Fiverr International Ltd.

Good day and thank you for standing by. Welcome to the Fiverr Q1 Fiscal 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jingjing Qian. 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 that ended March 31, 2024. Joining me on the call today are Miha Kaufman, founder and CEO, and Ofer Katz, president and CFO. Before we start, I'd like to remind you that during this call, we may make forward-looking statements, and 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 20F and other findings with the SEC. During this call, we'll be referring to some key performance metrics and non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margins. Further explanation and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measures is provided in earnings release we issued today in our shareholder letter, each of which is available on our website at investors.fiverr.com. And now, I'll turn the call over to Miha.

Thank you, Jinjin. Good morning, everyone, and thank you for joining us. We kicked off 2024 with a strong set of results, both revenue and adjusted EBITDA for Q1 exceeded expectations, driven by strong execution across the marketplace and Fiverr business solutions. We continue to evolve our platform to accommodate not only small businesses fulfilling small tasks, but also larger wallet customers purchasing more complex, and larger ticket size services. The strategy is working particularly well amid the current macro environment as we remain efficient and disciplined with our top of funnel investments while leaning into product and innovation to drive wallet share expansion. AI continue to have a net positive impact on our business as complex services continue to grow faster and represent a bigger portion of our business. Demand for AI-related services remains strong as evidenced by 95% year-over-year growth in GMV from AI service categories. Chatbot development was especially popular this quarter as businesses look for ways to lean into Gen AI technology to better engage with customers. For example, we have seen a hospitality company building a conversational tool for customers to manage bookings or an online learning platform creating a personalized learning menu and tutoring sessions for children. With an over 10,000 and growing AI expert pool, Fiverr has become the destination for businesses to get help implementing Gen AI and take their business to the next level. We also seen very promising signals on Fiverr Neo, the AI matching assistant that we launched last year. NEO enables our buyers to have a more natural purchasing path by creating a conversational experience that leverages the catalog data and search algos. Answers and steps are provided based on buyer's questions and the stage of the search. As a result, we saw that nearly one-third of the buyers who received seller recommendations from NEO ended up sending a project brief to the seller And the overall order conversion is nearly three times that of the market base average. This really gives us confidence and excitement in the potential we could unlock by investing in AI matching technology. The strong Q1 results together with the momentum we are seeing across going up market and AI are giving us confidence in delivering the targets we set for this year. Of course, we are not here just to deliver the year, but rather to drive the next wave of work transformation and AI innovation. So many exciting product initiatives are happening at Fiverr right now, as we work tirelessly towards our summer product release. Without jumping the gun on the release, I want to give you some color on how we are thinking about the business and the opportunity more broadly. I'll expand on three areas, product leadership, data and AI matching, and brand and traffic. First, let's talk about product leadership. We have been a product-led company ever since we started in 2010. We pioneered the concept of service as a product and built an extensive service catalog covering any digital service you can think of, turning a super opaque inefficient experience of hiring a freelancer into a modern, delightful e-commerce experience. Our product innovation pace picked up even more in recent years as the scale of our marketplace significantly expanded. This includes monetization products such as Promoted Gigs and Seller Plus, AI innovation such as Logo Maker, AI Auditions, to the latest groundbreaking Fiber Neo. business solutions offering such as Project Partner and Fiverr Certified, and numerous products and features such as Fiverr Discover, Milestone, and Subscriptions that empower our community to work better and smarter. We're always leading the curve of innovation that powers growth, not only for us, but for the industry. As our teams work towards our July product release, we are focusing on deepening trust and leveraging AI to reimagine every aspect of the customer journey. This includes improving our catalog and building new experiences to enable high-stakes, high-trust work to happen on Fiverr. We are strengthening our muscle in knowing our customers better in order to provide them with the better matching, better recommendations, and better customer care, all of which leads to more trust for Fiverr as a platform. We are already seeing some of the benefits in unlocking wallet share and driving a niche shift towards complex services on Fiverr. And we are going to see more impact down the road. Second, data and AI matching. Fiverr is unique in the sense that we are not just a platform that connects businesses with freelancers, the entire work actually happens on Fiverr. And that is really the secret sauce that enables us to do matching in such a simple, accurate, and seamless way. With generative AI, there's incredible potential to take that experience to a whole new level. Just to give you some idea of the scale we operate. In 2023, over 38 million files were exchanged on our platform And on average, 2.5 million messages were sent between buyers and sellers on a daily basis. We are experimenting with GenAI technology on how to unlock the potential of that massive data on Fiverr in order to enable buyers and sellers to have more information, search and browse in new ways, ask more complex questions, and ultimately make better, more informed choices on Fiverr. Third, brand and traffic. Fiverr has built one of the most recognizable brands in our industry, leading in aided and unaided brand awareness among other freelance marketplaces. Fiverr.com continues to be one of the highest traffic websites as businesses of all sizes come to fulfill digital services and freelancer talent across the world come to find opportunities. This gives us a lot of opportunity to bring helpful GenAI features and capabilities to people everywhere and improve their businesses. As we continue to build our brand equity, we believe the opportunities lie not only in the U.S., where we have the strongest foothold, but there is also a potential to grow international awareness. We have been especially successful in our recent efforts across the UK, Germany, and France, where we partnered with local influencers to launch various campaigns. There is also a lot to do in expanding our reach and channels with business customers, and we have barely scratched the surface. So these are the key competitive modes that we enjoy today, and we will continue investing in down the road. This time last year, I shared with you how excited I am with the GenAI development and how I think it's going to be a multi-year tailwind for Fiverr. I'm really pleased to say that over the past year, the entire Fiverr team has turned that excitement into ideas and projects already operating across our platform, and we are going to see many more of them coming to fruition this year. I'm very excited about what's to come and can't wait to share those updates with you in the coming quarters. With that, I'll turn the call over to Ofer, who will share some financial highlights.