Fiverr International Ltd.

Good morning and thank you for standing by. Welcome to the FIBA second quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during the session, you need to press star 11 on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw a question, please press star 11 again. Please be advised that today's conference has been recorded. I would now like to hand the conference over to our first speaker today, Jingjing Chan. 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 that ended June 30th, 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 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 20F and other filings with the SEC. During this call, we'll be referring to some key performance metrics and non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, and free cash flow. Further explanation and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measures is provided in the earnings release we issue 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. Our Q2 results demonstrate continued strong execution and the resilience of our business. Both revenue and adjusted EBITDA came in above the midpoint of our guidance as we continue to expand customer wallet share and improve monetization. We are committed to driving profitable growth and delivering shareholder value in a fluid environment. I'm pleased to report that we have completed the 100 million buyback program announced in April. We remain highly confident about the long-term opportunity of our business and believe our strong cash flow and strong balance sheets allow us to invest in our business while returning capital to our shareholders. I'm very excited to be here today. It has been an incredibly busy and fulfilling few months at Fiverr, culminating in the announcement of our summer product release last week. I want to thank our entire team for their hard work. The level of energy and dedication, especially in the last few weeks, reminded me of Fiverr's early days when we were just a small startup. Fittingly, we are starting up a number of new ventures as we look to take our business to the next level. First is the expansion of Fiverr to enable freelance hiring capabilities. With the introduction of profession-based catalog and the ability to initiate time-based transactions and contracts, we are enabling businesses to hire long-term freelancers who act as part of the team with ongoing tasks and goals. This is not an area we competed historically, but as we increasingly go up market and lean into complex service categories, it becomes essential to round up our offering. We believe it will significantly expand our direct addressable market, allowing us to open up top of funnel specifically for traffic with long-term hiring intentions. It will allow us to capture more of our customers' overall freelance hiring budget. The expansion of Fiverr to a multi-solution platform that enables long-term hiring is also an important message to our community. In an environment where AI seems to have the potential to upend many professions, the line between human services and AI-generated services is blurring. The professions-based catalog puts talent at the center of the marketplace experience. To our buyer community, it underscores our value proposition in connecting them with the best human talent around the world for authentic creative work. To our talent community, the mission of Fiverr since day one has always been to bring them opportunities and empower their success and the commitment has not changed in the face of AI. It is our passion and responsibility to help talent navigate the changing landscape, discover their skills and translate them into a career. Earlier this month, we unveiled our first ever breakthrough achievement recognition to celebrate freelancers who have achieved significant earning milestones on Fiverr. It is extremely rewarding and inspiring to see people making 1 million or even 5 million throughout our platform by just doing what they love. Whether you're a musician or script writer or Shopify expert, and no matter where you come from, it is all possible on Fiverr. The second theme of our summer product release is deepening the integration of Neo. Fiverr's AI tool throughout the marketplace experience. As GenAI applications quickly shift consumers' internet behavior and expectations, we want to stay ahead of the curve to build a more personable experience on Fiverr. At the same time, tests and data in the past six months have shown that not everyone prefers the outright chatbot experience when it comes to shopping. So our strategy for Neo is to incorporate it as an assistant throughout the funnel to help customers when friction arises. For search, Neo provides the guidance you need to navigate Fiverr's massive catalog of services and talent. And it is trained to understand customers' past transactions and preference to provide the most relevant recommendations. When it comes to project briefing, having Neo is like having a strategist by your side. It transforms customers' ideas into a structured brief document that not only looks good, but also delivers better business results. Neo can also help customers write more detailed reviews faster by generating content based on transactions and providing language assistance. We are in the early innings of unleashing the full potential of AI in our marketplace. And we believe it will be a multi-year tailwind for us to drive product innovation and growth. Lastly, I want to say a few words on the acquisition of AutoDS. For us, the deal is strategic for a number of reasons. Fiverr was founded on the belief that everyone should have the opportunity to find financial independence. The creator economy is the epitome of this community. And competitively, we have a strong foothold in this segment. We are passionate about continuing to support and empower this community. Like the Fiverr millionaires that I've mentioned earlier, there is something emotional gratifying in witnessing and contributing to their amazing stories. Secondly, While dropshipping is not exactly a new business, with the rise of fast-fashion e-commerce sites like Temu and Shane and the continued strength of social media, we are seeing dropshipping-related categories experiencing tremendous growth on Fiverr. That includes Shopify development, e-commerce management, video ads, and UGC videos, to name a few. We believe the deal can create many synergetic opportunities for us to lean into growth. Lastly, in alignment with our expansion to a platform play, we are taking the opportunity to fold in new subscription-based revenue stream with strong synergy and growth potential. This will add to our value-added product portfolio, which includes promoted gigs and seller plus, and further strengthen our business overall financial profile. To wrap up, we are expanding our business from a simple marketplace to a complete freelance talent platform for businesses of all sizes. We are also diversifying our business model to capture customers' freelance spending and provide them with multiple value-added products and software solutions. We continue to operate at the highest level of discipline to drive consistent margin expansion and free cash flow generation. We are committed to profitable growth, robust free cash flow, and a disciplined capital allocation strategy that aims to deliver long-term shareholder value. With that, I'll turn the call over to Ofer, who will share some financial highlights.