Fiverr International Ltd.

good day and thank you for standing by. Welcome to the Fiverr Q4 earnings conference call. At this time all participants are in a listen-only mode. After the speaker's presentation there'll be a question and answer session. To ask a question during the session you'll need to press star 1 and 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question please press star 1 and 1 again. Please be advised today's conference is being recorded. I'd now like to hand the conference over to your first speaker today, Jinjin Chen. 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 that ended December 31st, 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 Factors 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 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. As we close another year, I've honestly never been more excited by what we've achieved and how it's positioning us for 2025. We delivered incredible execution throughout 2024, capped off by an outstanding Q4 with 13% revenue growth and a 20% adjusted EBITDA margin. This puts us firmly in the elite group of companies hitting the rule of 30, no small feat, especially at a time when our entire industry is facing macro headwinds. We executed with discipline, just as we said we would, and made steady progress towards our three-year targets. We maintain a high velocity of innovation and continue to solidify our position as a leader in the freelancer economy. Our strategy is straightforward. On the one hand, pursuing quality of revenue and upmarket opportunities in the market-based segment. On the other hand, expanding our offerings and diversifying revenue in the services segment. This has clearly paid off, allowing us to drive double-digit growth under macro headwinds. All of this momentum provides us with a very strong setup for 2025, where we believe we can continue to deliver rule of 30. At the center of our success is our freelancer community. For the past 15 years, Fiverr has always stayed true to our mission of empowering talent around the world to grow and succeed. We grow only when they grow and we succeed only if they succeed. We pride ourselves on being the most talent-focused freelancing platform with the biggest and most robust global community. To give you some idea of the scale of things, in 2024 alone, we hosted about 100 community events in every corner of the world with an aggregated of over 100,000 registrations into these events. Our public forum actively facilitates over 10,000 discussions with nearly 1 million interactions among our community members. Hundreds of thousands of freelancers see Fiverr as the go-to platform to build and grow their careers. It is through this scale and intimacy with our community that we know it hasn't been the easiest time for freelancers and creators. The high interest rates and inflation are putting pressure on their day-to-day life, and the rapid advancement of artificial intelligence feels like barbarians at the gate. threatening to exploit their creative assets and creative rights. It is under those premises that we announced two groundbreaking initiatives to demonstrate our continued commitment to our talent community. First is the launch of Fiverr Go. Fiverr Go is an open platform for personalized AI tools that include the personalized AI assistant and the AI creation model. Different from other AI platforms that often exploit human creativity without proper attribution or compensation, Fiverr Go is uniquely designed to reshape this power dynamic by giving creators full control over their creative process and rights. It also enables freelancers to build personalized AI models without the need to collect training data sets or understand AI engineering thanks to Fiverr's unparalleled foundation of over 6.5 billion interactions and nearly 150 million transactions on the market base. And most importantly, it allows freelancers to become a one-person production house, making more money while focusing on the things that matter. By giving freelancers control over configuration, pricing, and creative rights and leveling the playing field of implementing AI technology, Fiverr Go ensures that creators remain at the center of the creative economy. It decisively turned the power dynamic between humans and AI towards the human side. It's a refreshing and unique approach to Gen AI, just like how our service as a product model provides a unique mechanism that fundamentally changed the dynamics of freelancing 15 years ago. For customers, Fiverr Go is also fundamentally different from other AI platforms. It is gen AI with human accountability. AI results often feel unreliable, generic, and very hard to edit. What is good enough for a simple question and answer on charge APT does not cut it for business mission critical tasks. In fact, Many customers come to Fiverr today with AI generated content because they miss the confidence that comes from another human eye and talent helping them perfect the results for their needs. Fiverr Go eliminates all of this friction and frustration. Every delivery on Fiverr Go is backed by the full faith of the creator behind it with an included revision as the freelancer defines. This means that the quality and service you get from Fiverr Go is no different from a direct order from the freelancers themselves, except for a faster, easier, and more delightful experience. The personalized AI assistant on Fiverr Go can communicate with potential clients when the freelancer is away or busy, handle routine tasks, and provide actionable business insights, effectively becoming the creator's business partner. It often feels smarter than an average human assistant because it's equipped with all the history of how the freelancer works, as well as knowledge of trends and best practices on the Fiverr marketplace. And we didn't stop there. To take the future of work to the next level, we've also announced an open developer platform on Fiverr Go to allow AI specialists and model developers to build generative AI applications across any discipline. We provide them with an ecosystem to collaborate with domain experts on Fiverr and the ability to leverage Fiverr's massive data assets so that these applications can solve real world problems. And most important of all, Fiverr provides them an avenue to generate revenue from those applications through our marketplace. We are envisioning a very exciting future of work here as Fiverr Go can turn any individual into a powerhouse and supercharge their earnings potential. The second initiative we announced along with Fiverr Go is a brand new freelancer equity program, an industry first initiative designed to give top performing freelancers equity shares of Fiverr. We have been wanting to do this for a while and we are extremely happy to finally make it happen. Just as Fiverr Go empowers freelancers to scale like never before, The Freelancer Equity Program ensures that our freelancer community does not just help us shape the future of work, they own a piece of it. I'm very excited about these bold moves. As freelancers increasingly become the backbone of our economy, and as AI technology promises transformative shifts to the way people work, I firmly believe that Fiverr is uniquely positioned to lead the innovation and drive the industry forward. With the depth and breadth of data we have, the expansive scale of categories, buyers and sellers we cover, and the deep technological expertise we have built over the years, we can empower a robust ecosystem of humans and AI that deliver beautiful results for customers while supercharging freelancers' earning power. Finally, I would like to take this opportunity to thank our incredible team for building what very few teams in the world can build with passion, velocity, and determination. All of this could not have happened without this world-class team. With that, I'll turn the call over to Ofer.