Fiverr International Ltd. · NYSE:FVRR
Fiverr International — Q2 2020 Earnings Presentation
23 slides from Fiverr International's earnings presentation, Aug 5, 2020
Slide 1: Q2 2020 Shareholder Letter
Q2 | 2020 Shareholder Letter Damiano Raveenthian, Seller Founder and CEO, Startup Slang Toronto, Canada
Slide 2: Changing How the World Works Together
Our Mission Changing How the World Works Together Fiverr is a global marketplace that connects buyers and sellers for digital services. 3.4K+ attendees On July 9, Fiverr hosted its first ever one-day virtual summit - The Shift - featuring skill-based workshops, discussions of future trends, networki
Slide 3: The Shift in Diversity, Brand, Remote Work
The Shift in Diversity and Inclusion “You must have a diverse creative team in order to market to diverse audiences, while maintaining an authentic voice as a brand. Diversity Gali Arnon is good for business - companies with a more diverse team outperform CMO, Fiverr their competitors and achieve hi
Slide 4: Damiano, founder and CEO of Startup Slang
Damiano is the founder and CEO of Startup Slang, a Toronto-based Shopify agency that focuses on e-commerce development, social media advertising and web content creation. Damiano’s agency was born out of his work on Fiverr. He started on Fiverr in April 2017 as a supplement to his full-time work at
Slide 5: Q2 2020 highlights
• Strong growth: Revenue grew 82% y/y in Q2’20 with strong execution across product, marketing and operation during the global pandemic • Historical level of new buyers: Active buyers grew 28% y/y, implying net adds of over 300K in Q2’20 vs Q1’20 • Achieved profitability: Achieved quarterly Adjusted
Slide 6: To Our Shareholders
To Our Shareholders, The second quarter of 2020 marked an inflection point in Fiverr’s history. We grew our revenue by 82% y/y during the quarter, the strongest growth rate we have had since 2012. Our company turned Adjusted EBITDA profitable for the first time, many quarters ahead of expectations,
Slide 7: Growth Strategies and Recent Progress
Growth Strategies and Recent Progress Recent updates regarding our key growth drivers and progress made in each area as we continue to grow and capture market share are as follows: #1 Bring new buyers onto the platform In the twelve months ended June 30, 2020, active buyers grew 28% y/y to 2.8 milli
Slide 8: Existing cohorts and brand activities
The consistent behavior across our existing cohorts also contributed to our strong performance in Q2’20. In fact, existing cohorts on average grew their monthly GMV level by 10% from January to June, as our existing buyer base returned to Fiverr more frequently and purchased more and from more categ
Slide 9: Fiverr Business and cohort growth
and now represent over 55% of core marketplace revenue, up from 54% in Q1’20. Strong results were driven by both an increase in spend level across our existing cohorts as well as continued improvement in lifetime value from our newest cohort. As businesses across the world adjust to the new reality
Slide 10: Going upmarket and agencies
right freelancer for the task at hand has never been easier or faster - leveraging the collective wisdom of the entire team, which in turn results in a better customer experience, more utilization and more spend on the marketplace. For us, going upmarket is not only about delivering powerful tools t
Slide 11: Seller onboarding and technology innovation
beginning of year has turned out to be timely and effective in helping our marketplace absorb the new supply. Some of these initiatives include: • Adding dynamic exposure to new sellers throughout the marketplace based on quantity and quality of new supply • Optimizing entry and exit criteria for Ri
Slide 12: Promoted Gigs update
buyers are able to make purchases more closely aligned to their budget requirements. Lastly, an update on Promoted Gigs. The product continues to perform strongly in terms of both buyer and seller experience. As such, we have expanded exposure to include 2 ad slots on top search pages, rolled it out
Slide 13: Financial Discussion
Financial Discussion We delivered exceptional financial results in Q2’20 with revenue increasing 82% y/y to $47.1 million. Adjusted EBITDA was $3.1 million or 6.7% in Adjusted EBITDA margin, the first time we reached quarterly Adjusted EBITDA profitability, marking an inflection point for our busine
Slide 14: Gross Profit and Operating Expenses
by the continued growth of back-office software subscriptions, e-learning courses and content marketing subscriptions. Gross Profit and Margin Gross profit on a GAAP basis for Q2’20 was $39.2 million, up 90% from $20.6 million in Q2’19. Gross margin was 83.1%, an increase from 79.5% in Q2’19. Non-GA
Slide 15: Financial Outlook
Net Loss and Adjusted EBITDA Net loss on a GAAP basis in Q2’20 was $(0.1) million, compared to $(9.4) million in the second quarter of 2019. Adjusted EBITDA was $3.1 million, or 6.7% of revenue in Q2 2020, compared to $(4.9) million or (19.0)% in the second quarter of 2019. The improved Adjusted EBI
Slide 16: Conference Call Details
Conference Call Details We will host a conference call to discuss our financial results on INVESTOR RELATIONS Wednesday, August 5, at 8:30 a.m. Eastern Time. investors@fiverr.com A live webcast of the call can be accessed from Fiverr’s Investor PRESS Relations website. An archived version will be av
Slide 17: Consolidated Balance Sheets
CONSOLIDATED BALANCESHEETS CONSOLIDATED BALANCE SHEETS (In (inthousands) thousands) June 30, December 31, 2020 2019 (Unaudited) (Audited) Assets Current assets: Cash and cash equivalents $ 127,542 $ 24,171 Marketable securities 44,300 88,559 User funds 84,610 55,945 Bank deposits 30,000 15,000 Restr
Slide 18: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except loss per share data) (In thousands, except loss per share data) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Unaudited) (Unaudited) Revenue $ 47,130 $ 25,912 $ 81,280 $ 49,
Slide 19: Consolidated Statements of Cash Flows
CONSOLIDATED STATEMENTS OF CONSOLIDATED STATEMENTS OF OPERATIONS CASH FLOWS CONSOLIDATED (in thousands) STATEMENTS OF CASH FLOWS (in thousands, except loss per share data) (In thousands) Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Unaudited) (Unaudited) Operating Activ
Slide 20: Key Performance Metrics and Non-GAAP Reconciliations
KEY PERFORMANCE METRICS KEY PERFORMANCE METRICS Twelve Months Ended June 30, 2020 2019 (Unaudited) Annual active buyers (in thousands) 2,792 2,175 Annual spend per buyer ($) $ 184 $ 157 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT (in thousands, exc
Slide 21: Reconciliation of GAAP Net Loss to Adjusted EBITDA
RECONCILIATION OF GAAP NETOF CONSOLIDATED STATEMENTS LOSS TO ADJUSTED EBITDA OPERATIONS RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (in (in thousands, thousands, except except adjusted EBITDA loss per share margin data) data) (In thousands, except adjusted EBITDA margin data) Three Three Mont
Slide 22: Key Performance Metrics and Non-GAAP Financial Measures
Key Performance Metrics and Non-GAAP Financial Measures This shareholder letter includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP ne
Slide 23: Forward Looking Statements
Forward Looking Statements This shareholder letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this shareholder letter that do not relate to matters of historical fact should be considered forward-looking