Fiverr International Ltd.

Good day and thank you for standing by. Welcome to the Fiverr Q1 2025 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 and 1 on your telephone. You will then hear an automated message advising your hand is raised. And to withdraw your question you can press star 1 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 Chin. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you for joining us for Fiverr's earnings conference call for the first quarter that ended March 31st, 2025. 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 findings 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. I'm pleased to kick off 2025 with a strong first quarter, exceeding expectations in both revenue and adjusted EBITDA. This performance reflects the strong execution across market base and services segments. I'm proud of how our teams have been laser focused on delivering impactful products at a high velocity and driving progress towards our strategic priorities. We made good wins with Fiverr Pro this quarter, and early signs of Fiverr Go show strong engagement and meaningful conversion improvement. I'll talk about both in more detail shortly. The past few months have been quite dynamic on the macro front. In the world where we operate, however, the overall demand for freelancing has been stable. Our business has no direct exposure to tariffs, and we believe that Fiverr's compelling value proposition, offering a competitive edge, speed, agility, and cost-effectiveness may become even more attractive as businesses navigate an evolving economic climate. Our updated guidance reflects our confidence in the business for the remainder of the year. The three strategic priorities we set for this year are strengthening the marketplace by going upmarket, expanding value-added services as a key growth catalyst, and investing in AI to drive long-term upsides in the business. We talked a lot in the past quarters about leaning into value-added services to drive growth in the current environment. And you can clearly see that through the services revenue disclosure we started providing last quarter. Today, I want to talk more about the other two efforts, going up market and AI, and how we've made exciting progress in those areas that allowed us to drive incremental volume on our marketplace. Since launching Fiverr Pro as a business solution suite two years ago, we have continued to invest in rounding up the product offerings. Today, with Fiverr Pro, Clients can access a premium marketplace with high-quality vetted supplies, submit a job request via dynamic matching, and get a short list of recommended sellers, utilize product management to get end-to-end support for large projects, and contact a customer success manager to discuss needs directly. All of this in addition to the broader marketplace we've operated. This array of products not only provides a tailored experience for customers based on their needs and preferences, but it's also highly effective from a business perspective. It allows us to efficiently drive buyer conversion via the shortest path and cross-pollinate customer leads between the products so that we can win customers from the most efficient channel and maximize conversion across the platform. Thanks to our efficient enterprise go-to-market strategy, in Q1, we managed to close few large deals in the range of hundreds of thousands of dollars without the need for typical sales organization with complicated sales process and long sales cycles. One of the deals was with a large book publishing company, which utilizes Fiverr's freelancers for book editing and proofreading services across English, German, French, and Spanish. After finding success on the marketplace with $15,000 spending, the client scaled quickly to find a $200,000 engagement through Fiverr Pro to help them with hundreds of children's books. They also decided to leverage the project management services to help orchestrate all freelance operations on their behalf. Another example is a leading online education company in the U.S. that transitioned its YouTube video production to Fiverr. Following a successful proof-of-concept project supported by our customer success team, they recognized the superior value and efficiency of our platform. Fiverr's capacity to deliver high-quality outcomes at scale with rapid turnaround is instrumental in scaling their YouTube channel, offering a clear advantage over their previous reliance on traditional digital agencies. These successes are a testament to the power and scalability of the Fiverr platform for enterprise clients. On Fiverr Go, following the landmark launch event in February, we've consistently seen strong engagement among both sellers and buyers. Over 6,000 top quality sellers on Fiverr have activated Fiverr Go and over 200,000 buyers have interacted with the product. While still early, initial signals around conversion have been highly encouraging. For sellers who activated Personal Assistant, we saw one-hour conversion uplift of 56% and 14-day conversion uplift of 10% compared to their historical average. This means that because Personal Assistant is always on and can respond to buyers immediately, with the ability to reference seller experience, suggest pricing, and ultimately close deals, it allows sellers to convert meaningfully better and faster. We are also thrilled to see buyers actively engaging with the playground to explore and understand the unique offerings of each seller. The power of Fiverr Go lies in its personalized and humanized model, drawing exclusively from each seller's portfolio and history on our platform. This ensures that the generated visuals authentically showcase their style and quality, enabling buyers to make informed decisions with increased confidence. This also led to amplifying visibility for our most exceptional high-caliber sellers. While still early, these promising signals reinforce our confidence in GenAI's transformative potential to elevate the marketplace experience, fundamentally redefining how buyers and sellers connect and collaborate. Moving forward, we will continue expanding both category coverage and seller access. We will also strategically integrate the Fiverr Go experience further into our marketplace, broadening its influence early in the buyer journey. We are incredibly excited about the momentum we've built in Q1 and the trajectory it sets for the rest of the year. Our strategic focus on going upmarket, expanding value-added services, and leveraging the power of AI positions us for continued success. The innovations we are bringing to the market are not just incremental changes. They are fundamental shifts on how work is done. And we are leading that change. We look forward to sharing the continued progress with you in the coming quarters. And with that, I'll turn the call over to Ofer.