Fiverr International (FVRR) Tops Q1 EPS by 5c, Revenues Beat; Raises 2Q & FY20 Revenue Guidance Above Consensus

Fiverr International (NYSE: FVRR) reported Q1 EPS of ($0.08), $0.05 better than the analyst estimate of ($0.13). Revenue for the quarter came in at $34.2 million versus the consensus estimate of $33.23 million.

First Quarter 2020 Financial Highlights

• Revenue in the first quarter of 2020 was $34.2 million, an increase of 44% year over year.
• Active buyers as of March 31, 2020 grew to 2.5 million, compared to 2.1 million as of March 31, 2019, an increase of 17% year over year.
• Spend per buyer as of March 31, 2020 reached $177, compared to $150 as of March 31, 2019, an increase of 18% year over year.
• Take rate for the year ended March 31, 2020 was 27.1%, up from 26.2% for the year ended March 31, 2019, an increase of 90 basis points year over year.
• GAAP gross margin in the first quarter of 2020 was 80.0%, an increase of 80 basis points from 79.2% in the first quarter of 2019. Non-GAAP gross margin in the first quarter of 2020 was 81.6%, an increase of 60 basis points from 81.0% in the first quarter of 2019.
• GAAP net loss in the first quarter of 2020 was ($6.2) million, or ($0.19) per share, compared to ($8.3) million, or ($1.26) per share, in the first quarter of 2019. Non-GAAP net loss in the first quarter of 2020 was ($2.6) million, or ($0.08) per share, compared to ($5.2) million, or ($0.20) per share, in the first quarter of 2019.
• Adjusted EBITDA1 in the first quarter of 2020 improved to ($2.9) million, compared to ($5.4) million in the first quarter of 2019. Adjusted EBITDA margin was (8.4%) in the first quarter of 2020, an improvement of 1,430 basis points from (22.7%) in the first quarter of 2019.

“I am immensely proud of the team at Fiverr and what they have achieved in the first quarter, especially under the backdrop of a global pandemic that has impacted the world in the last few months.” said Fiverr founder and CEO Micha Kaufman. “Together, we delivered a number of COVID-19 related initiatives to help our community, introduced Promoted Gigs ahead of schedule, launched full localization in Germany, Spain and France, and our marketing strategy continued to power strong growth with agility and efficiency. Our growth and financial results reflect the strength and resilience of our marketplace even in a challenging global environment.”

Ofer Katz, Fiverr CFO, added, “We are very happy with Q1 results with strong topline growth, strong gross margin and significant improvement in EBITDA. Built on these achievements, the visibility inherent to our business model, and the tailwind we experienced in recent weeks, we are providing strong guidance for the second quarter of 2020 and revised our full year outlook upward from prior guidance.”

GUIDANCE:

Fiverr International sees Q2 2020 revenue of $35.5-36.5 million, versus the consensus of $33.78 million.

Fiverr International sees FY2020 revenue of $145.5-147.5 million, versus the consensus of $141.04 million.

Given the strong momentum we have seen in recent weeks, we are raising our full year 2020 revenue and EBITDA expectations from prior guidance. However, given these unprecedented times and impact of COVID-19 on economies globally, we will update business trends as they evolve. We are also accelerating our timing to profitability and target turning EBITDA positive in the second half of 2021. We expect that our strong cash position, together with revenue growth momentum and path to profitability, will allow us to continue to make long-term investments to drive growth.

For earnings history and earnings-related data on Fiverr International (FVRR) click here.

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