Fiverr International (NYSE: FVRR) reported Q4 EPS of ($0.08), $0.06 better than the analyst estimate of ($0.14). Revenue for the quarter came in at $29.5 million versus the consensus estimate of $28.69 million.

• 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

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.

“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.”

GUIDANCE:

Fiverr International sees Q1 2020 revenue of $32-33 million, versus the consensus of $29.89 million.

Fiverr International sees FY2020 revenue of $139-141 million, versus the consensus of $135.74 million.

• Our initial outlook for 2020 reflects continued growth and momentum of our business while making continued progress toward profitability. During 2020 we intend to continue to grow our buyer base, move upmarket, launch new categories and industry stores, innovate with new products and services, and further expand to new geographies and languages.

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