FVRR Company Presentation Feb 2024
FVRR Company Presentation Feb 2024
FVRR Company Presentation Feb 2024
Disclaimer
You must read the following before continuing. The following applies to this presentation, the oral presentation of this information in this document by Fiverr International Ltd. (“Fiverr” or the “Company”) or any person on behalf of the Company, and any
question-and-answer session that follows any oral presentation. In accessing this presentation, you agree to be bound by the following terms and conditions. This presentation may not be reproduced, redistributed, published or passed on to any other person,
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subscribe for or purchase securities of the Company, and nothing contained therein shall form the basis or be relied on in connection with any contract or commitment whatsoever. Sales and offers to sell securities will only be made in accordance with the U.S.
Securities Act of 1933, as amended, and applicable SEC regulations, including the written prospectus requirements.
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking
statements, including, without limitation, statements regarding our future results of operations and financial position, industry dynamics, business strategy and plans and our objectives for future operations, as well as statements that include the words “expect,”
“intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “should,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are
neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements, including, but not limited to: political, economic and military instability in Israel, including related to the war in Israelour ability to successfully implement our business plan within adverse economic
conditions that may impact the demand for our services or have a material adverse impact on our business, financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to achieve
profitability; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our dependence on traffic to our website; our ability to maintain user engagement on our
website and to maintain and improve the quality of our platform; our operations within a competitvie market; our ability and the ability of third parties to protect our users’ personal or other data from a security breach and to comply with laws and regulations
relating to data privacy, data protection and cybersecurity; our ability to manage our current and potential future growth; our dependence on decisions and developments in the mobile device industry, over which we do not have control; our ability to detect
errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States and our ability to manage the business and
economic risks of international expansion and operations; our ability to achieve desired operating margins; our ability to comply with a wide variety of U.S. and international laws and regulations; our ability to attract, recruit, retain and develop qualified employees;
our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; and the other important factors discussed under the caption “Risk Factors” in our
annual report on Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”) on February 22, 2024, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. In
addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any
factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances
discussed in this presentation are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking
statements as predictions of future events. In addition, the forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this presentation. Except as required by law, we undertake
no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources
and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by us
upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future
performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by
us. This presentation, and the accompanying oral presentation, may include certain financial measures and key performance measures, not presented in accordance with the generally accepted accounting principles in the United States (“GAAP”), including
non-GAAP gross profit, non-GAAP gross margin, Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP operating expense, active buyers, spend per buyer and take rate. These financial measures are not measures of financial performance in accordance
with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation, as an alternative to, or superior to net loss or other measures of profitability,
liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See the appendix for a
reconciliation of these non-GAAP measures to the most directly comparable GAAP measure. We are not able to provide a reconciliation of non-GAAP financial measures guidance for the first quarter of 2024, and the fiscal year ending December 31, 2024, and
long term net income (loss), to the comparable GAAP measures, because certain items that are excluded from non-GAAP financial measures cannot be reasonably predicted or are not in our control. In particular, we are unable to forecast the timing or magnitude
of share based compensation, amortization of intangible assets, impairment of intangible assets, income or loss on revaluation of contingent consideration, other acquisition-related costs,convertible notes amortization of discount and issuance costs and
exchange rate income or loss as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 2
Investment 1 Large market opportunity with low
online penetration
highlights.
2 Our unique e-commerce approach
creates efficiency and transparency
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 3
meet
Fiverr is a global marketplace that
connects freelancers and
businesses for digital services.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 4
2010 Fiverr was founded
Global
Office in NYC, Orlando and HQ
in Tel Aviv
Fiverr at a glance
Our mission is to
change how the IPO June 13, 2019 (NYSE: FVRR)
© 2020
©2024 FiverrFiverr Int. Ltd.
Int. Ltd. All Rights
All Rights Reserved.
Reserved. Proprietary&&Confidential.
Proprietary Confidential. 5
Product roadmap
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 6
Large market
opportunity
Traditional Future
workplace of work
changing and the Work from the office Work from anywhere (nomads, co-working)
Work full time, receive monthly salary Get paid for action and results
Stability Fulfillment
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 8
Large Market Opportunity Creative
14%
$247B
48% U.S. Addressable
Market
38%
C - Motion Picture and Video Industries, Sound Recording Industries, Photographic
Services, Independent Artists, Writers, and Performers, Photofinishing.
TS - Data Processing, Hosting, and Related Services,Other Information Services,
Architectural Services, Landscape Architectural Services, Engineering Services,
Drafting Services, Geophysical Surveying and Mapping Services, Specialized Design
Services, Computer Systems Design and Related Services, Translation and
Interpretation Services, All Other Professional, Scientific, and Technical Services.
PS - Legal Services, Accounting, Tax Preparation, Bookkeeping, and Payroll Services,
Management, Scientific, and Technical Consulting Services, Advertising, Public
Relations, and Related Services, Marketing Research and Public Opinion Polling,
Office Administrative Services, Document Preparation Services, All Other Business
Support Services, Educational Services.
Source: U.S. Census Bureau. Non-Employer Statistics (NES) and Rockbridge
Associates
©2023
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 9
Freelancing is still an
old-school business.
Just like e-commerce in 1994, freelancing activity
is gradually migrating to the online world. Online
The majority of
freelancing still
happens offline.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 10
High friction in traditional
freelancing business.
Every stage of the process has traditionally been
disconnected, with little consistency from person to person.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 11
Our unique
e-commerce
approach
Service-as-a-Product model
To buy and sell digital services as simple as
buying on Amazon with a comprehensive
SKU-like service catalog.
On-demand
No hiring process. No long-term commitment.
Our e-commerce Getting businesses help when they need it.
approach to
End-to-end platform
freelancing.
So businesses can focus on meeting deadlines and
freelancers can focus on doing what they love.
Global community
Bringing together a global community of
businesses and freelancers to shape the
future of work.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 13
Staffing company Fiverr
We are not an Short/long term temporary employment Service-as-a-product (SaaP)
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 14
Our value to buyers Our value to sellers
Maximize deal-flow
Value for money
NPS: Net Promoter Score, as of December 31, 2023 ©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 15
More Quality
Demand
More Quality
Supply
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 16
Powerful
business model
A seller lists a service for $100
Service Under our SaaP model, sellers list their service offerings on our
Catalog marketplace first. Each Gig has well defined scope of work, time
of delivery, price, and other spec of the service. Millions of these
gigs make up our extensive service catalog, which buyers use to
search and browse to find the exact service they are looking for.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 18
Global Horizontal Organic network
effect drives majority
of new buyers
Our Strategy.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 19
Active buyers (millions) Spend per Buyer ($)
+19% Y/3Y +36% Y/3Y
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 20
Revenue composition by annual cohort 2010-2023
marketplace with
majority of revenue
from repeat buyers 66% revenue
from repeat
buyers in 2023
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential.
Cumulative revenue to performance marketing investment by cohort
Increasing return on
marketing investments
over time, as cohorts
remain active and
continue to generate
revenue streams
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential.
Growth and
operating leverage
Revenue ($ in millions)
+36% CAGR, 2019-2023
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Adjusted EBITDA Margin
+3300 bps, Y/4Y 2019-2023
Note: Adjusted EBITDA margin is a non-GAAP metric. See the appendix to this presentation for a reconciliation against the nearest GAAP measure.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 25
Continue to drive efficiency towards
long-term target model
G&A 10%
S&M 25%
R&D 20%
Note: Adjusted EBITDA margin and non-GAAP operating expenses are non-GAAP metrics. See the appendix to this presentation for a reconciliation against the nearest
GAAP measure. Some amounts in this presentation may not total due to rounding. All percentages have been calculated using unrounded amounts.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 26
Multiple levers to drive
long-term growth
Encompassing every aspect of the future of work
Expand
geographic
footprint
Expand our
Gig catalog
Innovate technology
& services
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 27
A dedicated environment for business buyers
to transact and collaborate on Fiverr.
● White-glove CSM
service
"The tight deadlines we've all suffered
● Budget approval from are a thing of the past. We can share
a presentation design brief late at night
and have a fully-designed, high-quality
● Curated supply presentation ready in the morning, and
the price is more than just convenient."
● Share favorite
sellers Yael Brandt
Customer Development, Unilever
● Collaboration
tools
● Project Partner
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 28
International Expansion
Expanding Fiverr’s footprint to unlock growth potential
in non-English speaking countries
Fiverr.com
available in:
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 29
Promoted Gigs
CPC-based advertising platform that allows sellers
to promote themselves on Fiverr.
x3
monthly
income with
Promoted Gigs
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 30
Case Studies
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 31
2020 2021 Today
Joined Fiverr to provide 3D Expanded to 3D Top Rated Seller on
technical drawings and animation for product Fiverr Pro and has
renderings for e-commerce advertisements and earned over $100,000
customers instructional videos
Service offered:
“
Jose Marquez Seller
3D Animator
Montalbán De Córdoba, Spain
200+ $100K+
Thanks to the Fiverr Pro and Fiverr Business programs, my business
and the quality of my clients has improved to levels I could never have
imagined before.
“
Orders Money made on Fiverr
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2020 2022 Today
PolyAI started using Fiverr PolyAI now has over 25 Nathan and his team
to source voice actors members on their team have spent over
account $200,000 on over 1,500
orders for voice work,
audio editing, and
translation
Service purchased:
“
Nathan Liu Buyer
Head of Deployments at PolyAI
London, United Kingdom
1,500+ $200K+
Fiverr Pro is integral to making PolyAI voice assistants as engaging
and lifelike as they are. Our customer-led conversational assistants are
like nothing our customers have ever heard, and the sheer quantity and
quality of talent on Fiverr has taken so much friction in our processes
“
Orders Money spent on Fiverr
away.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 33
2020 2021 Today
Andrew joined Fiverr in Achieved Top Rated Seller Andrew now has a team
2020 to offer his digital and Pro Seller status of 5 professionals and
advertising expertise has made over
$500,000 on Fiverr
Service offered:
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 34
2017 2020 Today
Joined Fiverr five years The team uses Fiverr for Nir and his team have
ago when he started numerous categories spent over $22K on
creating marketing including banner ad Fiverr across 180+
campaigns and needed designs, video projects, 3D orders and engaged
voiceover for video ads modeling, and Minecraft with 96 sellers from
animation 23 countries
Service purchased:
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 35
2014 2020 Today
Declan started his Fiverr Scaled his business to a full Declan has worked with
journey in 2014 as an fledged digital agency with over 1000 clients from
individual freelancer a team of 10 people over 53 countries, with
the vast majority of it
still coming from the
Fiverr platform
Service offered:
“
“
Declan Maltman Seller Fiverr has been a great support for me during the challenges of
Founder and Creative Director of Neat Digital
Ayr, Scotland, United Kingdom COVID-19. They kept regular check-ins on how I was
performing and provided me with advice on new strategies. As
$500K a web design agency, we actually saw an increase in sales
Approximate annual agency
revenue during that time.
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 36
August 2020 August 2021 Today
First turned to Fiverr to The data tracking system Jeffery has also uses
create an in-house data project was completed after Fiverr to update his
tracking system to improve a little over a year with a branding and design
production efficiency budget of over $40K new t-shirts
Service purchased:
“
“
Jeffrey Orkin Buyer Fiverr helped us connect the dots to professionals who
Founder and Owner of Greener Roots Farm
Nashville, Tennessee have created a software we have been dreaming about
for years.
$40K+
Project budget
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 37
June 2020 September 2020 Today
First turned to Fiverr to Joined Fiverr Business and The team works with a set
explore integrating invited her 8 team members of trusted sellers on Fiverr
freelancers for 3D rendering to join, enabling increased Business who they regularly
projects for her clients workflows and collaboration engage with, and the list
among projects continues to expand
Service purchased:
3D Rendering
“
“
Julia Gerlach Buyer Fiverr Business has been an incredibly efficient and effective
Business Development Manager at Westwing Home & Living
Munich, Germany solution for our team. The white glove service and enhanced
features like the newly implemented billing and invoicing system
8 1,000+ has been imperative to us scaling our usage of Fiverr Business.
Team members Orders
joined Fiverr
Business
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 38
December 2019 2021 Today
First joined Fiverr as a Michael averaged more Earned over $700,000 on
side-hustle after spending than $50,000 per month Fiverr with an average
over 15 years in the from Fiverr’s marketplace order price of $865
corporate world
Service offered:
SEO
“
“
Michael Chagala Seller When I walked away from a successful career in the corporate
Digital Marketing Expert
San Diego, California world, many people thought I was crazy. Today I work from home,
increased my income and spend more time with my family than
$865 $700K+ ever. Joining Fiverr was the best career move I ever made.
Average order value Money made on Fiverr
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 39
2019 2020 Today
Danielle founded Semicolon Bookstore Using Fiverr, implemented
Semicolon Bookstore experienced a surge in an inventory management
demand, moving tens of system to support her
thousands of books a week growing business and
launched her new website
with an updated brand
Service purchased:
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 40
2018 During COVID Today
Started freelancing on Built a career on Fiverr by Partnered with an SEO
Fiverr helping clients mainly with expert and created an 11
website content and person agency across
copywriting various categories that
makes roughly $200K a
year on Fiverr, which is its
main channel. She is a Pro
seller, a Fiverr Business
vetted seller and a Seller
Plus subscriber
Service offered:
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 41
June 2019 March 2020
Joined Fiverr, and since then bought a Today, he’s focusing more on product
wide variety of services for his startup development and expanding content offerings
that provides digital educational material in order to prepare for the day after COVID-19
Service purchased:
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 42
March 2020 October 2020 Today
Joined Fiverr and Recognized as a Top Worked with over 500
quickly built her Rated Seller, completing buyers and plans to continue
reputation, earning a over 100 orders full-time on Fiverr
Rising Talent badge
Service offered:
Voice Over
“
“
Alice Everdeen Seller One of the most memorable projects I’ve completed on Fiverr was
Voice Over Artist
Austin, Texas with the marketing team of a Fortune 100 technology company. We
created a commercial for a new product that featured a
500+ 100+ $60K+ conversation between the company’s product and a competitor’s
Buyers Orders Money made on Fiverr
product; I played the bubbly part of the company’s product, who
was super positive and fun!
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 43
December 2019 2021 Today
Joined Fiverr as a Founded his own agency Startup Slang has a team of
supplement to his “Startup Slang” 35 people with annual
full-time work revenue of $1M+
Service offered:
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 44
Appendix
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 45
Reconciliation of GAAP to Non-GAAP Gross Profit
(In thousands, except gross margin data)
GAAP gross profit 69,708 67,484 66,910 67,316 72,290 73,753 77,457 76,029
Add:
Share-based compensation 707 771 477 565 613 619 632 633
Depreciation and amortization 1,956 2,017 922 1,170 928 885 731 709
Non-GAAP gross profit $ 72,371 $ 70,272 $ 68,309 $ 69,051 $ 73,831 $ 75,257 $ 78,820 $ 77,371
Non-GAAP gross margin 83.5% 82.7% 82.8% 83.1% 83.9% 84.2% 85.2% 84.6%
GAAP cost of revenues 16,977 17,526 15,631 15,814 15,666 15,632 15,075 15,473
Less:
Share-based compensation 707 771 477 565 613 619 632 633
Depreciation and amortization 1,956 2,017 922 1,170 928 885 731 709
Non-GAAP cost of revenues $ 14,314 $ 14,738 $ 14,232 $ 14,079 $ 14,125 $ 14,128 $ 13,712 $ 14,131
16.5% 17.3% 17.2% 16.9% 16.1% 15.8% 14.8% 15.4%
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 46
Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA
(In thousands, except Adjusted EBITDA margin data)
GAAP net income (loss) (16,975) (41,863) (11,350) (1,299) (4,272) 227 3,025 4,701
Add:
Financial expenses (income), net (230) (841) (1,162) (1,391) (3,084) (4,487) (5,678) (6,914)
Income taxes 20 53 36 468 210 250 308 605
Depreciation and amortization 3,110 3,142 1,938 1,995 1,725 1,654 1,321 1,287
Share-based compensation 18,003 19,114 17,612 17,026 16,719 17,630 17,557 16,792
Impairment of intangible assets - 27,629 - - - - - -
Contingent consideration revaluation and
(63) (2,627) (520) (7,403) - - - (359)
acquisition related costs
Adjusted EBITDA $ 3,865 $ 4,607 $ 6,554 $ 9,396 $ 11,298 $ 15,274 $ 16,533 $ 16,112
Adjusted EBITDA margin 4.5% 5.4% 7.9% 11.3% 12.8% 17.1% 17.9% 17.6%
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 47
Reconciliation of GAAP to Non-GAAP Operating Expenses
(In thousands)
Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23
GAAP research and development 23,774 24,523 22,938 21,328 21,887 23,289 23,490 22,054
Less:
Share-based compensation 6,205 6,521 5,811 5,291 5,784 6,463 6,227 5,836
Depreciation and amortization 201 202 200 198 209 203 196 191
Acquisition related costs - - 16,623 16,623 16,623
Non-GAAP research and development $ 17,368 $ 17,800 $ 16,927 $ 15,839 $ 15,894 $ 16,564 $ 17,067 $ 16,027
GAAP sales and marketing 47,867 44,325 41,959 40,448 42,050 38,870 40,521 39,767
Less:
Share-based compensation 4,430 4,575 4,151 4,040 3,269 3,477 3,392 3,166
Depreciation and amortization 860 821 713 495 502 476 314 309
Acquisition related costs - - - (24) - - - -
Non-GAAP sales and marketing $ 42,577 $ 38,929 $ 37,095 $ 35,937 $ 38,279 $ 34,917 $ 36,815 $ 36,292
GAAP general and administrative 15,252 13,658 14,489 7,762 15,499 15,604 15,791 15,816
Less:
Share-based compensation 6,661 7,247 7,173 7,130 7,053 7,071 7,306 7,157
Depreciation and amortization 93 102 103 132 86 90 80 78
Other initial public offering related expenses - - - - -
Contingent consideration revaluation and
(63) (2,627) (520) (7,379) - - - (359)
acquisition related costs
Non-GAAP general and administrative $ 8,561 $ 8,936 $ 7,733 $ 7,879 $ 8,360 8,443 8,405 8,940
©2024 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential. 48