Fiverr (NYSE:FVRR) 2025 Conference Transcript

Financial Data and Key Metrics Changes - The company reported a GMV around zero, indicating a challenging environment with a decline of approximately 15% in professional staffing over the past two years [25][26] - Despite a shrinking active buyer base, spend per buyer is growing rapidly, reflecting a shift towards acquiring larger customers with higher lifetime value [28][29] - The company is generating double-digit growth while maintaining a 20% EBITDA margin and significant free cash flow [33] Business Line Data and Key Metrics Changes - The company has seen a dramatic increase in the portion of larger businesses utilizing the platform, with some verticals in technology and marketing growing 10x [6] - Fiverr Go, an initiative to integrate AI tools for freelancers, has been positively impacting service speed and customer conversion [21][22] - The growth in complex, high-value projects is outpacing the displacement of simpler tasks, indicating a positive effect of AI on the business [17][38] Market Data and Key Metrics Changes - The macroeconomic environment has been challenging, particularly affecting SMBs due to high interest rates and inflation, while established businesses are more resilient [27][30] - The company is focusing on larger clients as they tend to spend more and have higher ROI, despite the higher acquisition costs [28][30] Company Strategy and Development Direction - The company is prioritizing growth and market capture, with a focus on integrating AI into its platform to enhance service delivery and efficiency [19][21] - There is a strategic shift towards larger enterprise clients, which is expected to drive growth even in a challenging macro environment [30][34] - The company is also exploring inorganic growth through acquisitions, such as AutoDS, to enhance its service offerings [49][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth potential, especially if macroeconomic conditions improve, which could lead to an increase in active buyers [30][31] - The company is sensitive to macro trends and has been proactive in identifying shifts in customer behavior [31][32] Other Important Information - The company is investing in AI solutions to optimize internal operations and enhance the platform's capabilities [11][12] - Fiverr Pro is part of the strategy to cater to larger businesses with bespoke needs, indicating a focus on quality and specialized services [41][42] Q&A Session Summary Question: What is the impact of AI on the types of gigs on the platform? - The company noted that technology is replacing simpler, low-skill tasks faster, while complex, high-skilled services are growing significantly [14][17] Question: Can you provide an update on Fiverr Go? - Fiverr Go is successfully integrating AI tools to streamline workflows for freelancers, resulting in improved service speed and customer satisfaction [18][21] Question: How is the company addressing macroeconomic challenges? - The company is focusing on larger clients who are less affected by economic downturns, allowing for higher spending and better ROI [27][28]