Fiverr (FVRR) Q4 2023 earnings summary

Executive summary

• FY2023 revenue and Adjusted EBITDA exceeded beginning-of-year targets; annual GAAP profitability was achieved for the first time, with Adjusted EBITDA margin more than doubling YoY.

• Strategy focused on strengthening the core marketplace, moving upmarket, investing in AI, and managing expenses amid an uncertain macro environment and costly top-of-funnel acquisition.

Financial highlights

• Q4 revenue was $91.5M, up 10.1% YoY; FY2023 revenue was $361.4M, up 7.1% YoY.

• Q4 GAAP net income was $4.7M, or $0.12/share, vs. a $1.3M loss; FY GAAP net income was $3.7M, or $0.10 basic and $0.09 diluted/share, vs. a $71.5M loss in 2022.

• Q4 Adjusted EBITDA was $16.1M vs. $9.4M; FY Adjusted EBITDA was $59.2M vs. $24.4M in 2022.

• FY non-GAAP net income was $80.4M vs. $28.9M in 2022; Q4 non-GAAP net income was $23.1M vs. $10.7M.

Outlook and guidance

• Q1 2024 revenue guidance: $91.5M-$93.5M, or 4%-6% YoY growth; Adjusted EBITDA: $12.5M-$14.5M.

• FY2024 revenue guidance: $379M-$387M, or 5%-7% YoY growth; Adjusted EBITDA: $65M-$73M.

• GMV growth expected to accelerate by 1%-2%; spend per buyer YoY growth also expected to accelerate, while active-buyer trends are expected to remain similar to 2023.

• Take rate expected to expand at a more moderate pace than in 2023; Adjusted EBITDA margin expected to rise steadily toward the 25% long-term target.