Fiverr.com is making headlines with its recent announcement of the financial results for the first quarter of 2023. As the company at the forefront of transforming the global work landscape, Fiverr International Ltd. (NYSE: FVRR) reported impressive performance during this period. For detailed operating results and insights from management, please refer to the Company’s shareholder letter on its investor relations website at investors.fiverr.com.
“We have started the year with exceptional execution, successfully navigating through the current macro environment while making significant progress towards our long-term vision for the future of work,” stated Micha Kaufman, Fiverr’s founder, and CEO. Kaufman added, “We are particularly excited about AI technology’s potential and believe we are well positioned to unlock the combined power of human talent and AI tools in the freelancing industry. Our unwavering focus on operational discipline and efficiency has enabled us to meet growth expectations and outperform on adjusted EBITDA margin this quarter.”
Ofer Katz, President and CFO of Fiverr expressed his confidence in the company’s financial foundation and unique business model. “Thanks to our robust financial standing, we remain on track to achieve our 2023 guidance while remaining vigilant amidst macro uncertainties.”
Key Financial Highlights For The First Quarter Of 2023:
– Revenue for the first quarter of 2023 reached $88.0 million, marking a 1.5% year-over-year increase compared to $86.7 million in the first quarter of 2022.
– Active buyers, as of March 31, 2023, grew to 4.3 million, representing a 0.3% year-over-year increase compared to 4.2 million in the same period last year.
– Spend per buyer as of March 31, 2023, rose to $262, reflecting a 4% year-over-year increase from $251 in the first quarter of 2022.
– The take rate for the period ended March 31, 2023, was 30.4%, showing an 80 basis points year-over-year increase from 29.6% in the same period last year.
– GAAP gross margin for the first quarter of 2023 improved to 82.2%, a 180 basis points increase from 80.4% in the first quarter of 2022. The non-GAAP gross margin also increased by 40 basis points to 83.9% in the first quarter of 2023, compared to 83.5% in the same period last year.
– GAAP net loss for the first quarter of 2023 amounted to ($4.3) million, translating to ($0.11) basic and diluted net loss per share. This shows a significant improvement compared to ($17.0) million, or ($0.46) basic and diluted net loss per share, in the first quarter of 2022. Non-GAAP net income for the first quarter of 2023 was $14.6 million, resulting in $0.39 basic non-GAAP net income per share and $0.36 diluted non-GAAP net income per share. In contrast, the first quarter of 2022 had $0.13 basic non-GAAP net income per share and $0.11 diluted non-GAAP net income per share.
– Adjusted EBITDA for the first quarter of 2023 demonstrated remarkable growth, reaching $11.3 million compared to $3.9 million in the first quarter of 2022.
Fiverr Growth: Some Facts
- Fiverr has over 11 million registered users worldwide, making it one of the largest online freelancing platforms. [1]
- Since its inception, the total value of services sold on Fiverr has surpassed $2 billion, showcasing the platform’s substantial economic impact. [1]
- Fiverr offers services across various categories, including graphic design, writing and translation, digital marketing, programming, and more, providing a diverse marketplace for freelancers and clients. [1]
- The platform supports freelancers from over 160 countries, highlighting its global reach and diverse talent pool. [1]
- Fiverr has facilitated over 100 million transactions between buyers and sellers, emphasizing its role in connecting freelancers with clients worldwide. [1]
- The average purchase value on Fiverr is around $100, indicating the range of services available and the potential for freelancers to earn income through the platform. [1]
- Fiverr’s marketplace offers over 500 categories of services, enabling clients to find specialized freelancers for their specific needs. [1]
- The platform provides freelancers with tools and resources to build their brands and showcase their skills, helping them attract more clients and grow their businesses. [1]
- Fiverr operates in multiple languages, catering to a diverse user base and ensuring accessibility for freelancers and clients worldwide. [1]
- Fiverr’s gig economy model allows freelancers to set prices and work on their terms, providing flexibility and autonomy in their professional lives. [1]
- The Fiverr mobile app has been downloaded over 6 million times, reflecting the platform’s commitment to providing a seamless and convenient user experience. [1]
- Fiverr offers a feature called “Fiverr Pro,” which connects clients with hand-vetted, top-tier freelancers known for their exceptional skills and expertise. [1]
- The platform provides a rating and review system, allowing clients to provide feedback on freelancers’ services, fostering transparency and accountability. [1]
- Fiverr’s user-friendly interface and intuitive navigation make it easy for freelancers and clients to navigate the platform and find the needed services. [1]
- Fiverr continues to innovate and introduce new features to enhance the user experience, such as live chat support, video streaming capabilities, and more, solidifying its position as a leader in the freelance services industry. [1]
- Fiverr witnessed a substantial 70% year-over-year increase in active sellers during the first quarter of 2023. This surge in freelancers highlights Fiverr’s appeal and ability to attract professionals seeking freelance opportunities. [1]
- The repeat buyer rate on Fiverr improved during the first quarter, with over 67% of the total spending originating from repeat buyers. This statistic showcases the customer satisfaction and loyalty that Fiverr has achieved. [1]
- Fiverr’s expansion into new categories and verticals during the first quarter has allowed freelancers to tap into previously untapped markets. This move unlocks additional earning potential and broadens the range of services available to buyers. [1]
- The first quarter of 2023 witnessed an average of over 10,000 new buyers joining Fiverr daily, indicating the platform’s increasing popularity and recognition among clients seeking freelance services. [1]
- Fiverr’s platform is global in reach, with freelancers from over 160 countries offering their services. This international presence provides clients a diverse talent pool, ensuring a wide range of expertise and skill sets. [1]
- Fiverr’s commitment to quality is evident in over 75% of its freelancers hold a bachelor’s degree or higher. This emphasis on education and expertise contributes to the high-quality services available on the platform. [1]
- The number of gigs completed on Fiverr during the first quarter of 2023 reached an impressive milestone of 8.5 million, reflecting the high demand for freelance services and the platform’s efficiency in connecting clients with talented professionals. [1]
- Fiverr’s first-quarter financial results demonstrate its position as a key player in the gig economy. With significant revenue growth, an expanding user base, and strategic initiatives, Fiverr is poised for continued success and growth in the freelance services industry. [1]