Fiverr International Ltd. · NYSE:FVRR
Fiverr International — Q1 2020 Earnings Presentation
22 slides from Fiverr International's earnings presentation, May 7, 2020
Slide 1: Q1 2020 Shareholder Letter
Q1 | 2020 Shareholder Letter Bjorn Beam, Buyer Founder and CEO, Security Squad Madrid, Spain
Slide 2: Our Mission: 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. Supporting Our Community During In response to the COVID-19 pandemic, Fiverr has prioritized products and initiatives to help our COVID-19 global community navigate
Slide 3: On the cover: Bjorn Beam, Buyer
As a cybersecurity expert with over a decade of industry experience, Bjorn Beam is the founder and CEO of Security Squad, a startup that provides digital educational material, in the form of games, comics and eBooks, to teach kids about cybersecurity, cyberbullying, social media interactions, online
Slide 4: Q1 2020 highlights
• Delivered strong revenue growth of 44% y/y in Q1’20, above prior guidance range, with accelerating growth continued into April across all annual cohorts • Continued growth momentum across all key metrics, with active buyers increasing 17% y/y, spend per buyer increasing 18% y/y, and take rate incr
Slide 5: To Our Shareholders
To Our Shareholders, We are pleased to report another quarter of significant revenue growth and progress towards profitability. Revenue grew 44% y/y to $34.2 million, which was above our guidance range provided in February. Active buyers increased 17% y/y to 2.5 million, spend per buyer increased 18
Slide 6: 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 March 31, 2020, active buyers grew 17% y/y to 2.5 mill
Slide 7: Marketing ROI and cohort trends
trends in tROI. Looking ahead, given the opportunity we saw in the advertising space in April, we expect the marketing spend from Q1 to Q2 this year could differ from prior year patterns. CUMULATIVE REVENUE TO PERFORMANCE MARKETING INVESTMENT RATIOS INCREASING ROI FOR MARKETING INVESTMENTS AS COHORT
Slide 8: Community events and partnerships
• We partnered with the United Nations World Food Programme to bring opportunity to people in Kenya. In January, our team hosted a week-long training camp in Kibera to introduce participants to the concept of digital work and to provide them with resources and guidance on how to be successful on pla
Slide 9: VID program and expanding the Gig catalog
During Q1’20, we significantly expanded and continued to invest in our VID program, which stands for Very Important Doers. We incorporated a dynamic and automated onboarding process in addition to the prior manual approach, resulting in a 70% increase in the number of VIDs from Q4’19. We also expand
Slide 10: Innovate technology and services
positions Fiverr as a hub for knowledge sharing and creates trust among our users for long-term habit building and purchase considerations. #4 Innovate technology and services Technology is at the core of everything we do. This is not only reflected in our constant innovation which provides values t
Slide 11: Expand our geographic footprint
However, growing and scaling the product will continue to be a key initiative for us. Some of the immediate expansion plans include expanding the product to search pages, increasing buyer and seller exposure, as well as adding additional categories. #5 Expand our geographic footprint International e
Slide 12: Financial Discussion
Financial Discussion Our first quarter 2020 results demonstrate strong top line growth and continued bottom line improvement. We grew revenue by 44% year over year, and our Adjusted EBITDA margin improved by 1,430 bps compared to the first quarter of 2019. Unless otherwise noted, all comparisons are
Slide 13: Gross profit, margin and operating expenses
by 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 Q1’20 was $27.3 million, up 45% from $18.8 million in Q1’19. Non-GAAP gross margin was 81.6% in Q1’20, increasing 60 bps from 81
Slide 14: Net loss, Adjusted EBITDA and Financial Outlook
Net Loss and Adjusted EBITDA Net loss on a GAAP basis in Q1’20 was ($6.2) million, compared to ($8.3) million in the first quarter of 2019. Adjusted EBITDA loss was ($2.9) million, or (8.4%) of revenue in Q1’20, compared to ($5.4) million or (22.7%) in the first quarter of 2019. The improved Adjuste
Slide 15: Conference Call Details
Conference Call Details We will host a conference call to discuss our financial results on INVESTOR RELATIONS Thursday, May 7, 2020 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 a
Slide 16: Consolidated Balance Sheets
CONSOLIDATED BALANCESHEETS CONSOLIDATED BALANCE SHEETS (In (in thousands) thousands) March 31, December 31, 2020 2019 (Unaudited) (Audited) Assets Current assets: Cash and cash equivalents $ 28,210 $ 24,171 Marketable securities 96,337 88,559 User funds 63,873 55,945 Bank deposits 15,000 15,000 Rest
Slide 17: 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 March 31, 2020 2019 (Unaudited) Revenue $ 34,150 $ 23,763 Cost of revenue 6,820 4,936 Gross profit 27,330 18,827 Operat
Slide 18: Consolidated Statements of Cash Flows
CONSOLIDATED CONSOLIDATED STATEMENTS STATEMENTS OF OF CASH FLOWS OPERATIONS CONSOLIDATED (in thousands) STATEMENTS OF CASH FLOWS (in thousands, except loss per share data) (In thousands) Three Months Ended March 31, 2020 2019 (Unaudited) Operating Revenue Activities $ 34,150 $ 23,763 Net Costloss of
Slide 19: Key Performance Metrics and Non-GAAP Gross Profit Reconciliation
CONSOLIDATED STATEMENTS OF OPERATIONS KEY PERFORMANCE METRICS KEY PERFORMANCE (in thousands, except METRICS loss per share data) (Unaudited) (Unaudited) Three Three Months Months Ended Ended March March 31, 31, 2020 2020 2019 2019 (Unaudited) (Unaudited) Annual Revenue active buyers (in thousands) $
Slide 20: 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 (inthousands, thousands,except exceptadjusted EBITDA loss per share margin data) data) (In thousands, except adjusted EBITDA margin data) Three Three Months
Slide 21: 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 22: 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