Exhibit No.
|
|
Description
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Fiverr International Ltd. | ||||
Date: May 9, 2024 | By: |
/s/ Ofer Katz | ||
Ofer Katz | ||||
President and Chief Financial Officer | ||||
●
|
Strong start to
the year with Q1 results ahead of expectations. We executed on our key strategic priorities, delivering revenue at the top end of our guidance, and Adjusted EBITDA ahead of our guidance range.
|
●
|
GMV acceleration
led by SPB expansion. Strong execution on Fiverr Business Solutions and our push into complex services enabled us to drive GMV acceleration amid a continued challenging hiring environment. SPB grew 8% y/y, the strongest growth in
more than a year.
|
●
|
Announced
authorization of share repurchase program of up to $100M. We recently announced our first-ever stock repurchase program, demonstrating our
confidence in Fiverr’s long-term opportunity and commitment to creating shareholder value. Our strong balance sheet and cash flow generation enable us to return capital to shareholders and also support long-term strategic investments.
|
●
|
Well on track to
deliver 2024 guidance. We are raising the low end of our 2024 guidance range for both revenue and Adjusted EBITDA. We continue to navigate the
current macro cycle with discipline and pragmatism, while investing strategically in upmarket, complex services and AI to drive long-term growth.
|
●
|
Revenue in the first quarter of 2024 was $93.5 million, compared to $88.0 million in the first quarter of 2023, an
increase of 6.3% year over year.
|
●
|
Active buyers1 as of March 31, 2024 was 4.0 million, compared to 4.3 million as
of March 31, 2023, a decrease of 6% year over year.
|
●
|
Spend per buyer1 as of March 31, 2024 reached $284, compared to $262 as of March 31, 2023, an increase of 8%
year over year.
|
●
|
Take rate1 for the period ended March 31, 2024 was 32.3%, up from 30.4% for the period ended March 31, 2023,
an increase of 190 basis points year over year.
|
●
|
GAAP gross margin in the first quarter of 2024 was 83.5%, an increase of 130 basis points from 82.2% in the first quarter
of 2023. Non-GAAP gross margin1 in the first quarter of 2024 was 84.9%, an increase of 100 basis points from 83.9% in the first quarter of 2023.
|
●
|
GAAP net income in the first quarter of 2024 was $0.8 million, or $0.02 basic and diluted net income per share, compared
to ($4.3) million net loss, or ($0.11) basic and diluted net loss per share, in the first quarter of 2023.
|
●
|
Non-GAAP net income1 in the first quarter of 2024 was $21.7 million, or $0.56 basic non-GAAP net income per
share1 and $0.52 diluted non-GAAP net income per share1, compared to $14.6 million non-GAAP net income, or $0.39 basic non-GAAP net income per share1 and $0.36 diluted non-GAAP net income per share1,
in the first quarter of 2023.
|
●
|
Adjusted EBITDA1 in the first quarter of 2024 was $16.0
million, compared to $11.3 million in the first quarter of 2023. Adjusted EBITDA margin1 was 17.1% in the first quarter of 2024, compared to 12.8% in the first quarter of 2023.
|
Q2 2024
|
FY 2024
|
|
Revenue
|
$93.5 - $95.5 million
|
$381.0 - $387.0 million
|
y/y growth
|
5% - 7% y/y growth
|
5% - 7% y/y growth
|
Adjusted EBITDA(1)
|
$16.0 - $18.0 million
|
$67.0 - $73.0 million
|
March 31,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
190,074
|
$
|
183,674
|
||||
Marketable securities
|
188,882
|
147,806
|
||||||
User funds
|
163,222
|
151,602
|
||||||
Bank deposits
|
109,754
|
85,893
|
||||||
Restricted deposit
|
1,284
|
1,284
|
||||||
Other receivables
|
26,953
|
24,217
|
||||||
Total current assets
|
680,169
|
594,476
|
||||||
Marketable securities
|
277,837
|
328,332
|
||||||
Property and equipment, net
|
4,705
|
4,735
|
||||||
Operating lease right of use asset
|
6,121
|
6,720
|
||||||
Intangible assets, net
|
10,043
|
10,722
|
||||||
Goodwill
|
77,270
|
77,270
|
||||||
Other non-current assets
|
1,304
|
1,349
|
||||||
Total assets
|
$
|
1,057,449
|
$
|
1,023,604
|
||||
Liabilities and Shareholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Trade payables
|
$
|
4,671
|
$
|
5,494
|
||||
User accounts
|
152,126
|
142,203
|
||||||
Deferred revenue
|
12,942
|
11,047
|
||||||
Other account payables and accrued expenses
|
48,288
|
44,110
|
||||||
Operating lease liabilities
|
2,541
|
2,571
|
||||||
Total current liabilities
|
220,568
|
205,425
|
||||||
Long-term liabilities:
|
||||||||
Convertible notes
|
455,942
|
455,305
|
||||||
Operating lease liabilities
|
3,815
|
4,482
|
||||||
Other non-current liabilities
|
2,641
|
2,618
|
||||||
Total long-term liabilities
|
462,398
|
462,405
|
||||||
Total liabilities
|
$
|
682,966
|
$
|
667,830
|
||||
Shareholders' equity:
|
||||||||
Share capital and additional paid-in capital
|
660,276
|
640,846
|
||||||
Accumulated deficit
|
(283,570
|
)
|
(284,358
|
)
|
||||
Accumulated other comprehensive income (loss)
|
(2,223
|
)
|
(714
|
)
|
||||
Total shareholders' equity
|
374,483
|
355,774
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,057,449
|
$
|
1,023,604
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
|
2024
|
2023
|
||||||
(Unaudited) | ||||||||
Revenue
|
$
|
93,524
|
$
|
87,956
|
||||
Cost of revenue
|
15,448
|
15,666
|
||||||
Gross profit
|
78,076
|
72,290
|
||||||
Operating expenses:
|
||||||||
Research and development
|
23,633
|
21,887
|
||||||
Sales and marketing
|
42,152
|
42,050
|
||||||
General and administrative
|
16,451
|
15,499
|
||||||
Total operating expenses
|
82,236
|
79,436
|
||||||
Operating loss
|
(4,160
|
)
|
(7,146
|
)
|
||||
Financial income, net
|
6,661
|
3,084
|
||||||
Income (loss) before income taxes
|
2,501
|
(4,062
|
)
|
|||||
Income taxes
|
(1,713
|
)
|
(210
|
)
|
||||
Net income (loss) attributable to ordinary shareholders
|
$
|
788
|
$
|
(4,272
|
)
|
|||
Basic net income (loss) per share attributable to ordinary shareholders
|
$
|
0.02
|
$
|
(0.11
|
)
|
|||
Basic weighted average ordinary shares
|
38,756,151
|
37,691,691
|
||||||
Diluted net income (loss) per share attributable to ordinary shareholders
|
$
|
0.02
|
$
|
(0.11
|
)
|
|||
Diluted weighted average ordinary shares
|
39,604,979
|
37,691,691
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
(Unaudited)
|
||||||||
Operating Activities
|
||||||||
Net income (loss)
|
$
|
788
|
(4,272
|
)
|
||||
Adjustments to reconcile net loss to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
1,150
|
1,725
|
||||||
Exchange rate fluctuations and other items, net
|
111
|
89
|
||||||
Amortization of premium and accretion of discount of marketable securities, net
|
(1,094
|
)
|
856
|
|||||
Amortization of discount and issuance costs of convertible notes
|
637
|
634
|
||||||
Shared-based compensation
|
19,020
|
16,719
|
||||||
Changes in assets and liabilities:
|
||||||||
User funds
|
(11,620
|
)
|
(15,906
|
)
|
||||
Operating lease ROU assets and liabilities
|
(98
|
)
|
(248
|
)
|
||||
Other receivables
|
(2,976
|
)
|
(974
|
)
|
||||
Trade payables
|
(828
|
)
|
(3,785
|
)
|
||||
Deferred revenue
|
1,895
|
1,619
|
||||||
User accounts
|
9,923
|
14,963
|
||||||
Account payable, accrued expenses and other
|
4,265
|
1,558
|
||||||
Non-current liabilities
|
23
|
525
|
||||||
Net cash provided by operating activities
|
21,196
|
13,503
|
||||||
Investing Activities
|
||||||||
Investment in marketable securities
|
(30,734
|
)
|
(62,558
|
)
|
||||
Proceeds from sale of marketable securities
|
40,085
|
54,300
|
||||||
Bank and restricted deposits
|
(23,861
|
)
|
(30
|
)
|
||||
Purchase of property and equipment
|
(378
|
)
|
(328
|
)
|
||||
Capitalization of internal-use software and other
|
(20
|
)
|
(5
|
)
|
||||
Net cash used in investing activities
|
(14,908
|
)
|
(8,621
|
)
|
||||
Financing Activities
|
||||||||
Proceeds from exercise of share options
|
442
|
1,750
|
||||||
Tax withholding in connection with employees' options exercises and vested RSUs
|
(221
|
)
|
331
|
|||||
Net cash provided by financing activities
|
221
|
2,081
|
||||||
Effect of exchange rate fluctuations on cash and cash equivalents
|
(109
|
)
|
(63
|
)
|
||||
Increase in cash, cash equivalents and restricted cash
|
6,400
|
6,900
|
||||||
Cash, cash equivalents and restricted cash at the beginning of period
|
183,674
|
87,889
|
||||||
Cash and cash equivalents at the end of period
|
$
|
190,074
|
94,789
|
Twelve Months Ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
Annual active buyers (in thousands)
|
4,000
|
4,263
|
||||||
Annual spend per buyer ($)
|
284
|
262
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
|
2024
|
2023
|
||||||
(Unaudited)
|
||||||||
GAAP gross profit
|
$
|
78,076
|
$
|
72,290
|
||||
Add:
|
||||||||
Share-based compensation and other
|
678
|
613
|
||||||
Depreciation and amortization
|
613
|
928
|
||||||
Non-GAAP gross profit
|
$
|
79,367
|
$
|
73,831
|
||||
Non-GAAP gross margin
|
84.9
|
%
|
83.9
|
%
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
|
2024
|
2023
|
||||||
(Unaudited)
|
||||||||
GAAP net income (loss) attributable to ordinary shareholders
|
$
|
788
|
$
|
(4,272
|
)
|
|||
Add:
|
||||||||
Depreciation and amortization
|
1,150
|
1,725
|
||||||
Share-based compensation
|
19,020
|
16,719
|
||||||
Contingent consideration revaluation, acquisition related costs and other
|
9
|
-
|
||||||
Convertible notes amortization of discount and issuance costs
|
637
|
634
|
||||||
Exchange rate (gain)/loss, net
|
128
|
(163
|
)
|
|||||
Non-GAAP net income
|
$
|
21,732
|
$
|
14,643
|
||||
Weighted average number of ordinary shares - basic
|
38,756,151
|
37,691,691
|
||||||
Non-GAAP basic net income per share attributable to ordinary shareholders
|
$
|
0.56
|
$
|
0.39
|
||||
Weighted average number of ordinary shares - diluted
|
41,758,840
|
41,197,049
|
||||||
Non-GAAP diluted net income per share attributable to ordinary shareholders
|
$
|
0.52
|
$
|
0.36
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
|
2024
|
2023
|
||||||
(Unaudited)
|
||||||||
GAAP net income (loss)
|
$
|
788
|
$
|
(4,272
|
)
|
|||
Add:
|
||||||||
Financial income, net
|
(6,661
|
)
|
(3,084
|
)
|
||||
Income taxes
|
1,713
|
210
|
||||||
Depreciation and amortization
|
1,150
|
1,725
|
||||||
Share-based compensation
|
19,020
|
16,719
|
||||||
Contingent consideration revaluation, acquisition related costs and other
|
9
|
-
|
||||||
Adjusted EBITDA
|
$
|
16,019
|
$
|
11,298
|
||||
Adjusted EBITDA margin
|
17.1
|
%
|
12.8
|
%
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
|
2024
|
2023
|
||||||
(Unaudited)
|
||||||||
GAAP research and development
|
$
|
23,633
|
$
|
21,887
|
||||
Less:
|
||||||||
Share-based compensation
|
6,836
|
5,784
|
||||||
Depreciation and amortization
|
201
|
209
|
||||||
Non-GAAP research and development
|
$
|
16,596
|
$
|
15,894
|
||||
GAAP sales and marketing
|
$
|
42,152
|
$
|
42,050
|
||||
Less:
|
||||||||
Share-based compensation
|
3,436
|
3,269
|
||||||
Depreciation and amortization
|
264
|
502
|
||||||
Non-GAAP sales and marketing
|
$
|
38,452
|
$
|
38,279
|
||||
GAAP general and administrative
|
$
|
16,451
|
$
|
15,499
|
||||
Less:
|
||||||||
Share-based compensation
|
8,070
|
7,053
|
||||||
Depreciation and amortization
|
72
|
86
|
||||||
Contingent consideration revaluation, acquisition related costs and other
|
9
|
-
|
||||||
Non-GAAP general and administrative
|
$
|
8,300
|
$
|
8,360
|