Fiverr (FVRR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $94.7 million, up 6% year-over-year, exceeding guidance midpoints, with adjusted EBITDA of $17.8 million and an 18.9% margin, both above guidance.

• Completed a $100 million share buyback program, reflecting strong cash flow, balance sheet confidence, and commitment to shareholder value.

• Launched a summer product release, expanding into long-term freelance hiring with a profession-based catalog, hourly contracts, and deeper AI integration with Neo.

• Acquired AutoDS, adding a subscription-based revenue stream and strengthening presence in dropshipping, e-commerce, and creator economy categories.

Financial highlights

• Operating cash flow was $21 million, up 11.9% year-over-year; free cash flow was $20.7 million, up 12.5% year-over-year, with a margin of 21.8%.

• Spend per buyer grew 10% year-over-year to $290, while active buyers declined 8% to 3.9 million.

• Take rate increased to 33.0% from 30.7% year-over-year and is expected to rise by 250 basis points in 2024, driven by value-added products and AutoDS integration.

• GAAP gross margin improved to 83.1%, and non-GAAP gross margin to 84.4%.

• GAAP net income was $3.3 million ($0.09 basic EPS); non-GAAP net income was $23.8 million ($0.63 basic non-GAAP EPS).

Outlook and guidance

• Full-year 2024 revenue guidance raised to $383–$387 million, representing 6–7% year-over-year growth.

• Adjusted EBITDA for 2024 expected in the range of $69–$73 million, with a margin of 18.4% at midpoint.

• Q3 revenue growth anticipated to be muted due to continued volatility, with improvement expected in Q4 as new products and AutoDS contribute.

• Long-term target of 25% adjusted EBITDA margin by 2027 reaffirmed.