Fiverr International Ltd. Q1 FY2025 earnings call

• Micha Kaufman highlighted a strong first quarter with revenue and adjusted EBITDA exceeding expectations, driven by execution across market base and services segments. - Fiverr Pro had good wins with large deals closed, like a book publishing company and an online education company. - Fiverr Go showed strong engagement with over 6,000 sellers activated and over 200,000 buyers interacting, with conversion uplift for sellers. - Strategic priorities include going upmarket, expanding value-added services, and investing in AI, with progress made in these areas.

For the first quarter, Marketplace revenue was $77.7 million, driven by 3.5 million active buyers, $309 of spend per buyer, and a 27.7% marketplace take rate. Services revenue was $29.5 million, representing year-over-year growth of 94% and accounting for 27.5% of total revenue in Q1. Overall, revenue for the first quarter was $107.2 million, up 15% year-over-year. Adjusted EBITDA for Q1 was $19.4 million, with an Adjusted EBITDA margin of 18%, and free cash flow totaled $27.4 million, up 31.6% year-over-year.

• Full-year 2025 revenue is expected to be in the range of $425 million to $438 million, representing year-over-year growth of 9% to 12%. - Adjusted EBITDA for 2025 is expected to be in the range of $84 million to $90 million. - Q2 2025 revenue is expected to be $105 million to $109 million, representing year-over-year growth of 11% to 15%. - Adjusted EBITDA for Q2 2025 is expected to be $20 million to $22 million. - Board authorized an additional $100 million for stock repurchase program.

• Macro economic volatility could impact the demand environment. - Maintaining quality as Fiverr Go expands to scale.

Q: Ron Josey asked about Fiverr Go progress and broader demand environment.

A: Micha Kaufman said Fiverr Go has good product market fit with meaningful conversion impact, and the demand environment for freelancing is stable with Q1 seeing elevated results due to seizing opportunities.

Q: Stefanos Crist asked about buyer dynamics with Fiverr Go.

A: Micha Kaufman said buyers love Fiverr Go as it's always on, provides humanized agent experience with seller's voice and style, giving them more confidence to make decisions.

Q: Jason Helfstein asked about services revenue growth sustainability and source of optimism.

A: Ofer Katz said services revenue is sustainable with plans to add more tiers to seller-plus and expand, and Micha Kaufman said optimism comes from progress in upmarket and Fiverr Go success.

Q: Eric Sheridan asked about macroeconomic impact on enterprise adoption and margin side.

A: Ofer Katz said freelancing is being adopted for critical business needs, and Ofer Katz also discussed marketing and R&D leverage.

Q: Joshua Chan asked about six-figure deals and impact of tariffs on AutoDS.

A: Ofer Katz said customers start with small scale to build confidence moving to larger deals, and AutoDS has no impact from tariffs.

Q: Andrew Boone asked about freelancer reinvestment and active buyer trends.

A: Ofer Katz said value-added services have positive ROI so no pushback, and Micha Kaufman said they're pushing upmarket with bigger customers having higher lifetime value.

Q: Marvin Fong asked about sales and marketing opportunity and Fiverr Pro contracts.

A: Micha Kaufman said they seize sales and marketing opportunities across various bases and will continue, and Ofer Katz discussed incentivization for Fiverr Pro contracts involving more service and different unit economics.