Fiverr International Ltd.

Good day and welcome to the Fiverr second quarter fiscal 2020 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on the telephone keypad. To withdraw your question, please press star then two. Please note, this event has been recorded. I would now like to turn the conference over to Jingjing Chen. Please go ahead.

Thank you, operator, and good morning, ladies and gentlemen. Thank you for joining us on Fiverr's earnings conference call for the second quarter ended June 30, 2020. Please note that this call is being webcast on the investor relations section of the company's website. Full details of our results and additional management commentary are available in our shareholder letter. which can be found on the investor relations section of our website at investors.fibre.com. Joining me today on the call are Miha Kauffman, founder and CEO and OfferCard CFO. Before we start, I'd like to remind you that certain matters discussed today are forward-looking statements that are subject to risks and uncertainties relating to future events and or the future financial performance of Fibre. actual results could differ materially from those anticipated in those forward-looking statements. Additional information that could cause actual results to differ from forward-looking statements can be found in Fiverr's periodic public filings with the U.S. Securities and Exchange Commission, including those factors discussed under the risk factors section in Fiverr's 20F filed with the SEC. The forward-looking statements in this conference call are based on the current expectations as of today, and Fiverr assumes no obligation to update or revise them, whether as a result of new developments or otherwise. And now I will turn the call over to Miha.

Good morning, everyone, and thank you for joining us on the call today. We hope that you are all keeping safe and healthy. The past few months have been one of the most productive and rewarding times in our company's history. The strategies that we have put in place and our strong execution during the global pandemic is what has allowed us to achieve such an outstanding quarterly performance, with revenue growing 82% year-over-year to reach $47.1 million. This is the strongest quarterly growth we have had since 2012, and over $10 million, or nearly 30% above the top end of our guidance. With this stronger than anticipated top-line growth, we also achieved EBITDA profitability two years ahead of our expectations at the IPO and many quarters ahead of our expectations as communicated just a few months ago. While it is incredibly satisfying to see our business accelerate, it is equally rewarding to know that our success is a direct result of the success of our community. More and more businesses are transforming to digital first using Fiverr, and more and more freelancers are provided with opportunities to generate income. It is an incredible privilege to be able to be there for our community in these challenging times. During the second quarter, inclusion and diversity were brought to the forefront of discussions worldwide. At Fiverr, age, gender, ethnicity, or disability do not play a role in determining your success. You are judged only on the quality of your work. We take special pride in being one of the most inclusive and diverse communities online. We live by these principles 365 days a year, and we are proud of the positive social impact our business is making on the lives of so many. The outstanding Q2 results benefited from several strategies we have put in place. We stepped up the localization effort at the beginning of the year, and since then have launched five non-English-speaking websites and started to ramp local PR and performance marketing investments. We also streamlined internal operations on supply management in terms of catalog expansion, seller onboarding, as well as quality management. These investments turned out to be timely when COVID-19 hit, and we were able to respond to the global trends in remote work and digital transformation much more effectively. These efforts also resulted in a significant increase in brand searches, Fiverr's share of voice, and strong uplifts in Fiverr's brand awareness, which led to an 80% year-over-year increase in overall organic traffic. When COVID-19 hit, we quickly responded in several ways. We leaned in on performance marketing opportunities, investing more dollars with better TROI and marketing efficiency, and acquiring higher lifetime value buyers. Strong trends on both organic and paid channels resulting in a record level of net ads of active buyers on the marketplace. We've also seen existing cohorts spending more during the past few months. On average, existing cohorts grew monthly GMV levels by 10% from January to June this year, and we expect the elevated spend level to continue into the third quarter. We're super happy with the Q2 execution, and I'm incredibly proud of the team for their focus, dedication, and amazing creativity. That said, I'm even more excited about what's ahead of us. The inflection point on the adoption of remote work, which many of you have asked us about in the past, is within sight. The awareness, openness, and emphasis on remote work and digital transformation has taken a multi-year leap for the entire business community. And for us, what will Fiverr look like five years down the road Another question we often hear is now clearer than ever. There are three key components when we envision taking Fiverr to the next level. First, a path to going up market for both supply and demand on our marketplace. On the buyer side, not only is Fiverr relevant for entrepreneurs, individual contributors, and office heroes, but we will become a working hub for teams inside companies and businesses to collaborate with external resources integrated into their day-to-day workflow. On the seller side, not only is Fiverr an important channel for freelancers and individual talent, but we will also become partners and distribution channel for agencies, consultancies, and other service providers. With that in mind, we launched Fiverr Business in Data, a dedicated environment for businesses and teams to transact and collaborate on cyber. This is going to be a long-term investment for us, and we are just at the very beginning. We also acquired a boutique digital marketing agency recently, and with that, onboarded Ms. Sharon Lee to help us drive the agency upmarket initiative on the supply side. Not only is Sharon a domain expert, in our target agency market, she's also a heavy Fiverr user and an average Fiverr community leader. Many of you may have seen her picture on the New York marketing campaign last year. Second, we are building a global brand with a global footprint, global share of voice in a global business. Our investments in localization and into non-English websites have proved to be very timely. It is more apparent than ever that the need for remote work and digital transformation is global and that the potential market outside of English-speaking countries is huge. We believe international expansion will continue to be a key strategy for Fiverr going forward. Third, we are building Fiverr not only as a transaction platform, but an ecosystem for businesses and freelancers to grow and thrive. You've seen us launch Fiverr Learn, an e-learning module on Fiverr. You've seen us acquire and expand N.co, a back-office tool for freelancers to manage their contracting and invoicing. You've seen us introduce Promoted Gigs, an advertising tool that allows sellers to step up their marketing. You've also seen us integrate collaboration tools such as Zoom into our marketplace. We are also building financial tools to help freelancers get early payouts on their earnings. These are just a few examples of the value-added services that we've started to work on, and there are many more in the pipeline. With the development of COVID-19 and the global macro conditions remain highly uncertain, The data we have seen on our marketplace across cohorts, verticals, and geographies over the past few months indicate that the elevated spending trend on digital transformation are going to stay per month, if not for years. But it has also become clearer over the past few months that the global pandemic has fundamentally changed how businesses reach their customers and how work takes place. And these changes will last far beyond the pandemic itself. We have built our business from day one to promote remote work, to enable digital transformation, and to create a leveled playing field for every talent. And these opportunities have been pushed forward and are now more relevant than ever. We believe we are well positioned to take advantage of these opportunities with our vision strategy, and strong execution ability. And now, with becoming profitable, also more resources to put in place to thrive towards these opportunities. On that note, I'm going to turn it over to Ofer, who will share a few Q2 highlights, as well as some color for the rest of the year. Ofer?