Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the third 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.
“Our strong Q3 results underscored the consistency of our execution and the resilience of our business. We have a clear strategy for driving growth catalysts amid the uncertain macro environment. The investments we made in strengthening our value-added product portfolio have clearly paid off, as we continue to diversify our business model and expand into a platform where businesses can lean into both technology and human experts,” said Micha Kaufman, founder and CEO of Fiverr. “In addition, we are laying critical product foundations for us to appeal to larger customers and projects, which we expect to unlock significant long-term growth opportunities down the road. The integration of GenAI technology allows us to develop groundbreaking products that were not possible before. I’m really proud of our team who work around the clock to build these amazing experiences for our customers.”
We delivered an exceptional third quarter as both growth and profitability exceeded the top
end of our guidance. We continue to execute on our key strategic initiatives while diligently
managing expenses and making progress toward our three-year target goals. Revenue for Q3ʼ24
was $99.6 million, up 8% y/y, accelerating from 6% y/y growth in Q2ʼ24. We continue to drive
strong take rate expansion as seller monetization programs benefited from the investments
made in the last few months, and AutoDS delivered strong subscriber growth that exceeded
our expectations. We saw the demand trends stabilize to some extent from the volatility we
experienced last quarter, but it is important to note that overall SMB sentiment and hiring
environment continues to be challenging.
Better than expected top-line results were complemented by continued operating efficiencies
across our business. Adjusted EBITDA was $19.7 million, representing an Adjusted EBITDA margin
of 19.7%, a 180 bps improvement from a year ago. We continue to generate strong cash flow,
and execute a disciplined capital allocation strategy that allows us to pursue growth while
delivering shareholder value.
While there continue to be elevated uncertainties in the macro environment that could impact
SMB sentiment and their hiring needs, we have a strong product strategy in place to drive growth.
Our investment in expanding into software products is already starting to pay off. Together
with the continued strength of Promoted Gigs and Seller Plus, they will serve as immediate
short-term growth catalysts. Along these lines, we are also incubating additional programs that
leverage our expansive seller and buyer community to drive continued take rate expansion.
In terms of long-term growth catalysts, we are making critical product investments to unlock the
$300 billion digital freelancing market in the U.S. alone, with the majority remaining offline today.
