Fiverr (FVRR) Q4 2024 earnings summary

Executive summary

• Achieved 13% year-over-year revenue growth in Q4 2024, with a 20% adjusted EBITDA margin, meeting or exceeding the Rule of 30 despite macroeconomic headwinds.

• Launched Fiverr Go, an AI-powered platform, and introduced a Freelancer Equity Program granting equity to top freelancers, an industry-first for a public company.

• Maintained focus on upmarket opportunities, including Fiverr Pro subscriptions and Team Accounts, to attract higher-spending buyers and enable complex projects.

• Positioned for continued growth in 2025, leveraging a robust freelancer community, expanding value-added services, and ongoing investments in AI and upmarket strategies.

Financial highlights

• Q4 2024 revenue reached $103.7 million, up 13% year-over-year, accelerating from 8% in Q3.

• Adjusted EBITDA for Q4 was $20.7 million, with a 20% margin, up 240 basis points year-over-year.

• Full-year 2024 revenue was $391.5 million, with marketplace revenue at $303.1 million, 3.6 million annual active buyers, and a $302 annual spend per buyer.

• Services revenue for 2024 was $88.4 million, up 62% year-over-year, now 23% of total revenue.

• Q4 2024 free cash flow was $29.6 million, up 8.1% year-over-year; full-year free cash flow was $81.7 million, or $93.9 million excluding a one-time escrow payment.

Outlook and guidance

• 2025 revenue guidance: $422 million–$438 million, representing 8%–12% year-over-year growth.

• Adjusted EBITDA for 2025 projected at $82 million–$90 million, with a 20% margin at midpoint.

• Q1 2025 revenue guidance is $103.5 million–$108.5 million, with 11%–16% year-over-year growth.

• Services revenue expected to exceed 30% of total revenue in 2025, continuing double-digit growth.

• Management expects continued momentum in Services revenue and ongoing investments in AI and upmarket initiatives.