Fiverr International Ltd. (FVRR) Bundle
A Brief History of Fiverr International Ltd.
Company Overview
Fiverr International Ltd. (NYSE: FVRR) is a leading online marketplace for freelance services, connecting businesses with freelancers offering various digital services. Founded in 2010, Fiverr has grown significantly, establishing itself as a prominent platform in the gig economy.
Financial Performance in 2024
As of the second quarter of 2024, Fiverr reported the following financial metrics:
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $94.7 million | $89.4 million | +6% |
| Net Income | $3.3 million | $0.2 million | +1400% |
| Basic Net Income per Share | $0.09 | $0.01 | +800% |
| Free Cash Flow | $20.7 million | $18.4 million | +12.5% |
| Adjusted EBITDA | $17.8 million | $15.3 million | +16.3% |
Key Performance Indicators
Fiverr's key performance metrics as of June 30, 2024, include:
| Metric | 2024 | 2023 |
|---|---|---|
| Annual Active Buyers (in thousands) | 3,888 | 4,222 |
| Annual Spend per Buyer ($) | 290 | 265 |
| Take Rate (%) | 33.0% | 30.7% |
Operating Expenses
Fiverr's operating expenses for the second quarter of 2024 were reported as follows:
| Expense Type | Q2 2024 | Q2 2023 |
|---|---|---|
| Research and Development | $21.9 million | $23.3 million |
| Sales and Marketing | $41.3 million | $38.9 million |
| General and Administrative | $17.8 million | $15.6 million |
Balance Sheet Highlights
As of June 30, 2024, Fiverr's balance sheet reflects:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $998,894 |
| Total Liabilities | $677,249 |
| Total Shareholders' Equity | $321,645 |
Market Position and Future Outlook
Fiverr continues to innovate and expand its service offerings, focusing on integration with AI technologies and enhancing user experience. The company aims to further penetrate the market by optimizing its capital allocation strategy and expanding its product portfolio.
A Who Owns Fiverr International Ltd. (FVRR)
Major Shareholders
As of 2024, Fiverr International Ltd. (NYSE: FVRR) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 10.1% | 3,865,000 |
| BlackRock, Inc. | 8.5% | 3,265,000 |
| State Street Global Advisors | 7.2% | 2,780,000 |
| Fiverr Management (Insiders) | 5.3% | 2,030,000 |
| Other Institutional Investors | 12.9% | 4,950,000 |
| Retail Investors | 56.0% | 21,000,000 |
Institutional Ownership
Institutional investors play a significant role in the ownership of Fiverr International Ltd. The following table outlines the top institutional shareholders and their respective stakes as of 2024:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| Vanguard Total Stock Market Index Fund | 4.5% | 1,750,000 |
| BlackRock Institutional Trust Company | 3.9% | 1,500,000 |
| Invesco Ltd. | 3.2% | 1,250,000 |
| Fidelity Management & Research Company | 2.8% | 1,050,000 |
| Wellington Management Co. LLP | 2.1% | 800,000 |
Insider Ownership
Insider ownership is crucial for understanding the alignment of interests between management and shareholders. The following table details the ownership of key executives and board members:
| Name | Position | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Micha Kaufman | CEO | 2.0% | 765,000 |
| Ofer Katz | CFO | 1.5% | 575,000 |
| Other Executives | - | 1.8% | 685,000 |
Recent Stock Performance
Fiverr's stock performance has seen fluctuations in 2024. The following table presents the key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price (as of July 2024) | $34.50 |
| 52-Week High | $45.00 |
| 52-Week Low | $25.00 |
| Market Capitalization | $1.3 billion |
Conclusion
Fiverr International Ltd. has a varied ownership structure with significant institutional and retail investor participation. The company's management holds a notable percentage of shares, aligning their interests with those of the shareholders. The stock has experienced variability in its performance, indicative of broader market trends and investor sentiment.
Fiverr International Ltd. (FVRR) Mission Statement
Fiverr's mission is to change how the world works together. The company aims to democratize access to talent and provide talent with access to opportunities so anyone can grow their business, brand, or dreams. This vision supports a diverse range of clients from small businesses to Fortune 500 companies, approximately 4 million of whom engaged with freelance talent through Fiverr in the past year. Fiverr Business Solutions enables large companies to find the right talent and tools tailored to their needs, fostering growth and adaptability.
Key Financial Metrics (Q2 2024)
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Change (%) |
|---|---|---|---|
| Revenue | $94.7 million | $89.4 million | +6% |
| Active Buyers | 3.9 million | 4.2 million | -8% |
| Spend Per Buyer | $290 | $265 | +10% |
| Take Rate | 33.0% | 30.7% | +230 basis points |
| GAAP Gross Margin | 83.1% | 82.5% | +60 basis points |
| GAAP Net Income | $3.3 million | $0.01 million | Increased |
| Non-GAAP Net Income | $23.8 million | $20.0 million | +19% |
| Free Cash Flow | $20.7 million | $18.4 million | +12.5% |
Financial Outlook for Q3 2024
Fiverr’s guidance for Q3 2024 indicates expected revenue between $95.0 million and $97.0 million, reflecting a year-over-year growth of approximately 3% to 5%. The Adjusted EBITDA is projected to be between $17.0 million and $19.0 million, contributing to an annual outlook of $383.0 million to $387.0 million in revenue and $69.0 million to $73.0 million in Adjusted EBITDA for the full year 2024.
Strategic Developments
In 2024, Fiverr has focused on expanding its product portfolio, introducing a profession-based catalog and hourly contracts, which aim to enhance engagement with businesses of all sizes. This strategic evolution is complemented by the integration of AI technologies to improve user experience on the platform.
Shareholder Value Initiatives
Fiverr has successfully completed a $100 million share buyback program, reinforcing its commitment to delivering shareholder value while maintaining a robust balance sheet to support future growth initiatives.
Conclusion
Fiverr continues to adapt and innovate in the competitive freelance marketplace, aligning its mission with actionable strategies to enhance both user experience and financial performance. The company remains focused on creating opportunities for both talent and businesses globally.
How Fiverr International Ltd. (FVRR) Works
Business Model
Fiverr International Ltd. operates an online marketplace for freelance services, connecting businesses with freelancers offering various services. The platform allows users to buy and sell services in over 700 categories, including graphic design, digital marketing, writing, and programming.
Financial Performance
In the second quarter of 2024, Fiverr reported the following financial highlights:
- Revenue: $94.7 million, a 6% increase from $89.4 million in Q2 2023.
- GAAP net income: $3.3 million, or $0.09 per share (basic) and $0.08 per share (diluted).
- Non-GAAP net income: $23.8 million, or $0.63 per share (basic) and $0.58 per share (diluted).
- Adjusted EBITDA: $17.8 million, with an adjusted EBITDA margin of 18.9%.
- Free cash flow: $20.7 million.
| Metric | Q2 2024 | Q2 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $94.7 million | $89.4 million | +6% |
| GAAP Net Income | $3.3 million | $0.2 million | +1,400% |
| Non-GAAP Net Income | $23.8 million | $20.0 million | +19% |
| Adjusted EBITDA | $17.8 million | $15.3 million | +16% |
| Free Cash Flow | $20.7 million | $18.4 million | +12.5% |
Key Performance Indicators
As of June 30, 2024, Fiverr's key performance metrics included:
- Active buyers: 3.9 million, down from 4.2 million in the previous year, an 8% decline.
- Annual spend per buyer: $290, up from $265, a 10% increase.
- Take rate: 33.0%, an increase from 30.7% year-over-year.
- GAAP gross margin: 83.1%, up from 82.5% in Q2 2023.
- Non-GAAP gross margin: 84.4%, up from 84.2% in Q2 2023.
| Key Metric | Value (2024) | Value (2023) | Change |
|---|---|---|---|
| Active Buyers | 3.9 million | 4.2 million | -8% |
| Annual Spend per Buyer | $290 | $265 | +10% |
| Take Rate | 33.0% | 30.7% | +230 bps |
| GAAP Gross Margin | 83.1% | 82.5% | +60 bps |
| Non-GAAP Gross Margin | 84.4% | 84.2% | +20 bps |
Outlook and Strategic Initiatives
Fiverr's outlook for Q3 2024 and the full year includes:
- Q3 2024 Revenue Guidance: $95.0 - $97.0 million (3% - 5% growth year-over-year).
- Full Year 2024 Revenue Guidance: $383.0 - $387.0 million (6% - 7% growth year-over-year).
- Adjusted EBITDA Guidance: $69.0 - $73.0 million for the full year.
Fiverr is focusing on expanding its product offerings and enhancing its marketplace capabilities, including the introduction of a profession-based catalog and subscription-based services.
How Fiverr International Ltd. (FVRR) Makes Money
Revenue Model
Fiverr International Ltd. generates revenue primarily through transaction fees charged on services offered by freelancers on its platform. The company's revenue model is characterized by a take rate of 33.0% as of June 30, 2024, which has increased from 30.7% year-over-year.
Financial Performance
In the second quarter of 2024, Fiverr reported a revenue of $94.7 million, reflecting a 6% increase compared to $89.4 million in the same period of 2023. The company's annual revenue guidance for the full year 2024 is projected to be between $383.0 million and $387.0 million, indicating a year-over-year growth of 6% to 7%.
Active Buyers and Spending
As of June 30, 2024, Fiverr had approximately 3.9 million active buyers, down from 4.2 million a year prior, marking an 8% decline. However, the spend per buyer increased to $290 from $265, representing a 10% year-over-year growth.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $94.7 million | $89.4 million | +6% |
| Active Buyers | 3.9 million | 4.2 million | -8% |
| Spend per Buyer | $290 | $265 | +10% |
| Take Rate | 33.0% | 30.7% | +230 basis points |
Profitability Metrics
Fiverr's GAAP net income for the second quarter of 2024 was $3.3 million, equating to $0.09 per basic share and $0.08 per diluted share. This is a significant improvement compared to net income of $0.01 per share in Q2 2023. The non-GAAP net income for the same period was reported at $23.8 million, or $0.63 per basic share.
Operating Expenses
The total operating expenses for Q2 2024 were $80.9 million, compared to $77.8 million in Q2 2023. This includes:
- Research and Development: $21.9 million
- Sales and Marketing: $41.3 million
- General and Administrative: $17.8 million
Cash Flow and EBITDA
Fiverr reported net cash provided by operating activities of $21.0 million in Q2 2024, an increase of 11.9% from $18.7 million in Q2 2023. The free cash flow for Q2 2024 was $20.7 million, up from $18.4 million the previous year. Adjusted EBITDA for the second quarter was $17.8 million, reflecting an adjusted EBITDA margin of 18.9%.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| GAAP Net Income | $3.3 million | $0.2 million |
| Non-GAAP Net Income | $23.8 million | $20.0 million |
| Free Cash Flow | $20.7 million | $18.4 million |
| Adjusted EBITDA | $17.8 million | $15.3 million |
Future Outlook
Fiverr anticipates Q3 2024 revenue to be between $95.0 million and $97.0 million, reflecting a year-over-year growth of 3% to 5%. The company aims to optimize its capital allocation strategy while expanding its product offerings to enhance shareholder value.
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Article updated on 8 Nov 2024
Resources:
- Fiverr International Ltd. (FVRR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fiverr International Ltd. (FVRR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Fiverr International Ltd. (FVRR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.