FVRR - Earnings call transcript Q2 2022 | Fiverr International Ltd.

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Operator

Hello, everyone, and welcome to the Fiverr Q2 Fiscal 2022 Earnings Conference Call. My name is Charlie and I will be coordinating the call today.

You will have the opportunity to ask a question at the end of the presentation. [Operator Instructions] I'll now hand over to your host, Jinjin Qian, Head of Investor Relations to begin. Jinjin, please go ahead.

Jinjin Qian

good and operator, you, morning everyone. Thank for for the you joining XX, us call conference earnings Fiverr’s second on XXXX. Thank quarter June ended

and on Micha President Joining call CFO. CEO, Founder and today Katz, and me Ofer the Kaufman, is

Fiverr remind update risk expectations Before this important forward-looking that of and statements that assumptions call like the based that or are of found some XX-F of discussion filings and the differ forward-looking during in any A these make actual as and cause from you statements under section we with to Form assumes may SEC. statements factors on would results to start, most Factors them. could and be I recent revise Fiverr’s no other the to obligation we materially our today Risk can current

call, A measures. of today the are available During now, our we earnings non-GAAP referring measures reconciliation over on which directly release of be I provided comparable And this at some to letter, to non-GAAP website the each GAAP our measures call shareholder turn financial the Micha. most to financial will investors.fiverr.com. is we’ll in and the issued

Micha Kaufman

today. of $XX thank morning the Good you, year-over-year joining representing Thank XXXX quarter growth Jinjin. you the for second Fiverr us million delivered everyone of and In revenue of XX%.

prices for through and energy shift This challenging global SMBs expected. the spending. the elevated amidst macro to and impacted that to continue sentiment of more volatility, consumer a than overall see spiking Geopolitical SMB We demand was spending trickled consumers inflation, and rapid environment. freelancer power meant

to immune these trends. macro We are not

was millions businesses up engage connect Active and were with a buyer and continues $XXX, backbone million, Fiverr We are to up XX% that encouraged to year-over-year per year-over-year. X.X of buyers spend freelancers. for X% serve however as

versus to pre-COVID Our to most continue We and today. that today base cohorts spend larger a Take continues see buyers continued XXX basis significantly continuing community products. points the compared XX.X, older our during quarter provided and and the every years expansion base amount to value sellers our market buyers of attract to up remained strong COVID to added more at of of scaled significantly new value and rate our pre-COVID. market the gain we hold we of year-over-year tremendous reflecting to up

environment Our QX organization, Fiverr QX EBITDA X.X%. discipline In of to the operational profile adjusted we macro a growth million decision quarter team not an Post tough results a demonstrated lightly. a also run representing recalibrate our continued but always members. by It made requires delivered in profitability adjusted us efficiency. to is margin investment $X.X and lean EBITDA the made we priorities. and decision our reduce our of has XX

at super amazing incredible mission. means we Over culture the an an talented and build and have we years people where part passionate team to we gather love many a value. teammates together common This with we have to and built Fiverr, towards

financial position that. on have are With strong provide continue growth adjusted Ofer model. ourselves We would to leaving great EBITDA and will and lucky companies more have them. in our other positive this, long-term heading be delivering color with we putting towards to target a people

even alone on million know Fiverr’s and buyer largest to all over the want people success. consists are I are from way the the the rest there more some the million SMBs of the to long-term U.S. and We the and in to companies of for Europe X.X in businesses, world. types world. solopreneurs we discussing XX in that position all spend coming Now, investments our from time focusing us strengthen base core of

us. this in is There available is priority grow saturation. ample addressable into but penetration market and for SMB impressive, to of market a near space level Our the nowhere top remains

complex. doubling are personalization, technology market base. marketing is on for growth. and This search, uniquely quality, down Fiverr’s deep and base core modes includes our building supply, market We

sellers We pricing comes Each unique have the with diversity project. a user between unlocking listings metadata a quality of can hundreds the these thousands create and Not is introduced How listing The complicated. The and response buyer were and a smooth? dialogues only across Fiverr subjective created needed but that delivery? than depending revisions of to fact attributes, Was conversion seller but on on more also and dissect the came with not buyer their us how more? also quality who ratings, of sellers scope. an and is behavior skills, deliver many and highly successful end-to-end interactions only services and back have fast market due matching. is millions gives is categories transaction services cover, specific the reviews and communication data user seller project Understanding before quality buyer time? XXX matching base and buy categories. meaningful they truck we Did powerful the understand to the to of on because example and and badge recently the of of rates. impact to ability a Do

more built have years and to do. is signals lot over deep there We extract so a the of to tech those much

buyers complex base of with and larger engagements durations We facilitate projects capabilities our constantly to between are also more and sellers. expanding the market longer

with the to order data out matching feed the in and is of the recommendations. to rolled our then provide we outlook. the magic data This the can buyers more best capabilities scope allow complex to the describe projects way. us is context understand to allow engine structured into project-breaking This designed to During We enrich post Fiverr. quarter, a satisfaction with to

hiring at is have on larger upmarket today. this identifying of identified Among understanding that better of is expand buyers, Business to number our tens mission lot those With land, is initiatives their In their key to a months and order thousands listening spend Fiverr we to points to needs, motion. why unlock us mapping a base are Fiverr for spending and for talent-focused XX we Business. and includes channels. customers, we investment and the freelance It buyers. experience, a up marketing gaps. a we implement browsing vetting onboarding This critical The of potential developing with improve Business stepping new second with business last Fiverr created experience process, product those pain creating market our than our flows, our the area average overall the streamlining significantly started in the capacity

already early of total X% GMV. seen Business of over Fiverr who have The a year marketplace initiatives. success per XX% to represents date over compared and $XX,XXX those buyers We over spent year ago increased in number to

innings. scratched much We ahead opportunity so is We There's is surface. the of market online barely have freelancing the in and us. potential believe early the vast

online workforce businesses to freelancing ideally As transformation eCommerce has decades, both empower just from over Fiverr last moved as for two positioned the we this believe workflow and offline, base is market the freelancers.

cycles freelance global SMB going relevant workforce talent become part economy goes spending, as does planning and the company's While is and of of strategy only incorporating through urgent. so a the the consideration to more more

position these partnership half Wide, in employees. call In provide freelancers implementing some let highlights. to who opportunities when over capture strong comes. them the time gaps. Fiverr With that, will turn use and plan layoffs, around hiring of me to financial be Ofer, will a freezes fill these to the or over Census share to talent that alternative freelancers cutting a on businesses in A viable fact, full-time survey recent saving and cost indicates conducted as emerging see of we XX% that with are we opportunity for gaps businesses to costs fill for an are

Ofer Katz

Thank you, Micha and good morning everyone.

$X.X it felt macro quickly deliver a the to QX and rates, Our $XX X.X%. price, highly most demonstrated QX and macro the results world. higher efficiency. uncertain challenging SMB, of top above significant only guidance an geopolitical adjusted being risks, Europe, in of level the streamlining our EBITDA margin our Fiverr led of our GDPs rest efficiency execution U.S. increasing this ability with unexpected, strong highest is QX on with discipline executing and the of and in up landscape under responded an the of and interest of other XX%. and macro a with In such but and revenue The also not rising recent with EBITDA adjusted challenging the focus implication was of headwinds world expenses combination to consumers, environment million environment. inflation, to million, This energy end and and

come In remained addition company. that investment further and post Micha quarter, function, from mentioned, The to which departments priorities, reduction not rigorous examined thoughtful and of roadmap we the as the cost our These the intact. in specific but our across various a long-term did and people structure ensure in XX was process employees. resulted rather recalibrated

to strengthen motivated pace culture. maximize core and of of and accelerate completion In most organization, expect themes area, we maintain to performance, corporate able realignment this of fact, of be highly a the all the focused execution, team important with our

Our underlying business strong. is

to put performance there This continue super we a efficiency data-driven will We cohort dollars buyers one generate highly in quarter. already us revenue approach we through arise. disciplined in good the this every do to In new our amount our to marketing drive it equivalent of of quarter, efficiently. quarter and QX to continue marketplace just XX% significant our in stay environment agile opportunities that areas and market invest a lean to in is position when only where and marketing ensure will spent

buyers upmarket initiative product, from progress businesses exciting that to projects attract longer encourage making also business therefore and are engagements. our Fiverr We bigger large with that

be at grow the trends. Promoted continues All pace to to added even of us per sustainable fast value as Seller strong pushing products buyer Plus. spend we that macro overhang higher such and Take and as is continue a Gigs rates of helping with

a to forward, rate we remain take expect the upside. modest with stable Going

to Now let's turn guidance.

to expected an the to EBITDA to the $XX.X at X% EBITDA $X year-over-year million, be midpoint. to third revenue adjusted is margin representing to of $XX.X be of representing XX%. million Adjusted X.X% expected is XXXX million of growth $X quarter For million

to of of now year million year-over-year million EBITDA $XXX X.X% margin be $XX.X growth the revenue expected EBITDA is range $XXX we to the Adjusted be of an expect representing in representing XX% the to million range adjusted to million For the of at full midpoint. XXXX, to $XX.X XX%. of in

and updated June. the revenue that reflects saw most marketplace in in full headwinds our expected year guidance and QX we Our significant macro

pressures in modestly of activity to expected pressure Specifically, impact expectations our sentiment U.S. as existing well the and months. macro last the grew The SMB spending, deteriorated from acquisition more previous feel are started cohort trends to new two buyers. meaningful both the as extended as levels European

of year full this double the For digits. strengthening year. half guidance the the midpoint With focus, to buyer represents the to of for compared in XXXX low the grow last EBITDA per of adjusted be points to we spend and deliver strong percentage our expect reductions year buyers and a few down cost the active to second

with adjusted We are operating EBITDA growth marching balance delivering of sheet, navigate XX%. towards this and with our healthy believe unwavering call our a committed continuing now is investing to over with to strong target market through positive and discipline Fiverr I turn in long-term a Together EBITDA we efficiency, financial operator with to towards questions. position that, success. the the With building focus and will an and for long-term

Operator

your Thank comes first open. question McTernan Instructions] from now line is [Operator Our you. Bernie, Bernie of Needham.

Bernie McTernan

morning. Great. headwinds, change Good during profitability? Thank largely in the you call the quarter, versus just last can still on investing questions. strategy growth Thanks back for pulling Maybe thinking talk was growth and I believe investments. for taking now On the to the the those despite the but for commentary you. about about start,

you share can about there? change or the decision to tone anything So or in the talk

Micha Kaufman

good Bernie. Sure, morning,

we growth. seen anticipated was than we've worse a during seen our QX the headwind And essentially expensive opening what throughout we've in So said a as more remarks, quarter.

in cost. negative As been are be and have we and since is more on result micro there and from quarters expensive, pressure the when businesses we or it I And standpoint, a growth macro the the that justify would certainly we model. a consecutive because in down market situation And felt of growth EBITDA us improves. small that -- put investments GDP. free double financial a continues constitute at high, the actually that to to I flow, has of that. technically on felt And environment, and it that is position in accelerate two mean, cash pace to condition of change long-term fact and grow it decision to this doesn't in any towards that prioritize the prudent target that Inflation we that recession. decided given change a strong was we think

priority prioritizing it stopped at that So be should cost. It basis that for think will our was that a the always we us, but decision. growth. doesn't don't any come for It mean we

Bernie McTernan

XX% spend, that XX% possible trended the payback Understood. context put periods marketing versus two of cohort that around performance of other for the time? Is to it how

Ofer Katz

think track XX%. Yes, was quarter guys so if the I last you our of that this is in Ofer, and historical X.X return it record or

I think one it approximately quarter. before quarter the months or was three

is there of to time the return, but track if multiple the all you return kind a historical fluctuation So Xx. of if numbers, the QX XXXX, is go you in

to period base also throughout two seeing this is has ago If very we barely on cohort give the fact high impact are QX that a high the that XXXX, believe market acquired, with happened XXXX, that cohort previous are QX our be you and to new The consistent we us multiple. return confidence. the headwind that the but go periods, already years that Xx the acquire we

a an very on with lifetime return investment. our ability keep to there new to value cohort short cut So is high acquire a

Bernie McTernan

And form for strategic one seems an company, from last it for proposition. partnerships funnel me, intriguing like opportunity another just one the Understood. then the to

Just the wondering, how to funnel two guys? what add you in products, is you're goes partner, a of opportunity looking another how an this big between the for for integration

Micha Kaufman

partnership happy the point this believe we'll we're the to upcoming about would with around be it be and at that channel. news quarters. that very on share share too things early working in partnerships We're the seeing We that. market exciting to But

Bernie McTernan

Understood. Thank you both.

Micha Kaufman

Thanks.

Operator

you. Thank

comes go line of your from JPMorgan. question Doug now Doug, open. Anmuth Please is ahead. Next

Doug Anmuth

questions. taking Thanks for

guess and there a might traction just going than across holding a be market the then businesses I getting with just better know the kind about little -- those if be perhaps up just kind trying I and bit understand, recognize you're of might Just up bit behaving mix. about are it's And if that I’m But you are SMBs? categories, still of I there couple to things some that this on early a differently Thanks. you curious Business environment, Fiverr there. Micha, talk that than talked little how perhaps in others?

Micha Kaufman

morning. you, Thank Doug. Good

years, less are So for these a categories, are are stable. very increase the category but and indicate over to months businesses. small seeing first related different there's And are not there in to and We of very, are businesses the very trends and shift our slight question different are year interest year we've that more there those are trends some mature categories that doing young mix And that see the been trend, in slight these trends and across seeing that question, related about of significant. period pretty over of the start categories years.

healthy some across So specific on we’ve And record color didn't we in the unusual those think letter mix categories. shareholder I provided Again, very stable. categories. anything remains and the

that The of of within and done pages, Fiverr experience very we've increasing market, top Fiverr all up forefront from for investments sellers we product them the optimizing larger the listings a for adding to putting also seeing the thousands Business strong. are and that continue of, talents Business the our coverage vetted Business improvement indicators, in our Business. business, into of or of and the growing double upgrading customers. We're On tens Business. growing building the Fiverr category our fast X% contributes sellers sellers, funnels and Fiverr down signals the and adding we're also very, of Fiverr Fiverr to marketing activity It's muscle customers for in in decision

Fiverr. more large can spend see over we and into their So the Fiverr capacity now onboarding with we're spend and we and Business, customers activity maximize increase Fiverr that their time streamlining funnel, from attracting where

signals very and Fiverr all-in-all, down good doubling on Business. So,

Doug Anmuth

you, Micha. Thank Great.

Micha Kaufman

you. Thank

Operator

Thank you.

comes Brad question Erickson open. RBC Brad, of Markets. line your next is now Capital from Our

Brad Erickson

Hi, just me. a few from

of So existing spending this this out you of I clarify, businesses, called weakness, function maybe think a a headwinds more guess SMB to fewer and to some first, just and just to when just of more it the funnel is you first? an you small issue of issue speak clarify or cohort is do

Ofer Katz

board. Hey, new about issue whether funnel. cohort a existing both think I not cohort, is, for or old for European. it this new goes that U.S. cohort, or a whether it it's cohort, It the is the Ofer. across up is It's an it's Brad, goes very

all that’s headwind, this that we So that. goes dimensions, how across see

Brad Erickson

the maybe it. then guide guess buyers to seems I in Got looking sequentially And again QX. down reflect to active be

sequential Just curious in sort growth? the we of timeframe back active to should how think about, maybe getting buyer

Micha Kaufman

I buyers, at that when you look really things. what Yes, we’ve so three seen active think are

The anticipated this that worse than traded first is headwind. market

that. So macro influencing is

into need is in And growth is quality the up we The our on to well that more of more buyer growth which per expensive focus is changes make XX% which has meant spend our investments. year-over-year. third buyers second been reflected

certainly that the have buyers that to spending the those we over been all-in-all influences been active who quality is average have market can our buyers that our capacity continues much than spend on on the have factors their on So focus focus and base. be buyer larger time per as of our

Brad Erickson

Got That's great. it. you. Thank

Operator

you. Thank

comes Piper Our Sandler. Matt Farrell line question your of is Matt, now from next open.

Matt Farrell

to Thanks understand you. revenue be leverage XXXX? that as not through Is moved something we've letting was expand wondering a impact from ask forward. could we cost an the through you've despite we that if go streamlining quantify wanted just model adjusted EBITDA been forward? to levels. should there? margin Thank question. as to adjusted I for could in continued you at XXXX help able the me factors to if EBITDA moving And And the look it the is then efforts lower order I expect in what

Ofer Katz

adjustment expected ago. you we bear numbers, that the we I’ll – the give give did I but this pretty the saw we hint, weeks the look and a the do is definitely you guidance I overall target reflects good speak, reminder mentioned plan looked the but think it's don't that in target. I the pace at And adjustment specific the This of of volatility think the as year. the and Both quantified accelerate yet We the mind lot prepared and to we cost a year. the next to to I I at it's margin, middle because increased experience for shareholders that EBITDA it's uncertainty few So, for Then be to cost the and there we remarks. would streamline its too year, of early think share the on revenue the for as the margins have of long-term said. discuss a the indication letter streamline. expected

Matt Farrell

as shareholder could that any the Thank great? any in on kind you're you in that's the Gigs late, follow maybe the you Promoted growth strong of And of here letter be success mentioned color give and would you. is kind and of that here a up, more just seeing more clarity as having just

Micha Kaufman

Yes.

in Gigs more that sellers I additional more a our as quarters, cohorts base across of previous benefit So and think continued with enjoy assets also can categories of Promoted we mentioned product. there's this from and market within expansion and

So demonstrated. what that take in I healthy, as in our reflected it's very continued this product. a the just is we're growth seeing rate growth And of in think steady expansion

Matt Farrell

my questions. for Thanks taking

Micha Kaufman

you. Thank

Operator

you, Thank Matt.

next now of comes open. Andrew Our your JMP from question Andrew, line Securities. Boone is

Andrew Boone

the taking month. it June letter, demand about start Great, in slowing questions. on in then to like my good the talked thanks for and I'd morning U.S.

more so and we secondly, where as that you the how what's levels June? can and or Should or expect we think earlier we get you the would about trajectory? of guide just we Does that any then XQ. just XQ in OpEx, consistent of Are a into been kind back revisit tROI? we stabilization there that much. as from think then question think mentioned as step as we is kind brand down about seeing go step disciplined And have we guys guys further spend? up XQ were the imply July Thanks and do a you for about As chance

Micha Kaufman

Thank you.

meaning reflected activity in the slightly better we're but stabilizing, So, what more, seeing. the call in better July, than we're it but will That's current it. on weeks to trend, that seen our the the of of the soon situation too what it to think stronger and right an headwind from guidance, end past a as in we've the we're this seeing that we're and June. a or in macro headwind that July on is few improvement environment and headwind, we've is that seeing current what for be the in level deterioration it I range a is been is as midpoint, lower upside And continue now that seen assuming a on definitely or

Ofer Katz

company And discussed the the used the the or test that before, of to super we restructuring the the needed second company us brought accelerated the we lean streamline further sure to, expenses that long-term. operation of said, second the even part target position that send the make to if was and I -- the secure of of can in to efficient we earlier EBITDA through part question yet to think be meet

terms brand spending spend, brands keep as In previously. on of we

as You investment compared always know monitor we to PPC. this

continue in that the lean, Thank We believe used being expensive be sure strategies investments are to to haven't you. spent make a these marketing we of efficient manner. and changes to we very

Andrew Boone

you. Thank

Operator

Thank you, Andrew.

Eric, Eric Goldman question next open. Our of now your line from is Sheridan comes Sachs.

Eric Sheridan

the maybe Fiverr Thanks initiative to years? Business, next of over so are go little the go and as a strategy. how I understand couple the ramp if then to better Can in place pieces sort us for market, can. of execute it putting two will bit take taking market to might the much time questions, on help you to an You the

philosophically, and for models, in looking this investors different few could cost of as balance Fiverr now might bit how a look around so? be flexibility just to you when business workers the so be Thanks maybe And set platform over number That about know, as or months much. revenue life, the maybe little create number a continue their in Business how two, for debate shift understand So among years? cadence this think look the the over build opportunities next and or we for you one. XX environment you their would challenges might opportunity you better next employers at think I can there's

Micha Kaufman

you, Eric. Thank

functionality Fiverr and the sorry, is size for is launched into entry being what but Fiverr please? done cyber you have It the second we said we cyber business, as the by of within Fiverr that the and when motion haven't customers so and and of right also move spend we've been be now, by it this that two for the product business guiding going use we really transformational it it, doing a Business of to catalog impactful Fiverr of the quality thanks it's success channel very as multi-year And Business, that we've to allows maximize from start acquisition question, to can seeing that recording as anticipated, Business, customers. sought faster can Eric, for tremendous Fiverr said right funnel. improvements a so, by those So move and in we that Fiverr optimize funnels we is a into product. a Business, we with or repeat and will very our spend larger that for is and a customers market investment. adding improving larger And or times, we see and by three it capacity capacity our the we're their It the engage us -- to the optimizing of happy but there. separately base, supply we're with growing many much is than years,

Eric Sheridan

even I the workers environment, increasingly on flexibility and flexibility there could curious that around of Just of maybe want employers might between be because a with platform some the cost find and it. offset who some could a seeing you're there's sort flexibility headwinds how, think your there's build want aligning push macro seeing, you and you're still environment though broader broader your theme from that

the you I versus curious evolution just So row back was of theme Thanks. headwinds. philosophically some long-term the how secular kind the about of thought of

Micha Kaufman

Thanks, Eric.

certain of allows all And of anything, location So variable previous allows Fiverr down all the you the we employers more I’ve actually people that to is on need fact employees years. to employees, home market from also has in and or of companies all quarters all market enjoying and in and scale be the from the work all their as that flexibility of and definitely our brand up option need about It if think fixed for about to And about not project, the remote to way control It not you we balance when that them need the many gives be talent fact full-timers. opened for the Fiverr spoken that work and needed. that think the over the to flexibility. I hire of base per or using a expenses. between that amount time expenses up been eyes from

the time. variable way a also about or seeing while how to are that. as And are expenses, companies lower of fixed needs over So lot gaps talent their we're and cost thinking their structure make their they're expenses talent using where in definitely current that cost decrease we improve doesn't a doing sure reductions think to to close flexible performance that environment,

Eric Sheridan

you. Thank

Operator

you. Thank

of comes line question next now Helfstein is open. from Oppenheimer. Jason Our your Jason,

Jason Helfstein

have two I questions. Guys,

to a enter So so. and of going least environment what’s maybe kind puts at a talk as few think you quarters probably be or the bit takes worsening for we how a about more,

you pricing, they XX the as drive as of choose geographies to in weak those upside roll can about go take new XX do to into do you and conversion So and buyer, price capabilities maybe features you to environment or ability you think what about kind next second just, you talked you the out rates, what like the of where then you you how And that a seller buyer to or little cost what do new themselves in attract features have question, Fiverr? a of fluctuate kind can spending and favors all a Thanks. or think rank the months? letter it, but think

Micha Kaufman

Jason. you, morning. Good Thank

definitely and So on on puts now on is more right I micro we're their Mostly budget. businesses the how pressure. spend seeing think cautious they takes, what to small be and

I think be searches based public continues the makes we're our that because again free in market customers keywords double our optimize our from the which top and data industry, If in to engines, the on down we search strategy, related seeing for at improves, that if more so that maximize with adding decrease our opt continue public that decreases new are and of public a or that there's of can EBITDA funnel, on free that flow cash flow, or growth. case, cash searches that, then current is shrinks the when look to we expensive. that to which we'll acquisition invest

And matching larger terms algorithms, simple the extremely invest technology why conversions, we forth. matching. our, that matching algorithm, of in there's features and top that's go and And how improvement. we sounds not types our opportunities a in that simpler. we And on create and being our our and do segmentation so our to is and their results can we been that more technology to more with of more right it's magic which that It over from search us engine metadata segmentation about of optimization to invest It's more the the seeing that upmarket becomes great technology, reward. both matching technology the we about customer The challenging, search collect, and of continue better why reality we've recommendation, the transactional do very we funnel. moats our higher use In time. We're is the also customers, our but satisfaction the means we to do larger to to entertain database the happen. now being improve is in talent able make conversion getting The we this with all and complex. drive it’s talking spend that maximize a good continue of customers

Operator

you. Thank Perfect.

Capital RBC from up now line Markets. Brad, open. your We have question of a Erickson follow is Brad

Brad Erickson

thanks. Yes,

Just a quick follow up.

May is things hyper saw Just, I guided aspect pure going you maybe on on that alongside year just of of like just curious. Just year, how we here changed last macro? that’s guess, kind any in Thanks. quickly last there seasonality just curious, after

Micha Kaufman

Obviously haven't travel any that seen you from see more leisure, seasonality. there's, you see much unusual can and We usual. than

see by as just long, the by much macro taking not the but than being that macro worse people as seen You believe we environment. this is anticipated extended vacations, that the anticipated, We impacting us. environment way, haven't

it, show They're during, a up feeling to respond to to were it COVID to now first first triple a they inflation much is more and and jump little this and in more general, they digit why and said, micro-businesses, more I think I and And focused be to on more are that recession defacto because like cautious, very and we're bit Fiverr think continues the we're technically that in it's just high. small as growth. the it. I being sensitive still we're is responding

Brad Erickson

thanks. it, Got

Operator

Thank you.

question Shahrabani Fard next Daniel, comes of Our Daniel is line your Investments. open. now from

Daniel Shahrabani

my Thanks hi. for Two Yes, question. taking questions.

you last expenses a marketing said the the of that quarter. in all, of lot first your were preloaded quarter, First in

And the Is of question, source a Spanish, do that, English? three next growth you the you. you giving is that German? how languages you for forward other benefits markets how second Thank expanding going macro, like of in guys are doing and besides in you for So in other are quarters? terms see that like with

Micha Kaufman

Daniel, Good morning, thank you.

seasonality from that first quarter that efficient in why because is and On and extremely more our that the quarter QX in is the invest is this quarter, investment expense standpoint strongest we marketing we a comment QX. that that ever and case the new year on the That creates baseline has of why us is been made the for started since we for company. a rest the

Daniel Shahrabani

thanks. Okay,

Operator

Thank you, Daniel.

Our question your line Nat, from Schindler open. next of Bank comes of now is America. Nat

Nat Schindler

Yes, hi guys.

more buy you market is developing the an basic or, projects, with that have you couple system your a on upmarket things. things? largely? enterprise on through this purchases overnight is are on One the get as Just logo it in world the Call same of your traditionally do the purchasing you, businesses still enterprise you and are buy it to longer term people similar or into same or small been are service projects sized bigger seeing the your larger that spend provider, $XX approach, suggesting more and approach larger higher

Micha Kaufman

morning, good for questions. Nat. the Hey, Thanks

very for to both. catalog can needs is on larger is that such it effectively. customers question, spend that where of what we So is your built more but to capacity a higher. creating desire, be think I would Their their But supply the probably answer customer where say is done complex allow they and acquire first also higher. small projects, the are We're the definitely achieve offer more if types is best-in-class, profile projects to vetted of

but to multiple that much less not large, and Sometimes higher complexity the on just not within accommodate and individual within manifests types projects complex projects. it's that, talent, talents Fiverr use larger their and also agencies very frequent have are to more that in purchases depending ability Business frequent more of necessarily capacity it sometimes and also for

Nat Schindler

course? as a other move you kind competition has collision projects the competition, projects, you are into down well going and $XX logo. been more this very of free catalog which been owned again, these these, and its of you you get into there done a particularly substantive now of are You've to on the not really free tried Does that have have and players, of area larger kind a In quick doing world kind of you any been from your from traditionally in come fast, world? that lot to put Upwork,

Micha Kaufman

Fiverr started started, SMB roots focus we small the, on businesses. the you and of from with where when about the maybe world So of types micro think

on user million current we are at base, U.S. our If platform. from have you of our active X.X look them the Half buyers

X or to space into. million market, So grow it call million. endless let's In that X.X of out million there's XX.X

into don't we going move ability moving enterprise for sometimes think have with that happens customers, into of to think to that connections much into that talent there's space. In that Now, direct And doesn't the I to from anyway mean moving or there. again, I we're and without of space We're the marketing tremendous from more enterprise And mid-size and that It online, with activity don't now, majority space, as the the large. mid-market, majority the not the into to the actually agencies. them. grow offline competition offline, direct more we not is happens but we the connections have move be of interruption. we're

think much. that that competition don't will increase our I this So

Nat Schindler

you. thank Great,

Operator

further questions. currently this we At time, no have

to So any Micha back over CEO closing I’ll remarks. Kaufman, hand for

Micha Kaufman

investor Charlie. everyone you, of today. at Thank joining upcoming for And thank we’ll the rest Have you the call you the and events. a day great see

Operator

concludes Ladies today’s call. much for and this you joining. so Thank gentlemen,

You your may lines. disconnect

Fiverr International (FVRR) 4 Aug 222022 Q2 Earnings call transcript