Fiverr International Ltd Q4 2024 Earnings Call Transcript

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

Question: Eric Sheridan - Goldman Sachs - Analyst : Thanks so much for taking the questions. Maybe two, if I could. In terms of the new initiatives in Fiverr Go, really interesting stuff in terms of the presentation yesterday. How should we think about those types of tools and the platform evolution helping conversion over the medium to long term, possibly resulting in better top of the funnel dynamics from a growth perspective and then also conversion as well. And then in terms of what you laid out yesterday during the presentation, how much of it could put pressure on margins in 2025 in terms of incremental investments to sort of accomplish those goals around Fiverr Go? Or how much of that on the investment side is more behind you than ahead of you?

Question: Ron Josey - Citi - Analyst : Great, thanks for taking the questions. Just a quick follow-up on the Fiverr Go, Micha. I understand the value of the conversion and the creation model that -- the conversion rate that fits into creation model. I wonder if you can talk to us more about category expansion. I know we're launching with around 60 categories today. Do you think this goes to all categories over time? That's question one. And then question two, just on the newer cohorts. I believe in the letter, we talked about them being bigger on average spend per buyer in the first year. I wanted to understand what's driving this specifically? Is this dynamic matching, which I think is pretty impressive. And then any insights on year two for these newer cohorts as they are higher value, higher spend cohorts? Thank you.

Question: Ron Josey - Citi - Analyst : Thank you for thank you.

Question: Jason Halstein - Oppenheimer - Analyst : Thanks for taking the question. So kind of a bit more on Fiverr Go. So I guess, is your conclusion that no matter how sophisticated AI gets that it will struggle to bring unique or creative enough results for what effectively your buyers want. And that's why there still needs to be a human driving a creative decision even if the AI tools make the human more efficient and that the idea that your buyer is just people would -- if the price is right, would rather pay somebody else to figure it out for them. Like I mean, obviously, you've been thinking about this for a long time, right? We've been talking about AI for, I don't know, two years now almost. It's just like with all the iterations, is this ultimately the conclusion and kind of what's driving the Fiverr Go strategy?

Question: Jason Halstein - Oppenheimer - Analyst : Thank you.

Question: Doug Anmuth - JPMorgan - Analyst : Thanks guys for taking the question. One for Micha and one for Ofer. First, Micha, just on Fiverr Go, you talked about model creation and AI assistance really being the first pieces. Maybe you can talk more about just how you envision AI agents working in the Fiverr ecosystem over time? And then, Ofer, just on the double-digit revenue growth at the midpoint of the '25 guide, does that suggest a return to marketplace growth? And more importantly, what are the factors you need to see there for that to happen? Thanks.

Question: Bernie McTernan - Needham & Company - Analyst : Great, thanks for taking the questions. Micha, you mentioned to an earlier question, incentivizing developers in Fiverr Go. Would your take rate be different in Fiverr Go? Just trying to get a sense if you're paying the developer or maybe they're paying you to be on the platform? And then on investments this year, I just want to see if it's mostly sales and marketing we should be expecting or something else? And then lastly, just as you think about the '25 guide, was there any impact of FX contemplated in the guide? Thank you.

Question: Bernie McTernan - Needham & Company - Analyst : Great thank you I appreciate the call.

Question: Andrew Boone - Citizens - Analyst : Thanks so much for taking my questions. I wanted to ask on the Services side. There's certain characteristics that investors use in terms of (inaudible) for the percentage of advertising as a percentage of GMV. Can you guys talk about that? Like how do we think about advertising and whether there's a potential peak for what you guys are able to monetize the platform via advertising? And then secondly, as we think about Fiverr Go and AI creating more of the actual work, can you help us understand kind of theoretically, how do you think about that as a deflationary aspect as technology is doing more of the work versus the freelancer? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 19, 2025 / 1:00PM, FVRR.N - Q4 2024 Fiverr International Ltd Earnings Call How do we think about that? And then clearly, you're starting to monetize that product. As Fiverr Go continues to improve, how do we think about Fiverr's ability to take more of that aspect as your own software and AI models are helping freelancers do more? Thanks so much.

Question: Josh Chan - UBS - Analyst : Hi, Miha for thanks for taking my questions. I guess my first question is on the lag between SMB and the results of Fiverr. I guess, as you are aware, some of the SMB sentiment has improved somewhat in the recent months. And so I was just wondering your thoughts about how that ultimately translates into Fiverr from a timing perspective? And then my second question is on Services revenue. Is there any notable seasonality within Services? I'm not sure if AutoDS has a major Q4 weighting, but just some color on how Services kind of weights through the year would be helpful. Thank you.

Question: Josh Chan - UBS - Analyst : Great. Thank you. Bye bye.

Question: Rohit Kulkarni - ROTH - Analyst : Hey, thanks for taking my questions. Couple, A couple. In this upmarket demand, clearly, strategy is working. Perhaps any more color you can provide on what are the categories of products and projects that you're getting that are unlocking new verticals for you? And over the near term, any learnings from the last 18 months that you can help kind of accelerate some of the growth that you're seeing in upmarket demand? And second would be just on this freelancer equity program. Any -- sounds very interesting to incentivize freelancers, but perhaps talk about the genesis behind it, why now? And what do you hope to achieve from that? Thank