Fiverr (FVRR) Q4 2024 earnings summary

Executive summary

• Achieved 13.3% year-over-year revenue growth in Q4 2024 and a 20% adjusted EBITDA margin, meeting the Rule of 30 and finishing ahead of initial targets despite macroeconomic headwinds.

• Launched Fiverr Go, a human-centered AI-powered platform, and introduced a Freelancer Equity Program to empower and incentivize top freelancers with shares.

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

• Positioned for strong 2025 performance with double-digit revenue growth guidance and ongoing investments in AI and upmarket strategies.

Financial highlights

• Q4 2024 revenue reached $103.7 million, up 13.3% year-over-year; full-year 2024 revenue was $391.5 million, up 8.3%.

• Q4 2024 adjusted EBITDA was $20.7 million (20% margin), up 240 basis points year-over-year; full-year adjusted EBITDA was $74.2 million (19% margin).

• Q4 2024 GAAP net income was $12.8 million ($0.36 basic, $0.33 diluted EPS); full-year GAAP net income was $18.2 million ($0.49 basic, $0.48 diluted EPS).

• 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.

• Services revenue grew 102.1% year-over-year in Q4 2024 and 62.5% for the full year, reaching $88.4 million.

Outlook and guidance

• 2025 revenue expected between $422 million and $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.