Fiverr International Ltd. · NYSE:FVRR
Fiverr International — Q3 2020 Earnings Presentation
21 slides from Fiverr International's earnings presentation, Oct 28, 2020
Slide 1: Q3 2020 Shareholder Letter
Q3 | 2020 Shareholder Letter FIVERR.COM Olivia Claparols, Buyer Kay Kim, Buyer Senior E-commerce Manager, Rooted Co-Founder & Creative Director, Rooted
Slide 2: Buyer story: Rooted shifts to digital with Fiverr
Kay and Olivia turned to Fiverr in June 2020 when Rooted (heyrooted.com), a modern-day plant company, had to quickly shift their multi-channel business to digital in response to the COVID pandemic. Prior to the pandemic, the majority of Rooted’s business came from offline channels, providing plants
Slide 3: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights • Accelerated growth in Q3’20: Strong momentum continued into Q3 with 88% y/y topline growth - we continue to execute and drive results as the global shift towards digital transformation and remote work accelerates • Continued momentum of buyer growth: Active buyers gre
Slide 4: To Our Shareholders
To Our Shareholders, We delivered another quarter of record shattering growth in Q3’20 as revenue, active buyers and spend per buyer all accelerated further from Q2’20: revenue grew 88% y/y, active buyers grew 37% y/y to over 3.1 million, and spend per buyer increased 20% y/y to $195. The strong mom
Slide 5: Fiverr Empower
Our Mission Changing how the world works together. Fiverr Empower Fiverr launched a dedicated initiative this year to empower skilled talent with disabilities to kickstart their professional growth. Our unique Service- as-a-Product e-commerce model creates a level playing field for people with disab
Slide 6: Fiverr Empower seller testimonial
“The Fiverr Empower program is absolutely amazing. It gives me the opportunity to show my talent and my professional skills regardless of my disability. My disability becomes irrelevant and nobody judges me because of that - they only see me as a professional seller who can provide them the best wor
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 September 30, 2020, active buyers grew 37% y/y to 3.1
Slide 8: Cumulative revenue to performance marketing investment ratios
CUMULATIVE REVENUE TO PERFORMANCE MARKETING INVESTMENT RATIOS INCREASING ROI FOR PERFORMANCE MARKETING INVESTMENTS AS COHORTS SEASON OVER TIME As of September 30, 2020, the cumulative revenue from the Q1’17 cohort has reached 3.6x of our performance marketing investments for the first quarter of 201
Slide 9: Fiverr Business launch
Fiverr Business was officially launched in September, enabling larger teams to collaborate and transact in a seamless fashion. We are offering a free first year trial at the moment, as we focus to drive adoption and engagement, as well as iterate on product features. Following the launch, we have be
Slide 10: Category growth and streamlined website purchasing
illustration and e-commerce development are some of the largest categories that grew faster than the average marketplace. Given the high demand for building websites with the backdrop of COVID-19, we launched a streamlined experience for purchasing websites on Fiverr. By answering a few simple quest
Slide 11: Financial Discussion
one of the covered categories can now join the program. We have also expanded category coverage from 15 in Q2’20 to 60 in Q3’20. With the expansion efforts, monthly active sellers in the program have increased significantly from just under 200 in June to over 5,000 in September, with continued stron
Slide 12: Active buyers and spend per buyer
to be highly diversified, with no buyer contributing more than 1% of revenue, and no single category accounting for more than 15% of total revenue on the core marketplace. Active Buyers Our active buyer base has consistently grown over time, and Q3 was no different. In the twelve months ended Septem
Slide 13: Operating expenses discussion
of revenue, compared to $26.9 million, or 96.5% of revenue in Q3’19. The improvement in operating leverage represents greater efficiency as a result of increasing scale and disciplined financial strategy which led to us achieving Adjusted EBITDA profitability significantly ahead of our previous expe
Slide 14: Financial Outlook and Conference Call Details
Financial Outlook We are introducing Q4’20 guidance and raising our full-year guidance. Given these unprecedented times and the dynamic impact of COVID-19 on economies globally, we will provide investors with updated business trends as they evolve. Guidance: Q4 2020 FY 2020 FY 2020 Prior Guidance RE
Slide 15: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (In (inthousands) thousands) September 30, December 31, 2020 2019 (Unaudited) (Audited) Assets Current assets: Cash and cash equivalents $ 105,964 $ 24,171 Marketable securities 68,441 88,559 User funds 93,153 55,945 Bank deposits 40,000 15,000
Slide 16: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and loss per share data) (In thousands, except share and loss per share data) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Unaudited) (Unaudited) Revenue $
Slide 17: Consolidated Statements of Cash Flows
CONSOLIDATED CONSOLIDATED STATEMENTS STATEMENTS OF OF CASH FLOWS OPERATIONS CONSOLIDATED (in thousands) STATEMENTS OF CASH FLOWS (in thousands, except share and loss per share data) (In thousands) Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Unaudited) (Unaud
Slide 18: Key Performance Metrics and GAAP to Non-GAAP Reconciliation
KEY PERFORMANCE METRICS KEY PERFORMANCE METRICS Twelve Months Ended September 30, 2020 2019 (Unaudited) Annual active buyers (in thousands) 3,108 2,265 Annual spend per buyer ($) $ 195 $ 163 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT (in thousands
Slide 19: 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 exceptadjusted share andEBITDA margin loss per sharedata) data) (In thousands, except adjusted EBITDA margin data) Three Thr
Slide 20: 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 21: 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