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Investing.com -- Fiverr International (NYSE:FVRR) reported better-than-expected results for the first quarter and narrowed its revenue forecast for the full fiscal 2025, which fell short of analyst estimates.
The freelance services marketplace operator reported Q1 earnings per share (EPS) of $0.64, ahead of analyst expectations of $0.62. Revenue surged 14.6% year-over-year to $107.2 million, also slightly ahead of the $106 million consensus.
The number of active buyers declined 12% year-over-year to 3.54 million, missing the estimated 3.58 million. Adjusted EBITDA rose 21% to $19.4 million, just above the $19.3 million forecast.
Adjusted gross margin came in at 84.4%, compared to 84.9% a year earlier and slightly above the 84% estimate.
“The year started off on a strong note with focused execution, as revenue and margins came in ahead of expectations. We continue to deliver stable Marketplace performance, robust Services revenue growth, and rapid AI product expansion," said Micha Kaufman, founder and CEO of Fiverr.
"Following our recent successful Fiverr Go launch, we are seeing positive signs on buyer conversion, with buyers converting more and faster, as well as making more quality purchase decisions. We are encouraged by the traction across our upmarket efforts, and look forward to making further strategic investments in AI throughout the year to drive long-term upside.”
For the second quarter, Fiverr expects revenue between $105 million and $109 million, compared with the $108.2 million consensus. Adjusted EBITDA is projected at $20 million to $22 million, versus the expected $20.7 million.
Full-year 2025 revenue guidance was narrowed to $425 million to $428 million from a prior range of $422 million to $438 million, below the $430.5 million average forecast.
Adjusted EBITDA guidance was raised slightly to $84 million to $90 million, up from $82 million to $90 million, with analysts expecting $87 million.