NEW YORK - Fiverr International Ltd . (NYSE:FVRR) saw its shares climb 4.8% after the freelance services marketplace reported better-than-expected third-quarter revenue and raised its full-year outlook.
Fiverr posted revenue of $99.63 million for the quarter ended September 30, surpassing analyst estimates of $96.35 million and marking an 8% increase from $92.5 million in the same period last year. The company's adjusted earnings per share came in at $0.55, slightly below the $0.59 consensus estimate.
"Our strong Q3 results underscored the consistency of our execution and the resilience of our business," said Micha Kaufman, founder and CEO of Fiverr. He noted that investments in value-added products have paid off, allowing the company to diversify its business model and expand its platform.
The company's take rate, which measures the percentage of transaction value Fiverr captures as revenue, rose to 33.9% from 31.3% a year earlier. However, active buyers declined 9% year-over-year to 3.8 million, while spend per buyer increased 9% to $296.
Looking ahead, Fiverr raised its full-year 2024 revenue guidance to $388-390 million, up from its previous forecast and above analyst expectations of $385.2 million. For the fourth quarter, the company projects revenue between $100.2-102.2 million.
"With a strong balance sheet and free cash flow generation, we have ample cash to address outstanding convertible notes, while having sufficient liquidity to run our business," said Ofer Katz, President and CFO of Fiverr.
The company's adjusted EBITDA margin improved to 19.7% in Q3, up from 17.9% in the same quarter last year.
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