November 13, 2019

Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the third quarter ended September 30, 2019. Complete operating results and management commentary can be found by accessing the Company’s shareholder letter posted to its investor relations website at investors.fiverr.com.

“It is gratifying to see another quarter of stellar performance and rapid growth and that our continued investment in the platform experience is paying off. Importantly, we are also making great strides on our path to profitability,” said Fiverr CEO Micha Kaufman. “Recent strategic initiatives that highlight our multiple growth levers continue to focus on enhancing our value proposition to both buyers and sellers globally while simultaneously growing our addressable market.”

Ofer Katz, Fiverr CFO, added, “The growth of our active buyer base was driven by continued and consistent cohort behavior, further gains in performance marketing efficiency, and our latest product and technology enhancements. The strong growth in spend per buyer highlights our continued success in moving upmarket, and we continued to expand our industry-leading take rate. We look forward to ending 2019 on a strong note.”

Key Third Quarter 2019 Financial Results

  • Revenue in the third quarter of 2019 was $27.9 million, an increase of 42% year over year.
  • Active buyers as of September 30, 2019 were 2.3 million, compared to 2.0 million as of September 30, 2018, an increase of 16% year over year.
  • Spend per buyer as of September 30, 2019 was $163, compared to $141 as of September 30, 2018, an increase of 15% year over year.
  • Take rate for the twelve months ended September 30, 2019 was 26.6%, compared to 25.2% for the twelve months ended September 30, 2018, an increase of 140 basis points year over year.
  • GAAP gross margin in the third quarter of 2019 was 79.0%, a decrease of 170 basis points from 80.7% in the third quarter of 2018. Non-GAAP gross margin in the third quarter of 2019 was 80.8%, a decrease of 140 basis points from 82.2% in the third quarter of 2018.
  • GAAP net loss in the third quarter of 2019 was ($8.4) million, or ($0.26) per share, compared to ($7.2) million, or ($1.10) per share, in the third quarter of 2018. Non-GAAP net loss in the third quarter of 2019 was ($4.0) million, or ($0.12) per share, compared to ($3.8) million, or ($0.17) per share, in the third quarter of 2018.
  • Adjusted EBITDA in the third quarter of 2019 was ($4.4) million, compared to ($3.9) million in the third quarter of 2018. Adjusted EBITDA margin was (15.6%) in the third quarter of 2019, an improvement of 430 basis points from (19.9%) in the third quarter of 2018.

Recent Business Highlights

  • Launched the first four industry stores on our platform: Gaming, E-commerce, Architecture and Politics, enabling us to further expand our catalog and deepen our relevance and market share among larger businesses.
  • Fiverr Studios is gaining early traction, with hundreds of freelancers now offering Studios Gigs® that are, on average, seven times larger than an average Gig on Fiverr.
  • Continued strong growth momentum in Germany, with traffic to fiverr.de doubling from Q2 to Q3, driven by the successful execution of, and response to, our summer brand campaign in Berlin.

Financial Outlook

Based on our results for the first nine months of 2019 and the strong momentum we see across our platform, we are raising our revenue guidance for the year to 40-41% with continued progress towards profitability.

Q4 2019

FY 2019

Revenue

$28.0 – $29.0 million

$105.5 -$106.5 million

Year over year growth

35% – 40%

40% – 41%

Adjusted EBITDA

($4.3) – ($3.5) million

($19.0) – ($18.2) million

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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.

Conference Call and Webcast Details

Fiverr’s management will host a conference call to discuss its financial results on Wednesday, November 13, 2019 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 (866) 270-1533, or (412) 317-0797 for callers outside the United States, and mentioning the passcode, “Fiverr.” A telephonic replay of the conference call will be available until Wednesday, November 20, 2019, beginning one hour after the end of the conference call. To listen to the replay please dial (877) 344-7529, or (412) 317-0088 for callers outside the United States, and enter passcode 10135686.