Fiverr International Ltd.

Good day and thank you for standing by. Welcome to Fiverr third quarter 2024 earnings conference call. At this time, all participants are in the 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 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Jingjing Qian, EVP Strategic Finance. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the third quarter that ended September 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 measure is provided in the earnings release we issued today and our shareholder letter, each of which is available on our website at investor.fiverr.com. And now I will turn the call over to Miha.

Thank you, Jinjin. Good morning, everyone, and thank you for joining us. We delivered a tremendous third quarter with both revenue and adjusted EBITDA exceeding the high end of our guidance range. By successfully executing our strategy to go upmarket, expand value-added services, and deliver innovative AI-powered experience, we are able to grow a higher-quality buyer base drive robust growth in spend per buyer and strong expansion intake rates. All of these efforts are clearly paying off, allowing us to accelerate our revenue growth this quarter. This is not an easy task considering that the entire professional staffing industry is down double digits year over year and overall SMB sentiment still lingers around historically low levels. The fact that we are able to accelerate our growth under such macro conditions underscores the strength of our vision and strategy and our impeccable ability to execute them. We also continue to deliver steady improvement in adjusted EBITDA and strong cash flow generation. Last quarter, we laid out a three-year target plan for adjusted EBITDA and free cash flow. With strong execution in Q3, I'm confident that we are well on track to deliver these targets. Our strong financial position allows us to aggressively invest in products and technology to drive growth while at the same time returning capital to shareholders and driving shareholder value. Fiverr's strategy has always been to relentlessly focus on creating customer value and building the most beautiful innovative and simple-to-use products to transform the way people work. One thing that became clear to me in the last year is that with the emergence of GenAI and the promise of AGI, the next generation of products we build must empower our community to fully leverage artificial intelligence. It also became clear to me that in the future, the best work will be done by humans and AI technology together, not humans alone or AI alone. With that in mind, the role of Fiverr must broaden from a talent marketplace to a comprehensive work platform where incredible work happens. This means that every business that comes to Fiverr will have a world-class AI assistant to help them get things done From ideation, scoping, and briefing to product management and workflow automation. It means that they can seamlessly leverage both human talent and machine intelligence to create the most beautiful results. Fiverr has a long history of pioneering the industry with innovative products, and this is what we will do with AI as well. We are already starting to put a few pieces together to build towards this long-term vision. On the buyer side, we are building a new search experience that not only includes more dynamic catalogs, but also incorporates Neo, an AI powered smart matching tool to help customers match with more contextual information. We launched dynamic matching. to allow buyers to put together comprehensive briefs with a powerful AI assistance and then get matched with the most relevant freelancer with a tailored proposal. These products allow businesses to fulfill much more complex projects on Fiverr without losing the speed, simplicity and convenience that they love Fiverr for. Even In the few weeks since we launched these products, we have already seen an enthusiastic reception from our community and promising performance. The projects that come through these products are several times larger than the typical projects on Fiverr. And we believe it has a lot more potential down the road as the awareness and trust of these products grow on the platform. On the talent side, we are building the infrastructure to allow us to more efficiently distribute software tools that integrate with the work that is done on the platform. Some of the tools are built in-house, such as promoted gigs and seller plots. Some of these tools are through acquisitions, such as AutoDS. And we believe there will be a lot of opportunities down the road to expand these value added services through partnerships as well. Lastly, I want to say a few words about Fiverr Pro. As you know, Fiverr Pro is a premium offering we launched to grow our penetration into larger businesses with larger freelancing budgets. We started by providing businesses with collaboration tools, white glove services, and a fully vetted catalog in order to drive better conversion, engagement, and retention among buyers with the highest lifetime value. Now, with our product expansion into professions, dynamic matching, and hourly contracts, and services such as product management, we are further leaning into these buyers to capture their budgets on long-term freelance engagement. Many of you have asked us what our right to win is in this segment of the addressable market. I want to point out to you two things. First, we have a very large top of funnel, which allows us to acquire enterprise customers in a super efficient manner. Most Fortune 500 companies already have employees who are on Fiverr and are using our services. This bottom-up approach allows us to scale with very light sales and accounts teams. Second is our technology stock. The speed, simplicity, and convenience of Fiverr is fundamentally different from a typical staffing solution, from onboarding to compliance to payment and reporting Fiverr is so much easier compared to a self-serve solution and so much more cost effective compared to a managed solution. And as I mentioned before, it is going to get even better as we implement AI capabilities further into our platform. To close, I'm super excited about the many opportunities that are ahead of us with the strong results in Q3. We are looking forward to wrapping up 2024 on a high note and can't wait to kick off another year of growth and innovation. With that, I'll turn the call over to Ofer, who will share some financial highlights.