Solid Q2 execution: Revenue came in above the midpoint of our guidance despite macro volatility as we continued to expand customer wallet share and drive take rate increase. We also delivered strong Adjusted EBITDA, near the top end of our guidance, and strong free cash flow as we continued to execute with strong discipline and efficiency. Expanding product portfolio to create strong growth catalysts: Our Summer Product Release includes the launch of a brand new profession-based catalog along with capabilities to hire talent for long-term engagement, making a major stride in expanding our direct addressable market. We also folded in a subscription-based software business through the acquisition of AutoDS, deepening our value proposition to the creator community and adding a durable revenue stream to our business with significant synergy and growth potential. Optimizing capital allocation strategy to deliver shareholder value: We are committed to setting clear capital allocation priorities and creating a tangible path for delivering shareholder value. We have successfully completed the $100 million buyback program announced in April. We aim to drive a steady and measurable increase in free cash flow combined with a dynamic capital return program for the next three years. Reiterating full year guidance: Our strategy to move upmarket and push into complex services continues to unlock long-term growth opportunities for our marketplace businesses. This is complemented by our expansion into the long-term freelancer hiring space and the addition of subscription-based software to our product portfolio. As such, we are raising the bottom end of our full-year guidance for both revenue and Adjusted EBITDA to reflect recent updates. NEW YORK, July 31, 2024 (GLOBE NEWSWIRE) -- Fiverr International Ltd. (NYSE:FVRR), the company that is changing how the world works together, today reported financial results for the second quarter 2024. Additional 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. "It has been an incredible past six months at Fiverr on many fronts as we navigated the dynamic macro environment and delivered profitable growth through executional excellence and focused operational discipline. In addition, we also made remarkable strides in our product evolution with the introduction of profession-based catalog and hourly contracts," said Micha Kaufman, founder and CEO of Fiverr. "With these offerings, we look forward to becoming a more substantial partner with businesses of all sizes, for their need to engage with the flexible workforce, and significantly expand our direct addressable market. We also continue to be at the forefront of AI technology as we deepen the integration of Neo across search and order experiences on Fiverr. I'm very excited for what is still to come as we continue to innovate towards the future of work." "We delivered solid results for Q2 and reiterated our full year guidance. While the SMB and freelancer hiring space remain volatile, we continue to execute with consistency and efficiency. At the same time, we are expanding our product portfolio through both organic and inorganic investments to create additional growth catalysts," said Ofer Katz, President and CFO of Fiverr. "We also aim to optimize our capital allocation strategy to deliver shareholder value. With strong free cash flow generation and a strong balance sheet to support capital return programs, we are paving a measurable and tangible path for steady growth in free cash flow for the next three years." Second Quarter 2024 Financial Highlights Revenue in the second quarter of 2024 was $94.7 million, compared to $89.4 million in the second quarter of 2023, an increase of 6% year over year. Active buyers1 as of June 30, 2024 was 3.9 million, compared to 4.2 million as of June 30, 2023, a decline of 8% year over year. Spend per buyer1 as of June 30, 2024 reached $290, compared to $265 as of June 30, 2023, an increase of 10% year over year. Take rate1 for the period ended June 30, 2024 was 33.0%, up from 30.7% for the period ended June 30, 2023, an increase of 230 basis points year over year. GAAP gross margin in the second quarter of 2024 was 83.1%, an increase of 60 basis points from 82.5% in the second quarter of 2023. Non-GAAP gross margin1 in the second quarter of 2024 was 84.4%, an increase of 20 basis points from 84.2% in the second quarter of 2023. GAAP net income in the second quarter of 2024 was $3.3 million, or $0.09 basic and $0.08 diluted net income per share, compared to $0.01 basic and diluted net income per share, in the second quarter of 2023. Non-GAAP net income1 in the second quarter of 2024 was $23.8 million, or $0.63 basic non-GAAP net income per share1 and $0.58 diluted non-GAAP net income per share1, compared to $20.0 million non-GAAP net income, or $0.53 basic non-GAAP net income per share1 and $0.49 diluted non-GAAP net income per share1, in the second quarter of 2023. Net cash provided by operating activities in the second quarter of 2024 was $21.0 million, compared to $18.7 million in the second quarter of 2023, an increase of 11.9%. Free cash flow in the second quarter of 2024 was $20.7 million, compared to $18.4 million in the second quarter of 2023, an increase of 12.5%. Adjusted EBITDA1 in the second quarter of 2024 was $17.8 million, compared to $15.3 million in the second quarter of 2023. Adjusted EBITDA margin1 was 18.9% in the second quarter of 2024, compared to 17.1% in the second quarter of 2023. Financial Outlook Our Q3'24 outlook and updated full year 2024 guidance reflects the recent trends on our marketplace.   Q3 2024 FY 2024 Revenue $95.0 - $97.0 million $383.0 - $387.0 million y/y growth 3% - 5% y/y growth 6% - 7% y/y growth Adjusted EBITDA(1) $17.0 - $19.0 million $69.0 - $73.0 million Conference Call and Webcast Details Fiverr's management will host a conference call to discuss its financial results on Wednesday, July 31, 2024, 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 change 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, around 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 X, Instagram, and Facebook. Investor Relations:Jinjin Press:Siobhan Source: Fiverr International Ltd. CONSOLIDATED BALANCE SHEETS(in thousands)                    June 30,   December 31,       2024   2023       (Unaudited)   (Audited)   Assets           Current assets:           Cash and cash equivalents   $ 188,729     $ 183,674     Marketable securities     182,609       147,806     User funds     156,294       151,602     Bank deposits     115,862       85,893     Restricted deposit     1,203       1,284     Other receivables     29,366       24,217     Total current assets     674,063       594,476                 Long-term assets:           Marketable securities     216,911       328,332     Property and equipment, net     4,526       4,735     Operating lease right of use asset     6,393       6,720     Intangible assets, net     13,755       10,722     Goodwill     81,992       77,270     Other non-current assets     1,254       1,349     Total long-term assets     324,831       429,128                 TOTAL ASSETS   $ 998,894     $ 1,023,604                 Liabilities and Shareholders' Equity           Current liabilities:           Trade payables   $ 5,368     $ 5,494     User accounts     145,494       142,203     Deferred revenue     12,165       11,047     Other account payables and accrued expenses     47,074       44,110     Operating lease liabilities     2,575       2,571     Total current liabilities     212,676       205,425                 Long-term liabilities:           Convertible notes     456,580       455,305     Operating lease liabilities     3,882       4,482     Other non-current liabilities     4,111       2,618     Total long-term liabilities     464,573       462,405                 TOTAL LIABILITIES   $ 677,249     $ 667,830                 Shareholders' equity:           Share capital and additional paid-in capital     681,887       640,846     Accumulated deficit     (357,404 )     (284,358 )   Accumulated other comprehensive income (loss)     (2,838 )     (714 )   Total shareholders' equity     321,645       355,774                 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 998,894     $ 1,023,604                   CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share data)                         Three Months Ended   Six Months Ended       June 30,   June 30,        2024     2023     2024     2023        (Unaudited)   (Unaudited)   Revenue   $ 94,663     $ 89,385     $ 188,187     $ 177,341     Cost of revenue     16,024       15,632       31,472       31,298     Gross profit     78,639       73,753       156,715       146,043                         Operating expenses:                   Research and development     21,855       23,289       45,488       45,176     Sales and marketing     41,324       38,870       83,476       80,920     General and administrative     17,764       15,604       34,215       31,103     Total operating expenses     80,943       77,763       163,179       157,199     Operating loss     (2,304 )     (4,010 )     (6,464 )     (11,156 )   Financial income, net     8,502       4,487       15,163       7,571     Income (loss) before income taxes     6,198       477       8,699       (3,585 )   Income taxes     (2,931 )     (250 )     (4,644 )     (460 )   Net income (loss) attributable to ordinary shareholders   $ 3,267     $ 227     $ 4,055     $ (4,045 )   Basic net income (loss) per share attributable to ordinary shareholders   $ 0.09     $ 0.01     $ 0.11     $ (0.11 )   Basic weighted average ordinary shares     38,089,060       37,906,971       38,422,605       37,677,180     Diluted net income (loss) per share attributable to ordinary shareholders   $ 0.08     $ 0.01     $ 0.10     $ (0.11 )   Diluted weighted average ordinary shares     38,755,863       41,192,132       39,180,421       37,677,180                                     CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)                       Three Months Ended   Six Months Ended     June 30,   June 30,      2024     2023     2024     2023      (Unaudited)   (Unaudited) Operating Activities                 Net income (loss)   $ 3,267     $ 227     $ 4,055     $ (4,045 ) Adjustments to reconcile net loss to net cash provided by operating activities:                 Depreciation and amortization     1,606       1,654       2,756       3,379   Exchange rate fluctuations and other items, net     55       (95 )     166       (6 ) Amortization of premium and accretion of discount of marketable securities, net     (1,154 )     378       (2,248 )     1,234   Amortization of discount and issuance costs of convertible notes     638       635       1,275       1,269   Shared-based compensation     18,438       17,630       37,458       34,349   Changes in assets and liabilities:                 User funds