Fiverr International Ltd.

Good morning and welcome to the Fiverr second quarter fiscal 2021 earnings conference call. All participants will be in a listening 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 your telephone keypad. 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 second quarter ended June 30th, 2021. Joining me on the call today are Mika 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 seems 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 statements 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 to be issued today and our shareholder letter, each of which is available on our website at investors.fiber.com. And now, I will turn the call over to Mika.

Good morning, everyone, and thank you for joining us on the call today. With strong execution and continued growth momentum, we finished the second quarter with 60% year-over-year revenue growth above the top end of our guidance. When we considered the past comp as we start to lap our previous fiscal growth rate of over 80%, this is an especially impressive result. Looking at the last two years, we have effectively doubled our active buyer base, tripled our revenue base, and achieved a nearly 30% positive swing in EBITDA margin. We grew significantly faster than our competitors and rapidly expanded our market share in the freelancing economy. Fiverr is leading the changes in how the world works together and setting the industry standards with our disruptive and first of its kind business model. COVID has created some unprecedented growth spikes for our business in the past year. Like many of the companies which reported their Q2 in the past two weeks, we also see a new post-COVID effect. Most of the world has been confined to home for the past 18 months. When COVID restrictions were lifted in the U.S. and Europe around the second half of May, people were in desperate need to get out of home and have some off-screen time. Coinciding with the summer and school holidays, people are taking vacations, which is a really healthy thing to do. And that translates to less time spent online. To be prudent, we are adjusting guidance for the fiscal year 2021 based on these incremental trends over the past few weeks. I would like to highlight that our fundamentals continue to be very strong, far stronger than pre-pandemic the reduced online activity translates into more modest new customer cohort and less activity from those who are taking vacations all that said none of this changes the underlying strength of our business our long-term outlook and the massive market opportunity that's ahead of us our cohorts continue to spend much elevated levels compared to pre-pandemic We continue to drive majority of our revenue from repeat buyers and majority of our new buyers from organic channels. Spend-per-buyer continues to grow rapidly as we go upmarket. Buyers continue to buy large ticket-sized services through products such as milestones and subscriptions. We continue to be highly efficient in acquiring new buyers. And lastly, our take rates grew nicely from 27.2% last quarter to 27.8% this quarter, serving as a testament to the massive value we generate for our buyers and sellers. Against the backdrop of the increasing demand for skilled talent, the adoption of remote work and continued investment in digital channels businesses are increasingly turning to Fiverr to access digital service providers. Driven by accelerated pace of investment and innovation, Fiverr maintains its position as a powerhouse that enables more buyers and sellers to participate in the digital service economy and allows them to do more on Fiverr with greater convenience and efficiency. During this quarter, we made exciting progress towards our upmarket strategy. Cyber business was launched just three quarters ago, and even with limited exposure, already represents 5% of core marketplace business growing faster than our overall marketplace. This product is still in its early cycle to become a mature solution for larger businesses. Early data indicates that buyers significantly increased their spend with us after joining cyber business. The white glove service we provide reduces the friction in last mile conversion, allowing our buyers to execute their project on Fiverr with peace of mind. Combined with collaboration and project management tools, we see improvement in overall engagement and spend. We signed two important partnerships this quarter with Salesforce and Wix. The partnerships allow the customers of these companies to have a streamlined experience in accessing qualified talent on the Fiverr platform. With dedicated training programs to prepare and qualify sellers with the desired skills, we will enable a one-click order experience for corporate buyers. At the same time, ensuring a smooth onboarding experience and a high-quality service delivery. While these partnerships currently focus on seller candidates from the disabled community, they serve as pilots for additional corporate partners and a broader seller audience. Another area that I'm super excited about is the seller services. We are increasingly establishing our platform to be more than just a place to transact, but also an ecosystem that allows talents to grow their business. Following Fiverr Learn, and promote a gig, we launched SellerPlus in Q2 as the latest addition to this family of products. SellerPlus is a subscription-based loyalty program that provides a suite of benefits to subscribers, including advanced analytics and dashboard, the ability to send coupons, access to a dedicated success manager, and so on. So now, we have Fiverr Learn to help a seller improve their skills and deliver better services to our buyers. Added to that, we have promoted gigs to bring our sellers more traffic and exposure. And now, Seller Plus equips our sellers with data and tools to convert better, retain their clients better, and become more sophisticated participants of our marketplace altogether. Initial feedback from our seller community has been extremely positive. We plan to further expand benefits in the program and make it a no-brainer for any quality and motivated Fiverr sellers. We are also making continued progress in expanding promoted gigs. During the quarter, we reached an important milestone by achieving quarterly ad revenue in promoted gigs of $1 million. While this is still small compared to our overall revenue, the potential is significant. In the coming quarter, we will continue to grow the coverage of promoted gigs on the marketplace and continue to explore and innovate new ad products. In conclusion, I am super proud of our team for their relentless focus and ability to navigate through the post-pandemic hyper-seasonality and continue to execute at the highest levels. With that, I will turn the call over to Ofer, who will share a few Q2 highlights, as well as some color for the rest of the year. Ofer?