Fiverr International Ltd.

and welcome to the FIBO Q420 Earnings Conference Call. All participants will be in a 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 a touch-tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Maya Tracy. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the fourth quarter ended December 31, 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.fiverr.com. Joining me on the call today are Michal Kaufman, founder and CEO, and Ofer Katz, CFO. Before we start, I would 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 Fiverr. Actual results could differ materially from those anticipated in these forward-looking statements. A discussion of some of the risk factors that could cause actual results to differ materially from any forward-looking statements can be found on FIBRS periodic public filings with the U.S. Securities and Exchange Commission, including the importance factors discussed under the risk factors section in FIBRS 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. During this call, we'll be referring to some non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures are provided in the earnings release we issued today and our shareholder letter, each of which is available on our website at investors.fiverr.com. And now I will turn the call over to Mika.

Good morning, everyone, and thank you for joining us on the call today. Before I start, I am extremely pleased to be able to announce that Ofer Katz has been promoted to President and CFO of Fiverr. I am especially delighted as he has not only been with Fiverr since the early days, but is an exceptional CFO, an admired leader, and one of my closest and most trusted friends. We had an unbelievable year of strong execution and growth at Fiverr, and Q4 capped off the year with a strong finish. Q4 revenue was $55.9 million, representing a year-over-year growth of 89% and further acceleration from Q3. Looking back, we have now delivered seven straight quarters of accelerating revenue growth since Fiverr went public in June 2019. This speaks to the resilience of our business model, the consistent execution of our team, as well as the tremendous opportunity in the freelancing space we operate in. Active buyers surpassed 3.4 million representing accelerating growth of 45% year over year. Businesses around the world and across all industries continue to turn to Fiverr as they transform their business online and navigate through the remote work environment. At the time when their traditional way of sourcing work and engaging with clients has been disrupted by the pandemic, more and more freelancers see Fiverr as their platform of choice. During 2020, our relationship with our community deepened and flourished. Revenue retention from buyers across all of our mature cohorts from 2018 and earlier increased significantly in 2020 as compared to 2019. They contributed more than just consistent stream of revenue as they have done previously. Instead, spend level from these cohorts increased on average 15% in 2020 compared to 2019. In 2020, we saw more buyers from these existing cohorts coming back to Fiverr, ordering more frequently, and purchasing more expensive gigs as their need to strengthen their online presence intensified during the pandemic. The 2019 cohort also showed strong revenue retention of over 70%, higher than typical cohort from year one to year two. A study by Qualtrics shows that the impact of COVID-19 has driven small and medium businesses to increase their freelance hiring budget by 56%, and Fiverr was able to capture a meaningful share of that spend. Looking ahead, the impact of COVID-19 should drive a long-term and sustainable tailwind for our business that lasts far beyond the pandemic itself. Businesses of all sizes across all industries are undergoing a paradigm shift as they adopt remote work and optimize workforce distribution. Fiverr's mission to change how the world works together and our business model That enables businesses to access global talent on demand and to collaborate and deliver work for our platform has never been more critical. 2021 got off to an excellent start. We saw record level of traffic and buyer registration in January as the strong momentum of 2020 continued into the new year. We hope you had a chance to see our first Super Bowl commercial a few weeks ago. The ad was viewed by nearly 100 million people on game day and has received extensive media coverage and continues to draw strong engagement on social media. We are extremely excited to bring the Fiverr brand to the forefront of the global stage, and we will continue investing in our brand throughout the rest of this year. The strong momentum that we've seen so far and the continued strength of our cohort gives us the confidence to provide strong full-year 2021 guidance amid continued uncertainty of COVID-19. Our business is resilient, and we believe we will continue to grow at a fast pace under a good but challenging macro environment. We believe that the accelerated adoption of digital transformation and remote work will allow us to exit the pandemic stronger than before. And this is reflected in our 2021 revenue growth rate guidance of 46% to 50%, compared to our pre-pandemic 2019 revenue growth rate of 42%. I'm also extremely excited about our roadmap ahead of us. We have many new initiatives, new products, and new opportunities heading into the new year. For the first time in the history of Fiverr, we expect to surpass $2 billion in freelance earnings delivered to our seller community. It is a great and fulfilling achievement for all of us at Fiverr. It is what continues to motivate us and drive us to do more build better products, and create more opportunities for our community. We are also increasingly conscious of our social and corporate responsibilities as our company and our shareholders base grows. We have built out our environmental, social, and governance ESG processes and framework, and we'll be releasing a comprehensive ESG report in accordance with the SASB standard later this year. Regarding our priorities for 2021, we are focused on continuing to execute on our strategic initiative that is going upmarket, international expansion, and building more value-added products and services, as well as continuing to invest in our brand and marketing. You can expect us to continue to expand our upmarket coverage on both demand and supply front. On the demand front, we will focus on fiber business and our integration with WordPress, continuing to roll out milestones and our subscription features. And on the supply front, we will focus on the continued improvement of our catalog infrastructure and the expansion of top creative talent through the acquisition of working, not working. International expansion is another key priority for 2021. We will focus on deepening the penetration in existing markets by providing local buyers and sellers with a more culturally integrated experience, catalog and content. And last but not least, promoted gigs continue to grow and expand nicely, and we will continue to grow additional value-added services for our sellers on the marketplace. We are incubating additional projects to unlock the synergies with the acquisitions we made with SLT Consulting and Working Not Working. Leveraging Fiverr's technology, we have the vision to build a platform that will allow Fiverr to be an indispensable resource for the marketing teams of large companies. To fulfill that vision, we recently assembled an advisory board that includes CMOs from some of the world's most prominent brands to help us drive the strategy forward. I would like to conclude by saying that 2020 was an unforgettable year on so many levels. At Fiverr, we celebrated 11 years of our existence, and I could not be more proud of what we have achieved or more excited about what lies ahead for us. With that, I'm going to turn the call to Ofer, who will share a few financial highlights. Ofer?