Freelance marketplace Fiverr posted a 6.3% year-on-year (y-o-y) rise in revenue in Q1, to reach $93.5 million, in what it described as a “strong start to the year with Q1 results ahead of expectations.”
The revenue gain came despite the number of active buyers as of Mar. 31 dropping 6% to 4 million y-o-y, although spend per buyer (SPB) grew 8% to $284 over the period — the strongest growth in more than a year.
Take rate stood at 32.3% at the end of Q1, up from 30.4% on the year before.
GAAP net income in Q1 stood at $0.8 million, versus a net loss of $4.3 million in Q1 2023.
Non-GAAP net income was $21.7 million, compared to $14.6 million in the year-ago period.
Q1’s adjusted EBITDA came to $16.0 million, up from $11.3 million in Q1 2023, while the adjusted EBITDA margin worked out at 17.1%, compared to 12.8% in Q1 of last year.
“While we continue to operate in a very challenging macro with a weak hiring environment and the lowest SMB sentiment in over a decade, our efforts in going upmarket and driving growth in complex services are paying off,” said founder and CEO Micha Kaufman.
“As we think about building the next leg of growth for Fiverr, we are putting trust as our north star, and embracing AI to deepen our relationship with our customers and deliver the next-gen matching experience on our marketplace.”
The company said that strong execution on Fiverr Business Solutions and its push into complex services had enabled it to drive gross merchandise value (GMV) acceleration amid a difficult hiring environment.
“Our financial performance this quarter reflects the strength of our underlying business and the discipline and efficiency in our execution strategy,” said president and CFO Ofer Katz.
“We also announced our first-ever share repurchase program as we optimize our capital allocation strategy to deliver shareholder value while investing into the long-term growth of the company. For the remainder of 2024, we look to build on the momentum across our product portfolio and are on track to deliver on our full year guidance.”
Israel-based Fiverr is the world’s largest freelance marketplace by visits, with 50.7 million in April, according to Similarweb. It runs six country-specific domains for freelancing jobs.
Listed on the NYSE, it was established in 2010 by CEO Micha Kaufman and Shai Wininger. Headquartered in Tel Aviv, the company also has offices in Berlin, London, Miami, New York City, Phoenix and San Francisco.
