- Strong Q1’23 performance. Our pivot towards enhancing
the focus and efficiency of our business paid off, as revenue came
in near the top end of our guidance and Adjusted EBITDA beat the
top end of our guidance. We delivered our highest quarterly
Adjusted EBITDA with double digit Adjusted EBITDA margin, even as
Q1 seasonally marks the heaviest investment outlay across the
entire year.
- Fiverr maintains its position as #1 freelance brand. The
semi-annual brand health check conducted by Ipsos shows that Fiverr
continues to be the top freelance brand in both aided and unaided
brand awareness. This incredible brand power has allowed us to
moderate our performance marketing spend while driving stable
active buyers and new buyer cohorts.
- Launching Fiverr Enterprise. Stoke Talent is rebranded
and integrated as Fiverr Enterprise. With the integration, Fiverr
Enterprise connects different stakeholders in medium to larger
sized enterprises and aims to provide businesses a unified
experience across talent sourcing, project management, procurement
and compliance.
- On track to deliver 2023 guidance. As Q1 kicks off the
year with strong execution and discipline, we are narrowing our
2023 guidance range for both revenue and Adjusted EBITDA. We
believe our progress towards the long-term Adjusted EBITDA margin
target of 25% puts us in a position of strength to navigate a
volatile macro while remaining focused on our longer-term vision
and priorities.
Fiverr International Ltd. (NYSE: FVRR), the company that is
revolutionizing how the world works together, today reported
financial results for the first quarter 2023. 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 started off the year with strong execution, which has
successfully helped us navigate through the current macro
environment while we continue to make progress towards our
long-term vision for the future of work,“ said Micha Kaufman,
founder and CEO of Fiverr. “We are excited about the opportunities
that lie ahead of us, particularly around AI technology, and
believe we are well positioned to unlock the combined potential of
human talent and AI tools in the freelancing industry.
”We remain focused on operational discipline and efficiency for
our business, which has allowed us to meet our growth expectations
and outperform on adjusted EBITDA margin this quarter.” Ofer Katz,
Fiverr’s President and CFO, added, “Thanks to our strong financial
foundation and unique business model, we are on track to deliver on
our 2023 guidance while remaining vigilant in this period of macro
uncertainty.”
First Quarter 2023 Financial Highlights
- Revenue in the first quarter of 2023 was $88.0 million,
compared to $86.7 million in the first quarter of 2022, an increase
of 1.5% year over year.
- Active buyers1 as of March 31, 2023 grew to 4.3 million,
compared to 4.2 million as of March 31, 2022, an increase of 0.3%
year over year.
- Spend per buyer1 as of March 31, 2023 reached $262, compared to
$251 as of March 31, 2022, an increase of 4% year over year.
- Take rate1 for the period ended March 31, 2023 was 30.4%, up
from 29.6% for the period ended March 31, 2022, an increase of 80
basis points year over year.
- GAAP gross margin in the first quarter of 2023 was 82.2%, an
increase of 180 basis points from 80.4% in the first quarter of
2022. Non-GAAP gross margin1 in the first quarter of 2023 was
83.9%, an increase of 40 basis points from 83.5% in the first
quarter of 2022.
- GAAP net loss in the first quarter of 2023 was ($4.3) million,
or ($0.11) basic and diluted net loss per share, compared to
($17.0) million, or ($0.46) basic and diluted net loss per share,
in the first quarter of 2022. Non-GAAP net income1 in the first
quarter of 2023 was $14.6 million, or $0.39 basic non-GAAP net
income per share1 and $0.36 diluted non-GAAP net income per share1,
compared to $0.13 basic non-GAAP net income per share1 and $0.11
diluted non-GAAP net income per share1, in the first quarter of
2022.
- Adjusted EBITDA1 in the first quarter of 2023 was $11.3
million, compared to $3.9 million in the first quarter of 2022.
Adjusted EBITDA margin1 was 12.8% in the first quarter of 2023,
compared to 4.5% in the first quarter of 2022.
Financial Outlook
Our Q2’23 outlook and updated full year 2023 guidance reflects
the recent trends on our marketplace and is largely consistent with
our prior expectations.
Q2 2023
FY 2023
Revenue
$88.0 - $90.0 million
$355.0 - $365.0
million
y/y growth
4% - 6% y/y growth
5% - 8% y/y growth
Adjusted EBITDA(1)
$12.0 - $14.0 million
$48.0 - $56.0 million
Conference Call and Webcast Details
Fiverr’s management will host a conference call to discuss its
financial results on Thursday, May 11, 2023, 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 at the link here.
About Fiverr
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 600
categories, ranging from programming to 3D design, digital
marketing to content creation, from video animation to
architecture.
Don’t get left behind - come be a part of the future of work by
visiting fiverr.com, read our blog, and follow us on Twitter,
Instagram, and Facebook.
CONSOLIDATED BALANCE
SHEETS
(In thousands)
March 31,
December 31,
2023
2022
(Unaudited)
(Audited)
Assets Current assets: Cash and cash equivalents
$
93,652
$
86,752
Restricted cash
1,137
1,137
Marketable securities
235,343
241,293
User funds
158,926
143,020
Bank deposits
134,000
134,000
Other receivables
20,573
19,019
Total current assets
643,631
625,221
Marketable securities
206,884
189,839
Property and equipment, net
5,369
5,660
Operating lease right of use asset, net
8,376
9,077
Intangible assets, net
13,547
14,770
Goodwill
77,270
77,270
Other non-current assets
1,548
1,965
Total assets
$
956,625
$
923,802
Liabilities and Shareholders' Equity Current
liabilities: Trade payables
$
4,835
$
8,630
User accounts
147,995
133,032
Deferred revenue
12,972
11,353
Other account payables and accrued expenses
43,490
41,328
Operating lease liabilities, net
2,505
2,755
Total current liabilities
211,797
197,098
Long-term liabilities: Convertible notes
453,398
452,764
Operating lease liabilities
5,950
6,649
Long-term loan and other non-current liabilities
2,084
1,559
Total long-term liabilities
461,432
460,972
Total liabilities
$
673,229
$
658,070
Shareholders' equity: Share capital and additional
paid-in capital
584,303
565,834
Accumulated deficit
(292,311
)
(288,039
)
Accumulated other comprehensive income (loss)
(8,596
)
(12,063
)
Total shareholders' equity
283,396
265,732
Total liabilities and shareholders' equity
$
956,625
$
923,802
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands, except share and
per share data)
Three Months Ended
March 31,
2023
2022
(Unaudited) Revenue
$
87,956
$
86,685
Cost of revenue
15,666
16,977
Gross profit
72,290
69,708
Operating expenses: Research and development
21,887
23,774
Sales and marketing
42,050
47,867
General and administrative
15,499
15,252
Total operating expenses
79,436
86,893
Operating loss
(7,146
)
(17,185
)
Financial income (expenses), net
3,084
230
Loss before income taxes
(4,062
)
(16,955
)
Income taxes
(210
)
(20
)
Net loss attributable to ordinary shareholders
$
(4,272
)
$
(16,975
)
Basic and diluted net loss per share attributable to ordinary
shareholders
$
(0.11
)
$
(0.46
)
Basic and diluted weighted average ordinary shares
37,691,691
36,842,342
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In thousands)
Three Months Ended
March 31,
2023
2022
(Unaudited) Operating Activities Net loss
$
(4,272
)
$
(16,975
)
Adjustments to reconcile net loss to net cash provided by operating
activities: Depreciation and amortization
1,725
3,110
Loss from disposal of property and equipment
26
-
Amortization of premium and discount of marketable securities, net
856
1,687
Amortization of discount and issuance costs of convertible notes
634
631
Shared-based compensation
16,719
18,003
Net loss (gain) from exchange rate fluctuations
63
(143
)
Shared-based compensation User funds
(15,906
)
(19,303
)
Operating lease ROU assets and liabilities, net
(248
)
(329
)
Other receivables
(974
)
242
Trade payables
(3,785
)
(5,419
)
Deferred revenue
1,619
1,383
User accounts
14,963
17,730
Account payable, accrued expenses and other
1,558
6,524
Non-current liabilities
525
569
Net cash provided by operating activities
13,503
7,710
Investing Activities Investment in marketable
securities
(62,558
)
(44,847
)
Proceeds from sale of marketable securities
54,300
33,609
Bank and restricted deposits
(30
)
(1,137
)
Purchase of property and equipment
(328
)
(493
)
Capitalization of internal-use software and other
(5
)
(399
)
Other non-current assets
-
(78
)
Net cash used in investing activities
(8,621
)
(13,345
)
Financing Activities Proceeds from exercise of share
options
1,750
711
Tax withholding in connection with employees' options exercises and
vested RSUs
331
(1,574
)
Repayment of long-term loan
-
(2,269
)
Net cash provided by (used in) financing activities
2,081
(3,132
)
Effect of exchange rate fluctuations on cash and cash
equivalents
(63
)
143
Increase (decrease) in cash, cash equivalents and restricted
cash
6,900
(8,624
)
Cash, cash equivalents and restricted cash at the beginning of
period
87,889
74,070
Cash, cash equivalents and restricted cash at the end of period
$
94,789
$
65,446
KEY PERFORMANCE
METRICS
Three Months Ended
March 31,
2023
2022
Annual active buyers (in thousands)
4,263
4,249
Annual spend per buyer ($)
$
262
$
251
RECONCILIATION OF GAAP TO
NON-GAAP GROSS PROFIT
(In thousands, except gross
margin data)
Three Months Ended
March 31,
2023
2022
(Unaudited) GAAP gross profit
$
72,290
$
69,708
Add: Share-based compensation and other
613
707
Depreciation and amortization
928
1,956
Non-GAAP gross profit
$
73,831
$
72,371
Non-GAAP gross margin
83.9
%
83.5
%
RECONCILIATION OF GAAP NET
LOSS TO NON-GAAP NET INCOME AND NET INCOME PER SHARE
(In thousands, except share and
per share data)
Three Months Ended March 31,
2023
2022
(Unaudited) GAAP net loss attributable to ordinary
shareholders
$
(4,272
)
$
(16,975
)
Add: Depreciation and amortization
1,725
3,110
Share-based compensation
16,719
18,003
Contingent consideration revaluation, acquisition related costs and
other
-
(63
)
Convertible notes amortization of discount and issuance costs
634
631
Exchange rate (gain)/loss, net
(163
)
(93
)
Non-GAAP net income
$
14,643
$
4,613
Weighted average number of ordinary shares - basic
37,691,691
36,842,342
Non-GAAP basic net income per share attributable to ordinary
shareholders
$
0.39
$
0.13
Weighted average number of ordinary shares - diluted
41,197,049
41,427,757
Non-GAAP diluted net income per share attributable to ordinary
shareholders
$
0.36
$
0.11
RECONCILIATION OF GAAP NET
LOSS TO ADJUSTED EBITDA
(In thousands, except Adjusted
EBITDA margin data)
Three Months Ended March 31,
2023
2022
(Unaudited) GAAP net loss
$
(4,272
)
$
(16,975
)
Add: Financial (income) expenses, net
(3,084
)
(230
)
Income taxes
210
20
Depreciation and amortization
1,725
3,110
Share-based compensation
16,719
18,003
Contingent consideration revaluation, acquisition related costs and
other
-
(63
)
Adjusted EBITDA
$
11,298
$
3,865
Adjusted EBITDA margin
12.8
%
4.5
%
RECONCILIATION OF GAAP TO
NON-GAAP OPERATING EXPENSES
(In thousands)
Three Months Ended March 31,
2023
2022
(Unaudited) GAAP research and development
$
21,887
$
23,774
Less: Share-based compensation
5,784
6,205
Depreciation and amortization
209
201
Non-GAAP research and development
$
15,894
$
17,368
GAAP sales and marketing
$
42,050
$
47,867
Less: Share-based compensation
3,269
4,430
Depreciation and amortization
502
860
Non-GAAP sales and marketing
$
38,279
$
42,577
GAAP general and administrative
$
15,499
$
15,252
Less: Share-based compensation
7,053
6,661
Depreciation and amortization
86
93
Contingent consideration revaluation, acquisition related costs and
other
-
(63
)
Non-GAAP general and administrative
$
8,360
$
8,561
Key Performance Metrics and Non-GAAP
Financial Measures
This release includes certain key performance metrics and
financial measures not based on GAAP, including Adjusted EBITDA,
Adjusted EBITDA margin, Non-GAAP gross profit, Non-GAAP gross
margin, Non-GAAP operating expenses, Non-GAAP net income (loss) and
Non-GAAP net income (loss) per share as well as operating metrics,
including GMV, active buyers, spend per buyer and take rate. Some
amounts in this release may not total due to rounding. All
percentages have been calculated using unrounded amounts.
We define each of our non-GAAP measures of financial
performance, as the respective GAAP balances shown in the above
tables, adjusted for, as applicable, depreciation and amortization,
share-based compensation expenses, contingent consideration
revaluation, acquisition related costs and other, income taxes,
amortization of discount and issuance costs of convertible note,
financial (income) expenses, net. Non-GAAP Gross Profit Margin
represents Non-GAAP Gross Profit expressed as a percentage of
revenue. We define non-GAAP net income (loss) per share as non-GAAP
net income (loss) divided by GAAP weighted-average number of
ordinary shares basic and diluted.
We define GMV or Gross Merchandise Value as the total value of
transactions ordered through our platform, excluding value added
tax, goods and services tax, service chargebacks and refunds.
Active buyers on any given date is defined as buyers who have
ordered a Gig or other services on our platform within the last
12-month period, irrespective of cancellations. Spend per buyer on
any given date is calculated by dividing our GMV within the last
12-month period by the number of active buyers as of such date.
Take rate is revenue for any such period divided by GMV for the
same period.
Management and our board of directors use these metrics as
supplemental measures of our performance that is not required by,
or presented in accordance with GAAP because they assist us in
comparing our operating performance on a consistent basis, as they
remove the impact of items not directly resulting from our core
operations. We also use these metrics for planning purposes,
including the preparation of our internal annual operating budget
and financial projections, to evaluate the performance and
effectiveness of our strategic initiatives and capital expenditures
and to evaluate our capacity to expand our business.
Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP gross profit,
Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP net
income (loss) and Non-GAAP net income (loss) per share as well as
operating metrics, including GMV, active buyers, spend per buyer
and take rate should not be considered in isolation, as an
alternative to, or superior to net loss, revenue, cash flows or
other performance measure derived in accordance with GAAP. These
metrics are frequently used by analysts, investors and other
interested parties to evaluate companies in our industry.
Management believes that the presentation of non-GAAP metrics is an
appropriate measure of operating performance because they eliminate
the impact of expenses that do not relate directly to the
performance of our underlying business.
These non-GAAP metrics should not be construed as an inference
that our future results will be unaffected by unusual or other
items. Additionally, Adjusted EBITDA and other non-GAAP metrics
used herein are not intended to be a measure of free cash flow for
management's discretionary use, as they do not reflect our tax
payments and certain other cash costs that may recur in the future,
including, among other things, cash requirements for costs to
replace assets being depreciated and amortized. Management
compensates for these limitations by relying on our GAAP results in
addition to using Adjusted EBITDA and other non-GAAP metrics as
supplemental measures of our performance. Our measure of Adjusted
EBITDA and other non-GAAP metrics used herein is not necessarily
comparable to similarly titled captions of other companies due to
different methods of calculation.
See the tables above regarding reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures.
We are not able to provide a reconciliation of Adjusted EBITDA
and Adjusted EBITDA margin guidance for the second quarter of 2023
and the fiscal year ending December 31, 2023, and long term to net
loss, the comparable GAAP measure, because certain items that are
excluded from Adjusted EBITDA and Adjusted EBITDA margin cannot be
reasonably predicted or are not in our control. In particular, we
are unable to forecast the timing or magnitude of share based
compensation, amortization of intangible assets, impairment of
intangible assets, income or loss on revaluation of contingent
consideration, other acquisition-related costs, convertible notes
amortization of discount and issuance costs and exchange rate
income or loss, as applicable without unreasonable efforts, and
these items could significantly impact, either individually or in
the aggregate, GAAP measures in the future.
Forward Looking
Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements contained in this release that do not relate to
matters of historical fact should be considered forward-looking
statements, including, without limitation, statements regarding our
expected financial performance and operational performance for the
second quarter of 2023, the fiscal year ending December 31, 2023,
our long term Adjusted EBITDA margin goals, our expected future
Adjusted EBITDA margin, our business plans and strategy, our
expectations regarding AI services and developments, as well as
statements that include the words “expect,” “intend,” “plan,”
“believe,” “project,” “forecast,” “estimate,” “may,” “should,”
“anticipate” and similar statements of a future or forward-looking
nature. These forward-looking statements are based on management’s
current expectations. These statements are neither promises nor
guarantees, but involve known and unknown risks, uncertainties and
other important factors that may cause actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to: our
ability to successfully implement our business plan within adverse
economic conditions that may impact the demand for our services or
have a material adverse impact on our business, financial condition
and results of operations; our ability to attract and retain a
large community of buyers and freelancers; our ability to achieve
profitability; our ability to maintain and enhance our brand; our
dependence on the continued growth and expansion of the market for
freelancers and the services they offer; our dependence on traffic
to our website; our ability to maintain user engagement on our
website and to maintain and improve the quality of our platform;
our operations within a competitive market; our ability and the
ability of third parties to protect our users’ personal or other
data from a security breach and to comply with laws and regulations
relating to data privacy, data protection and cybersecurity; our
ability to manage our current and potential future growth; our
dependence on decisions and developments in the mobile device
industry, over which we do not have control; our ability to detect
errors, defects or disruptions in our platform; our ability to
comply with the terms of underlying licenses of open source
software components on our platform; our ability to expand into
markets outside the United States and our ability to manage the
business and economic risks of international expansion and
operations; our ability to achieve desired operating margins; our
ability to comply with a wide variety of U.S. and international
laws and regulations; our ability to attract, recruit, retain and
develop qualified employees; our reliance on Amazon Web Services;
our ability to mitigate payment and fraud risks; our dependence on
relationships with payment partners, banks and disbursement
partners; and the other important factors discussed under the
caption “Risk Factors” in our annual report on Form 20-F filed with
the U.S. Securities and Exchange Commission (“SEC”) on March 30,
2023, as such factors may be updated from time to time in our other
filings with the SEC, which are accessible on the SEC’s website at
www.sec.gov. In addition, we operate in a very competitive and
rapidly changing environment. New risks emerge from time to time.
It is not possible for our management to predict all risks, nor can
we assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements that we may make. In light of these
risks, uncertainties and assumptions, the forward-looking events
and circumstances discussed in this release are inherently
uncertain and may not occur, and actual results could differ
materially and adversely from those anticipated or implied in the
forward-looking statements. Accordingly, you should not rely upon
forward-looking statements as predictions of future events. In
addition, the forward-looking statements made in this release
relate only to events or information as of the date on which the
statements are made in this release. Except as required by law, we
undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.
___________________________
1 This is a non-GAAP financial
measure or Key Performance Metric. See “Key Performance Metrics and
Non-GAAP Financial Measures” and reconciliation tables at the end
of this release for additional information regarding the non-GAAP
metrics and Key Performance Metrics used in this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510006090/en/
Investor Relations: Jinjin Qian investors@fiverr.com
Press: Siobhan Aalders press@fiverr.com
Fiverr (NYSE:FVRR)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Fiverr (NYSE:FVRR)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024