase in buyers spending over $10,000 per year compared to the previous year [20] Market Data and Key Metrics Changes - The macro environment has impacted consumer and SMB spending, with geopolitical volatility and inflation affecting demand [7][24] - European activity levels have deteriorated modestly, and the U.S. has started to feel pressure as SMB sentiment declines [30] Company Strategy and Development Direction - Fiverr is focusing on strengthening its core market and expanding its technology capabilities to improve buyer-seller matching [14][18] - The company is prioritizing profitability and adjusted EBITDA over growth due to the challenging macro environment [36] - Fiverr Business is a key initiative aimed at capturing larger business buyers and facilitating more complex projects [18][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment, stating that growth has become more expensive and prioritizing EBITDA is prudent [36] - There is optimism about the long-term potential of the online freelancing market, with a significant opportunity to capture freelance workforce demand as companies seek cost flexibility [21][22] Other Important Information - The company made a decision to reduce its workforce by 60 members to recalibrate its growth and profitability profile [11][25] - Fiverr's marketing strategy remains focused on efficiency, with a disciplined approach to performance marketing [27][63] Q&A Session Summary Question: Change in strategy regarding growth versus profitability - Management noted that the macro environment has made growth more expensive, leading to a shift in focus towards profitability and free cash flow [36] Question: Context around performance marketing payback - The payback for performance marketing spend was reported at 85%, consistent with historical high multiples, indicating strong cohort performance [37] Question: SMB weakness and its causes - Management indicated that the weakness is across the board, affecting both new and existing cohorts due to macroeconomic pressures [50] Question: Traction of Fiverr Business in the current environment - Fiverr Business is showing strong growth signals, with improvements in onboarding and seller quality contributing to increased activity [45] Question: Impact of marketing expenses from Q1 - Marketing investments in Q1 are expected to create a new baseline for the rest of the year, benefiting future quarters [87] Question: Expansion into other languages and markets - Fiverr is actively expanding into other languages and markets, which is seen as a source of growth [88]