Fiverr International Ltd. (NYSE: FVRR), the company that is
revolutionizing how the world works together, today reported
financial results for the third quarter 2023. Complete operating
results and management commentary can be found in the Company’s
shareholder letter, which is posted to its investor relations
website at investors.fiverr.com.
“We continue to innovate our offerings to help our community of
businesses and freelancers,” said Micha Kaufman, founder and CEO of
Fiverr. “We are making great progress with our new Fiverr Business
Solutions and see healthy expansion in our seller tools. We look to
finish the year strong and strategically drive growth and
shareholder value.”
“We are pleased with our financial results as our balance sheet
remains strong and our Adjusted EBITDA margin improved to 17.9%
this quarter,” said Ofer Katz, Fiverr’s President and CFO. “We
continue to scale our business and are focused on moving upmarket
to serve higher lifetime value customers.”
“The unexpected and appalling atrocities that happened in Israel
on October 7 and the ongoing war triggered by the event have
unavoidably impacted the region and the world. As a company, we are
doing everything we can to help our employees, their families and
the Fiverr community to safety and to support those who have been
impacted by the attack and the war. We continue to operate at the
highest level of focus and discipline given the hybrid operation
that’s already in place,” said Mr. Kaufman.
Third Quarter 2023 Financial Highlights
- Revenue in the third quarter of 2023 was $92.5 million,
compared to $82.5 million in the third quarter of 2022, an increase
of 12.1% year over year.
- Active buyers1 were 4.2 million as of September 30, 2023 and
2022, respectively.
- Spend per buyer1 as of September 30, 2023 reached $271,
compared to $262 as of September 30, 2022, an increase of 4% year
over year.
- Take rate1 for the period ended September 30, 2023 was 31.3%,
up from 30.0% for the period ended September 30, 2022, an increase
of 130 basis points year over year.
- GAAP gross margin in the third quarter of 2023 was 83.7%, an
increase of 260 basis points from 81.1% in the third quarter of
2022. Non-GAAP gross margin1 in the third quarter of 2023 was
85.2%, an increase of 240 basis points from 82.8% in the third
quarter of 2022.
- GAAP net income in the third quarter of 2023 was $3.0 million,
or $0.08 basic net income per share and $0.07 diluted net income
per share, compared to ($11.4) million net loss per share, or
($0.31) basic and diluted net loss per share, in the third quarter
of 2022.
- Non-GAAP net income1 in the third quarter of 2023 was $22.6
million, or $0.59 basic non-GAAP net income per share1 and $0.55
diluted non-GAAP net income per share1, compared to $8.6 million
non-GAAP net income, or $0.23 basic non-GAAP net income per share1
and $0.21 diluted non-GAAP net income per share1, in the third
quarter of 2022.
- Adjusted EBITDA1 in the third quarter of 2023 was $16.5
million, compared to $6.6 million in the third quarter of 2022.
Adjusted EBITDA margin1 was 17.9% in the third quarter of 2023,
compared to 7.9% in the third quarter of 2022.
Financial Outlook
Our Q4’23 outlook and updated full year 2023 guidance reflects
the volatility we experienced in our marketplace following the
onset of the war in our region and the potential for increased
volatility through the remainder of the year. We are maintaining
our FY 2023 revenue guidance range while raising the bottom end of
our Adjusted EBITDA guidance range.
|
Q4 2023 |
FY 2023 |
Revenue |
$88.1 - $95.1 million |
$358.0 - $365.0 million |
y/y growth |
6% - 14% y/y growth |
6% - 8% y/y growth |
Adjusted
EBITDA(1) |
$14.9 - $16.9 million |
$58.0 - $60.0 million |
Conference Call and Webcast Details
Fiverr’s management will host a conference call to discuss its
financial results on Thursday, November 9, 2023, at 8:30 a.m.
Eastern Time. A live webcast of the call can be accessed from
Fiverr’s Investor Relations website. An archived version will be
available on the website after the call. To participate in the
Conference Call, please register at the link here.
About Fiverr
Fiverr’s mission is to revolutionize how the world works
together. We exist to democratize access to talent and to provide
talent with access to opportunities so anyone can grow their
business, brand, or dreams. From small businesses to Fortune 500,
over 4 million customers worldwide worked with freelance talent on
Fiverr in the past year, ensuring their workforces remain flexible,
adaptive, and agile. With Fiverr Business Solutions, large
companies can find the right talent and tools, tailored to their
needs to help them thrive and grow. On Fiverr, you can find over
700 skills, ranging from programming to 3D design, digital
marketing to content creation, from video animation to
architecture.
Don’t get left behind - come be a part of the future of work by
visiting fiverr.com, read our blog, and follow us on Twitter,
Instagram, and Facebook.
Investor Relations:Jinjin Qianinvestors@fiverr.com
Press:Siobhan Aalderspress@fiverr.com
______________1 This is a non-GAAP financial measure or Key
Performance Metric. See “Key Performance Metrics and Non-GAAP
Financial Measures” and reconciliation tables at the end of this
release for additional information regarding the non-GAAP metrics
and Key Performance Metrics used in this release.
CONSOLIDATED BALANCE SHEETS |
(in thousands) |
|
|
|
September 30, |
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
129,885 |
|
|
$ |
86,752 |
|
Restricted cash |
|
|
- |
|
|
|
1,137 |
|
Marketable securities |
|
|
151,731 |
|
|
|
241,293 |
|
User funds |
|
|
160,482 |
|
|
|
143,020 |
|
Bank deposits |
|
|
117,138 |
|
|
|
134,000 |
|
Restricted deposit |
|
|
1,284 |
|
|
|
- |
|
Other receivables |
|
|
25,735 |
|
|
|
19,019 |
|
Total current assets |
|
|
586,255 |
|
|
|
625,221 |
|
|
|
|
|
|
Marketable securities |
|
|
311,656 |
|
|
|
189,839 |
|
Property and equipment, net |
|
|
4,992 |
|
|
|
5,660 |
|
Operating lease right of use asset, net |
|
|
7,525 |
|
|
|
9,077 |
|
Intangible assets, net |
|
|
11,566 |
|
|
|
14,770 |
|
Goodwill |
|
|
77,270 |
|
|
|
77,270 |
|
Other non-current assets |
|
|
1,337 |
|
|
|
1,965 |
|
Total assets |
|
$ |
1,000,601 |
|
|
$ |
923,802 |
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Trade payables |
|
$ |
3,308 |
|
|
$ |
8,630 |
|
User accounts |
|
|
149,343 |
|
|
|
133,032 |
|
Deferred revenue |
|
|
13,036 |
|
|
|
11,353 |
|
Other account payables and accrued expenses |
|
48,015 |
|
|
|
41,328 |
|
Operating lease liabilities, net |
|
|
2,453 |
|
|
|
2,755 |
|
Total current liabilities |
|
|
216,155 |
|
|
|
197,098 |
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
Convertible notes |
|
|
454,668 |
|
|
|
452,764 |
|
Operating lease liabilities |
|
|
4,836 |
|
|
|
6,649 |
|
Other non-current liabilities |
|
|
2,411 |
|
|
|
1,559 |
|
Total long-term liabilities |
|
|
461,915 |
|
|
|
460,972 |
|
Total liabilities |
|
$ |
678,070 |
|
|
$ |
658,070 |
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
Share capital and additional paid-in capital |
|
|
621,881 |
|
|
|
565,834 |
|
Accumulated deficit |
|
|
(289,059 |
) |
|
|
(288,039 |
) |
Accumulated other comprehensive income (loss) |
|
|
(10,291 |
) |
|
|
(12,063 |
) |
Total shareholders' equity |
|
|
322,531 |
|
|
|
265,732 |
|
Total liabilities and shareholders' equity |
|
$ |
1,000,601 |
|
|
$ |
923,802 |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
Revenue |
|
$ |
92,532 |
|
|
$ |
82,541 |
|
|
$ |
269,873 |
|
|
$ |
254,236 |
|
Cost of revenue |
|
|
15,075 |
|
|
|
15,631 |
|
|
|
46,373 |
|
|
|
50,134 |
|
Gross profit |
|
|
77,457 |
|
|
|
66,910 |
|
|
|
223,500 |
|
|
|
204,102 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
23,490 |
|
|
|
22,938 |
|
|
|
68,666 |
|
|
|
71,235 |
|
Sales and marketing |
|
|
40,521 |
|
|
|
41,959 |
|
|
|
121,441 |
|
|
|
134,151 |
|
General and administrative |
|
|
15,791 |
|
|
|
14,489 |
|
|
|
46,894 |
|
|
|
43,399 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27,629 |
|
Total operating expenses |
|
|
79,802 |
|
|
|
79,386 |
|
|
|
237,001 |
|
|
|
276,414 |
|
Operating loss |
|
|
(2,345 |
) |
|
|
(12,476 |
) |
|
|
(13,501 |
) |
|
|
(72,312 |
) |
Financial income (expenses), net |
|
|
5,678 |
|
|
|
1,162 |
|
|
|
13,249 |
|
|
|
2,233 |
|
Income (loss) before income taxes |
|
|
3,333 |
|
|
|
(11,314 |
) |
|
|
(252 |
) |
|
|
(70,079 |
) |
Income taxes |
|
|
(308 |
) |
|
|
(36 |
) |
|
|
(768 |
) |
|
|
(109 |
) |
Net income (loss) attributable to ordinary shareholders |
|
$ |
3,025 |
|
|
$ |
(11,350 |
) |
|
$ |
(1,020 |
) |
|
$ |
(70,188 |
) |
Basic net income (loss) per share attributable to ordinary
shareholders |
|
$ |
0.08 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.03 |
) |
|
$ |
(1.91 |
) |
Basic weighted average ordinary shares |
|
|
38,164,996 |
|
|
|
37,205,489 |
|
|
|
37,668,006 |
|
|
|
36,843,383 |
|
Diluted net income (loss) per share attributable to ordinary
shareholders |
|
$ |
0.07 |
|
|
$ |
(0.31 |
) |
|
$ |
(0.03 |
) |
|
$ |
(1.91 |
) |
Diluted weighted average ordinary shares |
|
|
41,389,621 |
|
|
|
37,205,489 |
|
|
|
37,668,006 |
|
|
|
36,843,383 |
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
Operating Activities |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
3,025 |
|
|
$ |
(11,350 |
) |
|
$ |
(1,020 |
) |
|
$ |
(70,188 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,321 |
|
|
|
1,938 |
|
|
|
4,700 |
|
|
|
8,190 |
|
Gain (loss) from disposal of property and equipment |
|
|
5 |
|
|
|
(9 |
) |
|
|
36 |
|
|
|
(21 |
) |
Amortization of premium and discount of marketable securities,
net |
|
|
(123 |
) |
|
|
1,368 |
|
|
|
1,111 |
|
|
|
5,052 |
|
Amortization of discount and issuance costs of convertible
notes |
|
|
635 |
|
|
|
632 |
|
|
|
1,904 |
|
|
|
1,894 |
|
Shared-based compensation |
|
|
17,557 |
|
|
|
17,612 |
|
|
|
51,906 |
|
|
|
54,729 |
|
Net loss (gain) from exchange rate fluctuations |
|
|
286 |
|
|
|
12 |
|
|
|
249 |
|
|
|
183 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27,629 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
User funds |
|
|
(3,506 |
) |
|
|
(2,722 |
) |
|
|
(17,462 |
) |
|
|
(17,584 |
) |
Operating lease ROU assets and liabilities, net |
|
|
(151 |
) |
|
|
(117 |
) |
|
|
(563 |
) |
|
|
(1,547 |
) |
Other receivables |
|
|
(3,509 |
) |
|
|
(2,402 |
) |
|
|
(6,256 |
) |
|
|
(4,837 |
) |
Trade payables |
|
|
1,060 |
|
|
|
1,873 |
|
|
|
(5,294 |
) |
|
|
(2,884 |
) |
Deferred revenue |
|
|
852 |
|
|
|
(675 |
) |
|
|
1,683 |
|
|
|
(529 |
) |
User accounts |
|
|
2,956 |
|
|
|
2,523 |
|
|
|
16,311 |
|
|
|
16,349 |
|
Account payable, accrued expenses and other |
|
|
2,781 |
|
|
|
(1,994 |
) |
|
|
7,480 |
|
|
|
9,184 |
|
Revaluation of contingent consideration |
|
|
- |
|
|
|
(945 |
) |
|
|
- |
|
|
|
(4,787 |
) |
Payment of contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(504 |
) |
Non-current liabilities |
|
|
210 |
|
|
|
(38 |
) |
|
|
852 |
|
|
|
178 |
|
Net cash provided by operating activities |
|
|
23,399 |
|
|
|
5,706 |
|
|
|
55,637 |
|
|
|
20,507 |
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
Investment in marketable securities |
|
|
(81,753 |
) |
|
|
- |
|
|
|
(262,761 |
) |
|
|
(90,007 |
) |
Proceeds from sale of marketable securities |
|
|
69,485 |
|
|
|
34,175 |
|
|
|
232,406 |
|
|
|
117,521 |
|
Bank and restricted deposits |
|
|
(43,138 |
) |
|
|
15,000 |
|
|
|
15,613 |
|
|
|
37,863 |
|
Acquisition of intangible asset |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(175 |
) |
Purchase of property and equipment |
|
|
(223 |
) |
|
|
(280 |
) |
|
|
(918 |
) |
|
|
(1,111 |
) |
Capitalization of internal-use software and other |
|
|
(44 |
) |
|
|
(116 |
) |
|
|
(57 |
) |
|
|
(1,019 |
) |
Other non-current assets |
|
|
- |
|
|
|
(100 |
) |
|
|
- |
|
|
|
(1,178 |
) |
Net cash provided by (used in) investing activities |
|
|
(55,673 |
) |
|
|
48,679 |
|
|
|
(15,717 |
) |
|
|
61,894 |
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
Payment of contingent consideration |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,105 |
) |
Proceeds from exercise of share options |
|
|
218 |
|
|
|
597 |
|
|
|
2,401 |
|
|
|
2,308 |
|
Tax withholding in connection with employees' options exercises and
vested RSUs |
|
|
(20 |
) |
|
|
(156 |
) |
|
|
(76 |
) |
|
|
(2,286 |
) |
Repayment of long-term loan |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,269 |
) |
Net cash provided by (used in) financing activities |
|
|
198 |
|
|
|
441 |
|
|
|
2,325 |
|
|
|
(3,352 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuations on cash and cash
equivalents |
|
|
(286 |
) |
|
|
(12 |
) |
|
|
(249 |
) |
|
|
(183 |
) |
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash, cash equivalents and restricted
cash |
|
|
(32,362 |
) |
|
|
54,814 |
|
|
|
41,996 |
|
|
|
78,866 |
|
Cash, cash equivalents and restricted cash at the beginning of
period |
|
|
162,247 |
|
|
|
98,122 |
|
|
|
87,889 |
|
|
|
74,070 |
|
Cash and cash equivalents at the end of period |
|
$ |
129,885 |
|
|
$ |
152,936 |
|
|
$ |
129,885 |
|
|
$ |
152,936 |
|
|
KEY PERFORMANCE METRICS |
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
September 30, |
|
|
2023 |
|
2022 |
|
|
|
|
|
Annual active buyers (in thousands) |
|
4,164 |
|
4,249 |
Annual spend per buyer ($) |
|
271 |
|
262 |
|
RECONCILIATION OF GAAP TO NON-GAAP GROSS
PROFIT |
(in thousands, except gross margin data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
GAAP gross profit |
|
$ |
77,457 |
|
|
$ |
66,910 |
|
|
$ |
223,500 |
|
|
$ |
204,102 |
|
Add: |
|
|
|
|
|
|
|
|
Share-based compensation and other |
|
|
632 |
|
|
|
477 |
|
|
|
1,864 |
|
|
|
1,955 |
|
Depreciation and amortization |
|
|
731 |
|
|
|
922 |
|
|
|
2,544 |
|
|
|
4,895 |
|
Non-GAAP gross profit |
|
$ |
78,820 |
|
|
$ |
68,309 |
|
|
$ |
227,908 |
|
|
$ |
210,952 |
|
Non-GAAP gross margin |
|
|
85.2 |
% |
|
|
82.8 |
% |
|
|
84.5 |
% |
|
|
83.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET
INCOME AND NET INCOME PER SHARE |
(in thousands, except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
GAAP net income (loss) attributable to ordinary shareholders |
|
$ |
3,025 |
|
|
$ |
(11,350 |
) |
|
$ |
(1,020 |
) |
|
$ |
(70,188 |
) |
Add: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,321 |
|
|
|
1,938 |
|
|
|
4,700 |
|
|
|
8,190 |
|
Share-based compensation |
|
|
17,557 |
|
|
|
17,612 |
|
|
|
51,906 |
|
|
|
54,729 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27,629 |
|
Contingent consideration revaluation, acquisition related costs and
other |
|
|
- |
|
|
|
(520 |
) |
|
|
- |
|
|
|
(3,210 |
) |
Convertible notes amortization of discount and issuance costs |
|
|
635 |
|
|
|
632 |
|
|
|
1,904 |
|
|
|
1,894 |
|
Exchange rate (gain)/loss, net |
|
|
98 |
|
|
|
316 |
|
|
|
(173 |
) |
|
|
(932 |
) |
Non-GAAP net income |
|
$ |
22,636 |
|
|
$ |
8,628 |
|
|
$ |
57,317 |
|
|
$ |
18,112 |
|
Weighted average number of ordinary shares - basic |
|
|
38,164,996 |
|
|
|
37,205,489 |
|
|
|
37,668,006 |
|
|
|
36,843,383 |
|
Non-GAAP basic net income per share attributable to ordinary
shareholders |
|
$ |
0.59 |
|
|
$ |
0.23 |
|
|
$ |
1.52 |
|
|
$ |
0.49 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares - diluted |
|
|
41,389,621 |
|
|
|
40,731,833 |
|
|
|
41,006,387 |
|
|
|
40,708,818 |
|
Non-GAAP diluted net income per share attributable to ordinary
shareholders |
|
$ |
0.55 |
|
|
$ |
0.21 |
|
|
$ |
1.40 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED
EBITDA |
(in thousands, except adjusted EBITDA margin data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
GAAP net income (loss) |
|
$ |
3,025 |
|
|
$ |
(11,350 |
) |
|
$ |
(1,020 |
) |
|
$ |
(70,188 |
) |
Add: |
|
|
|
|
|
|
|
|
Financial (income) expenses, net |
|
|
(5,678 |
) |
|
|
(1,162 |
) |
|
|
(13,249 |
) |
|
|
(2,233 |
) |
Income taxes |
|
|
308 |
|
|
|
36 |
|
|
|
768 |
|
|
|
109 |
|
Depreciation and amortization |
|
|
1,321 |
|
|
|
1,938 |
|
|
|
4,700 |
|
|
|
8,190 |
|
Share-based compensation |
|
|
17,557 |
|
|
|
17,612 |
|
|
|
51,906 |
|
|
|
54,729 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27,629 |
|
Contingent consideration revaluation, acquisition related costs and
other |
|
|
- |
|
|
|
(520 |
) |
|
|
- |
|
|
|
(3,210 |
) |
Adjusted EBITDA |
|
$ |
16,533 |
|
|
$ |
6,554 |
|
|
$ |
43,105 |
|
|
$ |
15,026 |
|
Adjusted EBITDA margin |
|
|
17.9 |
% |
|
|
7.9 |
% |
|
|
16.0 |
% |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP OPERATING
EXPENSES |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(Unaudited) |
|
(Unaudited) |
GAAP research and development |
|
$ |
23,490 |
|
|
$ |
22,938 |
|
|
$ |
68,666 |
|
|
$ |
71,235 |
|
Less: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
6,227 |
|
|
|
5,811 |
|
|
|
18,474 |
|
|
|
18,537 |
|
Depreciation and amortization |
|
|
196 |
|
|
|
200 |
|
|
|
608 |
|
|
|
603 |
|
Non-GAAP research and development |
|
$ |
17,067 |
|
|
$ |
16,927 |
|
|
$ |
49,584 |
|
|
$ |
52,095 |
|
|
|
|
|
|
|
|
|
|
GAAP sales and marketing |
|
$ |
40,521 |
|
|
$ |
41,959 |
|
|
$ |
121,441 |
|
|
$ |
134,151 |
|
Less: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
3,392 |
|
|
|
4,151 |
|
|
|
10,138 |
|
|
|
13,156 |
|
Depreciation and amortization |
|
|
314 |
|
|
|
713 |
|
|
|
1,292 |
|
|
|
2,394 |
|
Non-GAAP sales and marketing |
|
$ |
36,815 |
|
|
$ |
37,095 |
|
|
$ |
110,011 |
|
|
$ |
118,601 |
|
|
|
|
|
|
|
|
|
|
GAAP general and administrative |
|
$ |
15,791 |
|
|
$ |
14,489 |
|
|
$ |
46,894 |
|
|
$ |
43,399 |
|
Less: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
7,306 |
|
|
|
7,173 |
|
|
|
21,430 |
|
|
|
21,081 |
|
Depreciation and amortization |
|
|
80 |
|
|
|
103 |
|
|
|
256 |
|
|
|
298 |
|
Contingent consideration revaluation, acquisition related costs and
other |
|
|
- |
|
|
|
(520 |
) |
|
|
- |
|
|
|
(3,210 |
) |
Non-GAAP general and administrative |
|
$ |
8,405 |
|
|
$ |
7,733 |
|
|
$ |
25,208 |
|
|
$ |
25,230 |
|
|
|
|
|
|
|
|
|
|
Key Performance Metrics and Non-GAAP Financial
Measures
This release includes certain key performance metrics and
financial measures not based on GAAP, including Adjusted EBITDA,
Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross
margin, non-GAAP operating expenses, non-GAAP net income (loss) and
non-GAAP net income (loss) per share as well as operating metrics,
including GMV, active buyers, spend per buyer and take rate. Some
amounts in this release may not total due to rounding. All
percentages have been calculated using unrounded amounts.
We define each of our non-GAAP measures of financial
performance, as the respective GAAP balances shown in the above
tables, adjusted for, as applicable, depreciation and amortization,
share-based compensation expenses, contingent consideration
revaluation, acquisition related costs and other, income taxes,
amortization of discount and issuance costs of convertible note,
financial (income) expenses, net. Non-GAAP gross profit margin
represents non-GAAP gross profit expressed as a percentage of
revenue. We define non-GAAP net income (loss) per share as non-GAAP
net income (loss) divided by GAAP weighted-average number of
ordinary shares basic and diluted.
We define GMV or Gross Merchandise Value as the total value of
transactions ordered through our platform, excluding value added
tax, goods and services tax, service chargebacks and refunds.
Active buyers on any given date is defined as buyers who have
ordered a Gig or other services on our platform within the last
12-month period, irrespective of cancellations. Spend per buyer on
any given date is calculated by dividing our GMV within the last
12-month period by the number of active buyers as of such date.
Take rate is revenue for any such period divided by GMV for the
same period.
Management and our board of directors use these metrics as
supplemental measures of our performance that is not required by,
or presented in accordance with GAAP because they assist us in
comparing our operating performance on a consistent basis, as they
remove the impact of items not directly resulting from our core
operations. We also use these metrics for planning purposes,
including the preparation of our internal annual operating budget
and financial projections, to evaluate the performance and
effectiveness of our strategic initiatives and capital expenditures
and to evaluate our capacity to expand our business.
Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit,
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net
income (loss) and non-GAAP net income (loss) per share as well as
operating metrics, including GMV, active buyers, spend per buyer
and take rate should not be considered in isolation, as an
alternative to, or superior to net loss, revenue, cash flows or
other performance measure derived in accordance with GAAP. These
metrics are frequently used by analysts, investors and other
interested parties to evaluate companies in our industry.
Management believes that the presentation of non-GAAP metrics is an
appropriate measure of operating performance because they eliminate
the impact of expenses that do not relate directly to the
performance of our underlying business.
These non-GAAP metrics should not be construed as an inference
that our future results will be unaffected by unusual or other
items. Additionally, Adjusted EBITDA and other non-GAAP metrics
used herein are not intended to be a measure of free cash flow for
management's discretionary use, as they do not reflect our tax
payments and certain other cash costs that may recur in the future,
including, among other things, cash requirements for costs to
replace assets being depreciated and amortized. Management
compensates for these limitations by relying on our GAAP results in
addition to using Adjusted EBITDA and other non-GAAP metrics as
supplemental measures of our performance. Our measure of Adjusted
EBITDA and other non-GAAP metrics used herein is not necessarily
comparable to similarly titled captions of other companies due to
different methods of calculation.
See the tables above regarding reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP
measures.
We are not able to provide a reconciliation of Adjusted EBITDA
and Adjusted EBITDA margin guidance for the fourth quarter of 2023
and the fiscal year ending December 31, 2023, and long term to net
income (loss), the nearest comparable GAAP measure, because certain
items that are excluded from Adjusted EBITDA and Adjusted EBITDA
margin cannot be reasonably predicted or are not in our control. In
particular, we are unable to forecast the timing or magnitude of
share based compensation, amortization of intangible assets,
impairment of intangible assets, income or loss on revaluation of
contingent consideration, other acquisition-related costs,
convertible notes amortization of discount and issuance costs and
exchange rate income or loss, as applicable without unreasonable
efforts, and these items could significantly impact, either
individually or in the aggregate, GAAP measures in the future.
Forward Looking Statements
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements contained in this release that do not relate to
matters of historical fact should be considered forward-looking
statements, including, without limitation, statements regarding our
expected financial performance and operational performance for the
fourth quarter of 2023, the fiscal year ending December 31, 2023,
our long term Adjusted EBITDA margin goals, our expected future
Adjusted EBITDA margin, our business plans and strategy, our
expectations regarding AI services and developments, as well as
statements that include the words “expect,” “intend,” “plan,”
“believe,” “project,” “forecast,” “estimate,” “may,” “should,”
“anticipate” and similar statements of a future or forward-looking
nature. These forward-looking statements are based on management’s
current expectations. These statements are neither promises nor
guarantees, but involve known and unknown risks, uncertainties and
other important factors that may cause actual results, performance
or achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to:
political, economic and military instability in Israel, including
related to the war in Israel; our ability to successfully implement
our business plan within adverse economic conditions that may
impact the demand for our services or have a material adverse
impact on our business, financial condition and results of
operations; our ability to attract and retain a large community of
buyers and freelancers; our ability to achieve profitability; our
ability to maintain and enhance our brand; our dependence on the
continued growth and expansion of the market for freelancers and
the services they offer; our dependence on traffic to our website;
our ability to maintain user engagement on our website and to
maintain and improve the quality of our platform; our operations
within a competitive market; our ability and the ability of third
parties to protect our users’ personal or other data from a
security breach and to comply with laws and regulations relating to
data privacy, data protection and cybersecurity; our ability to
manage our current and potential future growth; our dependence on
decisions and developments in the mobile device industry, over
which we do not have control; our ability to detect errors, defects
or disruptions in our platform; our ability to comply with the
terms of underlying licenses of open source software components on
our platform; our ability to expand into markets outside the United
States and our ability to manage the business and economic risks of
international expansion and operations; our ability to achieve
desired operating margins; our ability to comply with a wide
variety of U.S. and international laws and regulations; our ability
to attract, recruit, retain and develop qualified employees; our
reliance on Amazon Web Services; our ability to mitigate payment
and fraud risks; our dependence on relationships with payment
partners, banks and disbursement partners; and the other important
factors discussed under the caption “Risk Factors” in our annual
report on Form 20-F filed with the U.S. Securities and Exchange
Commission (“SEC”) on March 30, 2023, as such factors may be
updated from time to time in our other filings with the SEC, which
are accessible on the SEC’s website at www.sec.gov. In addition, we
operate in a very competitive and rapidly changing environment. New
risks emerge from time to time. It is not possible for our
management to predict all risks, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
that we may make. In light of these risks, uncertainties and
assumptions, the forward-looking events and circumstances discussed
in this release are inherently uncertain and may not occur, and
actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
Accordingly, you should not rely upon forward-looking statements as
predictions of future events. In addition, the forward-looking
statements made in this release relate only to events or
information as of the date on which the statements are made in this
release. Except as required by law, we undertake no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise, after
the date on which the statements are made or to reflect the
occurrence of unanticipated events.
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