Fiverr Announces Second Quarter 2025 Results
Fiverr (NYSE:FVRR) reported strong Q2 2025 financial results with total revenue reaching $108.6 million, up 14.8% year-over-year. The company's performance was driven by significant growth in Services revenue, which increased 83.8% to $34.0 million, while Marketplace revenue slightly declined by 2% to $74.7 million.
Key metrics show annual spend per buyer increased 9.8% to $318, though active buyers decreased 10.9% to 3.4 million. The company achieved a non-GAAP net income of $27.4 million and maintained a strong Adjusted EBITDA margin of 19.7%. Fiverr's AI-related services showed notable growth, with increasing demand for AI agents and workflow automation.
For Q3 2025, Fiverr expects revenue between $105-110 million and maintains its full-year 2025 guidance of $425-438 million in revenue with Adjusted EBITDA of $84-90 million.
Fiverr (NYSE:FVRR) ha riportato solidi risultati finanziari nel secondo trimestre 2025, con un fatturato totale che ha raggiunto 108,6 milioni di dollari, in aumento del 14,8% rispetto all'anno precedente. La performance dell'azienda è stata trainata da una crescita significativa dei ricavi dei Servizi, che sono aumentati del 83,8% arrivando a 34,0 milioni di dollari, mentre i ricavi del Marketplace sono leggermente diminuiti del 2% attestandosi a 74,7 milioni di dollari.
I principali indicatori mostrano che la spesa annuale per acquirente è aumentata del 9,8%, raggiungendo i 318 dollari, anche se il numero di acquirenti attivi è diminuito del 10,9% a 3,4 milioni. L'azienda ha realizzato un utile netto non-GAAP di 27,4 milioni di dollari e ha mantenuto un solido margine Adjusted EBITDA del 19,7%. I servizi legati all'intelligenza artificiale di Fiverr hanno registrato una crescita significativa, con una domanda crescente per agenti AI e automazione dei flussi di lavoro.
Per il terzo trimestre 2025, Fiverr prevede un fatturato compreso tra 105 e 110 milioni di dollari e conferma la guidance per l'intero anno 2025 con un fatturato tra 425 e 438 milioni di dollari e un Adjusted EBITDA tra 84 e 90 milioni di dollari.
Fiverr (NYSE:FVRR) reportó sólidos resultados financieros en el segundo trimestre de 2025, con ingresos totales que alcanzaron los 108,6 millones de dólares, un aumento del 14,8% interanual. El desempeño de la compañía fue impulsado por un crecimiento significativo en los ingresos de Servicios, que aumentaron un 83,8% hasta 34,0 millones de dólares, mientras que los ingresos del Marketplace disminuyeron ligeramente un 2% hasta 74,7 millones de dólares.
Las métricas clave muestran que el gasto anual por comprador aumentó un 9,8% hasta 318 dólares, aunque los compradores activos disminuyeron un 10,9% hasta 3,4 millones. La empresa logró un ingreso neto non-GAAP de 27,4 millones de dólares y mantuvo un sólido margen de EBITDA ajustado del 19,7%. Los servicios relacionados con IA de Fiverr mostraron un crecimiento notable, con una demanda creciente de agentes de IA y automatización de flujos de trabajo.
Para el tercer trimestre de 2025, Fiverr espera ingresos entre 105 y 110 millones de dólares y mantiene su guía para todo el año 2025 con ingresos de 425 a 438 millones de dólares y un EBITDA ajustado de 84 a 90 millones de dólares.
Fiverr (NYSE:FVRR)는 2025년 2분기 강력한 재무 실적을 발표했으며, 총 매출은 1억 860만 달러로 전년 대비 14.8% 증가했습니다. 회사의 성과는 서비스 매출이 83.8% 증가하여 3,400만 달러에 이른 반면, 마켓플레이스 매출은 2% 소폭 감소하여 7,470만 달러를 기록한 데에 힘입었습니다.
주요 지표에 따르면 구매자 1인당 연간 지출이 9.8% 증가하여 318달러를 기록했으나, 활성 구매자는 10.9% 감소하여 340만 명이 되었습니다. 회사는 non-GAAP 순이익 2,740만 달러를 달성했으며, 조정 EBITDA 마진은 19.7%로 견고하게 유지했습니다. Fiverr의 AI 관련 서비스는 AI 에이전트와 워크플로우 자동화에 대한 수요 증가로 눈에 띄는 성장을 보였습니다.
2025년 3분기에는 매출이 1억 500만 달러에서 1억 1,000만 달러 사이일 것으로 예상하며, 2025년 전체 매출 가이던스는 4억 2,500만 달러에서 4억 3,800만 달러, 조정 EBITDA는 8,400만 달러에서 9,000만 달러 사이로 유지하고 있습니다.
Fiverr (NYSE:FVRR) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un chiffre d'affaires total atteignant 108,6 millions de dollars, en hausse de 14,8 % en glissement annuel. La performance de l'entreprise a été portée par une croissance significative des revenus des Services, qui ont augmenté de 83,8 % pour atteindre 34,0 millions de dollars, tandis que les revenus du Marketplace ont légèrement diminué de 2 % pour s'établir à 74,7 millions de dollars.
Les indicateurs clés montrent que la dépense annuelle par acheteur a augmenté de 9,8 % pour atteindre 318 dollars, bien que le nombre d'acheteurs actifs ait diminué de 10,9 % pour s'établir à 3,4 millions. L'entreprise a réalisé un résultat net non-GAAP de 27,4 millions de dollars et maintenu une solide marge d'EBITDA ajusté de 19,7 %. Les services liés à l'IA de Fiverr ont connu une croissance notable, avec une demande croissante pour les agents IA et l'automatisation des flux de travail.
Pour le troisième trimestre 2025, Fiverr prévoit un chiffre d'affaires compris entre 105 et 110 millions de dollars et maintient ses prévisions pour l'ensemble de l'année 2025 avec un chiffre d'affaires de 425 à 438 millions de dollars et un EBITDA ajusté de 84 à 90 millions de dollars.
Fiverr (NYSE:FVRR) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einem Gesamtumsatz von 108,6 Millionen US-Dollar, was einem Anstieg von 14,8 % im Jahresvergleich entspricht. Die Leistung des Unternehmens wurde durch ein deutliches Wachstum der Service-Umsätze getrieben, die um 83,8 % auf 34,0 Millionen US-Dollar zunahmen, während die Marktplatz-Umsätze leicht um 2 % auf 74,7 Millionen US-Dollar zurückgingen.
Wichtige Kennzahlen zeigen, dass die jährlichen Ausgaben pro Käufer um 9,8 % auf 318 US-Dollar stiegen, obwohl die aktiven Käufer um 10,9 % auf 3,4 Millionen zurückgingen. Das Unternehmen erzielte einen Non-GAAP-Nettogewinn von 27,4 Millionen US-Dollar und behielt eine starke bereinigte EBITDA-Marge von 19,7 % bei. Die KI-bezogenen Dienstleistungen von Fiverr verzeichneten ein bemerkenswertes Wachstum, mit steigender Nachfrage nach KI-Agenten und Workflow-Automatisierung.
Für das dritte Quartal 2025 erwartet Fiverr einen Umsatz zwischen 105 und 110 Millionen US-Dollar und bestätigt seine Prognose für das Gesamtjahr 2025 mit einem Umsatz von 425 bis 438 Millionen US-Dollar und einem bereinigten EBITDA von 84 bis 90 Millionen US-Dollar.
- None.
- Marketplace revenue declined 2.0% year-over-year to $74.7 million
- Annual active buyers decreased 10.9% to 3.4 million
- GAAP gross margin decreased 190 basis points to 81.2%
- GAAP net income slightly decreased to $3.2 million from $3.3 million
Insights
Fiverr posts mixed Q2 results with overall revenue growth of 14.8% YoY despite marketplace segment decline, driven by 83.8% surge in services revenue.
Fiverr's Q2 2025 results present a fascinating shift in their business model dynamics. Total revenue reached
This structural shift reflects Fiverr's evolving strategy toward higher-value transactions. The
Profitability metrics show encouraging momentum. Non-GAAP net income increased to
The full-year guidance of
Fiverr's strategic focus on AI services represents a timely pivot that's clearly paying dividends. By positioning at the intersection of human expertise and AI capabilities, they're creating a potentially defensible niche as businesses seek help implementing these emerging technologies. The emphasis on higher-value services and upmarket expansion through Managed Services appears to be offsetting the decline in their traditional marketplace business – at least for now.
- Strong Q2 results: We delivered solid execution across Marketplace and Services segments, together with continued operational discipline. Marketplace revenue was led by strong growth across AI-related categories and continued momentum of Fiverr Pro’s Managed Services, while the Services segment contributed to revenue upside, driven by cross-sell and upsell opportunities of value-added services.
- Rapid AI category expansion: AI-related services are booming, with surging demand especially around AI agents, workflow automation and vibe coding. Businesses of all sizes turn to freelancers on Fiverr to bridge the gap between AI technology and implementation.
- Continued momentum for Managed Services: Fiverr Pro’s Managed Services is showing meaningful growth, driven by demand for high-value, larger transactions. Execution on full-scope projects with new high spenders and repeat clients remains solid, with more deals steadily coming in this quarter. Managed Services continues to be a key driver of upmarket expansion.
- Reiterating full year guidance: We are reiterating our revenue and Adjusted EBITDA guidance for 2025 as we continue to drive solid execution towards the goals and roadmap set at the beginning of the year, while operating with the highest level of discipline and efficiency.
NEW YORK, July 30, 2025 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE: FVRR), the company that is transforming the way the world creates and works together, today reported financial results for the second quarter of 2025. 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.
“AI continues to be a power driver for everything we do, from rapid catalog expansion around AI-related services, to enabling transformative customer experiences, or driving workflow automation within Fiverr. Together with our continuous efforts in going upmarket, we are seeing encouraging growth trends for certain key verticals and high-value transactions,” said Micha Kaufman, founder and CEO of Fiverr. “As AI continues to reshape how work is done, our freelancers are playing a crucial role in helping our customers navigate the rapidly changing technology landscape, and turning AI tools into real world business impact. We are uniquely positioned at the intersection of human and AI, making us the go-to platform for AI expertise.”
"We delivered strong Q2 results as we continue to take a balanced approach between growth and profitability. Growth and innovation remain a top priority for us, especially at a time when AI is unlocking opportunities across almost every discipline. At the same time, we are committed to and confident in delivering our long-term targets for Adjusted EBITDA and free cash flow,” said Ofer Katz, President and CFO of Fiverr. “Our outlook demonstrates our confidence in execution while remaining mindful of a dynamic macro environment.”
Second Quarter 2025 Financial Highlights
- Revenue in the second quarter of 2025 was
$108.6 million , compared to$94.7 million in the second quarter of 2024, an increase of14.8% year over year. - Marketplace revenue in the second quarter of 2025 was
$74.7 million , compared to$76.2 million in the second quarter of 2024, a decline of2.0% year over year. - Annual active buyers1 as of June 30, 2025, were 3.4 million, compared to 3.8 million as of June 30, 2024, a decline of
10.9% year over year. - Annual spend per buyer1 as of June 30, 2025, reached
$318 , compared to$290 as of June 30, 2024, an increase of9.8% year over year. - Marketplace take rate1 for the twelve months period ended June 30, 2025, and 2024 was
27.6% . - Services revenue in the second quarter of 2025 was
$34.0 million , compared to$18.5 million in the second quarter of 2024, an increase of83.8% year over year. - GAAP gross margin in the second quarter of 2025 was
81.2% , a decrease of 190 basis points from83.1% in the second quarter of 2024. Non-GAAP gross margin1 in the second quarter of 2025 was84.5% , an increase of 10 basis points from84.4% in the second quarter of 2024. - GAAP net income in the second quarter of 2025 was
$3.2 million , or$0.09 b asic net income per share and diluted net income per share, compared to$3.3 million GAAP net income, or$0.09 b asic net income per share and$0.08 diluted net income per share in the second quarter of 2024. - Non-GAAP net income1 in the second quarter of 2025 was
$27.4 million , or$0.75 b asic non-GAAP net income per share1 and$0.69 diluted non-GAAP net income per share1, compared to$23.8 million non-GAAP net income1, or$0.63 b asic non-GAAP net income per share1 and$0.58 diluted non-GAAP net income per share1, in the second quarter of 2024. - Net cash provided by operating activities in the second quarter of 2025 was
$25.2 million , compared to$21.0 million in the second quarter of 2024, an increase of20.2% year over year. - Free cash flow1 in the second quarter of 2025 was
$25.0 million , compared to$20.7 million in the second quarter of 2024, an increase of21.1% year over year. - Adjusted EBITDA1 in the second quarter of 2025 was
$21.4 million , compared to$17.8 million in the second quarter of 2024. Adjusted EBITDA margin1 was19.7% in the second quarter of 2025, compared to18.9% in the second quarter of 2024, representing an 80 basis points improvement year over year.
Financial Outlook
Our Q3’25 and full-year 2025 guidance reflect the recent trends in our marketplace.
| Q3 2025 | FY 2025 | |
| Revenue | ||
| y/y growth | ||
| Adjusted EBITDA(1) |
Conference Call and Webcast Details
Fiverr’s management will host a conference call to discuss its financial results on Wednesday, July 30, 2025, 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 using the link here.
About Fiverr
Fiverr’s mission is to transform the way the world creates and works together. We’re shaping the future of work with the world’s leading open platform, seamlessly connecting top talent and cutting-edge technology with businesses around the globe. From expert freelancers in over 750 skilled categories to best-in-class GenAI models and agents, Fiverr provides the most advanced and comprehensive talent and tools for digital services—helping businesses get mission-critical projects done fast and cost-effectively.
From small businesses to Fortune 500 companies, millions trust Fiverr for projects in software and AI development, digital marketing, finance, business consulting, video animation, music, architecture, and more.
1 See “Key Performance Metrics and Non-GAAP Financial Measures” and reconciliation tables at the end of this release for additional information regarding the non-GAAP metrics and Key Performance Metrics used in this release.
Learn how to future-proof your business with exceptional talent and cutting-edge tools at fiverr.com. Follow us on LinkedIn, Instagram, TikTok, and Facebook.
Investor Relations:
Jinjin Qian
investors@fiverr.com
Press:
Jenny Chang
press@fiverr.com
Source: Fiverr International Ltd.
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 313,520 | $ | 133,472 | ||||
| Marketable securities | 264,884 | 288,947 | ||||||
| User funds | 164,119 | 153,309 | ||||||
| Bank deposits | 146,000 | 144,843 | ||||||
| Restricted deposit | 1,315 | 1,315 | ||||||
| Other receivables | 40,392 | 34,198 | ||||||
| Total current assets | 930,230 | 756,084 | ||||||
| Long-term assets: | ||||||||
| Marketable securities | 23,770 | 122,009 | ||||||
| Property and equipment, net | 3,883 | 4,271 | ||||||
| Operating lease right of use asset | 3,829 | 5,122 | ||||||
| Intangible assets, net | 35,077 | 41,882 | ||||||
| Goodwill | 110,218 | 110,218 | ||||||
| Other non-current assets | 31,593 | 30,388 | ||||||
| Total long-term assets | 208,370 | 313,890 | ||||||
| TOTAL ASSETS | $ | 1,138,600 | $ | 1,069,974 | ||||
| Liabilities and Shareholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Trade payables | $ | 6,922 | $ | 5,533 | ||||
| User accounts | 152,047 | 141,691 | ||||||
| Deferred revenue | 20,839 | 20,090 | ||||||
| Other account payables and accrued expenses | 64,930 | 57,167 | ||||||
| Operating lease liabilities | 2,827 | 2,608 | ||||||
| Convertible notes, net | 459,143 | 457,860 | ||||||
| Total current liabilities | 706,708 | 684,949 | ||||||
| Long-term liabilities: | ||||||||
| Operating lease liabilities | 1,547 | 2,747 | ||||||
| Other non-current liabilities | 25,481 | 19,628 | ||||||
| Total long-term liabilities | 27,028 | 22,375 | ||||||
| TOTAL LIABILITIES | $ | 733,736 | $ | 707,324 | ||||
| Shareholders' equity: | ||||||||
| Share capital and additional paid-in capital | 760,995 | 727,176 | ||||||
| Accumulated deficit | (362,207 | ) | (366,193 | ) | ||||
| Accumulated other comprehensive income | 6,076 | 1,667 | ||||||
| Total shareholders' equity | 404,864 | 362,650 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 1,138,600 | $ | 1,069,974 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Revenue | $ | 108,648 | $ | 94,663 | $ | 215,832 | $ | 188,187 | |||||||
| Cost of revenue | 20,384 | 16,024 | 40,780 | 31,472 | |||||||||||
| Gross profit | 88,264 | - | 78,639 | 175,052 | - | 156,715 | |||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 23,994 | 21,855 | 47,621 | 45,488 | |||||||||||
| Sales and marketing | 44,844 | 41,324 | 92,234 | 83,476 | |||||||||||
| General and administrative | 21,415 | 17,764 | 42,381 | 34,215 | |||||||||||
| Total operating expenses | 90,253 | 80,943 | 182,236 | 163,179 | |||||||||||
| Operating loss | (1,989 | ) | (2,304 | ) | (7,184 | ) | (6,464 | ) | |||||||
| Financial income, net | 6,554 | 8,502 | 13,879 | 15,163 | |||||||||||
| Income before taxes on income | 4,565 | 6,198 | 6,695 | 8,699 | |||||||||||
| Taxes on income | (1,377 | ) | (2,931 | ) | (2,709 | ) | (4,644 | ) | |||||||
| Net income attributable to ordinary shareholders | $ | 3,188 | $ | 3,267 | $ | 3,986 | $ | 4,055 | |||||||
| Basic net income per share attributable to ordinary shareholders | $ | 0.09 | $ | 0.09 | $ | 0.11 | $ | 0.11 | |||||||
| Basic weighted average ordinary shares | 36,585,998 | 38,089,060 | 36,523,934 | 38,422,605 | |||||||||||
| Diluted net income per share attributable to ordinary shareholders | $ | 0.09 | $ | 0.08 | $ | 0.11 | $ | 0.10 | |||||||
| Diluted weighted average ordinary shares | 37,499,304 | 38,755,863 | 37,617,438 | 39,180,421 | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
| (In thousands) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income | $ | 3,188 | $ | 3,267 | $ | 3,986 | $ | 4,055 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 4,089 | 1,606 | 8,373 | 2,756 | |||||||||||
| Amortization of premium and accretion of discount of marketable securities, net | (1,530 | ) | (1,154 | ) | (1,597 | ) | (2,248 | ) | |||||||
| Amortization of discount and issuance costs of convertible notes | 642 | 638 | 1,283 | 1,275 | |||||||||||
| Shared-based compensation | 14,055 | 18,438 | 29,809 | 37,458 | |||||||||||
| Exchange rate fluctuations and other items, net | (345 | ) | 55 | (344 | ) | 166 | |||||||||
| Revaluation of Earn-out | 4,067 | - | 7,329 | - | |||||||||||
| Changes in assets and liabilities: | |||||||||||||||
| User funds | 2,930 | 6,928 | (10,810 | ) | (4,692 | ) | |||||||||
| Operating lease ROU assets and liabilities | 385 | (177 | ) | 312 | (275 | ) | |||||||||
| Other receivables | (3,942 | ) | (2,197 | ) | (3,511 | ) | (5,173 | ) | |||||||
| Trade payables | 58 | 248 | 1,362 | (580 | ) | ||||||||||
| Deferred revenue | (1,163 | ) | (777 | ) | 749 | 1,118 | |||||||||
| User accounts | (2,579 | ) | (6,632 | ) | 10,356 | 3,291 | |||||||||
| Other accounts payable and accrued expenses | 5,264 | (131 | ) | 6,287 | 4,134 | ||||||||||
| Non-current liabilities | 85 | 859 | (71 | ) | 882 | ||||||||||
| Net cash provided by operating activities | 25,204 | 20,971 | 53,513 | 42,167 | |||||||||||
| Investing Activities: | |||||||||||||||
| Investment in marketable securities | - | - | (55,652 | ) | (30,734 | ) | |||||||||
| Proceeds from maturities of marketable securities | 97,102 | 68,512 | 180,271 | 108,597 | |||||||||||
| Investment in short-term bank deposits | (500 | ) | (9,000 | ) | (2,000 | ) | (36,238 | ) | |||||||
| Proceeds from short-term bank deposits | - | 2,974 | 843 | 6,351 | |||||||||||
| Acquisition of business, net of cash acquired | - | (9,163 | ) | - | (9,163 | ) | |||||||||
| Purchase of property and equipment | (185 | ) | (309 | ) | (472 | ) | (687 | ) | |||||||
| Capitalization of internal-use software | - | - | (661 | ) | (20 | ) | |||||||||
| Net cash provided by investing activities | 96,417 | 53,014 | 122,329 | 38,106 | |||||||||||
| Financing Activities | |||||||||||||||
| Repurchases of ordinary shares | - | (77,101 | ) | - | (77,101 | ) | |||||||||
| Proceeds from exercise of share options | 2,101 | 1,388 | 2,579 | 1,830 | |||||||||||
| Proceeds from withholding tax related to employees' exercises of share options and RSUs | 2,349 | 441 | 1,288 | 220 | |||||||||||
| Net cash provided by (used in) financing activities | 4,450 | (75,272 | ) | 3,867 | (75,051 | ) | |||||||||
| Effect of exchange rate fluctuations on cash and cash equivalents | 345 | (58 | ) | 339 | (167 | ) | |||||||||
| Increase (decrease) in cash, cash equivalents | 126,416 | (1,345 | ) | 180,048 | 5,055 | ||||||||||
| Cash, cash equivalents at the beginning of period | 187,104 | 190,074 | 133,472 | 183,674 | |||||||||||
| Cash and cash equivalents at the end of period | $ | 313,520 | $ | 188,729 | $ | 313,520 | $ | 188,729 | |||||||
| REVENUE BREAKDOWN | |||||||||||||||
| (in thousands1) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Marketplace Revenue | $ | 74,689 | $ | 76,191 | $ | 152,363 | $ | 154,502 | |||||||
| Annual Active Buyers | 3,425 | 3,846 | 3,425 | 3,846 | |||||||||||
| Annual Spend per Buyer | $ | 318 | $ | 290 | $ | 318 | $ | 290 | |||||||
| Marketplace Take Rate | 27.6 | % | 27.6 | % | 27.6 | % | 27.6 | % | |||||||
| Services Revenue | $ | 33,959 | $ | 18,472 | $ | 63,469 | $ | 33,685 | |||||||
| Total Revenue | $ | 108,648 | $ | 94,663 | $ | 215,832 | $ | 188,187 | |||||||
| 1.Except for Annual Spend per Buyer and Marketplace Take Rate | |||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT | |||||||||||||||||||||||||||
| (In thousands, except gross margin data) | |||||||||||||||||||||||||||
| Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | FY 2023 | FY 2024 | |||||||||||||||||||||
| Unaudited | (Audited) | (Audited) | |||||||||||||||||||||||||
| GAAP gross profit | $ | 78,639 | $ | 80,735 | $ | 83,465 | $ | 86,788 | $ | 88,264 | $ | 299,529 | $ | 320,915 | |||||||||||||
| Add: | |||||||||||||||||||||||||||
| Share-based compensation | 499 | 514 | 445 | 423 | 403 | 2,497 | 2,136 | ||||||||||||||||||||
| Depreciation and amortization | 791 | 2,415 | 3,198 | 3,164 | 3,155 | 3,253 | 7,017 | ||||||||||||||||||||
| Earn-out revaluation, acquisition related costs and other | - | 11 | 17 | 44 | - | - | 28 | ||||||||||||||||||||
| Non-GAAP gross profit | $ | 79,929 | $ | 83,675 | $ | 87,125 | $ | 90,419 | $ | 91,822 | $ | 305,279 | $ | 330,096 | |||||||||||||
| Non-GAAP gross margin | 84.4 | % | 84.0 | % | 84.0 | % | 84.4 | % | 84.5 | % | 84.5 | % | 84.3 | % | |||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME AND NET INCOME PER SHARE | |||||||||||||||||||||||||||
| (In thousands, except share and per share data) | |||||||||||||||||||||||||||
| Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | FY 2023 | FY 2024 | |||||||||||||||||||||
| Unaudited | (Audited) | (Audited) | |||||||||||||||||||||||||
| GAAP net income attributable to ordinary shareholders | $ | 3,267 | $ | 1,353 | $ | 12,838 | $ | 798 | $ | 3,188 | $ | 3,681 | $ | 18,246 | |||||||||||||
| Add: | |||||||||||||||||||||||||||
| Depreciation and amortization | 1,606 | 3,392 | 4,328 | 4,284 | 4,089 | 5,987 | 10,476 | ||||||||||||||||||||
| Share-based compensation | 18,438 | 18,464 | 18,020 | 15,754 | 14,055 | 68,698 | 73,942 | ||||||||||||||||||||
| Earn-out revaluation, acquisition related costs and other | 109 | 1,273 | 4,240 | 4,599 | 5,294 | (359 | ) | 5,631 | |||||||||||||||||||
| Convertible notes amortization of discount and issuance costs | 638 | 640 | 640 | 641 | 642 | 2,541 | 2,555 | ||||||||||||||||||||
| Taxes on income related to non-GAAP adjustments | (71 | ) | (290 | ) | (16,249 | ) | (380 | ) | (351 | ) | - | (16,610 | ) | ||||||||||||||
| Exchange rate (gain)/loss, net | (156 | ) | (221 | ) | 1,108 | (642 | ) | 531 | (131 | ) | 859 | ||||||||||||||||
| Non-GAAP net income | $ | 23,831 | $ | 24,611 | $ | 24,925 | $ | 25,054 | $ | 27,448 | $ | 80,417 | $ | 95,099 | |||||||||||||
| Weighted average number of ordinary shares - basic | 38,089,060 | 35,435,532 | 35,658,287 | 36,019,143 | 36,585,998 | 38,066,203 | 36,984,757 | ||||||||||||||||||||
| Non-GAAP basic net income per share attributable to ordinary shareholders | $ | 0.63 | $ | 0.69 | $ | 0.70 | $ | 0.70 | $ | 0.75 | $ | 2.11 | $ | 2.57 | |||||||||||||
| Weighted average number of ordinary shares - diluted | 40,909,724 | 38,359,853 | 38,947,644 | 39,446,707 | 39,653,165 | 41,304,907 | 39,994,015 | ||||||||||||||||||||
| Non-GAAP diluted net income per share attributable to ordinary shareholders | $ | 0.58 | $ | 0.64 | $ | 0.64 | $ | 0.64 | $ | 0.69 | $ | 1.95 | $ | 2.38 | |||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA | |||||||||||||||||||||||||||
| (In thousands, except Adjusted EBITDA margin data) | |||||||||||||||||||||||||||
| Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | FY 2023 | FY 2024 | |||||||||||||||||||||
| Unaudited | (Audited) | (Audited) | |||||||||||||||||||||||||
| GAAP net income | $ | 3,267 | $ | 1,353 | $ | 12,838 | $ | 798 | $ | 3,188 | $ | 3,681 | $ | 18,246 | |||||||||||||
| Add: | |||||||||||||||||||||||||||
| Financial expenses (income), net | (8,502 | ) | (6,881 | ) | (5,662 | ) | (7,325 | ) | (6,554 | ) | (20,163 | ) | (27,706 | ) | |||||||||||||
| Taxes on income (tax benefit) | 2,931 | 2,052 | (13,054 | ) | 1,332 | 1,377 | 1,373 | (6,358 | ) | ||||||||||||||||||
| Depreciation and amortization | 1,606 | 3,392 | 4,328 | 4,284 | 4,089 | 5,987 | 10,476 | ||||||||||||||||||||
| Share-based compensation | 18,438 | 18,464 | 18,020 | 15,754 | 14,055 | 68,698 | 73,942 | ||||||||||||||||||||
| Earn-out revaluation, acquisition related costs and other | 109 | 1,273 | 4,240 | 4,599 | 5,294 | (359 | ) | 5,631 | |||||||||||||||||||
| Adjusted EBITDA | $ | 17,849 | $ | 19,653 | $ | 20,710 | $ | 19,442 | $ | 21,449 | $ | 59,217 | $ | 74,231 | |||||||||||||
| Adjusted EBITDA margin | 18.9 | % | 19.7 | % | 20.0 | % | 18.1 | % | 19.7 | % | 16.4 | % | 19.0 | % | |||||||||||||
| 1928 | |||||||||||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||
| Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | FY 2023 | FY 2024 | |||||||||||||||||||||
| Unaudited | (Audited) | (Audited) | |||||||||||||||||||||||||
| GAAP research and development | $ | 21,855 | $ | 22,424 | $ | 22,329 | $ | 23,627 | $ | 23,994 | $ | 90,720 | $ | 90,241 | |||||||||||||
| Less: | |||||||||||||||||||||||||||
| Share-based compensation | 5,897 | 5,273 | 5,563 | 4,730 | 4,129 | 24,310 | 23,569 | ||||||||||||||||||||
| Depreciation and amortization | 193 | 190 | 247 | 265 | 313 | 799 | 831 | ||||||||||||||||||||
| Earn-out revaluation, acquisition related costs and other | - | 700 | (672 | ) | 65 | 62 | - | 28 | |||||||||||||||||||
| Non-GAAP research and development | $ | 15,765 | $ | 16,261 | $ | 17,191 | $ | 18,567 | $ | 19,490 | $ | 65,611 | $ | 65,813 | |||||||||||||
| GAAP sales and marketing | $ | 41,324 | $ | 42,970 | $ | 45,232 | $ | 47,390 | $ | 44,844 | $ | 161,208 | $ | 171,678 | |||||||||||||
| Less: | |||||||||||||||||||||||||||
| Share-based compensation | 3,389 | 3,605 | 3,162 | 2,246 | 1,369 | 13,304 | 13,592 | ||||||||||||||||||||
| Depreciation and amortization | 553 | 721 | 770 | 716 | 550 | 1,601 | 2,308 | ||||||||||||||||||||
| Earn-out revaluation, acquisition related costs and other | - | 67 | 1,811 | 1,197 | 1,147 | - | 1,878 | ||||||||||||||||||||
| Non-GAAP sales and marketing | $ | 37,382 | $ | 38,577 | $ | 39,489 | $ | 43,231 | $ | 41,778 | $ | 146,303 | $ | 153,900 | |||||||||||||
| GAAP general and administrative | $ | 17,764 | $ | 18,817 | $ | 21,782 | $ | 20,966 | $ | 21,415 | $ | 62,710 | $ | 74,814 | |||||||||||||
| Less: | |||||||||||||||||||||||||||
| Share-based compensation | 8,653 | 9,072 | 8,850 | 8,355 | 8,154 | 28,587 | 34,645 | ||||||||||||||||||||
| Depreciation and amortization | 69 | 66 | 113 | 139 | 71 | 334 | 320 | ||||||||||||||||||||
| Earn-out revaluation, acquisition related costs and other | 109 | 495 | 3,084 | 3,293 | 4,085 | (359 | ) | 3,697 | |||||||||||||||||||
| Non-GAAP general and administrative | $ | 8,933 | $ | 9,184 | $ | 9,735 | $ | 9,179 | $ | 9,105 | $ | 34,148 | $ | 36,152 | |||||||||||||
| RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||
| Q2'24 | Q3'24 | Q4'24 | Q1'25 | Q2'25 | FY 2023 | FY 2024 | |||||||||||||||||||||
| Unaudited | (Audited) | (Audited) | |||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 20,971 | $ | 10,867 | $ | 30,034 | $ | 28,309 | $ | 25,204 | $ | 83,186 | $ | 83,068 | |||||||||||||
| Purchase of property and equipment | (309 | ) | (290 | ) | (326 | ) | (287 | ) | (185 | ) | (1,053 | ) | (1,303 | ) | |||||||||||||
| Capitalization of internal-use software | - | - | (83 | ) | (661 | ) | - | (60 | ) | (103 | ) | ||||||||||||||||
| Free cash flow | $ | 20,662 | $ | 10,577 | $ | 29,625 | $ | 27,361 | $ | 25,019 | $ | 82,073 | $ | 81,662 | |||||||||||||
Key Performance Metrics and Non-GAAP Financial Measures
This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow, as well as operating metrics, including marketplace Gross Merchandise Value or GMV, annual active buyers, annual spend per buyer and marketplace take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts. As of the fourth quarter of 2024, we updated the definitions of annual active buyers, GMV, annual spend per buyer and marketplace take rate to align our supplemental revenue presentation, which disaggregates revenue into two components, marketplace revenue and services revenue. These metrics will now exclusively reflect the marketplace, as amounts related to services previously included in these metrics are deemed immaterial.
We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the above tables, adjusted for, as applicable, depreciation and amortization, share-based compensation expenses, contingent consideration revaluation, acquisition related costs and other, income taxes, amortization of discount and issuance costs of convertible note, financial (income) expenses, net. Amortization of acquired intangible assets is excluded from the measures, however, the revenue from the acquired companies is included, and their assets actively contribute to revenue generation. Non-GAAP gross profit margin represents non-GAAP gross profit expressed as a percentage of revenue. We define non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by GAAP weighted-average number of ordinary shares basic and diluted. We use free cash flow as a liquidity measure and define it as a net cash provided by operating activities less capital expenditures.
We define GMV or marketplace Gross Merchandise Value as the total value of transactions ordered through our marketplace, excluding value-added tax, goods and services tax, service chargebacks and refunds. Annual active buyers on any given date is defined as buyers who have ordered a Gig on our marketplace within the last 12-month period, irrespective of cancellations. Annual spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of annual active buyers as of such date. Marketplace take rate for a given period means marketplace revenue for such period divided by GMV for such period. When we refer in this release to the marketplace we refer to transactions conducted between buyers and freelancers on Fiverr.com. When we refer to the platform we refer to the marketplace and our additional services.
Management and our board of directors use certain metrics as supplemental measures of our performance that are not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and capital expenditures and to evaluate our capacity to expand our business. In addition, we believe that free cash flow, which we use as a liquidity measure, is useful in evaluating our business because free cash flow reflects the cash surplus available or used to fund the expansion of our business after the payment of capital expenditures relating to the necessary components of ongoing operations. Capital expenditures consist primarily of property and equipment purchases and capitalized software costs.
Free cash flow should not be used as an alternative to, or superior to, cash from operating activities. In addition, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share as well as operating metrics, including GMV, annual active buyers, annual spend per buyer and marketplace take rate should not be considered in isolation, as an alternative to, or superior to net income (loss), revenue, cash flows or other performance measure derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business.
These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measures of Adjusted EBITDA, free cash flow and other non-GAAP metrics used herein are not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.
See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.
We are not able to provide a reconciliation of Adjusted EBITDA to net income (loss), the nearest comparable GAAP measure, and Adjusted EBITDA margin guidance for the third quarter of 2025, the fiscal year ending December 31, 2025, or the period ending December 31, 2027, because certain items that are excluded from Adjusted EBITDA and Adjusted EBITDA margin cannot be reasonably predicted or are not in our control. We are also not able to provide a reconciliation of free cash flow guidance for the three year period from 2024-2027 to cash from operating activities, the nearest comparable GAAP measure, because certain items that are reflected in free cash flow cannot be reasonably predicted or are not in our control. In particular, in the case of Adjusted EBITDA and Adjusted EBITDA margin, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, impairment of intangible assets, income or loss on revaluation of contingent consideration, other acquisition-related costs, convertible notes amortization of discount and issuance costs and exchange rate income or loss, and in the case of free cash flow, we are unable to forecast property and equipment purchases and capitalized software costs, in each case, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including our long term targets and expectations, our business plans and strategy, the growth of our business, AI services and developments as well as statements that include the words “expect,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our ability to successfully implement our business plan within adverse economic conditions that may impact consumers, business spending and the demand for our services or have a material adverse impact on our business, financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to generate sufficient revenue to maintain profitability or positive net cash flow generated by operating activities; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our dependence on traffic to our websites; our ability to maintain user engagement on our websites and to maintain and improve the quality of our platform; our operations within a competitive market; political, economic and military instability in Israel, including related to the war in Israel; our ability and the ability of third parties to protect our users’ personal or other data from a security breach and to comply with laws and regulations relating to data privacy, data protection and cybersecurity; our ability to manage our current and potential future growth; our dependence on decisions and developments in the mobile device industry, over which we do not have control; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States and our ability to manage the business and economic risks of international expansion and operations; our ability to achieve desired operating margins; our ability to comply with a wide variety of U.S. and international laws and regulations, including with regulatory frameworks around the development and use of AI; our ability to attract, recruit, retain and develop qualified employees; our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; and the other important factors discussed under the caption “Risk Factors” in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on February 19, 2025, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
FAQ
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