Fiverr International Ltd Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ron Josey - Citigroup - Analyst : Great. Thanks for taking the question. You know, Micha I wanted to ask you, please, one on Fiverr Go and one on just the broader demand environment. So on Fiverr Go, we're only a few months in, great results so far. We are hearing better conversion rates, newer, larger contracts, and just sort of better overall results. So talk just a little bit more about the progress here, how you see Fiverr Go going throughout the rest of the year in terms of rollout. I think you talked about broader categories, greater adoption, things along those lines, as we're seeing just better overall results early on. And then just on the macro front, Micha, and Ofer you talked about I think a stable demand environment overall and marketplace revenues came in better than our projections here. So we'd love your insights on drivers on what's going on out there. Thank you.

Question: Ron Josey - Citigroup - Analyst : Thank you, Micha.

Question: Stefanos Crist - Needham & Company - Analyst : Hi, can you hear me? Hi, this is Stefanos Crist calling in for Bernie. Thanks for taking our questions. Just wanted to touch on Fiverr Go. You talked about seller satisfaction. Could you maybe just talk about some of the dynamics for buyers so far? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 12:30PM, FVRR.N - Q1 2025 Fiverr International Ltd Earnings Call

Question: Stefanos Crist - Needham & Company - Analyst : That's great. Thank you.

Question: Jason Helfstein - Oppenheimer - Analyst : Thanks. Hi, everybody. So, Two questions. One, how should we think about services revenue growth going forward? Obviously, big growth there. Is this kind of year-to-year rate of growth sustainable? Or should we kind of start to think about the business more on a quarter-to-quarter sequential basis? Like you hit some kind of runway level. And then just, Micha, you sound a lot more positive overall than probably the last few quarters in our view. So maybe where is that enthusiasm coming from? And maybe go in AI, are you actually seeing kind of better business dynamics on the SMB? It doesn't seem like it. Maybe it is on, you know, kind of some of the more enterprise tools, but just maybe some color. Thank you.

Question: Eric Sheridan - Goldman Sachs - Analyst : Thank you so much for taking the question. Maybe one big picture and then one on the margin. Bigger picture, you mentioned in the prepared remarks that given some of the macroeconomic volatility you might see receptivity to more freelance work across the broader economy. I wanted to know if you could sort of flush that out a little bit in terms of the way you think about enterprises potentially moving around more towards being sort of adopting the freelance economy and how those conversations might evolve in such an end-to-end environment that was more volatile. And then the margin side, you know, well noted on the comments about marketing and R&D, as we progress through this year. When we look out to the second half of this year with Fiverr Go having launched, are those sort of good run rates to think about marketing ROI and marketing leverage or R&D as a source of either leverage or deleverage for more than medium to long-term for the business? Thank you so much.

Question: Eric Sheridan - Goldman Sachs - Analyst : Great, thank you.

Question: Joshua Chan - UBS Securities - Analyst : Hi, good afternoon, Micha, Ofer. Thanks for taking my question. Just two quick ones, I guess. On the six figure deals that you had signed during the quarter. Is there a trend to notice in terms of why the customers first try Fiverr? Was there an issue with their existing method of delivery? How did they first encounter Fiverr, ex cetera? And then second question, on the auto DS side, have you seen any impacts from tariffs that were kind of implemented earlier in Q2 and wondering if there is been any impact in that business. Thank you.

Question: Joshua Chan - UBS Securities - Analyst : That makes a lot of sense. Thank you so much for the cover.

Question: Andrew Boone - JMP Securities - Analyst : Hi, can you guys hear me?

Question: Andrew Boone - JMP Securities - Analyst : Okay. Sorry. If I think about reinvestment rates for freelancers back to the platform and services revenue reaching 30% plus, on my simple math, it seems that freelancers are reinvesting back at kind of a 20% rate after kind of the marketplace take rate. Is there a level that you guys think about in terms of the sustainability of that or when freelancers start to push back in terms of how much they want to reinvest into Fiverr. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 12:30PM, FVRR.N - Q1 2025 Fiverr International Ltd Earnings Call How do we think about kind of the ROI from the freelancer perspective of kind of these new tools and what's required in terms of additional kind of payments there? And then if I think about active buyer trends and the smaller portion of the platform, that certainly is a drag in terms of overall GMV. Can you speak to just the stabilization of that? Is it starting to asymptote in terms of the point that we should expect larger customers to be able to overcome that in the back half of the year or how do we think about the smaller portion of that in the drag on overall results? Thanks so much.

Question: Andrew Boone - JMP Securities - Analyst : Thank you.

Question: Marvin Fong - BTIG - Analyst : Great, thanks for taking my question. On the sales and marketing opportunity that you saw in the first quarter, I'd just love to understand that a little bit better. I mean, was that primarily lower CPCs, and was that broad-based across the entire business, or was it focused on specific verticals? And apologies if you've mentioned this but has that opportunity continued into the second quarter or has that sort of disappeared? And then second question, just on the Fiverr Pro contracts, it's great to see those developing. I understand that that's typically a monthly subscription product. To engage in these sort of longer-term contracts. Now what sort of the incentivization for the customer? Are you guys providing even more service or are there different unit economics? Any insight there would be great, thank you.

Question: Marvin Fong - BTIG - Analyst : Got it. That's great. Thank you both.