Fiverr(FVRR)2025-02-19 15:23Financial Data and Key Metrics Changes - Revenue for Q4 2024 was 20.7 million, with an adjusted EBITDA margin of 20%, an improvement of 240 basis points from a year earlier [25][26] - For the full year 2024, Marketplace revenue was 88.4 million, representing year-over-year growth of 62% and contributing 23% to total revenue [30] Business Line Data and Key Metrics Changes - Marketplace revenue growth is expected to be muted in 2025 due to macroeconomic conditions, but larger projects are showing robust growth [29] - Services revenue is anticipated to continue growing at a healthy double-digit rate, with contributions to total revenue expected to exceed 30% in 2025 [31] Market Data and Key Metrics Changes - The number of annual active buyers was 3.6 million, with an annual spend per buyer of 10,000 showed resilient growth, while overall active buyers did not grow due to macro headwinds [28] Company Strategy and Development Direction - The company aims to pursue quality of revenue and upmarket opportunities in the Marketplace segment while expanding offerings in the Services segment [8] - Fiverr Go was launched as an open platform for personalized AI tools, designed to empower freelancers and reshape the power dynamic between creators and AI [13][14] - The Freelancer Equity Program was introduced to give top-performing freelancers equity shares in Fiverr, fostering loyalty and engagement [22][114] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for 2025, despite macroeconomic challenges [7][26] - The company believes that a macro rebound will eventually benefit Marketplace revenue growth [29] - Management highlighted the importance of maintaining a talent-focused approach and empowering freelancers amid economic pressures [10][12] Other Important Information - Fiverr hosted about 100 community events in 2024, with over 100,000 registrations, emphasizing its commitment to the freelancer community [11] - The company is focused on optimizing the quality of revenue and expanding into larger buyers and complex projects [26] Q&A Session Summary Question: How will Fiverr Go help conversion and what is the impact on margins? - Fiverr Go is designed to enhance conversion by providing instant responses to customer inquiries, which is crucial for conversion rates [37] - Investments in Fiverr Go will continue, but guidance reflects expected improvements in EBITDA despite these investments [42] Question: Will Fiverr Go expand to all categories? - Currently, Fiverr Go operates in 60 categories, with plans to expand further as technology develops [48][50] Question: What drives higher spend per buyer in newer cohorts? - Factors include quality improvements, complex projects handled by Dynamic Matching, and a focus on high-value buyers [56] Question: How does Fiverr Go impact pricing and deflationary aspects? - Fiverr Go allows freelancers to maintain control over pricing, ensuring that human involvement remains integral to the creative process [102] Question: What is the outlook for Services revenue and advertising? - Services revenue is expected to grow significantly, with advertising products evolving and providing additional monetization opportunities [100] Question: Is there seasonality in Services revenue? - Services revenue is expected to exhibit flat behavior throughout the year, with no significant seasonality identified [107]