Fiverr (FVRR) Q3 2024 earnings summary

Executive summary

• Q3 revenue and adjusted EBITDA exceeded the high end of guidance, driven by upmarket expansion, value-added services, and AI-powered experiences, reflecting strong execution and resilience amid a challenging macro environment.

• Spend per buyer grew robustly, and take rate expanded significantly, despite a challenging macro environment for SMBs and professional staffing.

• Strategic focus on value-added services and upmarket expansion is driving take rate growth and long-term opportunities.

• New AI-powered tools and business programs are enhancing buyer experience and increasing spend per buyer.

• Strong cash flow generation and disciplined cost management enabled continued investment in product innovation and shareholder returns.

Financial highlights

• Q3 2024 revenue was $99.6 million, up 8% year-over-year from $92.5 million, accelerating from 6% in Q2.

• Adjusted EBITDA reached $19.7 million (19.7% margin), up from $16.5 million (17.9% margin) in Q3 2023.

• Free cash flow was $10.6 million; excluding a one-time escrow payment, it was $22.7 million (22.8% of revenue), nearly flat year-over-year.

• Take rate for Q3 was 33.9%, up 260 basis points year-over-year.

• Non-GAAP net income was $24.6 million ($0.69 basic, $0.64 diluted per share), up from $22.6 million ($0.59 basic, $0.55 diluted) year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $388–$390 million (7–8% growth year-over-year); adjusted EBITDA expected at $73–$75 million, with a 19% margin at midpoint.

• Q4 revenue guidance: $100.2–$102.2 million (9–12% year-over-year growth); adjusted EBITDA: $19.5–$21.5 million (20.2% margin at midpoint).

• Take rate expected to increase by ~330 basis points year-over-year.