Fiverr International Ltd. (NYSE: FVRR), the company that is
revolutionizing how the world works together, today reported
financial results for the second 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 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.”
“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.”
Second Quarter 2023 Financial Highlights
- Revenue in the second quarter of 2023 was $89.4 million,
compared to $85.0 million in the second quarter of 2022, an
increase of 5.1% year over year.
- Active buyers1 was 4.2 million as of June 30, 2023 and 2022,
respectively.
- Spend per buyer1 as of June 30, 2023 reached $265, compared to
$259 as of June 30, 2022, an increase of 2% year over year.
- Take rate1 for the period ended June 30, 2023 was 30.7%, up
from 29.8% for the period ended June 30, 2022, an increase of 90
basis points year over year.
- GAAP gross margin in the second quarter of 2023 was 82.5%, an
increase of 310 basis points from 79.4% in the second quarter of
2022. Non-GAAP gross margin1 in the second quarter of 2023 was
84.2%, an increase of 150 basis points from 82.7% in the second
quarter of 2022.
- GAAP net income (loss) in the second quarter of 2023 was $0.2
million, or $0.01 basic and diluted net income (loss) per share,
compared to ($41.9) million, or ($1.13) basic and diluted net
income (loss) per share, in the second quarter of 2022. Non-GAAP
net income1 in the second quarter of 2023 was $20.0 million, or
$0.53 basic non-GAAP net income per share1 and $0.49 diluted
non-GAAP net income per share1, compared to $4.9 million non- GAAP
net income, or $0.13 basic non-GAAP net income per share1 and $0.12
diluted non-GAAP net income per share1, in the second quarter of
2022.
- Adjusted EBITDA1 in the second quarter of 2023 was $15.3
million, compared to $4.6 million in the second quarter of 2022.
Adjusted EBITDA margin1 was 17.1% in the second quarter of 2023,
compared to 5.4% in the second quarter of 2022.
Financial Outlook
Our Q3’23 outlook and updated full year 2023 guidance reflect
the strength of our business and the recent trends on our
marketplace. We expect to improve revenue growth rate and maintain
Adjusted EBITDA margin in the second half of the year.
|
Q3 2023 |
FY 2023 |
Revenue |
$89.5 - $92.5 million |
$358.0 - $365.0 million |
y/y growth |
8% - 12% y/y growth |
6% - 8% y/y growth |
Adjusted
EBITDA(1) |
$14.5 - $16.5 million |
$56.0 - $60.0 million |
Conference Call and Webcast Details
Fiverr’s management will host a conference call to discuss its
financial results on Thursday, Aug 3, 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 FiverrFiverr’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 600 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) |
|
|
June 30, |
|
December 31, |
|
2023 |
|
2022 |
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
162,247 |
|
|
$ |
86,752 |
|
Restricted cash |
|
- |
|
|
|
1,137 |
|
Marketable securities |
|
191,492 |
|
|
|
241,293 |
|
User funds |
|
156,976 |
|
|
|
143,020 |
|
Bank deposits |
|
74,000 |
|
|
|
134,000 |
|
Restricted deposit |
|
1,284 |
|
|
|
- |
|
Other receivables |
|
22,160 |
|
|
|
19,019 |
|
Total current assets |
|
608,159 |
|
|
|
625,221 |
|
|
|
|
|
Marketable securities |
|
259,039 |
|
|
|
189,839 |
|
Property and equipment, net |
|
5,256 |
|
|
|
5,660 |
|
Operating lease right of use asset, net |
|
8,115 |
|
|
|
9,077 |
|
Intangible assets, net |
|
12,387 |
|
|
|
14,770 |
|
Goodwill |
|
77,270 |
|
|
|
77,270 |
|
Other non-current assets |
|
1,393 |
|
|
|
1,965 |
|
Total assets |
$ |
971,619 |
|
|
$ |
923,802 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Trade payables |
$ |
2,268 |
|
|
$ |
8,630 |
|
User accounts |
|
146,387 |
|
|
|
133,032 |
|
Deferred revenue |
|
12,184 |
|
|
|
11,353 |
|
Other account payables and accrued expenses |
|
44,559 |
|
|
|
41,328 |
|
Operating lease liabilities, net |
|
2,447 |
|
|
|
2,755 |
|
Total current liabilities |
|
207,845 |
|
|
|
197,098 |
|
|
|
|
|
Long-term liabilities: |
|
|
|
Convertible notes |
|
454,033 |
|
|
|
452,764 |
|
Operating lease liabilities |
|
5,583 |
|
|
|
6,649 |
|
Other non-current liabilities |
|
2,201 |
|
|
|
1,559 |
|
Total long-term liabilities |
|
461,817 |
|
|
|
460,972 |
|
Total liabilities |
$ |
669,662 |
|
|
$ |
658,070 |
|
|
|
|
|
Shareholders' equity: |
|
|
|
Share capital and additional paid-in capital |
|
604,106 |
|
|
|
565,834 |
|
Accumulated deficit |
|
(292,084 |
) |
|
|
(288,039 |
) |
Accumulated other comprehensive income (loss) |
|
(10,065 |
) |
|
|
(12,063 |
) |
Total shareholders' equity |
|
301,957 |
|
|
|
265,732 |
|
Total liabilities and shareholders' equity |
$ |
971,619 |
|
|
$ |
923,802 |
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
(in thousands, except share and per share
data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Unaudited) |
|
(Unaudited) |
Revenue |
$ |
89,385 |
|
|
$ |
85,010 |
|
|
$ |
177,341 |
|
|
$ |
171,695 |
|
Cost of revenue |
|
15,632 |
|
|
|
17,526 |
|
|
|
31,298 |
|
|
|
34,503 |
|
Gross profit |
|
73,753 |
|
|
|
67,484 |
|
|
|
146,043 |
|
|
|
137,192 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
23,289 |
|
|
|
24,523 |
|
|
|
45,176 |
|
|
|
48,297 |
|
Sales and marketing |
|
38,870 |
|
|
|
44,325 |
|
|
|
80,920 |
|
|
|
92,192 |
|
General and administrative |
|
15,604 |
|
|
|
13,658 |
|
|
|
31,103 |
|
|
|
28,910 |
|
Impairment of intangible assets |
|
- |
|
|
|
27,629 |
|
|
|
- |
|
|
|
27,629 |
|
Total operating expenses |
|
77,763 |
|
|
|
110,135 |
|
|
|
157,199 |
|
|
|
197,028 |
|
Operating loss |
|
(4,010 |
) |
|
|
(42,651 |
) |
|
|
(11,156 |
) |
|
|
(59,836 |
) |
Financial income (expenses), net |
|
4,487 |
|
|
|
841 |
|
|
|
7,571 |
|
|
|
1,071 |
|
Income (loss) before income taxes |
|
477 |
|
|
|
(41,810 |
) |
|
|
(3,585 |
) |
|
|
(58,765 |
) |
Income taxes |
|
(250 |
) |
|
|
(53 |
) |
|
|
(460 |
) |
|
|
(73 |
) |
Net income (loss) attributable to ordinary shareholders |
$ |
227 |
|
|
$ |
(41,863 |
) |
|
$ |
(4,045 |
) |
|
$ |
(58,838 |
) |
Basic net income (loss) per share attributable to ordinary
shareholders |
$ |
0.01 |
|
|
$ |
(1.13 |
) |
|
$ |
(0.11 |
) |
|
$ |
(1.60 |
) |
Basic weighted average ordinary shares |
|
37,906,971 |
|
|
|
37,027,317 |
|
|
|
37,677,180 |
|
|
|
36,846,989 |
|
Diluted net income (loss) per share attributable to ordinary
shareholders |
$ |
0.01 |
|
|
$ |
(1.13 |
) |
|
$ |
(0.11 |
) |
|
$ |
(1.60 |
) |
Diluted weighted average ordinary shares |
|
41,192,132 |
|
|
|
37,027,317 |
|
|
|
37,677,180 |
|
|
|
36,846,989 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(in thousands) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Unaudited) |
|
(Unaudited) |
Operating Activities |
|
|
|
|
|
|
|
Net income (loss) |
$ |
227 |
|
|
$ |
(41,863 |
) |
|
$ |
(4,045 |
) |
|
$ |
(58,838 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,654 |
|
|
|
3,142 |
|
|
|
3,379 |
|
|
|
6,252 |
|
Gain (loss) from disposal of property and equipment |
|
5 |
|
|
|
(12 |
) |
|
|
31 |
|
|
|
(12 |
) |
Amortization of premium and discount of marketable securities,
net |
|
378 |
|
|
|
1,997 |
|
|
|
1,234 |
|
|
|
3,684 |
|
Amortization of discount and issuance costs of convertible
notes |
|
635 |
|
|
|
631 |
|
|
|
1,269 |
|
|
|
1,262 |
|
Shared-based compensation |
|
17,630 |
|
|
|
19,114 |
|
|
|
34,349 |
|
|
|
37,117 |
|
Net loss (gain) from exchange rate fluctuations |
|
(100 |
) |
|
|
314 |
|
|
|
(37 |
) |
|
|
171 |
|
Impairment of intangible assets |
|
- |
|
|
|
27,629 |
|
|
|
- |
|
|
|
27,629 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
User funds |
|
1,950 |
|
|
|
4,441 |
|
|
|
(13,956 |
) |
|
|
(14,862 |
) |
Operating lease ROU assets and liabilities, net |
|
(164 |
) |
|
|
(1,101 |
) |
|
|
(412 |
) |
|
|
(1,430 |
) |
Other receivables |
|
(1,773 |
) |
|
|
(2,677 |
) |
|
|
(2,747 |
) |
|
|
(2,435 |
) |
Trade payables |
|
(2,569 |
) |
|
|
662 |
|
|
|
(6,354 |
) |
|
|
(4,757 |
) |
Deferred revenue |
|
(788 |
) |
|
|
(1,237 |
) |
|
|
831 |
|
|
|
146 |
|
User accounts |
|
(1,608 |
) |
|
|
(3,904 |
) |
|
|
13,355 |
|
|
|
13,826 |
|
Account payable, accrued expenses and other |
|
3,141 |
|
|
|
3,964 |
|
|
|
4,699 |
|
|
|
11,178 |
|
Revaluation of contingent consideration |
|
- |
|
|
|
(3,152 |
) |
|
|
- |
|
|
|
(3,842 |
) |
Payment of contingent consideration |
|
- |
|
|
|
(504 |
) |
|
|
- |
|
|
|
(504 |
) |
Non-current liabilities |
|
117 |
|
|
|
(353 |
) |
|
|
642 |
|
|
|
216 |
|
Net cash provided by operating activities |
|
18,735 |
|
|
|
7,091 |
|
|
|
32,238 |
|
|
|
14,801 |
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
Investment in marketable securities |
|
(118,450 |
) |
|
|
(45,160 |
) |
|
|
(181,008 |
) |
|
|
(90,007 |
) |
Proceeds from sale of marketable securities |
|
108,621 |
|
|
|
49,737 |
|
|
|
162,921 |
|
|
|
83,346 |
|
Bank and restricted deposits |
|
58,781 |
|
|
|
24,000 |
|
|
|
58,751 |
|
|
|
22,863 |
|
Acquisition of intangible asset |
|
- |
|
|
|
(175 |
) |
|
|
- |
|
|
|
(175 |
) |
Purchase of property and equipment |
|
(367 |
) |
|
|
(338 |
) |
|
|
(695 |
) |
|
|
(831 |
) |
Capitalization of internal-use software and other |
|
(8 |
) |
|
|
(504 |
) |
|
|
(13 |
) |
|
|
(903 |
) |
Other non-current assets |
|
- |
|
|
|
(1,000 |
) |
|
|
- |
|
|
|
(1,078 |
) |
Net cash used in investing activities |
|
48,577 |
|
|
|
26,560 |
|
|
|
39,956 |
|
|
|
13,215 |
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
Payment of contingent consideration |
|
- |
|
|
|
(1,105 |
) |
|
|
- |
|
|
|
(1,105 |
) |
Proceeds from exercise of share options |
|
433 |
|
|
|
1,000 |
|
|
|
2,183 |
|
|
|
1,711 |
|
Tax withholding in connection with employees' options exercises and
vested RSUs |
|
(387 |
) |
|
|
(556 |
) |
|
|
(56 |
) |
|
|
(2,130 |
) |
Repayment of long-term loan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,269 |
) |
Net cash provided by (used in) financing activities |
|
46 |
|
|
|
(661 |
) |
|
|
2,127 |
|
|
|
(3,793 |
) |
|
|
|
|
|
|
|
|
Effect of exchange rate fluctuations on cash and cash
equivalents |
|
100 |
|
|
|
(314 |
) |
|
|
37 |
|
|
|
(171 |
) |
|
|
|
|
|
|
|
|
Increase in cash, cash equivalents and restricted cash |
|
67,458 |
|
|
|
32,676 |
|
|
|
74,358 |
|
|
|
24,052 |
|
Cash, cash equivalents and restricted cash at the beginning of
period |
|
94,789 |
|
|
|
65,446 |
|
|
|
87,889 |
|
|
|
74,070 |
|
Cash and cash equivalents at the end of period |
$ |
162,247 |
|
|
$ |
98,122 |
|
|
$ |
162,247 |
|
|
$ |
98,122 |
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE METRICS |
|
|
|
Twelve Months Ended |
|
|
June 30, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Annual active buyers (in thousands) |
|
4,222 |
|
|
4,220 |
|
Annual spend per buyer ($) |
|
265 |
|
|
259 |
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP GROSS
PROFIT |
(in thousands, except gross margin
data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Unaudited) |
|
(Unaudited) |
GAAP gross profit |
$ |
73,753 |
|
|
$ |
67,484 |
|
|
$ |
146,043 |
|
|
$ |
137,192 |
|
Add: |
|
|
|
|
|
|
|
Share-based compensation and other |
|
619 |
|
|
|
771 |
|
|
|
1,232 |
|
|
|
1,478 |
|
Depreciation and amortization |
|
885 |
|
|
|
2,017 |
|
|
|
1,813 |
|
|
|
3,973 |
|
Non-GAAP gross profit |
$ |
75,257 |
|
|
$ |
70,272 |
|
|
$ |
149,088 |
|
|
$ |
142,643 |
|
Non-GAAP gross margin |
|
84.2 |
% |
|
|
82.7 |
% |
|
|
84.1 |
% |
|
|
83.1 |
% |
|
|
|
|
|
|
|
|
|
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 |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(Unaudited) |
|
(Unaudited) |
GAAP net income (loss) attributable to ordinary shareholders |
$ |
227 |
|
|
$ |
(41,863 |
) |
|
$ |
(4,045 |
) |
|
$ |
(58,838 |
) |
Add: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
1,654 |
|
|
|
3,142 |
|
|
|
3,379 |
|
|
|
6,252 |
|
Share-based compensation |
|
17,630 |
|
|
|
19,114 |
|
|
|
34,349 |
|
|
|
37,117 |
|
Impairment of intangible assets |
|
- |
|
|
|
27,629 |
|
|
|
- |
|
|
|
27,629 |
|
Contingent consideration revaluation, acquisition related costs and
other |
|
- |
|
|
|
(2,627 |
) |
|
|
- |
|
|
|
(2,690 |
) |
Convertible notes amortization of discount and issuance costs |
|
635 |
|
|
|
631 |
|
|
|
1,269 |
|
|
|
1,262 |
|
Exchange rate (gain)/loss, net |
|
(108 |
) |
|
|
(1,155 |
) |
|
|
(271 |
) |
|
|
(1,248 |
) |
Non-GAAP net income |
$ |
20,038 |
|
|
$ |
4,871 |
|
|
$ |
34,681 |
|
|
$ |
9,484 |
|
Weighted average number of ordinary shares - basic |
|
37,906,971 |
|
|
|
37,027,317 |
|
|
|
37,677,180 |
|
|
|
36,846,989 |
|
Non-GAAP basic net income per share attributable to ordinary
shareholders |
$ |
0.53 |
|
|
$ |
0.13 |
|
|
$ |
0.92 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares - diluted |
|
41,192,132 |
|
|
|
40,767,393 |
|
|
|
41,072,440 |
|
|
|
41,009,735 |
|
Non-GAAP diluted net income per share attributable to ordinary
shareholders |
$ |
0.49 |
|
|
$ |
0.12 |
|
|
$ |
0.84 |
|
|
$ |
0.23 |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED
EBITDA |
(in thousands, except adjusted EBITDA margin
data) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
GAAP net income (loss) |
$ |
227 |
|
|
$ |
(41,863 |
) |
|
$ |
(4,045 |
) |
|
$ |
(58,838 |
) |
Add: |
|
|
|
|
|
|
|
Financial (income) expenses, net |
|
(4,487 |
) |
|
|
(841 |
) |
|
|
(7,571 |
) |
|
|
(1,071 |
) |
Income taxes |
|
250 |
|
|
|
53 |
|
|
|
460 |
|
|
|
73 |
|
Depreciation and amortization |
|
1,654 |
|
|
|
3,142 |
|
|
|
3,379 |
|
|
|
6,252 |
|
Share-based compensation |
|
17,630 |
|
|
|
19,114 |
|
|
|
34,349 |
|
|
|
37,117 |
|
Impairment of intangible assets |
|
- |
|
|
|
27,629 |
|
|
|
- |
|
|
|
27,629 |
|
Contingent consideration revaluation, acquisition related costs and
other |
|
- |
|
|
|
(2,627 |
) |
|
|
- |
|
|
|
(2,690 |
) |
Adjusted EBITDA |
$ |
15,274 |
|
|
$ |
4,607 |
|
|
$ |
26,572 |
|
|
$ |
8,472 |
|
Adjusted EBITDA margin |
|
17.1 |
% |
|
|
5.4 |
% |
|
|
15.0 |
% |
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GAAP TO NON-GAAP OPERATING
EXPENSES |
(in thousands) |
|
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
GAAP research and development |
$ |
23,289 |
|
|
$ |
24,523 |
|
|
$ |
45,176 |
|
|
$ |
48,297 |
|
Less: |
|
|
|
|
|
|
|
Share-based compensation |
|
6,463 |
|
|
|
6,521 |
|
|
|
12,247 |
|
|
|
12,726 |
|
Depreciation and amortization |
|
203 |
|
|
|
202 |
|
|
|
412 |
|
|
|
403 |
|
Non-GAAP research and development |
$ |
16,623 |
|
|
$ |
17,800 |
|
|
$ |
32,517 |
|
|
$ |
35,168 |
|
|
|
|
|
|
|
|
|
GAAP sales and marketing |
$ |
38,870 |
|
|
$ |
44,325 |
|
|
$ |
80,920 |
|
|
$ |
92,192 |
|
Less: |
|
|
|
|
|
|
|
Share-based compensation |
|
3,477 |
|
|
|
4,575 |
|
|
|
6,746 |
|
|
|
9,005 |
|
Depreciation and amortization |
|
476 |
|
|
|
821 |
|
|
|
978 |
|
|
|
1,681 |
|
Non-GAAP sales and marketing |
$ |
34,917 |
|
|
$ |
38,929 |
|
|
$ |
73,196 |
|
|
$ |
81,506 |
|
|
|
|
|
|
|
|
|
GAAP general and administrative |
$ |
15,604 |
|
|
$ |
13,658 |
|
|
$ |
31,103 |
|
|
$ |
28,910 |
|
Less: |
|
|
|
|
|
|
|
Share-based compensation |
|
7,071 |
|
|
|
7,247 |
|
|
|
14,124 |
|
|
|
13,908 |
|
Depreciation and amortization |
|
90 |
|
|
|
102 |
|
|
|
176 |
|
|
|
195 |
|
Contingent consideration revaluation, acquisition related costs and
other |
|
- |
|
|
|
(2,627 |
) |
|
|
- |
|
|
|
(2,690 |
) |
Non-GAAP general and administrative |
$ |
8,443 |
|
|
$ |
8,936 |
|
|
$ |
16,803 |
|
|
$ |
17,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 third 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
third 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: 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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