Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the third quarter ended September 30, 2019. Revenue was $27.9 million and the company had a net loss of $8.4 million. They are still not profitable.
“It is gratifying to see another quarter of stellar performance and rapid growth and that our continued investment in the platform experience is paying off. Importantly, we are also making great strides on our path to profitability,” said Fiverr CEO Micha Kaufman. “Recent strategic initiatives that highlight our multiple growth levers continue to focus on enhancing our value proposition to both buyers and sellers globally while simultaneously growing our addressable market.”
CEO Micha Kaufman
Ofer Katz, Fiverr CFO, added, “The growth of our active buyer base was driven by continued and consistent cohort behavior, further gains in performance marketing efficiency, and our latest product and technology enhancements. The strong growth in spend per buyer highlights our continued success in moving upmarket, and we continued to expand our industry-leading take rate. We look forward to ending 2019 on a strong note.”
Key Third Quarter 2019 Financial Results
- Revenue in the third quarter of 2019 was $27.9 million, an increase of 42% year over year.
- Active buyers as of September 30, 2019 were 2.3 million, compared to 2.0 million as of September 30, 2018, an increase of 16% year over year.
- Spend per buyer as of September 30, 2019 was $163, compared to $141 as of September 30, 2018, an increase of 15% year over year.
- Take rate for the twelve months ended September 30, 2019 was 26.6%, compared to 25.2% for the twelve months ended September 30, 2018, an increase of 140 basis points year over year.
- GAAP gross margin in the third quarter of 2019 was 79.0%, a decrease of 170 basis points from 80.7% in the third quarter of 2018. Non-GAAP gross margin in the third quarter of 2019 was 80.8%, a decrease of 140 basis points from 82.2% in the third quarter of 2018.
- GAAP net loss in the third quarter of 2019 was ($8.4) million, or ($0.26) per share, compared to ($7.2) million, or ($1.10) per share, in the third quarter of 2018. Non-GAAP net loss in the third quarter of 2019 was ($4.0) million, or ($0.12) per share, compared to ($3.8) million, or ($0.17) per share, in the third quarter of 2018.
- Adjusted EBITDA in the third quarter of 2019 was ($4.4) million, compared to ($3.9) million in the third quarter of 2018. Adjusted EBITDA margin was (15.6%) in the third quarter of 2019, an improvement of 430 basis points from (19.9%) in the third quarter of 2018.
Recent Business Highlights
- Launched the first four industry stores on our platform: Gaming, E-commerce, Architecture and Politics, enabling us to further expand our catalog and deepen our relevance and market share among larger businesses.
- Fiverr Studios is gaining early traction, with hundreds of freelancers now offering Studios Gigs® that are, on average, seven times larger than an average Gig on Fiverr.
- Continued strong growth momentum in Germany, with traffic to fiverr.de doubling from Q2 to Q3, driven by the successful execution of, and response to, our summer brand campaign in Berlin.
Based on our results for the first nine months of 2019 and the strong momentum we see across our platform, we are raising our revenue guidance for the year to 40-41% with continued progress towards profitability.
|Q4 2019||FY 2019|
|Revenue||$28.0 – $29.0 million||$105.5 -$106.5 million|
|Year over year growth||35% – 40%||40% – 41%|
|Adjusted EBITDA||($4.3) – ($3.5) million||($19.0) – ($18.2) million|