• Delivered strong results for Q3’23. Our focus and execution across our core marketplace and Fiverr Business Solutions allowed us to deliver revenue and Adjusted EBITDA at the high end of our guidance.


• Improving Adjusted EBITDA margins for 2023. We are raising our FY’23 Adjusted EBITDA guidance range to $58.0 - $60.0 million, representing Adjusted EBITDA margin of 16.3% at the midpoint, as we continue to operate with focus and discipline.


• Continued upmarket progress driving strong SPB expansion. We continue to move upmarket, with better quality and more complex projects in our core marketplace, continued migration of users towards Fiverr Pro, and the expansion of several new partners on Fiverr Certified. As a result, SPB increased $6 sequentially to $271 this quarter.


• Growth in Promoted Gigs and Seller Plus contributing to take rate expansion. Both programs continue to expand - we recently added Promoted Gigs to our Fiverr Pro marketplace, and Seller Plus subscribers have now reached 25,000. These initiatives contributed to the incremental increase of our take rate to 31.3% this quarter.


• Expanding the leadership team. We are pleased to announce Matti Yahav as our new CMO as of November 1st. Mr. Yahav brings with him many years of marketing experience and has worked at some of the most recognizable brands. We also welcomed Dr. Yael Garten to our board of directors. She has 20 years of extensive experience in data science, machine learning, and converting data into actionable products and business strategies.

NEW YORK, Nov. 09, 2023 Fiverr International Ltd. (NYSE: FVRR), the company that is revolutionizing how the world works together, today reported financial results for the third quarter 2023. Complete 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.

“We continue to innovate our offerings to help our community of businesses and freelancers,” said Micha Kaufman, founder and CEO of Fiverr. “We are making great progress with our new Fiverr Business Solutions and see healthy expansion in our seller tools. We look to finish the year strong and strategically drive growth and shareholder value.”

“We are pleased with our financial results as our balance sheet remains strong and our Adjusted EBITDA margin improved to 17.9% this quarter,” said Ofer Katz, Fiverr’s President and CFO. “We continue to scale our business and are focused on moving upmarket to serve higher lifetime value customers.”

“The unexpected and appalling atrocities that happened in Israel on October 7 and the ongoing war triggered by the event have unavoidably impacted the region and the world. As a company, we are doing everything we can to help our employees, their families and the Fiverr community to safety and to support those who have been impacted by the attack and the war. We continue to operate at the highest level of focus and discipline given the hybrid operation that’s already in place,” said Mr. Kaufman.

Third Quarter 2023 Financial Highlights

• Revenue in the third quarter of 2023 was $92.5 million, compared to $82.5 million in the third quarter of 2022, an increase of 12.1% year over year.


• Active buyers¹ were 4.2 million as of September 30, 2023 and 2022, respectively.


• Spend per buyer¹ as of September 30, 2023 reached $271, compared to $262 as of September 30, 2022, an increase of 4% year over year.


• Take rate¹ for the period ended September 30, 2023 was 31.3%, up from 30.0% for the period ended September 30, 2022, an increase of 130 basis points year over year.


• GAAP gross margin in the third quarter of 2023 was 83.7%, an increase of 260 basis points from 81.1% in the third quarter of 2022. Non-GAAP gross margin¹ in the third quarter of 2023 was 85.2%, an increase of 240 basis points from 82.8% in the third quarter of 2022.


• GAAP net income in the third quarter of 2023 was $3.0 million, or $0.08 basic net income per share and $0.07 diluted net income per share, compared to ($11.4) million net loss per share, or ($0.31) basic and diluted net loss per share, in the third quarter of 2022.


• Non-GAAP net income¹ in the third quarter of 2023 was $22.6 million, or $0.59 basic non-GAAP net income per share¹ and $0.55 diluted non-GAAP net income per share¹, compared to $8.6 million non-GAAP net income, or $0.23 basic non-GAAP net income per share¹ and $0.21 diluted non-GAAP net income per share¹, in the third quarter of 2022.


• Adjusted EBITDA¹ in the third quarter of 2023 was $16.5 million, compared to $6.6 million in the third quarter of 2022. Adjusted EBITDA margin¹ was 17.9% in the third quarter of 2023, compared to 7.9% in the third quarter of 2022.

Financial Outlook

Our Q4’23 outlook and updated full year 2023 guidance reflects the volatility we experienced in our marketplace following the onset of the war in our region and the potential for increased volatility through the remainder of the year. We are maintaining our FY 2023 revenue guidance range while raising the bottom end of our Adjusted EBITDA guidance range.

Conference Call and Webcast Details

Fiverr’s management will host a conference call to discuss its financial results on Thursday, November 9, 2023, 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 revolutionize 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, over 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.

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¹ This is a non-GAAP financial measure or Key Performance Metric. 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.