Fiverr International Ltd.’s (NYSE: FVRR) third-quarter revenue rose 12.1% as spend per buyer increased. Executives at the Tel Aviv, Israel-based global talent platform also discussed the impact of the ongoing war, including marketplace volatility in the current, fourth quarter.
“As you all know, Israel went through a horrific attack a month ago,” Fiverr founder and CEO Micha Kaufman said in a conference call with analysts.
“Our first priority has been to help our employees, their families and the Fiverr community and support those the deadly attacks impacted,” Kaufman said. “As some of our employees are being called up, we are ensuring their families will get what they need while they are on the front lines. As a company, we are quickly adapting so that we continue to operate and execute at the highest level of focus and consistency, thanks to our hybrid operation that’s already in place.”
Amid the war, Fiverr forecast fourth-quarter revenue will be up between 6% and 14% year over year.
For the full year, revenue is expected to rise between 6% and 8% — unchanged from the prior forecast.
“In the immediate weeks after the onset of the war, we experienced some volatility in our marketplace, primarily from buyers and sellers in countries in the region,” President and CFO Ofer Katz said in the conference call with analysts. “This volatility has already created a headwind to revenue this quarter. While some of this volatility has subsided, the risk of it increasing again remains, and we have incorporated this risk into our outlook for the remainder of the year.”
Looking back at the third quarter, revenue rose 12.1% year over year to $92.5 million. Driving the increase was spend per buyer, which rose to $271 in the third quarter from $262 in the year-ago quarter. However, the company noted the number of active buyers on its platform was unchanged at 4.2 million in the third quarter compared to the same period last year.
Spend per buyer on any given date is calculated by dividing gross merchandise value within the last 12-month period by the number of active buyers as of such date. Gross merchandise value is the total value of transactions ordered through Fiverr’s platform, excluding value added tax, goods and services tax.
Fiverr also continued to build out its AI-powered talent-matching platform Fiverr Neo in Q3.
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Share price
Shares in Fiverr were down 5.56% to $22.74 as of 1:30 p.m. Eastern time today; they were 13.47% above their 52-week low, according to FT.com.