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Fiverr Announces Fourth Quarter and Full Year 2019 Results

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Fiverr Announces Fourth Quarter and Full Year 2019 Results

- Consistent execution throughout 2019 drove a strong finish to the year with Q4 revenue growth of 43% y/y, exceeding the top end of our guidance and accelerating for the second consecutive quarter
- Both active buyers and spend per buyer accelerated to 17% y/y during the fourth quarter along with continued improvement in take rate to 26.7%
- Rolled out two localized websites in German and Spanish - the first time we enabled our buyers to complete a transaction in a non-English environment
- Successfully launched Fiverr Logo Maker that brings the power of artificial intelligence to Fiverr's best creative talents
- Celebrated the 300 category milestone and opened new industry stores in Influencer, Real Estate and Podcasting
- Initiating strong guidance for 2020 with 30-32% revenue growth and continued progress towards profitability

NEW YORK--(BUSINESS WIRE)-- Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the fourth quarter and full year ended December 31, 2019. Complete operating results and management commentary can be found by accessing the Company's shareholder letter posted to its investor relations website at investors.fiverr.com.

"2019 was a landmark year for Fiverr as we completed a successful IPO, expanded the Fiverr ecosystem with new products, increased our international reach, and most importantly, continued our extraordinary growth momentum and march towards profitability," said Fiverr CEO Micha Kaufman. "As global businesses continue to embrace the digital workforce as part of their growth strategy, we believe our Service-as-a-Product model and unique product offerings are helping to accelerate that change."

Ofer Katz, Fiverr CFO, added, "The fourth quarter marked another quarter of growth across all of our key metrics driven by consistent cohort behavior and improved marketing efficiency. Fiverr's strong growth across all metrics proves our strategy of going upmarket, product innovation and pursuing investments across the globe are succeeding and we look forward to another great year ahead."

Fourth Quarter 2019 Financial Highlights

- Revenue in the fourth quarter of 2019 was $29.5 million, an increase of 43% year over year.
- Active buyers as of December 31, 2019 grew to 2.4 million, compared to 2.0 million as of December 31, 2018, an increase of 17% year over year.
- Spend per buyer as of December 31, 2019 reached $170, compared to $145 as of December 31, 2018, an increase of 17% year over year.
- Take rate for the year ended December 31, 2019 was 26.7%, up from 25.7% for the year ended December 31, 2018, an increase of 100 basis points year over year.
- GAAP gross margin in the fourth quarter of 2019 was 79.3%, a decrease of 130 basis points from 80.6% in the fourth quarter of 2018. Non-GAAP gross margin in the fourth quarter of 2019 was 80.8%, a decrease of 130 basis points from 82.1% in the fourth quarter of 2018.
- GAAP net loss in the fourth quarter of 2019 was ($7.4) million, or ($0.23) per share, compared to ($5.9) million, or ($0.84) per share, in the fourth quarter of 2018. Non-GAAP net loss in the fourth quarter of 2019 was ($2.7) million, or ($0.08) per share, compared to ($3.9) million, or ($0.16) per share, in the fourth quarter of 2018.
- Adjusted EBITDA1 in the fourth quarter of 2019 improved to ($3.3) million, compared to ($4.1) million in the fourth quarter of 2018. Adjusted EBITDA margin was (11.3%) in the fourth quarter of 2019, an improvement of 840 basis points from (19.7%) in the fourth quarter of 2018.

Full Year 2019 Financial Highlights

- Revenue in 2019 was $107.1 million, an increase of 42% from 2018.
- Active buyers as of December 31, 2019 grew to 2.4 million, compared to 2.0 million as of December 31, 2018, an increase of 17% year over year.
- Spend per buyer as of December 31, 2019 reached $170, compared to $145 as of December 31, 2018, an increase of 17% year over year.
- Take rate for the year ended December 31, 2019 was 26.7%, compared to 25.7% for the year ended December 31, 2018, an increase of 100 basis points year over year.
- GAAP gross margin in 2019 was 79.2%, a decrease of 10 basis points from 79.3% in 2018. Non-GAAP gross margin in 2019 was 81.0%, an increase of 20 basis points from 80.8% in 2018.
- GAAP net loss in 2019 was ($33.5) million, or ($1.67) per share, compared to ($36.1) million, or ($5.42) per share, in 2018. Non-GAAP net loss in 2019 was ($16.8) million, or ($0.58) per share, compared to ($20.6) million, or ($0.89) per share, in 2018.
- Adjusted EBITDA in 2019 improved to ($18.0) million, compared to ($21.0) million in 2018. Adjusted EBITDA margin was (16.8%) in 2019, an improvement of 1,100 basis points from (27.8%) in 2018.

Recent Business Highlights

- Enhanced our comprehensive product ecosystem through constant innovation, with Fiverr Logo Maker the latest addition to our product family
- Completed significant infrastructure upgrades to support extensive multilingual capabilities and successfully launched our localized websites in German and Spanish
- Expanded our Service-as-a-Product catalog with over 100 new categories and 7 new industry stores introduced in 2019

For the full press release please visit: http://investors.fiverr.com/press-releases/press-releases-details/2020/Fiverr-Announces-Fourth-Quarter-and-Full-Year-2019-Results/

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