Q3 2023 Fiverr International Ltd Earnings Call
Okay.
Speaker 1: Good day and thank you for standing by. Welcome to the Fiverr Q3 fiscal 2023 earnings conference call. At this time, we'll participate in Thurna Listen only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised.
Good day and thank you for standing by welcome to the fiber Q3 fiscal 2023 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 one one on your telephone you were then.
You're an automated message advising your hand is raised to withdraw your question. Please press star one one again.
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Speaker 1: Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Brian Lan, Investor Relations Manager. Please go ahead. Thank you.
Please be advised so today's conference is being recorded I would now like to hand, the conference over to your speaker today, Brian land in.
Buster Relations manager. Please go ahead.
Thank you operator, and good morning, everyone. Thank.
Speaker 2: Thank you for joining us on Fiverr's earnings conference call for the third quarter that ended September 30, 2020.
Thank you for joining us on fibers earnings conference call for the third quarter that ended September 30th 2023.
Speaker 2: Joining me on the call today are Mihal Kaufman, founder and CEO , and Offer Cats president and CFO .
Joining me on the call today are me, how Kaufman founder and CEO and offer cats, President and CFO.
Speaker 2: 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 Fiverr assumes no obligation to update or revise.
Before we start I.
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 Fiverr assumes no obligation to update or revise them.
Speaker 2: A discussion of some of the important risk factors that could cause actual results to differ materially from any forward-looking...
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 fibers. Most recent form 20-F, and other filings with the S E C.
Speaker 2: can be found under the risk factors section in Fiverr's most recent form 20F and other filings with the F.
Speaker 2: During this call, we'll be referring to some key performance metrics and non- GAAP financial
During this call, we'll be referring to some key performance metrics and non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin.
Speaker 2: including adjusted EBITDA and adjusted EBITDA Mark.
Speaker 2: 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.fiber.com. And now I'll turn the call over to Miha.
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 dot fiber dot com.
And now I will turn the call over to Neil.
Thank you Brian Good morning, everyone and thank you for joining us.
Speaker 3: Q3 was another strong quarter as we continue to accelerate our revenue growth and drive EBDA margin expansion.
Q3 was another strong quarter as we continue to accelerate our revenue growth and drive EBITDA margin expansion.
Speaker 3: Both Revenue and Adjusted Evidance came at the top end of our guidance range. A number of faster
Both the revenue and adjusted EBITDA came at the top end of our guidance range.
A number of factors drove this strong performance.
Speaker 3: The cohorts in our core market base continue to stabilize from the COVID growth spikes. In our push-up market, has allowed us to grow spend-provire at a strong pace. The cohorts in our core market base continue to stabilize from the COVID growth spikes.
Cohorts in our core market base continues to stabilize from the coffee growth spikes.
Push upmarket has allowed us to grow spend per buyer at a strong pace.
Speaker 3: Finally, healthy growth in our value-added services contributed to our take rate of over 31%.
Finally healthy growth in our value added services contributed to our take rate of over 31%.
Speaker 3: All of this was extremely well executed, with continued expense discipline, which is reflected in the strong delivery of our Justa de Bidam.
All of this was extremely well executed with continued expense discipline, which is reflected in the strong delivery of our adjusted EBITDA margin.
Speaker 3: These results underscore the power of our business model and the progress we are making to solidify our position as the global leader of freelancing markets.
These results underscore the power of our business model and the progress we are making to solidify our position as the global leader of freelancing market basis.
Speaker 3: with together with the string and the resilience of the fiber.
This together with the strength and resilience of the fiber team.
Speaker 3: allows us to focus, adapt and thrive amid external
Allows us to focus adapt and thrive.
External changes.
Speaker 3: You all know Israel went through a horrific attack among us.
As you all know Israel went through were horrific attack a month ago.
Speaker 3: Our first priority has been to help our employees, their families in the fiber community and support those that deadly attacks impacted. If...
Our first priority has been to help our employees their families and the fiber community and support those deadly attacks impacted.
Some of our employees are being called up.
Speaker 3: We are ensuring their families will get what they need. Well,
We are ensuring their families will get what they need.
While they are on the Frontlines.
Speaker 3: as a company, we are quickly adopting so that we continue to operate and execute at the highest level of focus and consistency. Thanks to our hybrid operation.
As a company we are quickly adopting so that we continue to operate and execute at the highest level of focus and consistency.
Thanks to our hybrid operation that's already in place.
Speaker 3: Since we laid out our strategy focus this year to strengthen our core market base and accelerate our pace to push up more.
Since we laid out our strategy focus this year to strengthen our core market base and accelerate our pace to push upmarket.
Speaker 3: We have been working on knocking down barriers that prevent buyers from shopping more often and fulfilling more complex projects.
We have been working on knocking down barriers that prevent buyers from shopping more often and fulfilling more complex project.
Speaker 3: We know that fibers you need transaction model and global access to talent provide great convenience and access to our customers that are unmatched anywhere else.
We know that fiber's unique transaction model and global access to talent provide great convenience and access to our customers that are unmatched anywhere else.
Speaker 3: But there are also pinpoints, such as the difficulty of finding the best talent among so many choices.
But there are also pinpoints, especially as the difficulty of finding the best talent among so many choices.
Speaker 3: the uneasiness when a project is only partially scoped.
The uneasiness when a project is only partially scopes.
Speaker 3: or the headache when a project requires coordination between multiple freedom.
Or the headache, when a project requires coordination between multiple freelancers.
Speaker 3: This is why we created products such as Fiber Neo, Fiber Enterprise, and the Project Planning Service in Fiber Pro to address those issues.
This is why we created products such as fiber Neo fiber enterprise and the project planning surveys in fiber pro to address those issues.
The vision for fiber and neo is quite wide.
Speaker 3: We imagine Neil will serve as a personalized recruiting expert that can help our customers more accurately scope their project and get matched with Freon's talent just like a human recruiter, only with more data and more brain power.
Imagine Neil will serve as a personal rights recruiting expert that can help our customers more accurately scope their projects and get matched with Freons talent, just like a human a recruiter only with more data and more brainpower.
Speaker 3: What we have done so far is leveraging the existing LLM engine.
Well, we have done so far is leveraging the existing LLM engines.
Speaker 3: to allow customers to express their project needs in natural language, which Neo will synthesize and define the scope before matching the client with a short list of choices pulled from the entire fiber-free-ance data.
To allow customers to express their project needs in natural language, which Neil will synthesize and define the scope before matching declined with a short list of choices pulled from the entire fiber freelance database.
Speaker 3: It's a substantial step forward from the existing experience and streamlines the time the customer needs to make an informed decision.
It's a substantial step forward from the existing experience and streamlines the time the customer needs to make an informed decision.
Speaker 3: To improve the experience further, we continue incorporating cutting edge technology into our production to advance the algorithm and provide a much faster processing.
To improve the experience further we continue incorporating cutting edge technology into our production to advance the algorithm and provides a much faster processing speed.
Speaker 3: We already see thousands of customers utilizing the service and early results show a positive impact on match quality and delivery.
We already see thousands of customers utilizing the service and early results show a positive impact on match quality and delivery.
Speaker 3: On the fiber business solution side, you are targeting higher end customers.
On the fiber business solutions side, we are targeting higher end customers, expanding our wallet share and expanding our product suite to accommodate more use cases that are sometimes difficult to execute through a typical market base order.
Speaker 3: expanding our wallet share and expanding our product suite to accommodate more use cases that are sometimes difficult to execute through a typical market base order.
Speaker 3: When a customer comes through the funnel without a well-defined product scope, sometimes they need a domain expert to help carry out a specific function of the business, say a social media market X.
When a customer comes through the funnel without a well defined project scope.
Sometimes they need a domain expert to help carry out a specific function of the business say, a social media market expert sometimes they have a vaguely scope project with an evolving roadmap say building a complex mobile app in both cases they are looking for.
Speaker 3: Sometimes they have a vaguely scope project with an evolving roadmap, say building a complex mobile app. In both cases, they are looking for free hands to engage for an extended period of time. This is where five
For free to engage for an extended period of time.
This is where fiber enterprise comes in.
Speaker 3: Through Fiverr Enterprise, clients can manage an ongoing engagement with a pool of freelance talent, continuously update tasks and project milestones, an ongoing budget management.
Through fiber enterprise clients can manage and ongoing engagement with a pool of freelance talent continuously update tasks and project milestones.
And ongoing budget management and payment tools.
Speaker 3: This allows us to address the freelancing need of larger businesses.
This allows us to address the freelancing need of larger businesses.
Speaker 3: that otherwise might be stuck with a complexity of creating detailed scope for open-ended goals at the beginning of the product.
That otherwise might be stuck with the complexity of creating detailed scope for open ended goals at the beginning of the project.
Speaker 3: Finally, in Fiverr Pro, we are seeing great traction for the newly introduced Project Partner Service.
Finally in fiber pro we are seeing great traction for the newly introduced project partner service.
Speaker 3: Since its launch last year, we've seen many business customers utilizing the service to fulfill significantly larger projects.
Since its launch last year, we've seen many business customers utilizing the surveys to fulfill significantly larger project.
Speaker 3: We've further expanded the offering to include separate project planning and project management services to cater to a wider range of
We further expanded the offering to include separate project planning and project management services to cater to a wider range of businesses.
Speaker 3: The project planning offering is a popular option among customers. We need help with scoping and staffing. And we have found that most customers use the project planning capabilities and end up utilizing the full project management capabilities as well.
The project planning offering is a popular option among customers, who need help with scoping and staffing.
And we have found that most customers who use the product planning capabilities end up utilizing the full project management capabilities as well.
Speaker 3: As you can see, there have been a lot of exciting developments that's the
As you can see.
There have been a lot of exciting developments at fiber this year less.
Speaker 3: leveraging the flywheel of our market base build over the years. We are taking our business to the next level with new products and services that cater to a wider range of customers and their needs.
<unk> the flywheel of our market base build over the years, we are taking our business to the next level with new products and services that cater to a wider range of customers and their needs.
Speaker 3: There is tremendous potential for us to expand our customer base and grow their wallet share with us. And we should be able to build on these opportunities in the years ahead.
There is tremendous potential for us to expand our customer base and grow their wallet share it with us and we should be able to build on these opportunities in the years ahead.
Speaker 3: With that, I'll turn the call now to offer who will walk you through our financial highlights. Thank you, Micha.
With that I'll.
I'll turn the call now to offer.
Walk you through our financial highlights.
Thank you Michelle and good morning, everyone.
Speaker 4: We delivered another quarter of strong resolve driven by the resilience of our cohort, our recent upmarket effort, as well as growth in our evaluated seller services. Revenue.
We delivered another quarter of strong results driven by the resilient power cohort.
Our recent upmarket effort as well as growth in our value added services.
Revenue was $92 5 million.
Speaker 4: Representing the irreverible growth of 12.1%
Representing the real growth of 12, 1%.
Speaker 4: adjusted EBITDA was 16.5 million or 17.9% in adjusted EBITDA margin. Both were at a
Adjusted EBITDA was $16 5 million or 17, 9% and adjusted EBITA margin.
Both were at the top end of our guidance range for the second quarter in our own. We have also achieved GAAP profitability. Thanks to our ongoing efforts in improving our operational efficiency.
Speaker 4: For the second quarter in our home, we have also achieved gap profitability thanks to our ongoing effort in improving our operational efficiency.
Speaker 4: All of this demonstrated the impact of this tragedy we set at the beginning of the year, the strong execution of our team, as well as the strength of our business.
All of this demonstrated the impact of the strategy, we set at the beginning of the year.
Execution of our team.
As well as the strength of our business model.
Speaker 4: Our annual Arctic buyer, where at 4.2 million, a spent buyer improved to $271, up 4% of the year, and a $6 increase from Q.
Our annual active buyer.
At $4 2 million as penta buyer improved to $271.
Up 4% year over year, and a $6 increase from Q2.
Speaker 4: Our fighter business solutions continues to make a meaningful progress as we urge more partners to certified and onboard customers to our premium marketplace.
Our fiber business solution continues to make meaningful progress as we add more partners to certified and onboard customer total premium marketplace fiber prices.
Speaker 4: This effort helped to drive the accelerated pace of our spent our buyer increase as our buyer base continues to evolve towards higher quality, higher budget democer.
These efforts helped to drive the accelerated pace of our spend per buyer increase.
As our buyer base continues to evolve towards higher quality higher budget demography.
Speaker 4: continue to maintain strong efficiency and unit economics in our performance market.
We continue to maintain strong efficiency and unit economics.
Our performance marketing.
Speaker 4: This quarter, our TROI for performance marketing remains very stable at slightly over three months.
This quarter, our Cri for performance marketing remains very stable at slightly over three months.
Speaker 4: On a longer time basis, our lifetime value 2CAC over 3 years remains healthy at over 3x and for 5 years exceeds 4x.
On a longer term basis, our lifetime value to CAC over three years remains healthy at over three X and for five years exceeds four X.
Speaker 4: We expect to continue to invest as efficiently as possible as we push forward on our upmarket efforts and focus our investment on higher value buy.
We expect to continue to invest as efficiently as possible as we push forward on our upmarket effort and focus our investment on higher value buyers.
Speaker 4: Our Q3 take rate improved to 31.3%.
Our Q3 take rate improved to 31, 3%.
Speaker 4: representing a year-over-year expansion of 130 basis points as we increase seller monetization of promoted gigs and seller.
Presenting.
Pension at 130 basis point, as we increased seller monetization of promoted gigs and seller plus.
Speaker 4: continue to expand and optimize our ad placement for promoted geats.
We continue to expand and optimize our AD placement for promoted gigs.
Speaker 4: while seller plus benefited from the introduction of our two tier pricing model that will launch a Iran.
While solid plus benefited from the introduction of our two tiered pricing model that we launched a year ago.
Speaker 4: We are excited to report that seller plus subscribers have now reached 25,000 more than double from the end of last year.
We are excited to report that <unk> plus subscribers have now reached 25000 more than double from the end of last year.
Our improving take rate.
Speaker 4: Signify the value that we are able to provide for our freelancers and we continue to develop additional tools to help them grow their businesses.
Signifies the value that we are able to provide our freelancers and we continue to develop additional tools to help them grow their businesses.
Now turning to guidance.
Speaker 4: In the immediate weeks after the onset of the war, we experienced some volatility in our marketplace.
In the immediate weeks after the onset of the war, we experienced some volatility in our marketplace.
Speaker 4: primarily from buyers and sellers in countries in the region.
Primarily from buyers and sellers and countries in the region.
Speaker 4: This volatility has already created a headwind to revenue discourse.
This volatility has already created a headwind to revenue this quarter.
Speaker 4: While some of this volatility has subsided, there is currently increasing again, remain.
While some of this volatility has subsided the risk of it increasing again remain.
Speaker 4: and we have incorporated the risk into our outlook for the remainder of the year. As such, for the full year of 2023, we will continue to work with you to make sure that you are prepared and that you are prepared for the future. Thank you.
And we have incorporated this into our outlook for the remainder of data.
As such.
For the full year of 2023.
Maintaining our revenue guidance in the range of $358 million to $365 million.
Speaker 4: 358 to 365 million
Speaker 4: representing a year-over-year growth of six to eight percent.
Representing the real growth up 6% to 8%.
Speaker 4: We are raising the adjusted EBITDA range to be 58 to 60 million, representing an adjusted EBITDA margin of 16.3%.
We are raising the adjusted EBITDA range to be $58 million to $60 million, representing an adjusted EBITDA margin.
Up 16, 3% at the midpoint.
Speaker 4: This implies 4th quarter revenue guidance at 88.1 to 95.1 million.
This implies fourth quarter revenue guidance of 88, 1% to $95 1 million.
Speaker 4: representing a year-over-year growth of 6% to 14%, reflecting the increased uncertainty for the remainder of the year.
Presenting our <unk> growth of six 214%, reflecting the increased uncertainty.
For the remainder of the year.
Speaker 4: We expect adjusted EBITDA guidance of 14.9 to 16.9 million, representing an adjusted EBITDA margin of 17% at the midpoint for the fourth quarter.
We expect adjusted EBITDA guidance of $14 nine to $16 9 million.
Representing an adjusted EBITA margin of 17% at the midpoint for the fourth quarter.
Speaker 4: That said, just as how we have navigated our business through a series of macro conditions in the past few years, we are confident in our ability to continue executing with the strongest discipline
That said just as how we have navigated our business through a series of macro conditions in the past few years we.
We are confident in our ability to continue executing.
With the strongest disciplined focus.
Speaker 4: And a long-term thesis of our business and strong market leading position remained in
And our long term success of our business and strong market leading position remain intact.
Speaker 4: With that, we now turn the call over to the operator for questions.
With that we'll now turn the call over to the operator for questions.
Speaker 1: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.
As a reminder to ask a question. Please press star one one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again, please standby, while we compile the Q&A roster.
Speaker 1: Our first question comes from the line of Ron Josie from City.
Our first question comes from the line of Ron Josey from Citi.
Speaker 5: Great, thanks for checking the question. And I'd be remiss if the first thing out of my mouth wasn't to say we're thinking about you all and the team over there, given all of the events.
Great. Thanks for thanks for taking the question and I'd be remiss as the first thing out of my mouth wasn't to say, we're thinking about you all in the team over there given all of the events.
Speaker 5: And so would love to hear more just how things are going from an operations perspective over you talked about, the revenue had went this upside-it since the start. Any insights on there will be really helpful. And again, we cannot think about you all. And then from a five or neo perspective, despite all this, neo-rollouts is continuing to gain speed. And so, Niko, if you can just talk to us a little bit more about what you're seeing there about some of the early wins and the roadmap would be great. Thank you.
And so would love to hear more just how things are going from an operations perspective, Ofer you talked about the revenue headwind subsided since the start any insights on there would be really helpful and again, where we cannot think about you all and then from a fiber neo perspective. Despite all this neal rollouts discontinued gain speed.
And so if you can just talk to us a little bit more about what youre seeing there about some of the early wins in the roadmap would be great. Thank you.
Speaker 3: Good morning, Ron. Thank you for the first note and the question.
Good morning, Ron Thank.
Thank you for all for the first note and the questions.
Speaker 3: So first of all, I think what we called out is what we've seen since the events of October 7 is that we have seen some volatility in the region. As an example, sellers in Israel have seen weakness in their business for the first two weeks since October 7th. And at this point, mostly that have subsided.
So first of all I think what we called out.
And what we've seen since Steve events of October seven is.
We have seen some volatility in the region.
As an example.
Stellar is in Israel.
<unk> seen weakness in their business for the first two weeks.
So October 7th and <unk>.
At this point.
Mostly that subsided.
Speaker 3: Um, so we see that element, um, is being pretty stabilized right now, but with some factor of uncertainty, uh, depending on how, um, how things will evolve, um, in this region.
So we see <unk> dot element.
As being pretty stabilized right now, but with some factor of uncertainty.
Depending on how.
How things will evolve.
In this region.
Speaker 3: In terms of Fiverr Neo, we're very pleased with the rollout, obviously very, very young product, but we're seeing over 100,000 users that are trying the product.
In terms of fiber neo.
We're very pleased.
With the rollout.
Obviously very very young.
Product, but were seeing over 100000.
Users.
We're trying.
The product.
Speaker 3: And what we're seeing from their experience is that we're able to provide more accurate matches, which is basically what we wanted to do, and have a higher engagement and satisfaction levels.
And what we're seeing from their experience is that we're able to provide more accurate marches.
Basically what we wanted to do.
And have a higher <unk>.
Engagement and satisfaction levels.
Speaker 3: which we're very happy with and the beginning of a repeat usage.
Which we're very happy with and.
The beginning of a repeat.
Usage of over the product.
Speaker 3: So there's a lot of learning as we build this product and what we're doing is really a hybrid of technologies. Some of them are being developed by us. Some are off the shelf.
So theres a lot of learning.
We build this product in.
What we're doing is really a hybrid of technologies some of them are being developed by us.
Some are off the shelf.
Speaker 3: most of the leading companies that are developing LLM, which have partnered with us.
Most of the leading.
Leading companies.
Our developing LLM, which are partnered with us.
Speaker 3: And we're putting this to the maximum. I think a lot of these systems are not yet optimized for large scale and high performance.
And we're putting this to the maximum I think a lot of these systems are not yet optimized for large scale and.
High performance, but.
Speaker 3: But we find our own ways of developing a lot of this technology.
But we find our own ways of developing a lot of this technology.
Speaker 3: to provide a very smooth experience to our customers.
To provide a very smooth experience to our customers and.
Speaker 3: And again, the feedback that we're getting from them is extremely positive.
And again the.
Feedback, we're getting from them is extremely positive.
Thank you Lisa.
Speaker 1: Thank you. One moment for our next question.
Thank you one moment far next question.
Speaker 1: Our next question comes from the line of Doug Ann Moose from J.P. Morgan.
Our next question comes from the line of Doug Anmuth from Jpmorgan.
Speaker 6: Thanks for taking questions. And of course, just want to echo Ron's thoughts as well, thinking about all of you with Fiber. Two questions. Just can you talk more about Fiber Pro and just how customers are using the platform differently? And if there's a way to perhaps quantify some of the increased spending that you're seeing there compared to in the marketplace.
Thanks for taking the questions and of course, just wanted to Echo Ron's thoughts as we're thinking about all of your fiber.
Two questions. Just can you talk more about Fiverr pro and just how customers are using the platform differently and if there's a way to perhaps quantify some of that increased spending that youre seeing there compared to in the marketplace.
Speaker 6: And then secondly, you continue to make really good progress on K-Crate. Any way that you can help us understand is how you think about the headroom and opportunity around promoted gigs and Seller Plus, especially as you continue to expand kind of availability there. Thank you.
And then secondly, you continue to make really good progress on take rate.
Any way that you can help us understand just how you think about the headroom and opportunity around promoted gigs and seller plus especially as you continue to expand kind of availability there. Thank you.
Thank you Doug and good morning.
Speaker 3: So on on Fiverr Pro maybe maybe I'll start in, you know, if I can chime in. Essentially, the way we've built Fiverr Pro is really to tackle a number of different needs. One is the need for vetted talent.
So on fiber pro maybe maybe I'll start in.
Brick and some timing.
Essentially the way we've.
Build fiber proceeds really too.
A number of different needs. One is the need for a better talent. So people that have more experience and have a better portfolio of existing work and then notable clients that comes with it so.
Speaker 3: people that have more experience and have a better portfolio of existing work.
Speaker 3: and the notable clients that comes with it.
Speaker 3: arc lines that are using this product are by definition quality.
Our clients that are.
Using this product are by definition.
Speaker 3: So that is one of the reason why they're using it.
Alrighty centric so.
That is one of the the reason why they are using it.
Speaker 3: However, on top of that, we're offering a number of added value features that comes with being a pro customer, the day love as well.
On top of that were.
Offering a number of added value.
Features that comes with being.
A pro customer.
Speaker 3: And we've, I think we spoke about this before, but we keep extending these features. So the ability to work towards the team on the platform, the ability to do a budget management, to have more sophisticated types of projects getting done.
They love as well.
And we've I think we've spoke about this before but we keep extending these features so the ability to work to work to the team.
One the platform the ability to.
To do.
Budget management.
Two.
More sophisticated types of projects getting done.
Speaker 3: if you do require someone to actually
You.
Do require someone to actually manage the project for you there is.
Speaker 7: manage the project for you, there's an option to have a project manager to run those projects. So by definition, those customers that are using this product are have a, have a, have a, have a project manager to run those projects.
There is an option to have a project manager.
To run those projects. So so by definition those customers that are using this product.
Our hub hub of larger needs.
Speaker 7: They need more experienced freelancers.
They need.
More experienced.
Freelancers or agencies.
Speaker 7: and therefore they're also spending more and retaining better.
And therefore, they're also spending more and retaining better.
And the.
Second question on take rate.
Speaker 3: So basically, it's the one question I think we continue to get since we took the company public.
So basically.
We.
It's the one question I think.
We continue to get since we took the company public.
Speaker 7: And essentially what we said is we do see headroom for growth.
Yeah.
And essentially what we said is we do see.
Headroom for.
Growth.
In every product that we.
We've launched and offered mentioned that in your opening statement is growing.
Promoted listings is one of them seller pluses is another in this has been this has been really.
Adding.
To the take rates, we've had four years ago and how it has been steadily growing since then which is exactly what we said is going to happen.
So the message remains.
Essentially.
We believe that there is more opportunity to continue investing and expanding.
Speaker 7: these offerings and we see that the more we do it, the better games we get from these products.
These offerings and we see that.
The more we do it the better gains we get from these product.
Thank you Mitra.
Thank you.
Thank you.
One moment for our next question.
Speaker 1: Our next question comes to the line of Jason Heilstine from Oppenheimer.
Our next.
Question comes from the line of Jason Health Stein from Oppenheimer.
Speaker 8: uh... thanks for the question and again uh... sending support and taking everyone over there help us understand i mean you've got like i guess
Thanks for the question and again, sending support and thinking of everyone over there.
Can you help us understand I mean, you have got like I guess kind of three factors right. One is just.
Speaker 8: kind of three factors, right? One is just the, you know, the COVID rolloff, the second is just some of the general weakness we're seeing in the economy with SMBs. And then the third is all the progress you're making, kind of moving up market.
The COVID-19.
The Covid roll off the second is just just some of the just general weakness we're seeing.
In the economy with F&B and then the third is all the progress you are making kind of moving up market.
Speaker 8: i mean is there a way i mean at some point we'd love if you broke out you know the the the kind of non-smb business but just maybe help us understand kind of where we are in that and you think you've seen the bottom on the s m b side thank you
Is there a way I mean at some point, we'd love if you broke out.
The kind of non SMB business, but just maybe help us understand kind of where we are in that and do you think you've seen the bottom on the SMB side. Thank you.
Thank you, Jason and good morning.
Speaker 7: I think you're correct to list those different factors. As at this point, we haven't seen any major change that we can call out.
I think you are correct to to list those different factors.
Is this.
At this point, we haven't seen any.
Major change that we can call out.
Speaker 3: meaning, I mean, COVID effect is pretty much a lot, which...
Meaning.
Effective.
Pretty much.
Locked.
Speaker 7: also had us enter a new era of remote work, which is now, you know, being challenged as people are being called to back to the office.
Which also had us enter a new era of remote work, which is now.
Being challenged as people are being called to back to the office.
Speaker 3: What we're seeing with the general economy, the weakness around SMBs as a result of macro, has been pretty steady, meaning it is not becoming worse, but it is not becoming better.
What we're seeing with the with the general.
<unk> the weakness around Smbs.
As a result of macro.
It's been pretty steady, meaning it is it is not becoming worse, but it is not coming at us are becoming better and this is why many quarters ago, we said that his strategy.
Speaker 7: And this is why many quarters ago, we said that as strategy, we are investing in gold.
We are investing in going up market.
Speaker 7: and acquiring or entertaining customers.
And acquiring or entertaining customers.
Speaker 3: who the macro environment impacts less.
The macro environment impact less.
Speaker 3: And if you, if you follow the numbers and you follow the growth of these cohorts,
And if you if you follow the numbers and you follow the growth of these cohorts.
Speaker 7: You will see that we're making great steps in increasing their portion.
You will see that we're making great steps.
And increasing their portion.
Speaker 7: You know, the cores that we acquire today are very different than the cohorts we've acquired in Europe .
The cores that we acquire.
Today are very different than the cohorts, we've acquired a year ago.
Speaker 7: that they know to the point where they spend about 20% more in their first purchase when they join us.
They now.
Now to the point, where they they spend about 20% more enduring first purchase when they join us.
Which is massive and in their lifetime behavior.
Speaker 7: And then their lifetime behavior is much, much different.
Is much much different.
Speaker 7: Some of these things to what we're doing with Fiverr Pro, which has a multiple spent for buyer, then our offer it.
Some of it is thanks to what we're doing with fiber pro which has.
Multiple spend per buyer.
Then our average.
Speaker 3: But it's also how we find and engage with youth culture.
But it's also how we how we find and engage with these customers.
Speaker 7: So this has allowed us to really make the step forward and we're seeing nothing to spend for buyer as well. But we haven't seen any material change in those trends so far. And we're just reiterating.
So so this.
Allowed us to to really make a step forward and we're seeing that in the spend per buyer as well.
But we haven't we haven't.
We haven't seen any material change.
In in those trends, so far and we're just reiterating.
Speaker 7: the fact that we believe that when the market will start recovering, we will have tremendous opportunities for growth.
The fact that we believe that when the market will start recovering we will have tremendous opportunities for growth.
It is it is yet to come.
Thanks for calling.
Speaker 1: Thank you. One moment for our next question.
Thank you.
One moment for our next question.
Speaker 1: Our next question comes in the line of Eric Sheridan from Goldman Sachs.
Our next question comes from the line of Eric Sheridan from Goldman Sachs.
Speaker 9: Thanks so much for taking the question. Maybe one following on Jason's. When you think about the demand environment and turning it back to incremental margins and investments to stimulate growth, you made a lot of progress this year on margins on a very consistent basis. How do you think about the balance of investing in growth as you see signals of a stable to rising environment versus elements of continuing to produce very solid incremental in the business on the margin side going forward? Maybe thinking about in terms of key investments that need to be made and what signals you're looking for to possibly turn on some of the demand investments on the cost side. Thank you.
Thanks, so much for taking the question maybe one following on Jason.
Can you think about the demand environment and trying to get back to incremental margins and investments to stimulate growth you've made a lot of progress this year on margins.
A very consistent basis, how do you think about the balance of investing in growth as you see signals of a stable to rising.
But versus elements of continuing to produce.
Very solid incrementals at the business on the margin side going forward, maybe thinking about it in terms of key investments that need to be made and what signals you're looking for to possibly turn on some of the demand investments on the cost side. Thank you.
Speaker 10: Thank you, Eric.
Thank you Eric and good morning.
Speaker 7: So, you know, essentially, again, I want to reiterate our approach as a business. We are...
So.
Essentially again I want to reiterate our approach of the business, we are a growth company.
Speaker 3: and we double down on growth when growth is a good off.
And we doubled down on growth when growth.
<unk> is a good option.
Speaker 7: And essentially, you know, the way we manage the businesses, we're pushing for the rule 40. It's it's.
And essentially.
The way, we manage the businesses, we're pushing for the rule of 40.
Yes.
Speaker 7: Right. So, you know, we're optimizing growth and profitability profile and putting a sustainable path to maximizing long-term shareholder.
That simple.
Right so.
We're optimizing growth and profitability profile.
Putting a sustainable path.
To maximizing long term shareholder value.
Speaker 3: Right now it seems that it's more on the cohorts of mid-sized businesses and not.
Right now it seems that it's more on the cohorts of mid mid sized businesses and up and less on the micro businesses.
Speaker 3: and less on the micro businesses and the very small businesses.
And the very small businesses.
Speaker 7: which is why we've been doubling down there. And very in mind as well that even though we can, you know, theoretically.
Which is why we.
We've been doubling down there and bear in mind as well that even though we can.
No.
Speaker 3: invest more in smaller businesses right now because of the dynamics of macro.
Theoretically invest more in in.
In smaller businesses right now because of the dynamics of macro.
Speaker 7: efficiency of our marketing spend would get hurt, which I don't think is going to serve anyone. Not us and not the shareholders for the long term, which is why we're resisting the temptation of actually doing that.
Efficiency of our marketing spend would get hurt, which I don't think he is going to serve anyone not us and not the shareholders for.
For the long term, which is why we're resisting the temptation of actually doing that.
Speaker 7: Right now the sentiment is such where to keep the extremely efficient machine that we have and again you can see that in the very short ROI and you can see that in the growing LCD to copyright shows over time that this strategy actually works.
Right now the sentiment is such where to keep the extremely efficient machine that we have and again you can see that in the very short term ROI.
You can see that in the growing LTV to cap ratios over time that this strategy works.
Yes.
Speaker 11: And I think that just to augment on what we have said, I think that we have proven to...
And I think that just to augment that working with a set of things that we have proven through.
Speaker 11: to improve margin in a sunny day and rainy day.
To improve margin in a sunny day.
And a rainy day.
Speaker 11: And I think the plan is to continue this path. There was a long-term EBITDA margin ahead of us. And we're getting there.
And I think the plan is to continue this path.
It was.
No with them EBITA.
Margin ahead of us.
Getting there.
Thank you.
One moment for next question.
Speaker 1: Our next question comes from the line of Matt Farrell from Piper Sandler.
Our next question comes from the line of Matt Farrell from Piper Sandler.
Speaker 12: Thanks guys for letting me ask the questions. Two if I may. The first one, the Q4 guidance range is much wider than you normally provide for a given quarter. And you kind of hinted at the uncertainty you're seeing. Could you walk us through the assumptions or just how to think about you getting to the high end of the range and what would happen to get to the low end of the range?
Thanks, guys for letting me ask the question two if I may the first one the Q4 guidance range is much wider than you normally provide for a given quarter and you kind of hinted at the uncertainty Youre seeing could you walk us through the assumptions.
Or just how to think about you getting to the high end of the range and what would happen to get to the low end of the range.
Speaker 12: And my 2nd question is, I know you're not going to provide any quantitative commentary on next year, but would love to hear some of the strategic priorities for 2024 across various parts of the business. Thanks.
And my second question is I know youre not going to provide any quantitative commentary on next year, but would love to hear some of the strategic priorities for 2024 across the various parts of the business. Thanks.
Speaker 11: So thank you Matt on the question. I think on the on the first start on the guidance.
Okay.
So.
Thank you Matt on the question I think on the.
On the first up on the guidance.
Speaker 11: We noted the volatility that we've been saying the first few weeks of this quarter.
And we noted.
The volatility that we've been saying.
First few weeks of this quarter.
Speaker 11: We guide based on the assumption that the risk of volatility will retain into the the next few weeks.
We guide based on the assumption that the.
The risk of volatility.
We'll retain into the.
Alright, so the next few weeks.
Speaker 11: So based on that, it might be that.
So based on that.
It might be that.
Speaker 11: It might be that volatility will create headwind or the other way and based on the uncertainty, we kind of increase the
It might be that volatility will create headwind.
The other way and based on the uncertainty.
We kind of.
Im Christy.
And clearly the range.
Speaker 11: to make sure that in the capital that the full picture of what we are seeing.
To make sure.
That.
Investor will get the full picture, what we are seeing.
Speaker 11: And the operating plan, I've been adjusted accordingly.
Operating plan.
I have been adjusted accordingly.
Speaker 11: Um, you know, in terms of the, uh, you know, the 2024 has even
In terms of the.
The 'twenty 'twenty four has even.
Speaker 11: You know, why they're uncertainty because, you know,
And our wider uncertainty because.
Speaker 11: still a way to go and we obviously you know we speak about numbers early next year and I let Micha go through the specific profile of 2024.
Taylor.
Way to go.
And we obviously will speak about numbers early next year.
Let me go through the strategic profile.
2024.
Speaker 7: So on priorities for 2024, I would say that a lot of what we've been doing throughout the years have been paying off well. And there's a few specific things when it comes to next year.
So on priorities for 2024.
I would say that a lot of what we what we've been doing throughout the years have been have been paying off well and there is a few specific things when it comes to next year.
Speaker 7: So, you know, continuing on my previous comments, given the macro environment, going up market is a strategic move and target for us.
So.
Continuing on my my previous comments, given the macro environment going up market is a strategic moving targets for us.
Speaker 3: And at least until macro changes, this is the center of focus.
At least until macro changes. This is this is a center of focus.
Speaker 7: The other one that I can call out is AI integration, both internally as a team and how it makes us move faster, more efficient, but also in our product to make the lives of our customers better and get what they're trying to do faster.
The other one that I can call out these is AI integration both internally.
The team and how it makes us move faster more efficient, but also in our product to make the lives of our customers.
<unk>.
And get what they are trying to do faster.
Speaker 7: On the same note pretty much, catalogue expansion is extremely important as we're seeing so many different
On the same note pretty much catalog expansion is extremely important as we are seeing so many different.
Speaker 7: So many new areas of professionalism appear as the landscape changes. And so continue to expand the catalog and ensure that we add the necessary categories.
So many new areas.
Professionalism appear.
As the landscape changes and so continuing to expand the catalog and ensure that we.
That we add the necessary categories and.
Speaker 7: and skills to the catalogue is important. International expansion is another one. I think 2023 has been very successful in that front and we've been, I think the playbook or the playbooks that we've been developing have been paying off and we're seeing regions where we're doubling down, growing much faster than the average growth of the market base.
And skills to the catalog is important inter.
International expansion is another one and I think 2023 has been very successful in that front and we've been I think I think the playbook or the playbooks that we that we have been developing.
I have been paying off and we're seeing we're seeing regions, where we're doubling down growing much faster than the average growth of the market base.
Speaker 3: team excellence is an ongoing investment. And last day, I would just generally call consistently, looking for growth opportunities, both organically and inorganically.
<unk> excellence.
<unk> is an ongoing investment in.
And lastly, I would just generally equal.
Consistently looking for growth opportunities, both organically and Inorganically.
Thank you.
One moment for our next question.
Speaker 1: Our next question comes in the line of Kunal Madhukar from UBS.
Our next question comes from the line of Kunal, Matt <unk> from UBS.
Speaker 13: Hi, thank you for taking my questions. Two, if I could. One, on the take rate given, you know, your focus towards going up market and the increasing adoption of NIO, how do you think that impacts the take rate insofar as it relates to promoted gigs or seller plus?
Hi, Thank you for taking my questions two if I could one on particularly given.
Your focus towards going up market and the increasing adoption of Neil.
The thing that impacts the take rate and so far as it relates to promoted gigs are setup plus.
Speaker 13: And then in terms of volatility on the revenue side, can you help us understand you are a global company? And so is demand across the globe kind of volatile or is it in specific areas? Similarly, on the seller side is the supply affected across the globe or is it just in specific areas? Thank you.
And then in terms of volatility on the revenue side can you help us understand you are a global company and so.
Is demand.
Across the globe kind of volatile is it in specific areas and similarly on the seller side is the supply.
Affected across the globe or is it just in specific areas. Thank you.
Thank you good morning.
Speaker 7: So if I understand the question about take rate, as I said earlier, it is sustainable as we've been proving quarter after quarter with no exceptions. And there is still uptake.
So.
If I understand.
The question about take rate.
Earlier.
It is sustainable.
As we have been proving.
After quarter with no exceptions.
And there is there is still upside.
Speaker 3: You called out promoted gigs and seller class both are growing programs. And they keep growing quarter after quarter. So.
You called out promoted gigs and seller class both are growing programs.
And they keep growing quarter after quarter.
So.
I don't think.
Speaker 3: I'm not sure what's the connection to Neo, but essentially we don't see them shrinking or being impacted.
Im not sure whats the connection to Neil but but essentially.
We don't see.
Them shrinking or being impacted.
Speaker 3: by the new technologies. And it obviously just there's ways of integrating promoted gigs and solutions like that within our new product as well.uell.
But the new technology, then it obviously.
There is ways of integrating.
Promoted gigs and solutions like that within our new product as well.
Speaker 7: In terms of the second question about volatility on revenue,
In terms of the second.
The second question about volatility on revenue.
Speaker 7: you know, we're a global company and that is correct.
We're a global company and that is correct.
Speaker 3: And obviously, some regions, as a result of war activities, and we've seen the same with Ukraine before, and we're seeing it now in the Middle East, become volatile. And sometimes it's very short periods of time. And sometimes it's slightly longer. This is why we called it out. And we said that most of this has
And obviously.
Some regions as a result of Av.
Or activities.
We've seen the same with Ukraine before and we're seeing it now in the Middle East.
Become volatile and sometimes it is very short periods of time and sometimes it's slightly longer. This is why we called it out.
And we said that most most of this has been asked.
Speaker 7: has been subsided, however since wars by definition are dynamic events. It is really...
Ben has been subsided.
However, since wars by definition are dynamic events.
It is it is really.
Hard to.
Speaker 3: hard to forecast how this would evolve and this is why we're putting a bit of cautious into.
Hard to forecast how this would evolve and this is why we're putting it a bit.
Cautious.
In into into anything.
Thank you.
Speaker 1: Thank you. One moment for our next question.
Thank you one moment far next question.
Speaker 1: Our next question comes from the line of Andrew Boone from JMP Securities.
Our next question comes from the line of Andrew Boone from JMP Securities.
Speaker 14: Good morning guys. I'd also just like to echo my thoughts over I think about you.
Good morning, guys.
I'd also just like to Echo my thoughts of our thinking about share.
Speaker 14: on take rates. I understood that that's a trailing equivalent metric and it stepped up almost a point in the last two quarters.
On take rates understood that that's a trailing 12 month metric and stepped up almost a point in the last two quarters.
Speaker 14: So is there anything that you guys can disclose in terms of the take rate as it's at 3Q23, meaning do we have a significant step up and we're plot telling from here, but we'll see it in the figures as that trailing 12 months catches up to 3Q, or how do we think about just the increase of the last couple quarters and then how do we play that going gold?
Is there anything that you guys can disclose in terms of the take rate as it sat in <unk> 'twenty three meaning did we have a significant step up and we're plateauing from here, but we'll see it in the figures as that trailing 12 months catches up to three Q or how do we think about just.
The increase over the last couple of quarters, and then how do we play that going forward.
Speaker 15: So, Andrew, this is awesome. I think we mentioned that.
So Andrew this is often.
I think we mentioned that.
Speaker 15: and plan to now to get.
In the prepared remarks.
The data is driven.
Speaker 4: I promoted Gaid in Cella Plus. Those are the two different programs.
I promoted gigs and seller plants those are the two different program.
Speaker 11: that we are expending for a few, over a few quarters now. Micha mentioned earlier that Seller Plus.
We are expanding for few over a few quarters now.
Mick I mentioned earlier.
That's still a plus.
Speaker 15: and more than 25,000 subscriber which is
And more than 25.
<unk>, which is.
Speaker 15: more than double the number of subscribers we had in the last year. So I think on both of these programs, I think a very
More than more than double.
The number of subscribers.
Doug.
We had end of last year so.
On both of this program.
Hum.
Thing.
Very good retention.
Speaker 15: And the seller plus, you know, we now run to two different fields.
On the solar plus.
Now run to two different.
Deals.
Speaker 15: Two different offerings, different pricing. And I think that's it.
Two different doses offering different pricing.
And I think that is the plan on both program.
Speaker 15: celloplast and promoted gears is to further expand because there is a room.
Plus on promoted gigs is through product expand because there is a whole.
Yes.
Speaker 4: Open the promoted gigs into mobile. There is more asset for us to monetize again. And there's more value.
Open the promoted gigs into into mobile.
So there is more asset for us to monetize again and.
And there is more value.
Speaker 15: To assist teller on the marketplace to better monetize Their skills.
To assist fellow in the marketplace to better monetize.
The skills and time.
Speaker 15: Which is why the adoption, the adoption rate and the retention is.
Speaker 15: is steady and growing and we plan to expand it over the next week.
<unk>.
Steady and growing and we plan to expand it.
The next few quarter.
Speaker 14: Thanks for that, and then I wanted to ask about brand marketing specifically. You guys just launched a new U.S. campaign, how do we think about brand marketing as a component of sales marketing and how that has trended, just given the more difficult macro environment? Thanks.
Thanks for that and then I wanted to ask about brand marketing specifically.
How do you guys just launched a new U S campaign, how do we think about brand marketing as a component of sales and marketing and how that has trended just given the more difficult macro environment. Thanks, so much.
Speaker 7: Thank you. So, for many reasons, mostly competitive, we're not providing an ultra-advert breakdown between brand and performance marketing. However, as evidence in what we're doing around the world, not just in the US, this is an area where we're definitely continuing to invest.
Thank you.
So we for many reasons, mostly competitive we're not providing.
Sure it breakdown between brand and performance marketing however.
Evidence in in what we're doing around the world not just in the U S.
This is an area, where we're we're definitely continuing to invest.
Speaker 3: It's a long-term investment and one that goes hand-in-hand with performance.
It's a long term investment and one that goes hand in hand with performance.
Speaker 7: So to us, it's really the funnel that supports the performance, supports the brand and the brand supports the performance. And this is why depending on new categories that we enter, new areas of interest for us.
So to us it's really the funnel that supports.
Performance.
Supports the brand and the brand support that performance.
And this is why depending on new categories that we enter new areas of.
Interest for us tray.
Speaker 10: trends in the market that defines how we break down between brand and performance. I hope this gives a little bit of color. That was great, thank you.
Trends in the market Dot that defines how we break breakdown between between brand and performance I Hope this gives a little bit of color.
That was great. Thank you.
Thank you one moment for our next question.
Speaker 1: Our next question comes from the line of Marvin Fong from BTIG.
Our next question comes from the line of Marvin Fong from <unk>.
Speaker 16: Great. Good morning. Thanks for taking my questions and certainly hope everyone on the Fiverr team as well and stays that way. Question, I guess, just to pile on here on take rate, you know, big jump this quarter and like Andrew observed is trailing 12 months. But, you know, should we how much of this do you think is perhaps, you know, in tougher economic times, you know, freelancers?
Great. Good morning, Thanks for taking my questions and certainly hope everyone on the fiber team as well and stays that way.
Question, I guess to us.
Pile on here on take rate.
Big jump this quarter and like Andrew observed that it is a trailing 12 month, but.
Should we how much of this.
Or do you think is perhaps in tougher economic times.
Freelancers.
Speaker 16: are sort of doubling down on investing in their business. Did we see any signals of that? So for instance, you know, was bidding prices up for promoted gigs, things of that nature?
We're sort of doubling down on investing in their business do we see any signal of that so for instance.
Bidding prices up for promoted gigs and things of that nature.
Speaker 16: at any any thought there on perhaps kind of the kind of technicality of of the value added services would be interesting.
Any thought there on perhaps kind of the kind of cyclicality.
The value added services could be interesting.
Speaker 7: Sure. Thanks, Marvin. So I'll give it a very, very, very simple answer.
Sure.
Thanks Marvin.
I'll give it a very.
Very very simple answer.
Promoted gigs.
Speaker 3: is an ROI positive program since we learned.
He's an ROI positive program since we launched it.
Speaker 3: It makes money for sellers. It doesn't matter if it's good times or bad times.
It makes money for sellers it doesn't it doesn't matter if it's good times or bad times.
Speaker 3: you know the impact they have is positive. And as long as it's positive, they will continue using it more. And.
The impact they have is positive and as long as it's positive they will continue using it.
More.
Overtime.
Speaker 6: And because of that, in many ways, it is disconnected from the economic times. I hope this addresses.
And because of that.
In many ways.
It is it is.
Disconnected from.
From the economic the economical.
Times.
I hope this addresses.
Sure.
Speaker 16: Understood. Thanks. And then maybe my follow up, you know, a lot less talk on on AI this call.
Understood. Thanks, and then maybe my follow up.
Let's talk on on AI in this call.
Speaker 16: And I guess I'll just lob a question in here. Could you speak to anything about the growth of that of the business? And I guess just interested, I know you won't give us anything specific, but taken as a whole, are these categories related AI
And I guess I'll just lob a question in here.
Could you could you speak to anything about about the growth of the business and I guess just interested I know you won't give us anything specific but taken as a whole are these kind of.
Or is it related to AI that you've launched.
Speaker 17: Um, and let's call it the last year, you know, how, you know, has that become a, you know, pretty measurable part of GMV? Um, any characterization of that would be would be.
And let's call it the last year.
Has that become.
Pretty measurable part of <unk>.
Characterization of that would be it would be great. Thanks.
Yes.
Speaker 7: So, you know, I did the address this also in how we think about the next year.
Sure so.
I did address.
This also in how we how we think about next year.
Speaker 3: the fact that AI both impacts the efficiency of how we work, allows us to do pretty incredible things in our product. And also has an impact, positive impact on the categories that we can introduce.
The fact that AI both impact the efficiency of how we work allows.
Allows us to.
Do <unk>.
Pretty incredible things in our product.
It also has an impact positive impact on the categories.
We can introduce.
Speaker 7: So again, we're not getting into specific category breakdown, but
So again, we're not getting into specific category.
Right down.
But.
Speaker 7: But what we're seeing, you know, what we're seeing on
What we're seeing.
What we're seeing on.
Speaker 7: on the buyer side. You know, I think...
On the buyer side.
I think.
Speaker 7: We've introduced these categories, these categories continue growing. I think that a lot of the hype that's surrounded AI in the beginning of the year subsided and right now it's really looking for the killer applications that could be developed with AI and we're developing some of them and our customers are as well.
We've introduced these categories. These categories continue.
<unk> growing I think that a lot of the the height that surrounded AI.
In the beginning of the year.
Sided and right now it's really looking for the killer applications that could be developed with AI and we're developing some of them and our customers are as well.
Speaker 3: So these are definitely areas where we continue seeing growth, but not just that, but we continue investing in the catalog side to ensure that the new types of skills that pop up are going to be addressed on the fiber mark.
These are definitely areas, where we were we continue seeing growth, but not just that but we continue investing in the catalog side to ensure that the new types of skills that pop up.
Are going to be addressed.
On the fiber market base.
Speaker 16: Yeah, just to be clear, when I said less talk about AI, I guess I meant questions from us outside of this. I mean, you guys are doing it. Yeah, well, I think yeah, you're just didn't want a short, short shrift you on AI. So thanks for that. That's all I had. Thanks. Yeah, thank you.
Yes, just to be clear when I said left talk about AI I guess I've met questions from our sell side as you guys are doing well.
Yes.
Just didn't want to short short shrift here on AI. So thanks for that.
That's all I had thanks.
Thank you.
Thank you.
One moment for our next question.
Speaker 1: Our final question comes from the line of Roheet, Cool Cardney from Roth MKM.
Our final question comes from the line of Rohit Kulkarni from Roth and Cam.
Speaker 18: Hey, thank you. Thank you for taking my questions. And again, kudos to you and the team for the level of resilience that you've demonstrated through these times. Two questions. One, this is a big picture and probably is kind of skinning this day trade cat in a different direction.
Thank you. Thank you. Thank you for taking my questions and again kudos to you and the team for the level of resilience demonstrated through these times.
Two questions one just a big picture and probably just kind of scanning the secret Scott.
In a different direction.
Speaker 18: part of the pun here, but I guess a big picture as in there are internet marketplaces with advertising and subscriptions.
Pardon the pun here, but I guess.
A big picture.
The Internet marketplaces.
Advertising and subscriptions.
Speaker 18: Clearly well developed. We have seen subscription penetration up to 40 50% of active users. We have seen advertising penetration.
Clearly well developed we have seen.
Subscription penetration up to 40%, 50% of active users BMC and advertising penetration up to 10% or so.
Speaker 18: up to 10% of global volume of that marketplace. I guess we'd love to hear your thoughts around where you are right now internally. Looking at those metrics at Fiverr and what are the puts and takes of Fiverr's marketplace to evolve into having...
Global volume of that market players I guess would love to hear kind of your thoughts around where you are right now.
Certainly looking at those metrics.
Five world and what are the puts and takes of.
Fireworks marketplace to evolve into.
Speaker 18: much more significant penetration in alitalizing and subscription, because perhaps that kind of...
Having.
Much more significant.
Penetration in advertising and subscription gross perhaps that kind of goes back to the.
Speaker 18: goes back to the multiple questions on Take Rate.
Multiple questions on take rate.
Speaker 18: on this call. So that's one question. And then, tactically speaking, how important is it for you to grow buyers on the platform right now over the next three, six months or so? And then, what is it?
On this call. So that's one question and then tactically speaking.
How important is it for you to grow.
Yes.
On the platform right now over the next three to six months or so.
And then what is it.
Speaker 18: tactically that you are doing differently versus probably over the last mind-moms.
Tactically that youre doing differently versus.
Probably over the last nine months.
Thank you Rohit and for the questions.
Speaker 3: So as to the first question, I would say the following, first, these are still products that are being evolved and they continue growing.
So as to as to the first question.
I would say I would say the following.
First these these are still products that are being evil and they continue growing.
Speaker 3: It is important to also know that if that is being compared
It is it is important to also know that if that is being compared to.
Speaker 7: to other market bases where the component of promoted is much higher than if you would follow the makeup of their revenues, you would notice that their transactional component is far, far lower than I.
Two other market base is where the component of.
Promoted.
Is much higher than if you would follow.
The makeup of their revenues you would notice that their transactional component is far far lower than ours.
Speaker 7: Meaning that when you make the majority of your take rate from the transactional component.
Meaning that when you make the the majority of your take rate.
From the transactional component there.
Speaker 7: then the expectation that you would be able to match this on promoted is unreached.
And then the expectation that you would be able to match this on on promoted.
Is is unreasonable.
Speaker 7: And in the marketplaces where the component of promoted is much higher than the pay rate is tiny in comparison to ours. So this has some explanation for the ratio between those two. Having said that there's obviously more room to grow these offerings as they've been growing so far.
And in the market basis, where the component of promoted is much higher than the take rate is tiny in comparison to ours. So this has some explanation for the ratio between those two.
Having said that there is obviously.
More room to grow these.
<unk> offerings as they've been growing so far.
Speaker 7: In terms of, you know, the imports of growing buyers on our platform, as I've said,
In terms of.
The importance of growing buyers on our platform as I've said.
Speaker 7: We are a growth company and we are focused on delivering growth.
We are a growth company and we are focused on delivering growth.
Speaker 3: Now there's the balance of quantity in quality.
Now there is.
There is the balance of quantity and quality.
Speaker 3: And this has a lot to do with the opportunities that the market and the economy is providing to us. And as we said, the
And this has a lot to do with the opera the opportunity that the.
The market and the economy is providing to us.
And as we said the focus is less on quantity and more on quality. It doesn't mean that we don't want far more and.
We're optimizing everything the product in our marketing to do that but it means that in this economy in this environment. We're very much focused on the quality of our customers again, if you look at.
Speaker 3: Again, if you look at an indicator like spend provider, you see that spend provider is increasing pretty dramatically. And we believe will continue to. And when the environment...
It's an indicator like spend per buyer you see that spend per buyer is increasing pretty dramatically.
In.
We believe we will continue to and when when the environment.
Speaker 3: would shift, as I've said, I think we're going to see tremendous opportunity for growth across all segments of the market.
Would shift as I've said, I think we're going to see tremendous opportunity.
For growth across all segments.
Over the market.
Okay. Thank you. Thank you good answers.
Speaker 1: Thank you. I would now like to turn the conference back over to management for closing remarks.
Thank you.
I'd now like to turn the conference back over to management for closing remarks.
Speaker 6: Thank you, Gigi, for moderating today's call. And to everyone who joined the call today, wishing all of us much better and more peaceful times. Have a great day.
Thank you Judy for moderating today's call and to everyone who joined the call today.
Wishing all of us much better and more peaceful times and have a great day.
Speaker 1: This concludes today's conference calls. Thank you for participating. You may now disconnect.
This concludes today's conference call. Thank you for participating you may now disconnect.
Okay.
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Okay.
Okay.
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