Fiverr Shares Rise 4% as Q3 Revenue Forecasts Surpass Expectations and Guidance is Upgraded

NEW YORK - Shares of freelance services marketplace Fiverr International Ltd. (NYSE:FVRR) rose by 4.8% after the company reported third-quarter revenue that exceeded expectations and raised its annual outlook. Fiverr reported revenue of $99.63 million for the quarter ending September 30. This figure surpassed analysts' estimates of $96.35 million and marked an 8% increase from $92.5 million in the same period last year. The company's adjusted earnings per share came in at $0.55, slightly below the consensus estimate of $0.59.

Fiverr's founder and CEO, Micha Kaufman, stated, "Our strong third-quarter results highlighted the consistency of our app and the resilience of our business." Kaufman noted that investments in value-added products are paying off, allowing the company to diversify its business model and expand its platform.

The take rate, which measures the percentage of transaction value that the company earns as revenue, increased from 31.3% in the same period last year to 33.9%. However, the number of active buyers fell by 9% year-over-year to 3.8 million, while spending per buyer rose by 9% to $296.

Looking ahead, Fiverr raised its full-year 2024 revenue forecast to $388-390 million, exceeding the company's previous guidance and analysts' expectations of $385.2 million. For the fourth quarter, the company projects revenue between $100.2 million and $102.2 million.

Fiverr's President and CFO, Ofer Katz, commented, "With a strong balance sheet and our ability to generate free cash flow, we have sufficient liquidity to operate our business while also having enough cash to meet our outstanding convertible bonds."

The company's adjusted EBITDA margin increased from 17.9% in the same quarter last year to 19.7% in the third quarter.