Fiverr's Stock Gains On Q2 Performance Driven by Strong Gross Margin Expansion, Upbeat Annual Outlook

Fiverr International Ltd (NYSE: FVRR) reported second-quarter FY23 sales growth of 5.1% year-on-year to $89.4 million, marginally beating the consensus of $89.2 million.

Active buyers remained flat Y/Y to 4.2 million, and Spend per buyer rose 2% Y/Y to $265. The take rate expanded by 90 bps to 30.7%.

Non-GAAP gross margin expanded by 150 bps to 84.2%, while the adjusted EBITDA margin expanded by 1,170 bps to 17.1%.

Non-GAAP EPS of $0.49 beat the consensus of $0.41.

Fiverr generated $18.7 million in operating cash flow and held $353.7 million in cash and equivalents.

CFO Ofer Katz said "The thoughtful investments that we are making into our marketplace and Fiverr Business Solutions will help us continue to build upon our solid foundation and drive both growth acceleration and Adjusted EBITDA margin improvement."

Outlook: Fiverr sees Q3 revenue of $89.5 million - $92.5 million (vs. consensus $90.6 million). Adjusted EBITDA of $14.5 million - $16.5 million.

Fiverr raised FY23 revenue to $358.0 million - $365.0 million (prior $355.0 million - $365.0 million) vs. consensus $361.12 million. It raised Adjusted EBITDA to $56.0 million - $60.0 million (prior $48.0 million - $56.0 million).

Price Action: FVRR shares are trading higher by 5.43% at $30.10 premarket on the last check Thursday.