Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Fiverr Announces Third Quarter 2023 Results By: Fiverr International Ltd. via GlobeNewswire November 09, 2023 at 01:00 AM EST Delivered strong results for Q3’23. Our focus and execution across our core marketplace and Fiverr Business Solutions allowed us to deliver revenue and Adjusted EBITDA at the high end of our guidance.Improving Adjusted EBITDA margins for 2023. We are raising our FY’23 Adjusted EBITDA guidance range to $58.0 - $60.0 million, representing Adjusted EBITDA margin of 16.3% at the midpoint, as we continue to operate with focus and discipline.Continued upmarket progress driving strong SPB expansion. We continue to move upmarket, with better quality and more complex projects in our core marketplace, continued migration of users towards Fiverr Pro, and the expansion of several new partners on Fiverr Certified. As a result, SPB increased $6 sequentially to $271 this quarter.Growth in Promoted Gigs and Seller Plus contributing to take rate expansion. Both programs continue to expand - we recently added Promoted Gigs to our Fiverr Pro marketplace, and Seller Plus subscribers have now reached 25,000. These initiatives contributed to the incremental increase of our take rate to 31.3% this quarter.Expanding the leadership team. We are pleased to announce Matti Yahav as our new CMO as of November 1st. Mr. Yahav brings with him many years of marketing experience and has worked at some of the most recognizable brands. We also welcomed Dr. Yael Garten to our board of directors. She has 20 years of extensive experience in data science, machine learning, and converting data into actionable products and business strategies. NEW YORK, Nov. 09, 2023 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE: FVRR), the company that is revolutionizing how the world works together, today reported financial results for the third 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 continue to innovate our offerings to help our community of businesses and freelancers,” said Micha Kaufman, founder and CEO of Fiverr. “We are making great progress with our new Fiverr Business Solutions and see healthy expansion in our seller tools. We look to finish the year strong and strategically drive growth and shareholder value.” “We are pleased with our financial results as our balance sheet remains strong and our Adjusted EBITDA margin improved to 17.9% this quarter,” said Ofer Katz, Fiverr’s President and CFO. “We continue to scale our business and are focused on moving upmarket to serve higher lifetime value customers.” “The unexpected and appalling atrocities that happened in Israel on October 7 and the ongoing war triggered by the event have unavoidably impacted the region and the world. As a company, we are doing everything we can to help our employees, their families and the Fiverr community to safety and to support those who have been impacted by the attack and the war. We continue to operate at the highest level of focus and discipline given the hybrid operation that’s already in place,” said Mr. Kaufman. Third Quarter 2023 Financial Highlights Revenue in the third quarter of 2023 was $92.5 million, compared to $82.5 million in the third quarter of 2022, an increase of 12.1% year over year.Active buyers1 were 4.2 million as of September 30, 2023 and 2022, respectively.Spend per buyer1 as of September 30, 2023 reached $271, compared to $262 as of September 30, 2022, an increase of 4% year over year.Take rate1 for the period ended September 30, 2023 was 31.3%, up from 30.0% for the period ended September 30, 2022, an increase of 130 basis points year over year.GAAP gross margin in the third quarter of 2023 was 83.7%, an increase of 260 basis points from 81.1% in the third quarter of 2022. Non-GAAP gross margin1 in the third quarter of 2023 was 85.2%, an increase of 240 basis points from 82.8% in the third quarter of 2022.GAAP net income in the third quarter of 2023 was $3.0 million, or $0.08 basic net income per share and $0.07 diluted net income per share, compared to ($11.4) million net loss per share, or ($0.31) basic and diluted net loss per share, in the third quarter of 2022.Non-GAAP net income1 in the third quarter of 2023 was $22.6 million, or $0.59 basic non-GAAP net income per share1 and $0.55 diluted non-GAAP net income per share1, compared to $8.6 million non-GAAP net income, or $0.23 basic non-GAAP net income per share1 and $0.21 diluted non-GAAP net income per share1, in the third quarter of 2022.Adjusted EBITDA1 in the third quarter of 2023 was $16.5 million, compared to $6.6 million in the third quarter of 2022. Adjusted EBITDA margin1 was 17.9% in the third quarter of 2023, compared to 7.9% in the third quarter of 2022. Financial Outlook Our Q4’23 outlook and updated full year 2023 guidance reflects the volatility we experienced in our marketplace following the onset of the war in our region and the potential for increased volatility through the remainder of the year. We are maintaining our FY 2023 revenue guidance range while raising the bottom end of our Adjusted EBITDA guidance range. Q4 2023FY 2023Revenue$88.1 - $95.1 million$358.0 - $365.0 milliony/y growth6% - 14% y/y growth6% - 8% y/y growthAdjusted EBITDA(1)$14.9 - $16.9 million$58.0 - $60.0 million Conference Call and Webcast Details Fiverr’s management will host a conference call to discuss its financial results on Thursday, November 9, 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 Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, 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. Investor Relations:Jinjin Qianinvestors@fiverr.com Press:Siobhan Aalderspress@fiverr.com ______________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. CONSOLIDATED BALANCE SHEETS(in thousands) September 30,December 31, 2023 2022 (Unaudited) (Audited)Assets Current assets: Cash and cash equivalents $129,885 $86,752 Restricted cash - 1,137 Marketable securities 151,731 241,293 User funds 160,482 143,020 Bank deposits 117,138 134,000 Restricted deposit 1,284 - Other receivables 25,735 19,019 Total current assets 586,255 625,221 Marketable securities 311,656 189,839 Property and equipment, net 4,992 5,660 Operating lease right of use asset, net 7,525 9,077 Intangible assets, net 11,566 14,770 Goodwill 77,270 77,270 Other non-current assets 1,337 1,965 Total assets $1,000,601 $923,802 Liabilities and Shareholders' Equity Current liabilities: Trade payables $3,308 $8,630 User accounts 149,343 133,032 Deferred revenue 13,036 11,353 Other account payables and accrued expenses 48,015 41,328 Operating lease liabilities, net 2,453 2,755 Total current liabilities 216,155 197,098 Long-term liabilities: Convertible notes 454,668 452,764 Operating lease liabilities 4,836 6,649 Other non-current liabilities 2,411 1,559 Total long-term liabilities 461,915 460,972 Total liabilities $678,070 $658,070 Shareholders' equity: Share capital and additional paid-in capital 621,881 565,834 Accumulated deficit (289,059) (288,039)Accumulated other comprehensive income (loss) (10,291) (12,063)Total shareholders' equity 322,531 265,732 Total liabilities and shareholders' equity $1,000,601 $923,802 CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)Revenue $92,532 $82,541 $269,873 $254,236 Cost of revenue 15,075 15,631 46,373 50,134 Gross profit 77,457 66,910 223,500 204,102 Operating expenses: Research and development 23,490 22,938 68,666 71,235 Sales and marketing 40,521 41,959 121,441 134,151 General and administrative 15,791 14,489 46,894 43,399 Impairment of intangible assets - - - 27,629 Total operating expenses 79,802 79,386 237,001 276,414 Operating loss (2,345) (12,476) (13,501) (72,312)Financial income (expenses), net 5,678 1,162 13,249 2,233 Income (loss) before income taxes 3,333 (11,314) (252) (70,079)Income taxes (308) (36) (768) (109)Net income (loss) attributable to ordinary shareholders $3,025 $(11,350) $(1,020) $(70,188)Basic net income (loss) per share attributable to ordinary shareholders $0.08 $(0.31) $(0.03) $(1.91)Basic weighted average ordinary shares 38,164,996 37,205,489 37,668,006 36,843,383 Diluted net income (loss) per share attributable to ordinary shareholders $0.07 $(0.31) $(0.03) $(1.91)Diluted weighted average ordinary shares 41,389,621 37,205,489 37,668,006 36,843,383 CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)Operating Activities Net income (loss) $3,025 $(11,350) $(1,020) $(70,188)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,321 1,938 4,700 8,190 Gain (loss) from disposal of property and equipment 5 (9) 36 (21)Amortization of premium and discount of marketable securities, net (123) 1,368 1,111 5,052 Amortization of discount and issuance costs of convertible notes 635 632 1,904 1,894 Shared-based compensation 17,557 17,612 51,906 54,729 Net loss (gain) from exchange rate fluctuations 286 12 249 183 Impairment of intangible assets - - - 27,629 Changes in assets and liabilities: User funds (3,506) (2,722) (17,462) (17,584)Operating lease ROU assets and liabilities, net (151) (117) (563) (1,547)Other receivables (3,509) (2,402) (6,256) (4,837)Trade payables 1,060 1,873 (5,294) (2,884)Deferred revenue 852 (675) 1,683 (529)User accounts 2,956 2,523 16,311 16,349 Account payable, accrued expenses and other 2,781 (1,994) 7,480 9,184 Revaluation of contingent consideration - (945) - (4,787)Payment of contingent consideration - - - (504)Non-current liabilities 210 (38) 852 178 Net cash provided by operating activities 23,399 5,706 55,637 20,507 Investing Activities Investment in marketable securities (81,753) - (262,761) (90,007)Proceeds from sale of marketable securities 69,485 34,175 232,406 117,521 Bank and restricted deposits (43,138) 15,000 15,613 37,863 Acquisition of intangible asset - - - (175)Purchase of property and equipment (223) (280) (918) (1,111)Capitalization of internal-use software and other (44) (116) (57) (1,019)Other non-current assets - (100) - (1,178)Net cash provided by (used in) investing activities (55,673) 48,679 (15,717) 61,894 Financing Activities Payment of contingent consideration - - - (1,105)Proceeds from exercise of share options 218 597 2,401 2,308 Tax withholding in connection with employees' options exercises and vested RSUs (20) (156) (76) (2,286)Repayment of long-term loan - - - (2,269)Net cash provided by (used in) financing activities 198 441 2,325 (3,352) Effect of exchange rate fluctuations on cash and cash equivalents (286) (12) (249) (183) Increase (decrease) in cash, cash equivalents and restricted cash (32,362) 54,814 41,996 78,866 Cash, cash equivalents and restricted cash at the beginning of period 162,247 98,122 87,889 74,070 Cash and cash equivalents at the end of period $129,885 $152,936 $129,885 $152,936 KEY PERFORMANCE METRICS Twelve Months Ended September 30, 2023 2022 Annual active buyers (in thousands) 4,164 4,249Annual spend per buyer ($) 271 262 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT(in thousands, except gross margin data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP gross profit $77,457 $66,910 $223,500 $204,102 Add: Share-based compensation and other 632 477 1,864 1,955 Depreciation and amortization 731 922 2,544 4,895 Non-GAAP gross profit $78,820 $68,309 $227,908 $210,952 Non-GAAP gross margin 85.2% 82.8% 84.5% 83.0% RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME AND NET INCOME PER SHARE(in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP net income (loss) attributable to ordinary shareholders $3,025 $(11,350) $(1,020) $(70,188)Add: Depreciation and amortization 1,321 1,938 4,700 8,190 Share-based compensation 17,557 17,612 51,906 54,729 Impairment of intangible assets - - - 27,629 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Convertible notes amortization of discount and issuance costs 635 632 1,904 1,894 Exchange rate (gain)/loss, net 98 316 (173) (932)Non-GAAP net income $22,636 $8,628 $57,317 $18,112 Weighted average number of ordinary shares - basic 38,164,996 37,205,489 37,668,006 36,843,383 Non-GAAP basic net income per share attributable to ordinary shareholders $0.59 $0.23 $1.52 $0.49 Weighted average number of ordinary shares - diluted 41,389,621 40,731,833 41,006,387 40,708,818 Non-GAAP diluted net income per share attributable to ordinary shareholders $0.55 $0.21 $1.40 $0.44 RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA(in thousands, except adjusted EBITDA margin data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP net income (loss) $3,025 $(11,350) $(1,020) $(70,188)Add: Financial (income) expenses, net (5,678) (1,162) (13,249) (2,233)Income taxes 308 36 768 109 Depreciation and amortization 1,321 1,938 4,700 8,190 Share-based compensation 17,557 17,612 51,906 54,729 Impairment of intangible assets - - - 27,629 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Adjusted EBITDA $16,533 $6,554 $43,105 $15,026 Adjusted EBITDA margin 17.9% 7.9% 16.0% 5.9% RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP research and development $23,490 $22,938 $68,666 $71,235 Less: Share-based compensation 6,227 5,811 18,474 18,537 Depreciation and amortization 196 200 608 603 Non-GAAP research and development $17,067 $16,927 $49,584 $52,095 GAAP sales and marketing $40,521 $41,959 $121,441 $134,151 Less: Share-based compensation 3,392 4,151 10,138 13,156 Depreciation and amortization 314 713 1,292 2,394 Non-GAAP sales and marketing $36,815 $37,095 $110,011 $118,601 GAAP general and administrative $15,791 $14,489 $46,894 $43,399 Less: Share-based compensation 7,306 7,173 21,430 21,081 Depreciation and amortization 80 103 256 298 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Non-GAAP general and administrative $8,405 $7,733 $25,208 $25,230 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 fourth quarter of 2023 and the fiscal year ending December 31, 2023, and long term to net income (loss), the nearest 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 fourth 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: political, economic and military instability in Israel, including related to the war in Israel; 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. Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Fiverr Announces Third Quarter 2023 Results By: Fiverr International Ltd. via GlobeNewswire November 09, 2023 at 01:00 AM EST Delivered strong results for Q3’23. Our focus and execution across our core marketplace and Fiverr Business Solutions allowed us to deliver revenue and Adjusted EBITDA at the high end of our guidance.Improving Adjusted EBITDA margins for 2023. We are raising our FY’23 Adjusted EBITDA guidance range to $58.0 - $60.0 million, representing Adjusted EBITDA margin of 16.3% at the midpoint, as we continue to operate with focus and discipline.Continued upmarket progress driving strong SPB expansion. We continue to move upmarket, with better quality and more complex projects in our core marketplace, continued migration of users towards Fiverr Pro, and the expansion of several new partners on Fiverr Certified. As a result, SPB increased $6 sequentially to $271 this quarter.Growth in Promoted Gigs and Seller Plus contributing to take rate expansion. Both programs continue to expand - we recently added Promoted Gigs to our Fiverr Pro marketplace, and Seller Plus subscribers have now reached 25,000. These initiatives contributed to the incremental increase of our take rate to 31.3% this quarter.Expanding the leadership team. We are pleased to announce Matti Yahav as our new CMO as of November 1st. Mr. Yahav brings with him many years of marketing experience and has worked at some of the most recognizable brands. We also welcomed Dr. Yael Garten to our board of directors. She has 20 years of extensive experience in data science, machine learning, and converting data into actionable products and business strategies. NEW YORK, Nov. 09, 2023 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE: FVRR), the company that is revolutionizing how the world works together, today reported financial results for the third 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 continue to innovate our offerings to help our community of businesses and freelancers,” said Micha Kaufman, founder and CEO of Fiverr. “We are making great progress with our new Fiverr Business Solutions and see healthy expansion in our seller tools. We look to finish the year strong and strategically drive growth and shareholder value.” “We are pleased with our financial results as our balance sheet remains strong and our Adjusted EBITDA margin improved to 17.9% this quarter,” said Ofer Katz, Fiverr’s President and CFO. “We continue to scale our business and are focused on moving upmarket to serve higher lifetime value customers.” “The unexpected and appalling atrocities that happened in Israel on October 7 and the ongoing war triggered by the event have unavoidably impacted the region and the world. As a company, we are doing everything we can to help our employees, their families and the Fiverr community to safety and to support those who have been impacted by the attack and the war. We continue to operate at the highest level of focus and discipline given the hybrid operation that’s already in place,” said Mr. Kaufman. Third Quarter 2023 Financial Highlights Revenue in the third quarter of 2023 was $92.5 million, compared to $82.5 million in the third quarter of 2022, an increase of 12.1% year over year.Active buyers1 were 4.2 million as of September 30, 2023 and 2022, respectively.Spend per buyer1 as of September 30, 2023 reached $271, compared to $262 as of September 30, 2022, an increase of 4% year over year.Take rate1 for the period ended September 30, 2023 was 31.3%, up from 30.0% for the period ended September 30, 2022, an increase of 130 basis points year over year.GAAP gross margin in the third quarter of 2023 was 83.7%, an increase of 260 basis points from 81.1% in the third quarter of 2022. Non-GAAP gross margin1 in the third quarter of 2023 was 85.2%, an increase of 240 basis points from 82.8% in the third quarter of 2022.GAAP net income in the third quarter of 2023 was $3.0 million, or $0.08 basic net income per share and $0.07 diluted net income per share, compared to ($11.4) million net loss per share, or ($0.31) basic and diluted net loss per share, in the third quarter of 2022.Non-GAAP net income1 in the third quarter of 2023 was $22.6 million, or $0.59 basic non-GAAP net income per share1 and $0.55 diluted non-GAAP net income per share1, compared to $8.6 million non-GAAP net income, or $0.23 basic non-GAAP net income per share1 and $0.21 diluted non-GAAP net income per share1, in the third quarter of 2022.Adjusted EBITDA1 in the third quarter of 2023 was $16.5 million, compared to $6.6 million in the third quarter of 2022. Adjusted EBITDA margin1 was 17.9% in the third quarter of 2023, compared to 7.9% in the third quarter of 2022. Financial Outlook Our Q4’23 outlook and updated full year 2023 guidance reflects the volatility we experienced in our marketplace following the onset of the war in our region and the potential for increased volatility through the remainder of the year. We are maintaining our FY 2023 revenue guidance range while raising the bottom end of our Adjusted EBITDA guidance range. Q4 2023FY 2023Revenue$88.1 - $95.1 million$358.0 - $365.0 milliony/y growth6% - 14% y/y growth6% - 8% y/y growthAdjusted EBITDA(1)$14.9 - $16.9 million$58.0 - $60.0 million Conference Call and Webcast Details Fiverr’s management will host a conference call to discuss its financial results on Thursday, November 9, 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 Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, 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. Investor Relations:Jinjin Qianinvestors@fiverr.com Press:Siobhan Aalderspress@fiverr.com ______________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. CONSOLIDATED BALANCE SHEETS(in thousands) September 30,December 31, 2023 2022 (Unaudited) (Audited)Assets Current assets: Cash and cash equivalents $129,885 $86,752 Restricted cash - 1,137 Marketable securities 151,731 241,293 User funds 160,482 143,020 Bank deposits 117,138 134,000 Restricted deposit 1,284 - Other receivables 25,735 19,019 Total current assets 586,255 625,221 Marketable securities 311,656 189,839 Property and equipment, net 4,992 5,660 Operating lease right of use asset, net 7,525 9,077 Intangible assets, net 11,566 14,770 Goodwill 77,270 77,270 Other non-current assets 1,337 1,965 Total assets $1,000,601 $923,802 Liabilities and Shareholders' Equity Current liabilities: Trade payables $3,308 $8,630 User accounts 149,343 133,032 Deferred revenue 13,036 11,353 Other account payables and accrued expenses 48,015 41,328 Operating lease liabilities, net 2,453 2,755 Total current liabilities 216,155 197,098 Long-term liabilities: Convertible notes 454,668 452,764 Operating lease liabilities 4,836 6,649 Other non-current liabilities 2,411 1,559 Total long-term liabilities 461,915 460,972 Total liabilities $678,070 $658,070 Shareholders' equity: Share capital and additional paid-in capital 621,881 565,834 Accumulated deficit (289,059) (288,039)Accumulated other comprehensive income (loss) (10,291) (12,063)Total shareholders' equity 322,531 265,732 Total liabilities and shareholders' equity $1,000,601 $923,802 CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)Revenue $92,532 $82,541 $269,873 $254,236 Cost of revenue 15,075 15,631 46,373 50,134 Gross profit 77,457 66,910 223,500 204,102 Operating expenses: Research and development 23,490 22,938 68,666 71,235 Sales and marketing 40,521 41,959 121,441 134,151 General and administrative 15,791 14,489 46,894 43,399 Impairment of intangible assets - - - 27,629 Total operating expenses 79,802 79,386 237,001 276,414 Operating loss (2,345) (12,476) (13,501) (72,312)Financial income (expenses), net 5,678 1,162 13,249 2,233 Income (loss) before income taxes 3,333 (11,314) (252) (70,079)Income taxes (308) (36) (768) (109)Net income (loss) attributable to ordinary shareholders $3,025 $(11,350) $(1,020) $(70,188)Basic net income (loss) per share attributable to ordinary shareholders $0.08 $(0.31) $(0.03) $(1.91)Basic weighted average ordinary shares 38,164,996 37,205,489 37,668,006 36,843,383 Diluted net income (loss) per share attributable to ordinary shareholders $0.07 $(0.31) $(0.03) $(1.91)Diluted weighted average ordinary shares 41,389,621 37,205,489 37,668,006 36,843,383 CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)Operating Activities Net income (loss) $3,025 $(11,350) $(1,020) $(70,188)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,321 1,938 4,700 8,190 Gain (loss) from disposal of property and equipment 5 (9) 36 (21)Amortization of premium and discount of marketable securities, net (123) 1,368 1,111 5,052 Amortization of discount and issuance costs of convertible notes 635 632 1,904 1,894 Shared-based compensation 17,557 17,612 51,906 54,729 Net loss (gain) from exchange rate fluctuations 286 12 249 183 Impairment of intangible assets - - - 27,629 Changes in assets and liabilities: User funds (3,506) (2,722) (17,462) (17,584)Operating lease ROU assets and liabilities, net (151) (117) (563) (1,547)Other receivables (3,509) (2,402) (6,256) (4,837)Trade payables 1,060 1,873 (5,294) (2,884)Deferred revenue 852 (675) 1,683 (529)User accounts 2,956 2,523 16,311 16,349 Account payable, accrued expenses and other 2,781 (1,994) 7,480 9,184 Revaluation of contingent consideration - (945) - (4,787)Payment of contingent consideration - - - (504)Non-current liabilities 210 (38) 852 178 Net cash provided by operating activities 23,399 5,706 55,637 20,507 Investing Activities Investment in marketable securities (81,753) - (262,761) (90,007)Proceeds from sale of marketable securities 69,485 34,175 232,406 117,521 Bank and restricted deposits (43,138) 15,000 15,613 37,863 Acquisition of intangible asset - - - (175)Purchase of property and equipment (223) (280) (918) (1,111)Capitalization of internal-use software and other (44) (116) (57) (1,019)Other non-current assets - (100) - (1,178)Net cash provided by (used in) investing activities (55,673) 48,679 (15,717) 61,894 Financing Activities Payment of contingent consideration - - - (1,105)Proceeds from exercise of share options 218 597 2,401 2,308 Tax withholding in connection with employees' options exercises and vested RSUs (20) (156) (76) (2,286)Repayment of long-term loan - - - (2,269)Net cash provided by (used in) financing activities 198 441 2,325 (3,352) Effect of exchange rate fluctuations on cash and cash equivalents (286) (12) (249) (183) Increase (decrease) in cash, cash equivalents and restricted cash (32,362) 54,814 41,996 78,866 Cash, cash equivalents and restricted cash at the beginning of period 162,247 98,122 87,889 74,070 Cash and cash equivalents at the end of period $129,885 $152,936 $129,885 $152,936 KEY PERFORMANCE METRICS Twelve Months Ended September 30, 2023 2022 Annual active buyers (in thousands) 4,164 4,249Annual spend per buyer ($) 271 262 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT(in thousands, except gross margin data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP gross profit $77,457 $66,910 $223,500 $204,102 Add: Share-based compensation and other 632 477 1,864 1,955 Depreciation and amortization 731 922 2,544 4,895 Non-GAAP gross profit $78,820 $68,309 $227,908 $210,952 Non-GAAP gross margin 85.2% 82.8% 84.5% 83.0% RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME AND NET INCOME PER SHARE(in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP net income (loss) attributable to ordinary shareholders $3,025 $(11,350) $(1,020) $(70,188)Add: Depreciation and amortization 1,321 1,938 4,700 8,190 Share-based compensation 17,557 17,612 51,906 54,729 Impairment of intangible assets - - - 27,629 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Convertible notes amortization of discount and issuance costs 635 632 1,904 1,894 Exchange rate (gain)/loss, net 98 316 (173) (932)Non-GAAP net income $22,636 $8,628 $57,317 $18,112 Weighted average number of ordinary shares - basic 38,164,996 37,205,489 37,668,006 36,843,383 Non-GAAP basic net income per share attributable to ordinary shareholders $0.59 $0.23 $1.52 $0.49 Weighted average number of ordinary shares - diluted 41,389,621 40,731,833 41,006,387 40,708,818 Non-GAAP diluted net income per share attributable to ordinary shareholders $0.55 $0.21 $1.40 $0.44 RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA(in thousands, except adjusted EBITDA margin data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP net income (loss) $3,025 $(11,350) $(1,020) $(70,188)Add: Financial (income) expenses, net (5,678) (1,162) (13,249) (2,233)Income taxes 308 36 768 109 Depreciation and amortization 1,321 1,938 4,700 8,190 Share-based compensation 17,557 17,612 51,906 54,729 Impairment of intangible assets - - - 27,629 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Adjusted EBITDA $16,533 $6,554 $43,105 $15,026 Adjusted EBITDA margin 17.9% 7.9% 16.0% 5.9% RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP research and development $23,490 $22,938 $68,666 $71,235 Less: Share-based compensation 6,227 5,811 18,474 18,537 Depreciation and amortization 196 200 608 603 Non-GAAP research and development $17,067 $16,927 $49,584 $52,095 GAAP sales and marketing $40,521 $41,959 $121,441 $134,151 Less: Share-based compensation 3,392 4,151 10,138 13,156 Depreciation and amortization 314 713 1,292 2,394 Non-GAAP sales and marketing $36,815 $37,095 $110,011 $118,601 GAAP general and administrative $15,791 $14,489 $46,894 $43,399 Less: Share-based compensation 7,306 7,173 21,430 21,081 Depreciation and amortization 80 103 256 298 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Non-GAAP general and administrative $8,405 $7,733 $25,208 $25,230 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 fourth quarter of 2023 and the fiscal year ending December 31, 2023, and long term to net income (loss), the nearest 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 fourth 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: political, economic and military instability in Israel, including related to the war in Israel; 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.
Delivered strong results for Q3’23. Our focus and execution across our core marketplace and Fiverr Business Solutions allowed us to deliver revenue and Adjusted EBITDA at the high end of our guidance.Improving Adjusted EBITDA margins for 2023. We are raising our FY’23 Adjusted EBITDA guidance range to $58.0 - $60.0 million, representing Adjusted EBITDA margin of 16.3% at the midpoint, as we continue to operate with focus and discipline.Continued upmarket progress driving strong SPB expansion. We continue to move upmarket, with better quality and more complex projects in our core marketplace, continued migration of users towards Fiverr Pro, and the expansion of several new partners on Fiverr Certified. As a result, SPB increased $6 sequentially to $271 this quarter.Growth in Promoted Gigs and Seller Plus contributing to take rate expansion. Both programs continue to expand - we recently added Promoted Gigs to our Fiverr Pro marketplace, and Seller Plus subscribers have now reached 25,000. These initiatives contributed to the incremental increase of our take rate to 31.3% this quarter.Expanding the leadership team. We are pleased to announce Matti Yahav as our new CMO as of November 1st. Mr. Yahav brings with him many years of marketing experience and has worked at some of the most recognizable brands. We also welcomed Dr. Yael Garten to our board of directors. She has 20 years of extensive experience in data science, machine learning, and converting data into actionable products and business strategies. NEW YORK, Nov. 09, 2023 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE: FVRR), the company that is revolutionizing how the world works together, today reported financial results for the third 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 continue to innovate our offerings to help our community of businesses and freelancers,” said Micha Kaufman, founder and CEO of Fiverr. “We are making great progress with our new Fiverr Business Solutions and see healthy expansion in our seller tools. We look to finish the year strong and strategically drive growth and shareholder value.” “We are pleased with our financial results as our balance sheet remains strong and our Adjusted EBITDA margin improved to 17.9% this quarter,” said Ofer Katz, Fiverr’s President and CFO. “We continue to scale our business and are focused on moving upmarket to serve higher lifetime value customers.” “The unexpected and appalling atrocities that happened in Israel on October 7 and the ongoing war triggered by the event have unavoidably impacted the region and the world. As a company, we are doing everything we can to help our employees, their families and the Fiverr community to safety and to support those who have been impacted by the attack and the war. We continue to operate at the highest level of focus and discipline given the hybrid operation that’s already in place,” said Mr. Kaufman. Third Quarter 2023 Financial Highlights Revenue in the third quarter of 2023 was $92.5 million, compared to $82.5 million in the third quarter of 2022, an increase of 12.1% year over year.Active buyers1 were 4.2 million as of September 30, 2023 and 2022, respectively.Spend per buyer1 as of September 30, 2023 reached $271, compared to $262 as of September 30, 2022, an increase of 4% year over year.Take rate1 for the period ended September 30, 2023 was 31.3%, up from 30.0% for the period ended September 30, 2022, an increase of 130 basis points year over year.GAAP gross margin in the third quarter of 2023 was 83.7%, an increase of 260 basis points from 81.1% in the third quarter of 2022. Non-GAAP gross margin1 in the third quarter of 2023 was 85.2%, an increase of 240 basis points from 82.8% in the third quarter of 2022.GAAP net income in the third quarter of 2023 was $3.0 million, or $0.08 basic net income per share and $0.07 diluted net income per share, compared to ($11.4) million net loss per share, or ($0.31) basic and diluted net loss per share, in the third quarter of 2022.Non-GAAP net income1 in the third quarter of 2023 was $22.6 million, or $0.59 basic non-GAAP net income per share1 and $0.55 diluted non-GAAP net income per share1, compared to $8.6 million non-GAAP net income, or $0.23 basic non-GAAP net income per share1 and $0.21 diluted non-GAAP net income per share1, in the third quarter of 2022.Adjusted EBITDA1 in the third quarter of 2023 was $16.5 million, compared to $6.6 million in the third quarter of 2022. Adjusted EBITDA margin1 was 17.9% in the third quarter of 2023, compared to 7.9% in the third quarter of 2022. Financial Outlook Our Q4’23 outlook and updated full year 2023 guidance reflects the volatility we experienced in our marketplace following the onset of the war in our region and the potential for increased volatility through the remainder of the year. We are maintaining our FY 2023 revenue guidance range while raising the bottom end of our Adjusted EBITDA guidance range. Q4 2023FY 2023Revenue$88.1 - $95.1 million$358.0 - $365.0 milliony/y growth6% - 14% y/y growth6% - 8% y/y growthAdjusted EBITDA(1)$14.9 - $16.9 million$58.0 - $60.0 million Conference Call and Webcast Details Fiverr’s management will host a conference call to discuss its financial results on Thursday, November 9, 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 Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, 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. Investor Relations:Jinjin Qianinvestors@fiverr.com Press:Siobhan Aalderspress@fiverr.com ______________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. CONSOLIDATED BALANCE SHEETS(in thousands) September 30,December 31, 2023 2022 (Unaudited) (Audited)Assets Current assets: Cash and cash equivalents $129,885 $86,752 Restricted cash - 1,137 Marketable securities 151,731 241,293 User funds 160,482 143,020 Bank deposits 117,138 134,000 Restricted deposit 1,284 - Other receivables 25,735 19,019 Total current assets 586,255 625,221 Marketable securities 311,656 189,839 Property and equipment, net 4,992 5,660 Operating lease right of use asset, net 7,525 9,077 Intangible assets, net 11,566 14,770 Goodwill 77,270 77,270 Other non-current assets 1,337 1,965 Total assets $1,000,601 $923,802 Liabilities and Shareholders' Equity Current liabilities: Trade payables $3,308 $8,630 User accounts 149,343 133,032 Deferred revenue 13,036 11,353 Other account payables and accrued expenses 48,015 41,328 Operating lease liabilities, net 2,453 2,755 Total current liabilities 216,155 197,098 Long-term liabilities: Convertible notes 454,668 452,764 Operating lease liabilities 4,836 6,649 Other non-current liabilities 2,411 1,559 Total long-term liabilities 461,915 460,972 Total liabilities $678,070 $658,070 Shareholders' equity: Share capital and additional paid-in capital 621,881 565,834 Accumulated deficit (289,059) (288,039)Accumulated other comprehensive income (loss) (10,291) (12,063)Total shareholders' equity 322,531 265,732 Total liabilities and shareholders' equity $1,000,601 $923,802 CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)Revenue $92,532 $82,541 $269,873 $254,236 Cost of revenue 15,075 15,631 46,373 50,134 Gross profit 77,457 66,910 223,500 204,102 Operating expenses: Research and development 23,490 22,938 68,666 71,235 Sales and marketing 40,521 41,959 121,441 134,151 General and administrative 15,791 14,489 46,894 43,399 Impairment of intangible assets - - - 27,629 Total operating expenses 79,802 79,386 237,001 276,414 Operating loss (2,345) (12,476) (13,501) (72,312)Financial income (expenses), net 5,678 1,162 13,249 2,233 Income (loss) before income taxes 3,333 (11,314) (252) (70,079)Income taxes (308) (36) (768) (109)Net income (loss) attributable to ordinary shareholders $3,025 $(11,350) $(1,020) $(70,188)Basic net income (loss) per share attributable to ordinary shareholders $0.08 $(0.31) $(0.03) $(1.91)Basic weighted average ordinary shares 38,164,996 37,205,489 37,668,006 36,843,383 Diluted net income (loss) per share attributable to ordinary shareholders $0.07 $(0.31) $(0.03) $(1.91)Diluted weighted average ordinary shares 41,389,621 37,205,489 37,668,006 36,843,383 CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)Operating Activities Net income (loss) $3,025 $(11,350) $(1,020) $(70,188)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,321 1,938 4,700 8,190 Gain (loss) from disposal of property and equipment 5 (9) 36 (21)Amortization of premium and discount of marketable securities, net (123) 1,368 1,111 5,052 Amortization of discount and issuance costs of convertible notes 635 632 1,904 1,894 Shared-based compensation 17,557 17,612 51,906 54,729 Net loss (gain) from exchange rate fluctuations 286 12 249 183 Impairment of intangible assets - - - 27,629 Changes in assets and liabilities: User funds (3,506) (2,722) (17,462) (17,584)Operating lease ROU assets and liabilities, net (151) (117) (563) (1,547)Other receivables (3,509) (2,402) (6,256) (4,837)Trade payables 1,060 1,873 (5,294) (2,884)Deferred revenue 852 (675) 1,683 (529)User accounts 2,956 2,523 16,311 16,349 Account payable, accrued expenses and other 2,781 (1,994) 7,480 9,184 Revaluation of contingent consideration - (945) - (4,787)Payment of contingent consideration - - - (504)Non-current liabilities 210 (38) 852 178 Net cash provided by operating activities 23,399 5,706 55,637 20,507 Investing Activities Investment in marketable securities (81,753) - (262,761) (90,007)Proceeds from sale of marketable securities 69,485 34,175 232,406 117,521 Bank and restricted deposits (43,138) 15,000 15,613 37,863 Acquisition of intangible asset - - - (175)Purchase of property and equipment (223) (280) (918) (1,111)Capitalization of internal-use software and other (44) (116) (57) (1,019)Other non-current assets - (100) - (1,178)Net cash provided by (used in) investing activities (55,673) 48,679 (15,717) 61,894 Financing Activities Payment of contingent consideration - - - (1,105)Proceeds from exercise of share options 218 597 2,401 2,308 Tax withholding in connection with employees' options exercises and vested RSUs (20) (156) (76) (2,286)Repayment of long-term loan - - - (2,269)Net cash provided by (used in) financing activities 198 441 2,325 (3,352) Effect of exchange rate fluctuations on cash and cash equivalents (286) (12) (249) (183) Increase (decrease) in cash, cash equivalents and restricted cash (32,362) 54,814 41,996 78,866 Cash, cash equivalents and restricted cash at the beginning of period 162,247 98,122 87,889 74,070 Cash and cash equivalents at the end of period $129,885 $152,936 $129,885 $152,936 KEY PERFORMANCE METRICS Twelve Months Ended September 30, 2023 2022 Annual active buyers (in thousands) 4,164 4,249Annual spend per buyer ($) 271 262 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT(in thousands, except gross margin data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP gross profit $77,457 $66,910 $223,500 $204,102 Add: Share-based compensation and other 632 477 1,864 1,955 Depreciation and amortization 731 922 2,544 4,895 Non-GAAP gross profit $78,820 $68,309 $227,908 $210,952 Non-GAAP gross margin 85.2% 82.8% 84.5% 83.0% RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME AND NET INCOME PER SHARE(in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP net income (loss) attributable to ordinary shareholders $3,025 $(11,350) $(1,020) $(70,188)Add: Depreciation and amortization 1,321 1,938 4,700 8,190 Share-based compensation 17,557 17,612 51,906 54,729 Impairment of intangible assets - - - 27,629 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Convertible notes amortization of discount and issuance costs 635 632 1,904 1,894 Exchange rate (gain)/loss, net 98 316 (173) (932)Non-GAAP net income $22,636 $8,628 $57,317 $18,112 Weighted average number of ordinary shares - basic 38,164,996 37,205,489 37,668,006 36,843,383 Non-GAAP basic net income per share attributable to ordinary shareholders $0.59 $0.23 $1.52 $0.49 Weighted average number of ordinary shares - diluted 41,389,621 40,731,833 41,006,387 40,708,818 Non-GAAP diluted net income per share attributable to ordinary shareholders $0.55 $0.21 $1.40 $0.44 RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA(in thousands, except adjusted EBITDA margin data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP net income (loss) $3,025 $(11,350) $(1,020) $(70,188)Add: Financial (income) expenses, net (5,678) (1,162) (13,249) (2,233)Income taxes 308 36 768 109 Depreciation and amortization 1,321 1,938 4,700 8,190 Share-based compensation 17,557 17,612 51,906 54,729 Impairment of intangible assets - - - 27,629 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Adjusted EBITDA $16,533 $6,554 $43,105 $15,026 Adjusted EBITDA margin 17.9% 7.9% 16.0% 5.9% RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES(in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (Unaudited) (Unaudited)GAAP research and development $23,490 $22,938 $68,666 $71,235 Less: Share-based compensation 6,227 5,811 18,474 18,537 Depreciation and amortization 196 200 608 603 Non-GAAP research and development $17,067 $16,927 $49,584 $52,095 GAAP sales and marketing $40,521 $41,959 $121,441 $134,151 Less: Share-based compensation 3,392 4,151 10,138 13,156 Depreciation and amortization 314 713 1,292 2,394 Non-GAAP sales and marketing $36,815 $37,095 $110,011 $118,601 GAAP general and administrative $15,791 $14,489 $46,894 $43,399 Less: Share-based compensation 7,306 7,173 21,430 21,081 Depreciation and amortization 80 103 256 298 Contingent consideration revaluation, acquisition related costs and other - (520) - (3,210)Non-GAAP general and administrative $8,405 $7,733 $25,208 $25,230 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 fourth quarter of 2023 and the fiscal year ending December 31, 2023, and long term to net income (loss), the nearest 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 fourth 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: political, economic and military instability in Israel, including related to the war in Israel; 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.