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 innovations despite a challenging macro environment for SMBs and professional staffing.

• Strong execution on strategic initiatives led to higher quality buyer growth, increased spend per buyer, and robust take rate expansion.

• The company is investing aggressively in product and technology while maintaining strong cash flow and returning capital to shareholders.

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

Financial highlights

• Q3 revenue was $99.6 million, up 8% year-over-year from $92.5 million.

• Adjusted EBITDA reached $19.7 million, with a margin of 19.7%, up 180 basis points year-over-year.

• 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, driven by value-added services.

• Spend per buyer grew 9% year-over-year to $296.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $388–$390 million (7–8% growth year-over-year).

• Full-year adjusted EBITDA expected at $73–$75 million, with a 19% margin at midpoint.

• Q4 revenue guidance is $100.2–$102.2 million (9–12% year-over-year growth); adjusted EBITDA for Q4 expected at $19.5–$21.5 million.

• Take rate for 2024 expected to increase by approximately 330 basis points year-over-year.