Fiverr International (NYSE: FVRR) reported Q3 EPS of $0.13, $0.05 better than the analyst estimate of $0.08. Revenue for the quarter came in at $52.3 million versus the consensus estimate of $49 million.

• Accelerated growth in Q3’20: Strong momentum continued into Q3 with 88% y/y topline growth - we continue to execute and drive results as the global shift towards digital transformation and remote work accelerates
• Continued momentum of buyer growth: Active buyers grew 37% y/y with net adds of over 310K as strong trends from both organic and paid channels continued
• Promoted Gigs expansion: Promoted Gigs is now available in 60 categories with open enrollment - monthly active sellers in the program grew to 5,000+ in Q3’20 from just under 200 in Q2’20
• Launching new purchase experience: We are launching new features to allow buyers to break large projects into milestones and make recurring purchases
• Brand evolution: Launched new logo and a new brand language together with a new brand campaign as we embark on the next stage of changing how the world works together
• Raising FY20 guidance: Revenue is now expected to grow 74-75% for FY20, with increasing Adjusted EBITDA profitability

“The third quarter represented another quarter of record-setting growth. The strong momentum seen in Q2 carried into Q3 and we delivered accelerated topline growth of 88% y/y and Adjusted EBITDA margin of 8.0% in Q3’20. We continue to see sustainable trends in businesses upping their investments into digital transformation and their increasing willingness to adopt a remote and flexible workforce,” said Fiverr founder and CEO Micha Kaufman. “I’m also incredibly excited and proud to launch our new brand and new brand campaign. Fiverr is staying true to our ethos, our culture and our promise to our community, while looking forward to embarking on the next chapter as a leader in the future of work.”

Ofer Katz, Fiverr’s CFO, added, “Fiverr continues to accelerate and deliver strong financial results amidst the COVID-19 pandemic. Underlying the strong revenue growth is our continued strong cohort behavior across both pre- and post-COVID cohorts, as well as continued efficiency in driving new buyers to our platform. We expanded our Adjusted EBITDA profitability during the quarter, while at the same time stepped on the gas in investing in the future growth of our company.”

GUIDANCE:

Fiverr International sees Q4 2020 revenue of $52.2-53.4 million, versus the consensus of $49.72 million.

Fiverr International sees FY2020 revenue of $186-187 million, versus the consensus of $179.93 million.

• We are introducing Q4’20 guidance and raising our full-year guidance. Given these unprecedented times and the dynamic impact of COVID-19 on economies globally, we will provide investors with updated business trends as they evolve.

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