• Revenue: $103.7 million for Q4, up 13% year-over-year.
• Adjusted EBITDA: $20.7 million for Q4, with a 20% margin.
• Marketplace Revenue: $303.1 million for full year 2024.
• Services Revenue: $88.4 million for full year 2024, up 62% year-over-year.
• Annual Active Buyers: 3.6 million in 2024.
• Annual Spend per Buyer: $302 in 2024.
• Marketplace Take Rate: 27.6% in 2024.
• Guidance for 2025 Revenue: $422 to $438 million, representing 8% to 12% growth.
• Guidance for 2025 Adjusted EBITDA: $82 to $90 million, with a 20% margin at midpoint.
• Q1 2025 Revenue Guidance: $103.5 to $108.5 million, representing 11% to 16% growth.
• Q1 2025 Adjusted EBITDA Guidance: $18 to $20 million, with an 18% margin at midpoint.

• Warning! GuruFocus has detected 5 Warning Signs with FVRR.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fiverr International Ltd (NYSE:FVRR) reported a 13% year-over-year revenue growth for Q4 2024, indicating strong financial performance.
• The company achieved a 20% adjusted EBITDA margin, showcasing effective cost management and operational efficiency.
• Fiverr Go, a new initiative, aims to empower freelancers with AI tools, enhancing their productivity and earnings potential.
• The launch of a freelancer equity program is an industry-first initiative, aligning the interests of top-performing freelancers with the company's success.
• Services revenue grew by 62% year-over-year, driven by strong performance in Fiverr Ads, Seller Plus, and AutoDS, indicating successful diversification of revenue streams.

Negative Points

• Despite revenue growth, the overall number of active buyers did not increase due to macroeconomic headwinds.
• Marketplace revenue growth is expected to remain muted in 2025, as it is closely tied to GMV volume and macroeconomic conditions.
• High interest rates and inflation are putting pressure on freelancers' day-to-day lives, potentially affecting their engagement on the platform.
• The rapid advancement of AI poses a threat to freelancers' creative rights, necessitating initiatives like Fiverr Go to address these concerns.
• Investment in Fiverr Go and other initiatives may put pressure on margins in 2025, as the company accelerates development and marketing efforts.

Q & A Highlights

Q: How will Fiverr Go impact conversion rates and what are the expected investments for 2025? A: Micha Kaufman, CEO, explained that Fiverr Go is designed to enhance conversion by providing instant responses and results through AI tools like the personalized assistant. This tool helps freelancers convert potential clients even when they are unavailable. Ofer Katz, CFO, added that while investments in Fiverr Go will continue, the guidance for 2025 already accounts for these expenses.

Q: Can you elaborate on the category expansion for Fiverr Go and the impact of newer cohorts on average spend? A: Micha Kaufman noted that while GenAI cannot yet handle all categories, Fiverr Go launched with 60 categories and plans to expand further. The developer ecosystem will accelerate this expansion. Ofer Katz highlighted that newer cohorts are spending more due to improved quality and dynamic matching, with high-value buyers showing significant growth.

Q: How does Fiverr view the role of AI in creative processes, and what is the strategy behind Fiverr Go? A: Micha Kaufman emphasized that while AI enhances efficiency, human creativity remains central. Fiverr Go is designed to keep creators at the forefront, ensuring they are rewarded for their work. The platform allows freelancers to use AI to enhance their offerings without compromising their creative input.

Q: What are the expectations for marketplace growth and the factors influencing it? A: Ofer Katz stated that while marketplace growth is currently flat due to macroeconomic conditions, the services segment is expected to drive overall growth. The company anticipates that when the macro environment improves, the marketplace will rebound, supported by innovations in services.

Q: How will Fiverr Go's take rate and investments affect financials, and is there any impact from foreign exchange? A: Micha Kaufman mentioned that the take rate for Fiverr Go remains the same for now, with potential adjustments based on future usage data. Ofer Katz added that there is no significant foreign exchange impact on revenue, as prices are in USD, and the company is well-hedged against operational expenses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.