Fiverr International Ltd.

Good day and welcome to the Fiverr International Limited Q3 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, This event is being recorded. I would now like to turn the conference over to Emily Greenstein, Senior IR Management. 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, 2026. Joining me on the call today are Micha Kaufman, founder and CEO, and Esti Levy Dadon, CFO. Before we start, I would 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 FIBR 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 FIBR's most recent Form 20-F 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 and our shareholder letter, each of which is available on our website at investors.fyber.com. And now, I will turn the call over to Micha.

Thank you, Emily. Good morning, everyone, and thank you for joining us. Let me start with the headline. Q3 came in ahead of our guidance. We delivered revenue of $90.9 million, above the top end of the $80 to $88 million range we gave you in July. Adjusted EBITDA was $14.5 million, a 16% margin, also well above our range. The beat was led by our services business, where AutoDS and our e-commerce offering performed better than expected and the momentum is carrying into Q4, along with tight cost management across the company. Three months ago, we told you we would run this business with discipline through a hard transition. This quarter, we did exactly that. This quarter is also a good reminder of how we run Fiverr. We are one business with diversified lines of revenue and profit. and we manage it as one to make the top line as large and fast growing as possible and as profitable as possible. Within that, we are working to turn around our marketplace and that is exactly what the transformation I'm about to walk you through is for. Esti will walk through the details, but I want to use my time on two things. What is changing in how work gets found and how we plan to win in the new world? What is changing? For 17 years, Fiverr built one of the best performance marketing engines on the internet, on top of search. That world is changing fast. More and more journeys now start and end inside an AI assistant. Organic clicks are falling across the web, and acquisition costs are rising for everyone who depends on them. We expect that pressure on marketplace traffic to continue into 2027. But here is what has not changed. The work The work that remains is more complex and more valuable. That work needs a human who owns the outcome. Our top talent community remains highly engaged. This year alone, we hosted 62 events with more than 3,500 freelancers. Most of them are top talent. Put simply, this is not a talent problem. It is a funnel problem. and Funnels can be rebuilt. So, how are we going to do it? Our North Star is unchanged, to become the most trusted platform for high-value, high-trust work. Let me show you the progress across our four pillars. First, our push-up market. High-value work now represents 16% of completed projects' gross order amount on a trailing 12-month basis, up from 15% last quarter.