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NEW YORK - On Wednesday, Fiverr International Ltd . (NYSE:FVRR) reported second-quarter earnings that exceeded analyst expectations, driven by strong growth in AI-related services and its Managed Services business.
The company’s shares surged 2.48% in after hours trading following the announcement.
The freelance marketplace platform posted adjusted earnings of $0.69 per share, beating analyst estimates of $0.67. Revenue reached $108.6 million, surpassing the consensus projection of $107.73 million and representing a 14.8% increase compared to the same period last year.
While overall results were positive, Fiverr’s core marketplace revenue declined 2% year-over-year to $74.7 million. However, this was more than offset by the company’s Services segment, which saw revenue jump 83.8% to $34 million. The company reported that annual active buyers decreased 10.9% to 3.4 million, though annual spend per buyer increased 9.8% to $318.
"AI continues to be a power driver for everything we do, from rapid catalog expansion around AI-related services, to enabling transformative customer experiences, or driving workflow automation within Fiverr," said Micha Kaufman, founder and CEO of Fiverr.
For the third quarter, Fiverr expects revenue between $105 million and $110 million, compared to analyst estimates of $109 million. The company reiterated its full-year 2025 revenue guidance of $425 million to $438 million.
Adjusted EBITDA for the quarter was $21.4 million, representing a margin of 19.7%, an improvement of 80 basis points from the previous year. Free cash flow increased 21.1% year-over-year to $25 million.
"We delivered strong Q2 results as we continue to take a balanced approach between growth and profitability," said Ofer Katz, President and CFO of Fiverr. "Growth and innovation remain a top priority for us, especially at a time when AI is unlocking opportunities across almost every discipline."
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