Solid Q2 execution: Revenue came in above the midpoint of our guidance despite macro volatility as we continued to expand customer wallet share and drive take rate increase. We also delivered strong Adjusted EBITDA, near the top end of our guidance, and strong free cash flow as we continued to execute with strong discipline and efficiency.
Expanding product portfolio to create strong growth catalysts: Our Summer Product Release includes the launch of a brand new profession-based catalog along with capabilities to hire talent for long-term engagement, making a major stride in expanding our direct addressable market. We also folded in a subscription-based software business through the acquisition of AutoDS, deepening our value proposition to the creator community and adding a durable revenue stream to our business with significant synergy and growth potential.
Optimizing capital allocation strategy to deliver shareholder value: We are committed to setting clear capital allocation priorities and creating a tangible path for delivering shareholder value. We have successfully completed the $100 million buyback program announced in April. We aim to drive a steady and measurable increase in free cash flow combined with a dynamic capital return program for the next three years.
Reiterating full year guidance: Our strategy to move upmarket and push into complex services continues to unlock long-term growth opportunities for our marketplace businesses. This is complemented by our expansion into the long-term freelancer hiring space and the addition of subscription-based software to our product portfolio. As such, we are raising the bottom end of our full-year guidance for both revenue and Adjusted EBITDA to reflect recent updates.
NEW YORK, July 31, 2024 (GLOBE NEWSWIRE) — Fiverr International Ltd. (NYSE:FVRR), the company that is changing how the world works together, today reported financial results for the second quarter 2024. Additional operating results and management commentary can be found in the Company’s shareholder letter, which is posted to its investor relations website at investors.fiverr.com.
“It has been an incredible past six months at Fiverr on many fronts as we navigated the dynamic macro environment and delivered profitable growth through executional excellence and focused operational discipline. In addition, we also made remarkable strides in our product evolution with the introduction of profession-based catalog and hourly contracts,” said Micha Kaufman, founder and CEO of Fiverr. “With these offerings, we look forward to becoming a more substantial partner with businesses of all sizes, for their need to engage with the flexible workforce, and significantly expand our direct addressable market. We also continue to be at the forefront of AI technology as we deepen the integration of Neo across search and order experiences on Fiverr. I’m very excited for what is still to come as we continue to innovate towards the future of work.”
“We delivered solid results for Q2 and reiterated our full year guidance. While the SMB and freelancer hiring space remain volatile, we continue to execute with consistency and efficiency. At the same time, we are expanding our product portfolio through both organic and inorganic investments to create additional growth catalysts,” said Ofer Katz, President and CFO of Fiverr. “We also aim to optimize our capital allocation strategy to deliver shareholder value. With strong free cash flow generation and a strong balance sheet to support capital return programs, we are paving a measurable and tangible path for steady growth in free cash flow for the next three years.”
Second Quarter 2024 Financial Highlights
Revenue in the second quarter of 2024 was $94.7 million, compared to $89.4 million in the second quarter of 2023, an increase of 6% year over year.
Active buyers1 as of June 30, 2024 was 3.9 million, compared to 4.2 million as of June 30, 2023, a decline of 8% year over year.
Spend per buyer1 as of June 30, 2024 reached $290, compared to $265 as of June 30, 2023, an increase of 10% year over year.
Take rate1 for the period ended June 30, 2024 was 33.0%, up from 30.7% for the period ended June 30, 2023, an increase of 230 basis points year over year.
GAAP gross margin in the second quarter of 2024 was 83.1%, an increase of 60 basis points from 82.5% in the second quarter of 2023. Non-GAAP gross margin1 in the second quarter of 2024 was 84.4%, an increase of 20 basis points from 84.2% in the second quarter of 2023.
GAAP net income in the second quarter of 2024 was $3.3 million, or $0.09 basic and $0.08 diluted net income per share, compared to $0.01 basic and diluted net income per share, in the second quarter of 2023.
Non-GAAP net income1 in the second quarter of 2024 was $23.8 million, or $0.63 basic non-GAAP net income per share1 and $0.58 diluted non-GAAP net income per share1, compared to $20.0 million non-GAAP net income, or $0.53 basic non-GAAP net income per share1 and $0.49 diluted non-GAAP net income per share1, in the second quarter of 2023.
Net cash provided by operating activities in the second quarter of 2024 was $21.0 million, compared to $18.7 million in the second quarter of 2023, an increase of 11.9%.
Free cash flow in the second quarter of 2024 was $20.7 million, compared to $18.4 million in the second quarter of 2023, an increase of 12.5%.
Adjusted EBITDA1 in the second quarter of 2024 was $17.8 million, compared to $15.3 million in the second quarter of 2023. Adjusted EBITDA margin1 was 18.9% in the second quarter of 2024, compared to 17.1% in the second quarter of 2023.
Financial Outlook
Our Q3’24 outlook and updated full year 2024 guidance reflects the recent trends on our marketplace.
Q3 2024
FY 2024
Revenue
$95.0 – $97.0 million
$383.0 – $387.0 million
y/y growth
3% – 5% y/y growth
6% – 7% y/y growth
Adjusted EBITDA(1)
$17.0 – $19.0 million
$69.0 – $73.0 million
Conference Call and Webcast Details
Fiverr’s management will host a conference call to discuss its financial results on Wednesday, July 31, 2024, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr’s Investor Relations website. An archived version will be available on the website after the call. To participate in the Conference Call, please register at the link here.
About Fiverr
Fiverr’s mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, around 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture.
Don’t get left behind – come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on X, Instagram, and Facebook.
Investor Relations:
Jinjin Qian
investors@fiverr.com
Press:
Siobhan Aalders
press@fiverr.com
Source: Fiverr International Ltd.
CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30,
December 31,
2024
2023
(Unaudited)
(Audited)
Assets
Current assets:
Cash and cash equivalents
$
188,729
$
183,674
Marketable securities
182,609
147,806
User funds
156,294
151,602
Bank deposits
115,862
85,893
Restricted deposit
1,203
1,284
Other receivables
29,366
24,217
Total current assets
674,063
594,476
Long-term assets:
Marketable securities
216,911
328,332
Property and equipment, net
4,526
4,735
Operating lease right of use asset
6,393
6,720
Intangible assets, net
13,755
10,722
Goodwill
81,992
77,270
Other non-current assets
1,254
1,349
Total long-term assets
324,831
429,128
TOTAL ASSETS
$
998,894
$
1,023,604
Liabilities and Shareholders’ Equity
Current liabilities:
Trade payables
$
5,368
$
5,494
User accounts
145,494
142,203
Deferred revenue
12,165
11,047
Other account payables and accrued expenses
47,074
44,110
Operating lease liabilities
2,575
2,571
Total current liabilities
212,676
205,425
Long-term liabilities:
Convertible notes
456,580
455,305
Operating lease liabilities
3,882
4,482
Other non-current liabilities
4,111
2,618
Total long-term liabilities
464,573
462,405
TOTAL LIABILITIES
$
677,249
$
667,830
Shareholders’ equity:
Share capital and additional paid-in capital
681,887
640,846
Accumulated deficit
(357,404
)
(284,358
)
Accumulated other comprehensive income (loss)
(2,838
)
(714
)
Total shareholders’ equity
321,645
355,774
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
998,894
$
1,023,604
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Revenue
$
94,663
$
89,385
$
188,187
$
177,341
Cost of revenue
16,024
15,632
31,472
31,298
Gross profit
78,639
73,753
156,715
146,043
Operating expenses:
Research and development
21,855
23,289
45,488
45,176
Sales and marketing
41,324
38,870
83,476
80,920
General and administrative
17,764
15,604
34,215
31,103
Total operating expenses
80,943
77,763
163,179
157,199
Operating loss
(2,304
)
(4,010
)
(6,464
)
(11,156
)
Financial income, net
8,502
4,487
15,163
7,571
Income (loss) before income taxes
6,198
477
8,699
(3,585
)
Income taxes
(2,931
)
(250
)
(4,644
)
(460
)
Net income (loss) attributable to ordinary shareholders
$
3,267
$
227
$
4,055
$
(4,045
)
Basic net income (loss) per share attributable to ordinary shareholders
$
0.09
$
0.01
$
0.11
$
(0.11
)
Basic weighted average ordinary shares
38,089,060
37,906,971
38,422,605
37,677,180
Diluted net income (loss) per share attributable to ordinary shareholders
$
0.08
$
0.01
$
0.10
$
(0.11
)
Diluted weighted average ordinary shares
38,755,863
41,192,132
39,180,421
37,677,180
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three Months Ended
Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
Operating Activities
Net income (loss)
$
3,267
$
227
$
4,055
$
(4,045
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
1,606
1,654
2,756
3,379
Exchange rate fluctuations and other items, net
55
(95
)
166
(6
)
Amortization of premium and accretion of discount of marketable securities, net
(1,154
)
378
(2,248
)
1,234
Amortization of discount and issuance costs of convertible notes
638
635
1,275
1,269
Shared-based compensation
18,438
17,630
37,458
34,349
Changes in assets and liabilities:
User funds