Israel-based talent platform Fiverr International Ltd. (NYSE: FVRR) reported revenue for the second quarter of 2023 ended June 30 of $89.4 million, an increase of 5.1% over the previous year.
Adjusted EBITDA in the quarter was $15.3 million, compared to $4.6 million in the year-ago quarter. Adjusted EBITDA margin was 17.1%, compared to 5.4% a year ago.
The company attributed the results to “consistent execution.”
“We continue to operate with focus and discipline and are on track to deliver on the expectations we set at the beginning of the year,” the group stated. Second-quarter revenue “came in close to the high end of our guidance range, and adjusted EBITDA exceeded the top end of our guidance.”
The group’s revenue was just ahead of Wall Street forecasts, Yahoo Finance reported. Four analysts surveyed by Zacks Investment Research expected $89.2 million.
“We continue to push forward towards executing our long-term strategy and are excited about our recent product launches that we believe will create a step function change in how businesses can engage with freelancers,” said Micha Kaufman, founder and CEO of Fiverr. “We have a strong financial profile which allows us to focus on what we do best — creating innovative and elegantly simple products that connect and empower our community while improving the way they work together.”
Active buyers stood at 4.2 million as of June 30 in 2023 as well as 2022.
Spend per buyer as of June 30, 2023, reached $265, compared to $259 as of June 30, 2022, an increase of 2% year over year.
The group said it accelerated its upmarket strategy with the recent launch of Fiverr Business Solutions, a suite of product offerings which enables larger companies to access and work with freelancers across multiple use cases and engagement scenarios. This launch also includes the all-new Fiverr Pro, its premium marketplace offering.
The company also announced the launch of Fiverr Certified, which expands its go-to-market channels through partnerships with tech vendors that have large communities of small to midsize businesses. It also rolled out Fiverr Neo, its matching tool leveraging neural networks technologies and Fiverr’s data assets.
“We delivered solid revenue growth and better-than-expected adjusted EBITDA this quarter and are looking forward to realizing our 2023 guidance in the back half of this year,” said Ofer Katz, Fiverr’s President and CFO. “The thoughtful investments that we are making into our marketplace and Fiverr Business Solutions will help us continue to build upon our solid foundation and drive both growth acceleration and adjusted EBITDA margin improvement.”
Looking ahead, Fiverr increased its the midpoint of its full-year revenue guidance and raised its adjusted EBITDA guidance.
The group expects revenue between $89.5 to $92.5 million for the third quarter and adjusted EBITDA between $14.5 million and $16.5 million.
“Our focus is to continue to accelerate revenue growth in the second half of the year and deliver adjusted EBITDA expansion towards our long-term margin target,” the company said.
For the full year, the group expects revenue in the range of $358.0 to $365.0 million and adjusted EBITDA in the range of $56.0 to $60.0 million.
Share price and market cap
Shares in Fiverr were up 15.71% to $33.04 as of 11:58 a.m. Eastern time today in New York; they were 34.40% above their 52-week low, according to FT.com. The company had a market cap of $1.08 billion.