Fiverr Beats Estimates In Q4, Projects AI-Powered Expansion And Rising Buyer Spend

Fiverr International FVRR reported fourth-quarter fiscal 2024 sales growth of 13.3% year-on-year to $103.660 million, beating the analyst consensus estimate of $101.398 million.

The online marketplace for freelance services reported an adjusted earnings per share of 64 cents, missing the analyst consensus estimate of 68 cents. The stock gained after the print.

As of Dec. 31, there were 3.6 million active buyers versus 4 million last year. The spend per buyer rose 9% year over year to $302.

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The Marketplace take rate expanded by 20 bps to 27.6%.

The adjusted gross margin declined 60 basis points to 84%, while the adjusted EBITDA margin expanded 240 basis points to 20.0%.

The operating loss for the quarter was $(5.88) million, compared to a loss of $1.61 million last year.

As of Dec. 31, 2024, Fiverr generated $30.03 million in operating cash flow and held $422.42 million in cash and equivalents.

Founder and CEO Micha Kaufman said Fiverr continued to focus on upmarket initiatives while strategically expanding Services revenue to drive further growth. It has been a year of significant innovation and investment in AI. Its latest launch, the human-centered AI platform Fiverr Go, allows its talent community to build their creation models, control their creative rights, and take their business to the next level.

Outlook: Fiverr expects first-quarter fiscal 2025 revenue of $103.5 million–$108.5 million, against the consensus of $102.19 million. Adjusted EBITDA of $18 million – $20 million.

Fiverr projects fiscal 2025 revenue of $422 million–$438 million versus the consensus of $418.69 million. Adjusted EBITDA of $82 million–$90 million.

Fiverr stock surged 25% in the last 12 months.

Price Action: Fiverr stock is up 5% at $34.74 at the last check on Wednesday.

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