Fiverr(US:FVRR)2022-05-23 18:06Summary of Fiverr International Ltd. Conference Call Company Overview - Company: Fiverr International Ltd. (NYSE:FVRR) - Event: JPMorgan's 50th Annual Global Technology, Media and Communications Conference - Date: May 23, 2022 - Participants: Micha Kaufman (Co-Founder and CEO), Ofer Katz (President and CFO) Key Industry Insights - Freelancing Growth: Freelancing has grown significantly, from approximately 28% of the U.S. workforce in 2010 to over 40% currently, with projections suggesting it could reach 50% by 2030 [3][5] - Pandemic Impact: The pandemic accelerated the shift to online freelancing, as offline work became impossible during lockdowns, leading to a surge in online platforms like Fiverr [4][5] - Talent Cloud Concept: Fiverr is developing a "talent cloud" to simplify access to freelancers, similar to the transition seen in cloud computing [9] Company Performance and Trends - Customer Base: Over 4 million customers have utilized Fiverr's services across more than 550 categories, with freelancers from over 160 countries [1] - Supply vs. Demand: Fiverr is more constrained by customer demand than by talent supply, with a surplus of freelancers joining the platform during the pandemic [11][12] - Active Buyer Dynamics: The company has 4.2 million active buyers, with approximately half being U.S. SMBs. There is significant room for growth given the 30 million active SMBs in the U.S. [24][25] Financial Performance - Revenue Guidance: Fiverr expects revenue growth between 16% to 23% for the year, reflecting current market uncertainties and economic conditions [20] - Gross Margins: The company maintains gross margins above 80%, with expectations for stability despite fluctuations [36] - Take Rate: Fiverr's base fee is 25.5%, with total take rates approaching 30% due to value-added services [32][34] Market Challenges - Macro Environment: The company has experienced a slowdown in activity, particularly in Europe, due to factors like inflation, rising interest rates, and geopolitical instability [16][18] - Cohort Behavior: There is a noted softness in new and repeat customer activity, but overall cohort behavior remains better than pre-pandemic levels [17][19] Strategic Initiatives - Fiverr Business: The company is focusing on expanding its Fiverr Business product, which currently contributes over 5% of revenue, with expectations for significant growth in the coming years [26][28] - Investment Philosophy: Fiverr is committed to long-term growth and continues to invest in product development despite current market challenges, aiming to emerge stronger post-uncertainty [38][39] Additional Insights - Churn and Customer Retention: The company is optimistic about maintaining customer retention and acquiring new cohorts, with a focus on high-value buyers [42][44] - Future Outlook: Fiverr's leadership expresses confidence in the company's fundamentals and growth potential, despite current market headwinds [44]