Fiverr International Ltd.

Hello everyone and welcome to the Fiverr Q4 Fiscal 2021 Earnings for Conference call. My name is Charlie and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on your telephone keypad. I'll now hand over to your host, Jinjin Kian, Head of Investor Relations to begin. Jinjin, 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 31st, 2021. Joining me on the call today are Miha Kaufman, founder and CEO, and OfferCard president and CFO. Before we start, I'd 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 statements can be found under the risk factor section in Fiverr's most recent Form 20-F and other filings for the FDC. 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. and our shareholder letter, each of which is available on our website at investors.cyber.com. And now, I will turn the call over to Neha.

Thanks, Jinjin. Good morning, everyone, and thanks for joining us on the call today. 2021 was a remarkable year for us. It was a year of significant growth in terms of both revenue and profitability. For a full year 2021, Revenue was $298 million, representing a 57% year-over-year growth and a 178% growth on a two-year basis. We hit $1 billion in annual GMV for the first time ever. We also generated an adjusted EBITDA of $23 million in 2021, implying an adjusted EBITDA margin of 7.7% compared to 4.8% just a year ago and a negative 16.8% two years ago. Our results continue to demonstrate our ability to not only deliver superior growth rates, but also profitable growth. We are committed to our disciplined approach in prioritizing growth while making progress towards our long-term profitability targets. 2021 was also significant in terms of important investment we made towards our future. We substantially grew fiber business To become a marketplace of fully vetted talent made it easier for customers to join it and created automatic segmentation mechanisms to offer Fiverr business to the most relevant audience. We established the Seller Tools Group to focus on building the Seller ecosystem, including the launch of Seller Plus. We successfully integrated Endco, a company we acquired, and turned it into Fiverr Workspace. and we continued expansion of product gigs. We launched partnerships with leading B2B vendors to build co-branded section of our marketplace with expert sellers offering a variety of vendor specific services to their customers. Leveraging the creative talent pool from working not working, we are building the next gen AI powered creative service platform to allow brands to assemble top quality creative teams in just a few places. We acquired Creative Life, further strengthening our professional development content library to expand our learning and development module for freelancers. We acquired the freelance management system Stoke Talent to expand our addressable market by enabling offline freelancer relationships for our customers as well. Last but not least, we continue to expand our international presence with non-English speaking countries now contributing to 32% of our total revenue. All of these investments are essential building blocks towards our long-term vision of becoming an all-in-one talent cloud solution for businesses of all sizes. Fiverr has turned 12 today. Having started Fiverr at the beginning of the 2010s, gives us a good perspective of the changes that we are all witnessing. The way people work is going through a fundamental transformation right now. On one hand, you've got more people leaving their jobs than ever before. People are not simply leaving one company to join another, but rather leaving the traditional workforce altogether. Based on a recent survey we conducted, 54% of HR professionals and hiring managers said that people who have left their companies end up working for themselves as freelancers or start their own businesses. On the other hand, businesses are struggling to attract and retain talent for the long term. The time they take to hire full-time employees continues to increase, and they face massive skill gaps to stay competitive in an ever-changing technology landscape. What this means is is that businesses must go through a substantial change in how they think about working with talent in their workforce infrastructure in the next few years. This feels to me a lot like the shift companies had to go through when they moved their on-site hosted computing capabilities to cloud computing in the past 15 years. I remember back in the day when building a startup required you to first set up your own local computing capabilities and data centers host your own servers, and go through massive installation and configuration headaches. Only then could you actually start building what you really wanted to build. Then very quickly, your servers got outdated, slowed down, and ran out of space. So there was the ongoing need for maintenance and updates. It was very expensive, very inefficient, and most important of all, very few companies in the world had the resources to be able to set up and regularly upgrade to the best computing power with the latest technology. Cloud computing completely changed all of that. Not only is it easier, cheaper, and faster to set up with a minimum ongoing maintenance overhead, but also it empowers businesses of all sizes, big or small, and businesses of all industries, tech companies or not, to utilize the latest computing technology directly from the cloud. When you think about the workforce, it's very much the same. The challenges that businesses face with a static full-time workforce, such as a slow hiring process, being expensive to maintain and retain, the lack of flexibility, and being hard to keep up with the latest skills are very similar to the challenges of on-premise IT infrastructure. By leveraging Fiverr's talent cloud solution, businesses can not only become more nimble and cost efficient, but also be able to access the best talent on the project by project basis. Whether that project is simple and quick or complex and more long-term. And for our industry, it is even more powerful because on the other side of the solution, we are dealing with talent instead of servers. This means that at the same time we're building this talent cloud solution, we're also providing talent across the world with more opportunities, better opportunities, empowering them to pursue the work they love and to enjoy the lifestyle that they dream of. That is a world worth building. We believe the opportunity of talent cloud migration will continue to grow and evolve and it will substantially expand our overall addressable market in the coming years. We are not only empowering a transition from offline to online freelancers, but also the transition from a static workforce to a dynamic talent cloud solution. We envision a future where companies will keep a smaller team that focuses on core competency while leveraging the talent cloud solution for the execution of most projects. We've seen this already happen with Hollywood studios. In the early 1920s, studios owned the entire filmmaking process from creation to filming to distribution. Over time, they have switched to a system where their workforce primarily consists of freelancers. Ad hoc teams are assembled on a project-by-product basis and this band-aid, after the project is completed, it streamlines the operation and focuses resources on generating the best outcome rather than managerial overhead. This is where we're heading, building a platform to help businesses develop and execute a robust talent cloud solution. As we celebrate Fiverr's 12th birthday, and as we kick off this new year, the team and I could not be more excited about the journey we are embarking on. As I mentioned at the beginning of my remarks, a lot of work has already gone into building this Talent Cloud platform. The fact that we've grown so much in the past two years allows us to substantially accelerate our pace of investment in our vision, while at the same time, march towards a long-term profitability model. We are more excited than ever, and for all the reasons I laid out, believe that we are still in the very early stages of our journey. We expect to remain disciplined with our financial strategy and continue executing in a consistent manner. With that, I'll turn the call to Ofer, who will share some financial highlights. Ofer?