- Strong finish to 2021: We concluded another year of robust growth with revenue increasing 57% y/y, or 178% over two years
- Strong retention trends: For a second year in a row, all older cohorts, those who joined on or before 2018, retained over 110% of revenue from previous year. Newer cohorts also experienced stronger retention trends compared to a historical cohort at a similar life stage
- Launch of Fiverr Inspire: We launched a brand new browsing experience for buyers to find freelancers through their past projects and deliveries
- Provided both Q1’22 and FY22 guidance: We continue to provide both quarterly and annual guidance on a consistent basis, underscoring the visibility of our business and the confidence of our execution capabilities
Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the fourth quarter of 2021. 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 live in a dynamic and ever evolving work environment in which the world has embraced the vision Fiverr had 12 years ago. This vision continues to drive our innovation and product roadmap as we lead the labor market transformation for customers on both sides of our marketplace,” said Micha Kaufman, founder and CEO of Fiverr. “Our perpetual focus on our community and improving our platform has allowed us to deliver a strong finish to 2021 and exceptional retention trends. As we continue to build on our strategy we are confident in the relevance, value and resilience of our business.”
“Our growth has been exceptional over the last two years at 178%, and our fourth quarter alone saw an increase in revenue of 43% year over year to $79.8 million,” said Ofer Katz, Fiverr’s President and CFO. “Fiverr continues to see growth across all metrics with predictable cohort behavior, giving us confidence to provide strong guidance for the year ahead.”
Fourth Quarter 2021 Financial Highlights
- Revenue in the fourth quarter of 2021 was $79.8 million, an increase of 43% year over year.
- Active buyers as of December 31, 2021 grew to 4.2 million, compared to 3.4 million as of December 31, 2020, an increase of 23% year over year.
- Spend per buyer as of December 31, 2021 reached $242, compared to $205 as of December 31, 2020, an increase of 18% year over year.
- Take rate for the quarter ended December 31, 2021 was 29.2%, up from 27.1% for the quarter ended December 31, 2020, an increase of 210 basis points year over year.
- GAAP gross margin in the fourth quarter of 2021 was 80.9%, a decrease of 170 basis points from 82.6% in the fourth quarter of 2020. Non-GAAP gross margin in the fourth quarter of 2021 was 83.4%, a decrease of 50 basis points from 83.9% in the fourth quarter of 2020.
- GAAP net loss in the fourth quarter of 2021 was ($19.5) million, or ($0.53) basic and diluted net loss per share, compared to ($8.1) million, or ($0.23) basic and diluted net loss per share, in the fourth quarter of 2020. Non-GAAP net income in the fourth quarter of 2021 was $9.2 million, or $0.25 basic net income per share and $0.22 diluted net income per share, compared to $4.8 million, or $0.13 basic net income per share and $0.12 diluted net income per share, in the fourth quarter of 2020.
- Adjusted EBITDA1 in the fourth quarter of 2021 improved to $8.9 million, compared to $4.6 million in the fourth quarter of 2020. Adjusted EBITDA margin was 11.1% in the fourth quarter of 2021, an improvement of 280 basis points from 8.3% in the fourth quarter of 2020.
Full Year 2021 Financial Highlights
- Revenue in 2021 was $297.7 million, an increase of 57% year over year.
- GAAP gross margin in 2021 was 82.6%, an increase of 10 basis points from 82.5% in 2020. Non-GAAP gross margin in 2021 was 84.1%, an increase of 40 basis points from 83.7% in 2020.
- GAAP net loss in 2021 was ($65.0) million, or ($1.81) net loss per share, compared to a net loss of ($14.8) million, or ($0.46) net loss per share, in 2020. Non-GAAP net income in 2021 was $24.5 million, or $0.68 and $0.60 basic and diluted net income per share, respectively, compared to a $10.4 million, or $0.32 and $0.29 basic and diluted net income per share, in 2020.
- Adjusted EBITDA in 2021 improved to $22.9 million, compared to $9.1 million in 2020. Adjusted EBITDA margin was 7.7% in 2021, an improvement of 290 basis points from 4.8% in 2020.
We are introducing Q1’22 and full-year 2022 guidance as follows:
|Q1 2022||FY 2022|
|Revenue||$85.0 – $87.0 million||$373.0 – $379.0 million|
|Year over year growth||24% – 27% y/y||25% – 27% y/y|
|Adjusted EBITDA||$1.5 – $3.5 million||$27.0 – $33.0 million|
1 Adjusted EBITDA is a non-GAAP financial measure. See “Key Performance Metrics and Non-GAAP Financial Measure” for additional information regarding this and other non-GAAP metrics used in this release.
While the development of COVID-19 and its impact on the global economy continues to be highly uncertain, we are confident about our business model and continue to provide both quarterly and annual guidance in a consistent manner. We will provide investors with updated business trends as macro conditions evolve.
Given the unusual growth spikes we experienced during the COVID quarters, we want to provide additional color on the cadence of our business outlook implied in our 2022 guidance. We expect a tough comparison in the early part of 2021 to weigh on the growth rates of H1’22, and growth to accelerate in H2’22. We also expect active buyers to grow in the high single digits and spend per buyer to grow in the teens year over year for full-year 2022. Take rate is expected to remain steady with modest upside.
On the expense side, we expect some catch-up hiring for both customer support as well as product and engineering teams. We expect to continue improving sales and marketing as a percentage of revenue. Overall, we expect to continue making progress towards our long-term Adjusted EBITDA margin target of 25% while prioritizing growth and expanding our market share.
Conference Call and Webcast Details
Fiverr will host a conference call to discuss its financial results on Thursday, February 17, 2022, 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. Investors and analysts can participate in the conference call by dialing +1 (844) 200-6205, or +1 (929) 526-1599 for callers outside the United States, and enter the passcode 293563. A telephonic replay of the conference call will be available until Thursday, February 24, 2022, beginning one hour after the end of the conference call. To listen to the replay please dial +1 (866) 813-9403, or +44 (204) 525-0658 for callers outside the United States, and enter replay code 022673.