Fiverr International Ltd.

first quarter 2021 earnings conference call our 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 please note this event is being recorded i would now like to turn the conference over to maya tracy investor relations manager please go ahead

Thank you, operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the first quarter ended March 31st, 2021. Joining me on the call today are Michal Kaufman, founder and CEO, and Ofer Katz, president and CFO. Before we start, I would like to remind you that during this call, we may make forward-looking statements and that these statements are based on our current expectations and assumptions as of today, and Fiverr assumes no obligation to update or revise them. A discussion of some of the important risk factors that could cause actual results to differ materially from any forward-looking statement can be found under the Risk Factors section in Fiverr's most recent Form 20-F and other filings with the SEC. 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 issued today in our shareholder letter, each of which is available on our website at investors.fiverr.com. And now I will turn the call over to Miha.

Good morning, everyone, and thank you for joining us on the call today. Today we reported an outstanding set of results after a landmark year of incredible growth and resilience. We kicked off the year with revenue growth accelerating to 100% year over year, doubling our revenue to $68.3 million. Underlining the growth is strength across our business matrix. Active buyers grew 56% year over year to over 3.8 million. Spend per buyer increased 22% year over year. We see consistent and increasing spend across our existing cohorts and continued growth in revenue from high value buyers. The world is in the midst of a massive digital transformation. Companies across the globe are adopting remote working models and shifting to hybrid teams by integrating more freelancers into their businesses. This past year has been a whirlwind for small businesses, forcing many of them to quickly adopt and find new ways to serve their customers. For many, this meant the need to digitally transform, and they turned to Fiverr to rebuild pivot and launch their businesses. For some, this meant adapting from brick and mortar to having a digital storefront, as we saw massive spikes in searches around e-commerce, website design, and sales management tools. Others turned to Fiverr for tools to help enhance and rebuild their businesses, like building your own in-house food delivery app. As the crisis reinforces and accelerates the trends towards adopting remote work and moving businesses online, we believe our marketplace is well positioned to address current needs and serve as a key resource when the economy re-accelerates. It's critical to remember that the majority of market is still operating offline, presenting a massive and still largely untapped opportunity to bring that business online. Businesses around the world and across all industries continue to invest and spend more of their budget on transformation. When they make the leap, there is no turning back. They will continue to spend and invest in their digital channels, and our business model gives us visibility and confidence that this cohort behavior will continue far beyond the pandemic. Our market-based model benefited from the compounding transaction volume by the effects of the pandemic driving outsized cohorts to the platform last year and increased spend across existing cohorts. As we mentioned earlier this year, on average, existing cohorts from 2018 and older grew spend 15% in 2020 compared to 2019. We believe that there is a long growth runway ahead of us, and we are confident that with continued excellent execution, innovation, and investment in the creation of valuable tools for our community, we will continue to grow. We believe that our proven ability to successfully create revenue-generating products that expand our total addressable market, backed by powerful macro industry tailwinds is highly encouraging for our future. These factors lead to a strong new baseline for our guidance. To ensure this growth continues, as the tailwind effect fades, we are continuing to focus and aggressively invest in our key initiatives and growth engines. After a year of significant growth and powerful Q1, I'm even more excited for what's stored for the rest of the year and beyond. We have continued to make exciting progress towards our key strategic initiatives, moving up market, expanding internationally, and developing and enhancing new capabilities for our products and tools while heavily investing in our brand and marketing. On the demand front, or deepening customer loyalty and engagement with our subscription and milestone products, increasing the lifetime value of our existing and new cohorts. Fiverr business also continues to grow rapidly, and we have implemented strategies to further build brand awareness and have an amazing pipeline of new products planned for the Fiverr business community. On the supply front, we are excited to have a new vertical centered around data services. This is our latest example of building on our successful playbook with vertical launches. By opening a vertical focused solely on data services, we create a path for elevated category expansion in the data analysis space and further capture and capitalize on the high demand for these services. International expansion is a key component of our upmarket strategy. We continue to aggressively invest on a global scale with a focus on deepening our penetration in existing markets and our local marketing efforts. We are encouraged by our localization efforts so far, and we are investing prudently in building our infrastructure to support further expansion into new geographies. And finally, promoted gigs continue to enjoy healthy seller growth, contributing to our take rate expansion we saw this quarter. Fiverr is becoming a household name. Investments in brand awareness are generating a continuous long-term drive for organic traffic and growth in spend. Our Super Bowl ad was viewed by millions of potential buyers and sellers through our TV campaigns, digital and social channels, significantly boosting our brand and we look forward to expanding on our momentum. The last year has shown us that Fiverr's business is stronger and more resilient than ever. We have never been more proud of our talented and dedicated team. We have shown that in times of great uncertainty, our ability to execute on our strategy and mission has only grown more robust. We are operating at highly efficient, driving scale on our platform and investing in our product ecosystem to further fuel our business. We took Fiverr public less than two years ago. This year, we are going to be about three times larger while growing approximately 50% faster. All of this is reflected in the significant upward revision of our 2021 revenue growth rate guidance of 59 to 63% compared to our previous guidance of 46 to 50%. We are confident and highly bullish on the ability to deliver and execute on our goals. We are just getting started. With that, I will turn the call over to Ofer who will share a few Q1 highlights, as well as some color for the rest of this year. Ofer?