Online Freelance Marketplace Fiverr Posts Q3 Earnings Above Street View; Active Buyers Dip Slightly

Fiverr International Ltd FVRR reported third-quarter FY23 sales growth of 12.1% year-on-year to $92.53 million, beating the analyst consensus estimate of $91.15 million.

Active buyers as of September 30, 2023, were 4.164 million versus 4.249 million last year, and Spend per buyer rose 4% Y/Y to $271. Take rate expanded by 130 bps to 31.3%.

Non-GAAP gross margin expanded 240 basis points to 85.2%, while the adjusted EBITDA margin expanded 1,000 basis points to 17.9%.

The operating loss for the quarter was $(2.3) million versus a loss of $(12.5) million last year.

Non-GAAP EPS of $0.55 beat the consensus of $0.44.

Fiverr generated $23.4 million in operating cash flow and held $129.9 million in cash and equivalents as of September 30, 2023.

Outlook: Fiverr sees Q4 2023 revenue of $88.1 million - $95.1 million, against the consensus of $93.33 million. Adjusted EBITDA of $14.9 million - $16.9 million.

Fiverr reaffirmed FY23 revenue of $358 million - $365 million versus the consensus of $361.8 million. Adjusted EBITDA of $58 million - $60 million (previously $56 million - $60 million).

Price Action: FVRR shares closed higher by 0.15% at $24.09 on Wednesday.