Fiverr International Ltd Q3 2024 Earnings Call Transcript

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

Question: Ronald Josey - Citi - Analyst : I wanted to follow up on two things. First is, in the letter, you talked about demand trends stabilizing here. But then obviously the broader macro continues to have some challenges, and I think you highlighted hiring in SMB as sort of a challenge. So just talk to us a little bit more about what you meant by stabilization, Micha. I was wondering if maybe that's a newer thing post rates coming down or just any insights on stabilization. And then maybe a bigger question on the buyer base. I was wondering with all these new products like new professions catalog, Dynamic Matching that just launched, hourly contracts that as we attract these newer buyers, I wanted to hear more about on the product strategy to keep those buyers, call it, on the platform and how you think about your product catalog to continue driving greater overall higher quality buyers on the platform.

Question: Bernie McTernan - Needham & Company, LLC - Analyst : Two for me. First, just with the guidance for revenue (technical difficulty) 4Q, how should we think about the puts and takes between take rate and GMV and is (technical difficulty) having an impact on the revenue acceleration? And then secondly, just on dynamic matching, I know it's only been launched for a few weeks, but can you talk about the metrics that you're using to gauge success of the product, and does it have any impact for advertising or (technical difficulty) platform?

Question: Bernie McTernan - Needham & Company, LLC - Analyst : Yeah. On Dynamic Matching. I know it's only been a few weeks, but can you just talk about some of the metrics you're using to gauge success for that? And then does it have any impact on advertising or take rate? Just really want to know if it could be take rate dilutive, if there's less of a need to advertise, if all the sellers are matched.

Question: Doug Anmuth - JPMorgan Chase & Co. - Analyst : Can you guys talk about what you're seeing early on with AutoDS and just how we should think about contribution there? And then also if you could talk a little bit more on the business rewards program, how that's increasing spending among some of your larger buyers and then any impact that you're seeing thus far on loyalty as well?

Question: Jason Helfstein - Oppenheimer Holdings Inc. - Analyst : Can you talk about where you see take rates going long term? Obviously, it's quite strong. The main driver really is, I guess mix shift. It's not like this is all headline increases, but just I guess how -- where do you see long term take rates playing out based on where you kind of see the mix of business over time?

Question: Brad Erickson - RBC Capital Markets - Analyst : First question is you mentioned the stabilization at the top of the funnel. There's clearly some cross currents going on with SMBs, hiring trends and everything. What do you guys need to sort of see to put marketing dollars back to work in the model? Like do you need to see kind of over improvement in the macro or is there anything that's maybe a bit more like in your control that might cause you to lean in on the marketing spend? And then I have a follow up.

Question: Brad Erickson - RBC Capital Markets - Analyst : And then just a housekeeping question but one that we are getting from investors. Just curious if you can quantify how much you paid for AutoDS. If I look at the balance sheet, the goodwill and intangibles picked up pretty a bit, I guess. I wonder if that's maybe a good way to think about it or any other color you can give there.

Question: Rohit Kulkarni - Roth Capital Partners, LLC - Analyst : A couple of questions. One is just on kind of the cost side of the equation. Can you talk about what your hiring plans look like? How have they trended over the last six months and any color that you can provide in terms of what end markets you're feeling about and how that translates into your hiring plans? And then second is just I know take rate is something that investors kind of want to get their arms around. But over the last six months, there seems to be like a nice step up in how take rate has expanded. Perhaps talk about, there are some coincidental factors in terms of how you have expanded upmarket and that has been successful to the extent, you can provide any more color around what may have led to that kind of slight step up in the expansion and how sustainable that is. Perhaps it's about going upmarket, perhaps it's AI or anything else, that would be helpful.

Question: Rohit Kulkarni - Roth Capital Partners, LLC - Analyst : If I could [squeak] in a couple, one more in terms of capital allocations and debt and buybacks, any latest -- excuse me, any updates on the convertible notes as well as the status of any additional share buyback authorization?

Question: Joshua Chan - UBS Group AG - Analyst : Congrats on a good quarter. I've got two questions. One is on the take rate guidance going up. And I guess could you talk about what factors drove you to be able to raise your take rate guidance and what kind of surprise you in that regard? And then secondly, just on AutoDS, does that business happen to have a very seasonal dynamic in Q4 with the holidays? I'm just wondering whether revenue contribution is stronger in Q4 than other quarters.

Question: Joshua Chan - UBS Group AG - Analyst : Thanks for the color and the time and congrats on a good quarter. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2024 / 12:30PM, FVRR.N - Q3 2024 Fiverr International Ltd Earnings Call

Question: Andrew Boone - JMP Securities - Analyst : Micha, in the prepared remarks, you talked about the vision of expanding Fiverr beyond our marketplace and adding more tools for freelancers and I guess users of the platform overall. Can you just expound upon the vision of what you might be willing to offer? What does that start to look like? And then in the letter, new cohorts were called out as outperforming COVID cohorts. Can you guys just help us understand kind of COVID cohorts given their size and the importance of what that's been historically for the business, kind of how those are trending? Are you guys seeing stabilization there as we continue to move away from COVID or is macro kind of overwhelming that?