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Fiverr Announces First Quarter 2025 Results

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Fiverr today reported financial results for the first quarter of 2025

- Strong start to the year: Both revenue and Adjusted EBITDA came in above the midpoint of our guidance as we delivered strong execution, driving stable Marketplace performance, robust Services revenue growth, and high-velocity product expansion in AI products.
- Fiverr Go leads to faster and better conversion: Following the launch event in February, Fiverr Go continues to garner significant enthusiasm and drive forward-looking AI discussions among our talent community. Personal Assistant shows tremendous potential in helping sellers close deals and doing it faster, while Creation Model helps buyers make better purchase decisions and strengthens high-quality sellers' visibility and exposure.
- Fiverr Pro gaining traction for larger fulfillment: We signed a few six-digit, multi-month contracts spanning across writing, app development, video production and digital marketing use cases. These long-term relationships continue to strengthen our land-and-expand playbook where customers expand their use cases with Fiverr Pro offerings after individual team members find initial success on the marketplace.
- Positive outlook for 2025: We are raising the low end of revenue guidance for 2025 given flow-through from the first quarter. We are also raising the low end of our Adjusted EBITDA guidance for 2025 based on the strong incremental margin of our business and the timing of expense spending. Overall, we remain confident and prudent in forecasting our business as we navigate through a volatile macro environment.

NEW YORK, May 7, 2025 - Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the first 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.
"The year started off on a strong note with focused execution, as revenue and margins came in ahead of expectations. We continue to deliver stable Marketplace performance, robust Services revenue growth, and rapid AI product expansion. Following our recent successful Fiverr Go launch, we are seeing positive signs on buyer conversion, with buyers converting more and faster, as well as making more quality purchase decisions," said Micha Kaufman, founder and CEO of Fiverr. "We are encouraged by the traction across our upmarket efforts, and look forward to making further strategic investments in AI throughout the year to drive long-term upside."
"We are proud to deliver double-digit revenue growth, while our expense discipline and capital allocation strategy remain steady. As we prioritize profitable growth, strong cash flow generation, capital return to shareholders, and M&A opportunities, we are on track to achieve our Adjusted EBITDA and free cash flow three-year targets" said Ofer Katz, President and CFO of Fiverr. "Our updated guidance reflects confidence and prudence in forecasting our business through a volatile macro environment."

First Quarter 2025 Financial Highlights
- Revenue in the first quarter of 2025 was $107.2 million, compared to $93.5 million in the first quarter of 2024, an increase of 14.6% year over year.
- Marketplace revenue in the first quarter of 2025 was $77.7 million, compared to $78.3 million in the first quarter of 2024, representing a decline of 0.8% year over year.
- Annual active buyers as of March 31, 2025 was 3.5 million, compared to 4.0 million as of March 31, 2024, a decline of 10.6% year over year.
- Annual spend per buyer as of March 31, 2025 reached $309, compared to $284 as of March 31, 2024, an increase of 8.8% year over year.
- Marketplace take rate for the period ended March 31, 2025 was 27.7%, up from 27.5% for the period ended March 31, 2024, an increase of 20 basis points year over year.
- Services revenue in the first quarter of 2025 was $29.5 million, compared to $15.2 million in the first quarter of 2024, representing an increase of 94.0% year over year.
- GAAP gross margin in the first quarter of 2025 was 81.0%, a decrease of 250 basis points from 83.5% in the first quarter of 2024. Non-GAAP gross margin1 in the first quarter of 2025 was 84.4%, a decrease of 50 basis points from 84.9% in the first quarter of 2024.
- GAAP net income in the first quarter of 2025 was $0.8 million, or $0.02 basic and diluted net income per share, consistent with the first quarter of 2024.
- Non-GAAP net income in the first quarter of 2025 was $25.0 million, or $0.70 basic non-GAAP net income per share and $0.64 diluted non-GAAP net income per share, compared to $21.7 million non-GAAP net income1, or $0.56 basic non-GAAP net income per share and $0.52 diluted non-GAAP net income per share, in the first quarter of 2024.
- Net cash provided by operating activities in the first quarter of 2025 was $28.3 million, compared to $21.2 million in the first quarter of 2024, an increase of 33.6% year over year.
- Free cash flow in the first quarter of 2025 was $27.4 million, compared to $20.8 million in the first quarter of 2024, an increase of 31.6% year over year.
- Adjusted EBITDA in the first quarter of 2025 was $19.4 million, compared to $16.0 million in the first quarter of 2024. Adjusted EBITDA margin was 18.1% in the first quarter of 2025, compared to 17.1% in the first quarter of 2024, representing a 100 basis points improvement year over year.


Financial Outlook

Our Q2'25 and full-year 2025 guidance reflect the recent trends in our marketplace.

Revenue
Q2 2025: $105 - $109 million
FY 2025: $425 - $438 million

y/y growth
Q2 2025: 11% - 15% y/y growth
FY 2025: 9% - 12% y/y growth

Adjusted EBITDA
Q2 2025: $20.0 - $22.0 million
FY 2025: $84 - $90 million

Conference Call and Webcast Details

Fiverr's management will host a conference call to discuss its financial results on Wednesday, May 7, 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: https://register-conf.media-server.com/register/BI73694d53c5024bd3892592b73546f78f.

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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's Talent Cloud, companies can easily scale their teams from a talent pool of skilled professionals from over 160 countries across more than 550 categories, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture.

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