Q2 2025 Fiverr International Ltd Earnings Call

July 30, 2025

With me on the call today are me her Kaufman founder and CEO and Ofer Katz.

Operator: Fifth 2025. Joining me on the call today are Micha 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. 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 for 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.

Resident 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 for <unk>.

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 exploration and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measure is provided in the earnings release, we issued today in our shareholder letter.

Operator: Further explanation and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measure is provided in the earnings release we issued today and our shareholder letter, each of which is available on our website at investor.fiverr.com. Now I'll turn the call over to Micha.

Each of which is available on our website at investors dot fiber dot com.

And now I'll turn the call over to me.

Thank you Ginger and good morning, everyone and thank you for joining us.

Micha Kaufman: Thank you, Jingjin. Good morning, everyone, and thank you for joining us. We delivered another strong quarter, building on a solid start to the year with continued momentum across our business. In Q2 2025, we achieved 15% year-over-year revenue growth and a 20% Adjusted EBITDA margin as we continue to drive profitable growth with disciplined execution. Within our platform, we are seeing strong signs of durability and growth, including surging demand for AI-related services and the continued momentum of Managed Services and Dynamic Matching products. While SMBs continue to take a cautious stance on spending and hiring amidst a volatile economic environment, our success in these efforts contributed to the acceleration in spend per buyer, which grew 10% year-over-year alongside robust growth across key verticals such as programming and tech, digital marketing, and video animation.

We delivered another strong quarter building on a solid start to the year with continued momentum across our business. In Q2, 2025, we achieved 15% year over year revenue growth and a 20% adjusted EBITDA margin as we continue to drive profitable growth with discipline.

Execution.

Within our platform, we are seeing strong signs of durability and growth, including surging demand for AI related services.

And the continued momentum of managed services and dynamic matching product.

While smbs continuing to take a cautious stance on spending and hiring amidst a volatile economic environment. Our success. In these efforts contributed to the acceleration in spend per buyer, which grew 10% year over year I don't know inside robust growth across key verticals such as programs.

In Tech digital marketing and video and animation.

Additionally, we continue to expand our value added services across our ecosystem.

Micha Kaufman: Additionally, we continue to expand our value-added services across our ecosystem. AutoDS continues to maintain strong growth momentum, and we've made meaningful progress in integrating our platforms to drive adoption and scale. Notable highlights include the launch of an AI-powered Shopify store builder, as well as the development of a deeper integration to enable seamless upselling and cross-selling between AutoDS and Fiverr's Marketplace. The strong performance of the services segment contributed to the revenue upside this quarter. We are also incredibly excited about how AI is positively impacting every dimension of our business, driving demand through AI-related services, improving discovery and conversion for buyers and sellers on the marketplace, and unlocking operational efficiencies through AI agents across functions.

<unk> continues to maintain strong growth momentum and we've made meaningful progress in integrating our platform to drive adoption and scale.

Notable highlights include the launch of an AI powered shopify store builder.

As well as the development of a deeper integration to enable seamless upselling and cross selling between <unk> and fibers markedly.

The strong performance of the services segment contributed to the revenue upside this quarter.

We are also incredibly excited about how AI is positively impacting every dimension of our business.

Driving demand through AI related services, improving discovery and conversion for buyers and sellers on the marketplace and unlocking operational efficiencies through AI agents across function.

Today, I want to delve deeper into each of these areas and demonstrate how we are at the forefront of AI adoption with the speed conviction and clarity that sets us apart.

Micha Kaufman: Today, I want to delve deeper into each of these areas and demonstrate how we are at the forefront of AI adoption with the speed, conviction, and clarity that sets us apart. First, the rapid development of AI technology is giving rise to numerous new skills, and Fiverr's marketplace is becoming the go-to destination for accessing and engaging with AI experts. Categories such as AI agents, workflow automation, and vibe coding have experienced five to tenfold growth on our marketplace over the past six months. With AI fundamentally changing how humans and machines interact, it allows many non-technical entrepreneurs and professionals to build and leverage the technology. At the same time, we are increasingly seeing the gaps between on-the-shelf AI tools and the real-world problems our customers are trying to solve. This is where Fiverr comes in.

First the rapid development of AI technology is giving rise to numerous new skills and fiber market base is becoming the go to destination for accessing and engaging with AI expert.

Categories, such an AI agent workflow automation and <unk> coding of experienced five to 10 fold growth on our market base over the past six months.

With AI fundamentally changing how humans and machines interrupt.

Many nontechnical entrepreneurialism and professionals to build and leverage the technology.

At the same time, we are increasingly seeing the gaps between on the shelf AI tools in the real world problems, our customers are trying to solve.

This is where fiber comes in.

Great answers on our platform are feeling the critical first and lost my gaps for our customers.

Micha Kaufman: Freelancers on our platform are filling the critical first and last mile gaps for our customers. This could involve setting up AI systems, selecting the most efficient AI models, integrating the back end with existing systems, adding functionality, creating custom workflows, or simply debugging when the customer encounters issues. Fiverr's freelancers help our customers turn concepts and prototypes into high-impact solutions and tangible business results. These exciting trends underscore our conviction that human expertise is crucial in unlocking the full potential of AI. With the proliferation of AI tools in the market and the increasingly ubiquitous access to these tools, we believe this represents a long-term tailwind for our business, driven by an increasing number of buyers who are deploying AI and their growing need and budget for tackling AI-related problems.

This could involve setting up AI systems selecting the most efficient AI models integrating the backend with existing systems.

<unk> functionality, creating custom workflows or simply debugging when the customer and country issues.

Five years free answers help our customers turn concepts and prototypes into high impact solutions in tangible business results.

These exciting trends underscore our conviction that human expertise is crucial in unlocking the full potential of AI.

With the proliferation of AI tools in the market and the increasingly ubiquitous access to these tools. We believe this represents a long term tailwind for our business driven by an increasing number of buyers who are deploying AI and theyre growing need and budget for tackling.

AI related problems.

That's why we are not only expanding our catalog to meet this demand, but also exploring ways to embed fibers talent network and transaction infrastructure directly into AI driven workflows.

Micha Kaufman: That's why we are not only expanding our catalog to meet this demand, but also exploring ways to embed Fiverr's talent network and transaction infrastructure directly into AI-driven workflows. These efforts include several ongoing strategic partnership discussions, the development of a targeted fulfillment capabilities, and laying the technical foundations to build scalable AI powered by experts. Our goal is simple. Fiverr freelancers are addressing critical challenges for businesses adopting AI, and we must strive to meet customers where they are and build an integrated experience that makes it seamless for them to leverage our platform. Second, we are shipping at an incredible pace so that we can leverage AI to strengthen our market-based flywheel. Every transaction in our marketplace involves three core participants: the buyer, the seller, and the platform. Our vision is to create an intelligent agentic experience for each.

These efforts include several ongoing strategic partnership discussions the development of a targeted fulfillment capabilities and laying the technical foundations to build scalable AI powered by experts.

Our goal is simple.

Fiber freelancers are addressing critical challenges for our businesses adopting AI and we must strive to meet the customers where they are and build an integrated experience that makes it seamless for them to leverage our platform.

Second we are shipping at an incredible pace. So that we can leverage AI to strengthen our market based flywheel.

Every transaction in our market base involves three corporate discipline the buyer the <unk>.

Micha Kaufman: Every transaction in our marketplace involves three core participants: the buyer, the seller, and the platform. Our vision is to create an intelligent agentic experience for each.

Seller in the platform.

Our vision is to create an intelligent agenda experience for each.

Two years ago fiber launched neo the first of its kind AI matching agent for buyers in our marketplace environment.

Micha Kaufman: Two years ago, Fiverr launched Neo, the first of its kind AI matching agent for buyers in a marketplace environment. Since then, Neo has evolved into a powerful AI engine that drives underlying KYC and matching across all of our front-end products. As we continue to build out the agentic experience on the buyer side, we envision a future where each buyer will be accompanied by a recruiting agent who can assist with drafting job briefs, communicating with freelancers, curating candidate lists, and even managing project execution end-to-end. This is the beginning of a searchless vision for the future, at least in the traditional keyword-based sense of search that makes room for more expressive and nuanced way to address customer needs.

Since then Neil has evolved into a powerful AI engine that drives underlying <unk> and marching across all of our front end product.

As we continue to build out the agenda experience on the buyer side, we envision a future where each buyer will be accompanied by a recruiting agent who can assist with drafting Joe brief communicating with freelancers.

Curating candidate list and even managing project execution end to end.

This is the beginning of a search list vision for the future at least in the traditional keyword base of search that makes room for more expressive and nuanced way to address customer needs.

One that unleashes the power of the multiple solutions fiber has built on the platform to tackle any project from simple tasks to the most complex ones in margins that requires multi task and multi talent orchestration and assembly.

Micha Kaufman: One that unleashes the power of the multiple solutions Fiverr has built on the platform to tackle any project from simple tasks to the most complex ones imagined that requires multitask and multi-talent orchestration and assembly. On the seller side, we introduced Fiverr Go earlier this year, an AI assistant designed to help freelancers with project discovery, client engagement, and creative ideation. Following the successful launch in February, Fiverr Go continues to drive strong seller engagement and meaningful conversion uplift across the funnel it touches. Similar to the agentic AI experience on the buyer side, we have an extensive roadmap for Fiverr Go that will enable seller agents to provide more sophisticated support and guidance for our sellers, including service listing optimization, lead generation and qualification, and other marketing, analytics, operations, and production capabilities.

On the seller side, we introduced fiber to go earlier this year.

And AI assistant designed to help freelancers with project discovery client engagement and creative ideation.

Following the successful launch in February fiber to go continues to drive strong salary engagement and meaningful conversion uplift across the funnel it touches.

Similar to the agenda experience on the buyer side, we have an extensive roadmap for fiber go that will enable sellers agents to provide more sophisticated support and guidance for our sellers, including service listing optimization lead generation and qualification and other markets.

<unk> analytics operations and production capabilities.

Last but not least we are deploying agenda AI across the internal function too.

Micha Kaufman: Last but not least, we are deploying agentic AI across the internal function to boost platform-level efficiency from automating customer support workflows to enhancing marketplace integrity operations, from improving job post matching algorithms to empowering customer success managers. These systems are designed to enable faster, more seamless orchestration between buyers and sellers while scaling operational productivity behind the scenes. As these agents become more capable over time, we believe they'll increasingly act autonomously, not only to improve individual workflows, but ultimately to enable agent-to-agent transactions that reduce friction and eliminate the need for their human counterparts to manually navigate the platform. While this is an ambitious long-term vision, the path is clear. Having this roadmap enables us to make informed architectural and product investments today. These early bets will position Fiverr at the forefront of marketplace innovation, further reinforcing our leadership through AI-powered differentiation.

To boost platform level efficiency from automating customer support workflows to hunting market base integrity operations from improving job posts matching algorithms to empowering customer success managers.

These systems are designed to enable faster more seamless orchestration between buyers and sellers, while scaling operational productivity behind the scenes.

As these agents become more capable over time, we believe they'll increasingly opt autonomously not only to improve individual workloads, but ultimately to enable agents to agent transactions that reduce friction and eliminate the need for their human counterparts to manually.

<unk> the platform.

While this is an ambitious long term vision.

Micha Kaufman: While this is an ambitious long-term vision, the path is clear. Having this roadmap enables us to make informed architectural and product investments today. These early bets will position Fiverr at the forefront of marketplace innovation, further reinforcing our leadership through AI-powered differentiation.

<unk> is clear.

Having this roadmap enabled us to make informed architectural and product investments to date in these early birds will position fiber at the forefront of market based innovation further reinforcing our leadership through AI powered differentiation.

As we wrap up the first half of 2025 I'm incredibly proud of how our team has delivered and even more excited about our strategy and roadmap for the second half of this year.

Micha Kaufman: As we wrap up the first half of 2025, I'm incredibly proud of how our team has delivered and even more excited about our strategy and roadmap for the second half of this year. I look forward to updating you on our continued progress in the months to come. With that, I will turn the call to Ofer.

I look forward to updating you on our continued progress in the months to come and with that I will turn the call to ofer.

Thank you <unk> and good morning, everyone.

Ofer Katz: Thank you, Micha, and good morning, everyone. We delivered a strong Q2 with both top and bottom line exceeding expectations. Revenue for Q2 was $108.6 million, up 15% year-over-year. Adjusted EBITDA for Q2 was $21.4 million, representing an Adjusted EBITDA margin of 20%, an improvement of 80 basis points from a year earlier. We continue to generate strong cash flow, with free cash flow totaling $25 million, up 21% year-over-year. As always, we remain focused on taking a balanced approach between growth and profitability while maintaining discipline with capital allocation. Q2 saw solid performance across both our marketplace and services segments.

We deliver a strong second quarter with both top and bottom line exceeding expectations.

Revenue for the second quarter was $108 6 million up 15% people Vivian.

Adjusted EBITDA for Q2 was $21 4 million, representing an adjusted EBITDA margin of 20% an improvement of 80 basis points from a year earlier.

We continue to generate strong cash flow.

With free cash flow totaling <unk> 5 million up 21% the overview.

As always we remain focused on taking a balanced approach between growth and profitability while.

While maintaining disciplined with capital allocation.

Q2 saw solid performance across both our marketplace and services segments.

Marketplace revenue was $74 7 million driven by $3 4 million active buyers.

Ofer Katz: Marketplace revenue was $74.7 million, driven by 3.4 million active buyers, $318 of spend per buyer, and 27.6% of marketplace take rate. Within the marketplace segment, we saw strong demand for AI-related services and AI category expansion. Managed services remains an important channel for upmarket penetration. We are encouraged by the accelerating growth across several of our core verticals and the steady increase in larger, more complex projects on the platform. In Q2, over 50% of GMV on our marketplace came from transactions over $200. These higher value transactions are growing at a double-digit pace year-over-year. This is a strong indicator of our marketplace ongoing evolution towards serving more sophisticated business needs.

Mm 318 of spend per buyer and seven 6% of marketplace take rate.

Within the marketplace segment, we saw strong demand for AI related services and AI.

Category expansion and managed services remains an important channel for up market penetration.

We are encouraged by the accelerating growth across several of our Colbert become and.

And the steady increase in larger more complex projects on the platform.

In Q2.

Over 50% of <unk> on our marketplace came from transaction over $200 this higher value transaction.

Our growing at a double digit pace.

No.

This is a strong indicator of our marketplace ongoing evolution towards serving more sophisticated business needs.

While the overall macro condition do not warrant us to revise our assumption going into the second half of the year.

Ofer Katz: While the overall macro conditions do not warrant us to revise our assumption going into the second half of the year, we believe the structural tailwind within the marketplace segment, particularly around AI and upmarket adoption, will continue to help offset broader economic headwinds and serve as a sustained growth driver. Services revenue was $34 million, representing year-over-year growth of 84% and 31% of our total revenue in Q2. The upside was driven by several key initiatives, including the launch of AI-powered Shopify Store Builder, streamlined cross-sell execution between AutoDS and the marketplace, and continued momentum in Seller Plus. We continue to see strong engagement and positive conversion impact from Fiverr Go, leading to incremental uplift to Seller Plus premium tier subscription in Q2.

We believe the structural tailwind within the marketplace segment.

Equally around AI and upmarket adoption will continue to help offset boarder economy headwinds and serve.

As a sustained growth driver.

Services revenue was $34 million representing.

Growth.

84% and 31% of our.

Our total revenue in Q2.

The upside was driven by several key initiative.

Including the launch of AI power Shopify store build them streamline cross sell execution between <unk> in the marketplace and continued momentum in solar plus.

We continue to see strong engagement and positive.

Inversion impact from fiber go leading to incremental uplift to seller plus premium tier.

<unk> in Q2.

Looking ahead, we expect services revenue to maintain healthy momentum and as mentioned previously expected to represent a little over 30%.

Ofer Katz: Looking ahead, we expect services revenue to maintain healthy momentum and as mentioned previously, expected to represent a little over 30% of total revenue for the full year 2025. Now on to guidance. We are reiterating our revenue and Adjusted EBITDA guidance for the full year 2025. We expect full year 2025 revenue to be in the range of $425 to 438 million, representing year-over-year growth of 9% to 12%. Adjusted EBITDA is expected to be in the range of $84 to 90 million, representing an Adjusted EBITDA margin of 20% at the midpoint. For Q3 2025, revenue is expected to be $105 to 110 million, representing year-over-year growth of 5% to 10%.

Revenue for the full year 2025.

Now onto guidance.

We are reiterating our revenue and adjusted EBITDA guidance for the full year pulling in 20 funds.

We expect full year plenty of $25 revenue to be in the range of 425 488 medium.

Something <unk> growth of 9% to 12%.

Adjusted EBITDA is expected to be in the range of $84 million to $90 million, representing an adjusted EBITA margin of 20%.

Good points.

For the third quarter of 2025.

Revenue is expected to be $105 million to $110 million.

Presenting a growth of 5% to 10%.

Adjusted EBITDA is expected to be 21, five to $23 5 million.

Ofer Katz: Adjusted EBITDA is expected to be $21.5 to 23.5 million, representing an Adjusted EBITDA margin of 21% at the midpoint. We continue to operate with the highest level of discipline and efficiency. We believe we are on track towards our long-term target to reach 25% Adjusted EBITDA target in 2027 and deliver 40% CAGR in free cash generation for the 3 years ending in 2027. To close, we continue to execute on the goals and roadmap we set at the beginning of the year and are looking forward to the second half as we remain well positioned to capture the enormous opportunity ahead of us. With that, we'll now turn the call over to the operator for questions.

Representing an adjusted EBITDA margin of 21% at the midpoint.

We continue to operate.

With the highest level of discipline and efficiency.

We believe we are on track towards our long term target to reach 25% adjusted EBITDA target in 2027.

And delivered a 40% CAGR in free cash generation for the three years ending in 2027.

To close.

We continue to execute on the goals and the old map, we set at the beginning of the EU.

And are looking forward to the second half as we remain well positioned to capture the enormous opportunity ahead of us.

With that we'll now turn the call over to the operator for questions.

As a reminder to ask a question you will need to press star one on your telephone to remove yourself from the queue. You May press Star one again, please standby, while we compile the Q&A roster.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Eric Sheridan of Goldman Sachs. Please go ahead, Eric.

Our first question comes from the line of Eric Sheridan of Goldman Sachs. Please go ahead Eric.

Thanks, so much for taking the question and thanks for all the detailed information guys. When you think about services revenue growth building in momentum deeper into the second half of this year, but more of a multi year view, what do you guys see as some of the key investments you need to make just for the unloved continued scaling of that service.

Eric Sheridan: Thanks so much for taking the question and thanks for all the detailed information, guys. When you think about services revenue growth building and momentum deeper into the second half of this year, but more on a multi-year view, what do you guys see as some of the key investments you need to make to sort of unlock continued scaling of that service revenue? Maybe honing in a little bit on Seller Plus, understood the goal you have around getting to a certain rate of penetration, but how do we think about maybe over the longer term where that can go in terms of a percentage of the mix? Thanks so much.

Revenue and maybe holding in a little bit on solar plus.

Understood. The goal you have around getting to a certain rate of penetration, but how do we think about maybe over the longer term where that can go in terms of a percentage of the mix. Thanks. So much.

Good morning, Erik Thanks for the questions, but so for the <unk>.

Ofer Katz: Good morning, Eric. Thanks for the question. For the services, we expect services revenue to continue growing at a healthy double-digit rate exiting this year after we lap both Fiverr Ads and AutoDS acquisition in Q4. We believe that services still have a long growth runway ahead of us as we continue to expand value-added services to productivity, financial, and other adjacent tools for our freelancers. In addition, we're seeing opportunities to drive synergies between AutoDS and Fiverr. As we mentioned this quarter, we unlocked some nice Shopify affiliates revenue through the new AI-powered Shopify store builder tool. We believe that services will continue to be a growth catalyst for our overall revenue growth.

Micha Kaufman: Good morning, Eric. Thanks for the question. For the services, we expect services revenue to continue growing at a healthy double-digit rate exiting this year after we lap both Fiverr Ads and AutoDS acquisition in Q4. We believe that services still have a long growth runway ahead of us as we continue to expand value-added services to productivity, financial, and other adjacent tools for our freelancers. In addition, we're seeing opportunities to drive synergies between AutoDS and Fiverr. As we mentioned this quarter, we unlocked some nice Shopify affiliates revenue through the new AI-powered Shopify store builder tool. We believe that services will continue to be a growth catalyst for our overall revenue growth.

Services, we expect service.

Revenue to continue growing at a healthy double digit rate exiting this year.

After we lap both fiber odds and <unk> acquisition in Q4.

And we believe that services still have a long growth runway ahead of us as we continue to expand value added services.

Two productivity financial and other.

Adjacent tools for our freelancers. In addition, we're seeing opportunities to drive synergies between <unk> and fiber in.

You mentioned this quarter, we unlocked some nice shopify affiliates revenue through the new AI powered shopify store build our tool.

We believe that services will continue to be a growth catalyst for our overall revenue growth.

As to seller plus it continues to expand.

Ofer Katz: As to Seller Plus, it continues to expand value-added services to drive adoption among wider range of audience. Fiverr Go is an example of that. We keep adding tools and the audience of Seller Plus.

Micha Kaufman: As to Seller Plus, it continues to expand value-added services to drive adoption among wider range of audience. Fiverr Go is an example of that. We keep adding tools and the audience of Seller Plus.

Value added services to drive adoption, among a wider range of audience.

But <unk> is an example of that and we keep adding tools in the audience of fellow class.

Is growing as they see this as a as a net positive contributor to.

Micha Kaufman: Is growing as they see this as a, as a net positive contributor to the growth of their business. You know, broadly, we are expanding value-added services to a wider range of services for freelancers. We want to empower the entire freelancer career, including those financial tools and benefits. There's a lot of growth runway there.

The growth of their business.

And.

Broadly we are expanding value added services to a wider range of services for freelancers.

We want to Empire the entire.

Career, including those financial tool than benefits.

So theres a lot of growth runway there.

Great. Thank you.

Thank you.

Ofer Katz: Great. Thank you.

Eric Sheridan: Great. Thank you.

Thank you.

Micha Kaufman: Thank you.

Our next question.

Operator: Thank you. Our next question comes from the line of Ron Josey of Citi. Please go ahead, Ron.

Comes from the line of Ron Josey of Citi. Please go ahead Ron.

Alright, Thanks for taking the question could you talk to you all guys make I wanted to talk in asphalt, but more about the managed services offering and the broader mix shift to up market.

Ron Josey: Great. Thanks for taking the question. Good to talk to you all guys. You know, Micha, I wanted to talk and ask a little bit more about the Managed Services offering and the broader mix shift to upmarket. Just talk to us a little bit more about the progress here. I know there were some stats in the letter around 50% of marketplace driven by transactions over $200. As we see greater demand for Managed Services, as we see the mix shift to upmarket, help us understand just the progress overall and maybe the size. Then from an AI or I guess Fiverr Go perspective, I think we saw and heard a little bit more about conversion rates. Any more insights there would be great. Thank you.

Talk to us a little bit more about the progress here I know there were some stats in the letter around 50% of marketplace driven by transactions over $200 and so as we see greater demand for managed services as we see the mix shift to up market help us understand just the progress overall earnings and maybe the size and then from an AI.

I guess fiber go perspective, I think we saw and heard a little bit more about conversion rates any more insights there would be great. Thank you.

Good morning, Ron Thanks for the question.

Micha Kaufman: Morning, Ron. Thanks for the question. Essentially, Managed Services as we think about it in general, is a part of our going upmarket strategy. As we said time and time again, I mean, you can think about the history of the company, a company that started from services of $5 and now more than half of our business is coming from transactions of over $200, which is incredible. This is thanks to the fact that we've actually extended beyond just being a marketplace into becoming a platform where we offer a whole suite of different services so that we can mature with our customers and cater to more of their needs.

So essentially managed services as we as we think about it in general.

Is a part of our going upmarket strategy.

And as we said time and time again this is it.

You can think about the history of the company a company that started from services of $5 and now more than half of our business is coming from transactions of over $200.

Which is incredible and this is thanks to the fact that we've actually extended beyond just being in March base into becoming a platform.

Where we offer a whole suite of different services, so that we can mature with our customers.

And cater to more of their needs.

And this is this is really.

Micha Kaufman: This is really demonstrated in the fact that these Managed Services are growing very nicely. This also has to do with our acquisition strategy, which means we're focusing on customers that have larger wallets, that have more sophisticated and complex needs, and making sure that we have the right tools to answer for those needs. We're seeing this. By the way, as this grows, it is actually decreasing our exposure to the segments of the market, of SMBs, where they're more exposed to macroeconomics than the larger customers. This remains very much in the focus of what we're doing, and we're very encouraged by the growth that we're seeing there.

<unk> demonstrated.

And the fact that these managed services are growing.

Three nicely.

And this also has to do with our acquisition strategy, which means we're focusing on customers that have larger wallet that have more sophisticated and complex needs and making sure that we have the right tools to answer for for those needs and we're seeing this and by the.

Is this grows.

It is actually decreasing our exposure to this segment of the market of Smbs, where.

They are more exposed to microeconomics than than the larger customers. So this remains very much in the focus of.

But what we're doing and we're very encouraged by the growth that we're seeing there.

In terms of go.

Micha Kaufman: In terms of Go, I think we provided color in our letter to shareholders. As you noted, yes, it is increasing the conversion rates and the speed and efficiency and decreasing the time to convert for our sellers. This is why we've seen a 50% jump in the amount of sellers that are using it. They love it. It's, you know, it's an incredible tool that actually let them sleep at night quietly knowing that their business is continuing to run.

I think we provided color in our letter to shareholders. As you noted, yes. It is increasing the conversion rates and the speed and efficiency and decreasing the time to convert for our sellers and this is why we've seen a 50%.

Jump in the amount of sellers that are that are using it.

They love it.

It's an incredible tool that actually led them sleep at night.

Quietly knowing that their business is continuing to run.

In addition, the way we're thinking about this and this is a part of our entire agenda <unk> vision.

Micha Kaufman: In addition, the way we're thinking about this is a part of our entire agentic vision for the company. What we're doing is we're building sophisticated tools that allow them to not just deal with communication, but actually smart AI that will allow them to optimize their offerings and actually take action for them to make sure that they get the best exposure and they maximize their potential for deal flow. I think that I mean, we're pretty early in that phase, but the things that we're building internally are just incredible. I think the fact that we've started with Neo way ahead of any company, any marketplace out there, allowed us to build the muscle and build one of the most incredible AI teams that I know in the world.

For for the company.

We are doing is we're building sophisticated tools that allow them to not just deal with the communication.

Actually smart AI that will allow them to optimize their offerings and actually take action for them to make sure that they get the best exposure and they maximize their potential for data flow.

And.

I think that this is I mean, we're pretty early in that phase, but the things that we're building internally are just incredible and I think the fact that we've started with neo.

Way way ahead of any company any market base out there allowed us to build the muscle and build one of the most incredible AI teams that I know in the world.

We're building incredible tools that I'm sure, we're going to be able to talk about the next few quarters.

Micha Kaufman: We're building incredible tools that I'm sure we're gonna be able to talk about in the next few quarters.

Thank you Maria.

Thanks, Ron.

Ron Josey: Thank you, Micha.

Thank you. Our next question comes from the line of Doug Anmuth of Jpmorgan. Your line is open Doug.

Micha Kaufman: Thanks, Ron.

Operator: Thank you. Our next question comes from the line of Doug Anmuth of J.P. Morgan. Your line is open, Doug.

Great. Thanks, so much for taking my questions.

Douglas Anmuth: Great. Thanks so much for taking the questions. I have two. Maybe just first in terms of supply-demand, just balance on the marketplace. Micha, just curious how you're thinking about the supply and the freelancer side, you know, with AI expertise, and whether that's where you need it to be. Then second, just as you think about the marketplace business, what would it take for marketplace to return to growth in your view? Thank you.

Doug Anmuth: Great. Thanks so much for taking the questions. I have two. Maybe just first in terms of supply-demand, just balance on the marketplace. Micha, just curious how you're thinking about the supply and the freelancer side, you know, with AI expertise, and whether that's where you need it to be. Then second, just as you think about the marketplace business, what would it take for marketplace to return to growth in your view? Thank you.

Maybe just first in terms of.

Supply demand balance on the marketplace and with that I'll, just curious how youre thinking about the supply.

The freelancer side with AIA expertise and whether Thats, where you need it to be.

And then second just as you think about the marketplace business what would it take for marketplace to return to growth in your view. Thank you.

Good morning, Doug Thanks for the question.

Micha Kaufman: Morning, Doug. Thanks for the questions. As for supply and demand, I think we're in a good place there. You know, the one benefit that we have with freelancers is that they are ahead of most full-time employees in terms of embracing new technology and new tools. A lot of them are what we call AI natives. And we're seeing how they're actually elevating the outputs of their work in an incredible way. Obviously, when we open new categories, sometimes it takes a little bit of time, a couple of weeks to build new supply. As we go into the areas of more sophisticated types of services, obviously we allow more sophisticated types of sellers to join the marketplace.

As for our supply and demand I think we're in a good place there.

The one benefit that we have with free answers is that they are ahead of most full time employees in terms of embracing new technology and new tools.

A lot of them are what we call AI native.

And we're seeing how they're actually elevating the.

The outputs of their work in an incredible way.

And obviously when we open new category sometimes.

It takes a little bit of time, a couple of weeks to build new supply and as we go into the areas of more sophisticated type of services.

Obviously, we.

<unk>.

Allow more sophisticate types of sellers, who joined the market base, but I think that we're in a very good place. We don't have a category, where we don't have the right supply to entertainment needs of the customers.

Micha Kaufman: I think that we're in a very good place. We don't have a category where we don't have the right supply to entertain the needs of the customers. As we think about the market-based business, you know, we believe that the efforts that we're doing around AI and upmarket will allow us to turn to growth even in the current macro. Given the macro uncertainty, we don't think that we're ready to bake this into guidance yet. As we said a number of times before, I think I mentioned this in my first answer, the fact that we're going upmarket and actually acquiring high-value buyers, by definition lowers our exposure to the segments of the buyers that are mostly affected by macro economical conditions.

As we think about the market based business.

We believe that the efforts that we're doing around AI and upmarket will allow us to turn to growth even in the current macro.

But given the macro uncertainty.

We don't think that we're ready to bake this into guidance yet.

As we said a number of times before.

And I E.

I think I mentioned this in my first answer.

The fact that we're going up market actually acquiring high value buyers.

By definition lowered our exposure to the segments of the buyers that are mostly affected by macro economical conditions and therefore, even without.

Micha Kaufman: Therefore, even without the macro turning, over time, we will turn into growth. Obviously, if macro turns, it's gonna be a further tailwind for us. Thank you.

Without the macro turning over time, we will continue we will turning to growth in overseas macro churns.

Could it be a further tailwind for us thank you.

Thank you.

Yeah.

Steve Roman: Thank you.

Doug Anmuth: Thank you.

Thank you our next question.

Operator: Thank you. Our next question comes from the line of Jason Helfstein of Oppenheimer & Company. Please go ahead, Jason.

It comes from the line of Jason <unk> of Oppenheimer <unk> Company. Please go ahead Jason.

Hi, This is Steve Hoffman on for Jason.

Steve Roman: Hi, this is Steve Roman on for Jason. 2 questions from us. 1 is, have you seen any specific categories relating to AI? 2nd, if more entry-level jobs are going to be replaced with or by AI, how does that affect demand for Fiverr services? Thanks.

So two questions from US one is have you seen them.

Any any specific categories relating to AI and second more entry level jobs are going to be replaced with her by AI, how does that affect demand for fiber services. Thanks.

Hi, good morning, Thanks for the question.

Micha Kaufman: Hi, good morning. Thanks for the question. Essentially, I mean, you know, we haven't seen any accelerated decline. As we said before, we made the comment about simple versus complex types of services, and we said that the simple types of services, and usually they're associated with very, very low prices, are going through displacement. At the same time, there is many new categories and many new needs that we can answer for. By the way, that's a good thing for us because we're obviously less focused on the micro types of services and more interested in the more complex, nuanced types of services that our larger customers need. As to entry-level jobs, look, I think the definition of an entry-level job is changing.

Essentially I mean, if we.

We haven't seen any accelerated.

Decline, but as we said before we made the comment about simple versus complex types of services and we said that the simple types of services and usually they are associated with very very low prices.

<unk> going through displacement.

But at the same time, there is many new categories and many new needs that we can answer for and by the way. That's a good thing for us because we're obviously, let's focus on the micro types of services and more interested in the more complex nuanced.

Types of services that are larger.

Customers need.

As to entry level jobs.

I think the definition of an entry level job is changing I think the expectation of everyone is.

Micha Kaufman: I think the expectation of everyone is to do more, thanks to technology. Again, I think that much like freelancers, I think that people that are in their very beginning of their career cycle have the benefit of actually being AI natives, which means that even on entry-level jobs, they can do much, much more than that. I said that many times. I'll repeat it now. I think that what AI has done is to elevate the floor for everyone, meaning it's providing incredible tools and capabilities to everyone. That's exactly the thing. No one has an advantage thanks to AI, because the tools are available for everyone. Essentially, they're changing the starting point, the floor, but it is not changing the ceiling.

Is to do more things through technology.

And again I think that much like three answers.

I think that.

People that are in their very beginning of their career cycle, how does the benefit of actually being AI native.

Which means that even on entry level jobs, they can do much much more than that.

I said that many times I'll repeat a repeat it now.

AI has done is to elevate the floor for everyone.

Meaning.

Providing.

Incredible tools and capabilities to everyone, but thats exactly the thing no. One has an advantage thanks to AI as a tool.

<unk> are available for everyone. So essentially they are changing the starting point the floor, but it is not changing the sealy. So I think that it moves all its moved all jobs up including entry level jobs.

Micha Kaufman: I think that it moved all jobs up, including entry-level jobs. This is what we're seeing at least. Thank you.

This is what we're seeing.

<unk>.

Great. Thank you.

Steve Roman: Great. Thank you.

Thank you.

Our next question.

Operator: Thank you. Our next question comes from the line of Brad Erickson of RBC Capital Markets. Please go ahead, Brad.

Comes from the line of Brad Erickson of RBC capital markets. Please go ahead brand.

Yes, thanks, guys I have two.

Steve Roman: Yeah. Thanks, guys. I have two. First, on the services revenue, can you just update us on the mix within that line item between what you might regard as sort of recurring revenue versus more transactional? And then kind of how you think about the general visibility level. I have a follow-up.

Brad Erickson: Yeah. Thanks, guys. I have two. First, on the services revenue, can you just update us on the mix within that line item between what you might regard as sort of recurring revenue versus more transactional? And then kind of how you think about the general visibility level. I have a follow-up.

First on the services revenue can you just update us on the mix within that line item between what you might regard as.

Recurring revenue versus more transactional and then kind of how you think about the general visibility level and then I have a follow up.

Hey, good morning.

Micha Kaufman: Hey, good morning. Essentially, when you look at the services side, it is mostly made out of Promoted Gigs, Seller Plus, and AutoDS, and all of them are continuing their momentum. There is nothing specifically to call out there. Was there a second part to your question?

So essentially when you look at the services side. It is mostly made out of promoted gig.

Seller plus.

And auto and all of them are continuing their momentum there is nothing specifically to call out there.

Was there a second part to your question.

I was just kind of general visibility.

Steve Roman: It was just kind of general visibility, related to, you know, obviously some of the revenue being sort of what might look like recurring versus purely transactional.

Brad Erickson: It was just kind of general visibility, related to, you know, obviously some of the revenue being sort of what might look like recurring versus purely transactional.

Related to obviously some of the revenue being sort of what might look like recurring versus purely transactional.

I think that to give some more color also think promoted gigs.

Jinjin Qian: I think that, you know, to give some more color. I think Promoted Gigs, you know, is not recurring by design. It's pretty much ongoing, and we see a very high retention of sellers who are using this product. It's aligned with the GMV on one hand, but it has more room to expand as we have more inventory that hasn't been utilized yet. I think, you know, one territory that we haven't expanded to in terms of Promoted Gigs is the Fiverr Pro environment, which is growing faster than the marketplace. I think that... but this is one example. On the Seller Plus. Seller Plus is subscription by design. This is the offering.

Ofer Katz: I think that, you know, to give some more color. I think Promoted Gigs, you know, is not recurring by design. It's pretty much ongoing, and we see a very high retention of sellers who are using this product. It's aligned with the GMV on one hand, but it has more room to expand as we have more inventory that hasn't been utilized yet. I think, you know, one territory that we haven't expanded to in terms of Promoted Gigs is the Fiverr Pro environment, which is growing faster than the marketplace. I think that... but this is one example. On the Seller Plus. Seller Plus is subscription by design. This is the offering.

Not really.

Colleen by design.

But it's pretty much ongoing and we feel very highly finjan.

Hello, who are using this product.

It's aligned with the <unk> on one hand, but it has more room to expand as we.

We have more inventory.

That hasn't been utilized yet.

100 territory that we haven't expanded too.

In terms of promoted gigs is the fiber pro environment, which is growing faster than the marketplace, but I think that.

But this is one example, and then on the seller on the filler cloud plus subscription.

By design. This is the offering there are.

Multi field a few deals of offering full for different services being <unk> and <unk>.

Jinjin Qian: There are multi-tier, there are few tiers of offering for different services being offered and packaged. As time goes, we expand those offerings, adding more capabilities, and opening more tiers. I think under Seller Plus as well, it has the room for us to offer more services and to charge accordingly, then also to expand in terms of the target audience, approaching seller that were not entitled for the program before and offering them a different class or different type of tool to improve their business. Lastly, AutoDS is a subscription, is being growing nicely and contributes more than expected on Q2.

Ofer Katz: There are multi-tier, there are few tiers of offering for different services being offered and packaged. As time goes, we expand those offerings, adding more capabilities, and opening more tiers. I think under Seller Plus as well, it has the room for us to offer more services and to charge accordingly, then also to expand in terms of the target audience, approaching seller that were not entitled for the program before and offering them a different class or different type of tool to improve their business. Lastly, AutoDS is a subscription, is being growing nicely and contributes more than expected on Q2.

And as time goes we expand those offerings.

The more capabilities and.

And opening more deal so I think on the solar plants as well it has the womb.

To for us to offer more services than two charge Accordingly, and then also to expand in terms of the target audience.

Approaching sell all of that.

We're nothing title for the program before.

Offering them a different class with different.

Type of tool.

To improve the business and lastly.

Also the <unk> is subscription.

It's been growing nicely and contribute more than expected on the second quarter and we see this business building up nicely as we've just finalized the integration.

Jinjin Qian: We see this business building up nicely as we just finalize the integration with Fiverr ecosystem. We see that building nicely looking forward. I don't think we break down each and any of those to line item. This is, you know, I hope for more color and visibility to this line of revenue.

Ofer Katz: We see this business building up nicely as we just finalize the integration with Fiverr ecosystem. We see that building nicely looking forward. I don't think we break down each and any of those to line item. This is, you know, I hope for more color and visibility to this line of revenue.

With <unk> ecosystem, we see that building nicely.

Looking forward I don't think we we breakdown each each and any of those.

Two line item.

But this is this is this is I hope for more color and visibility to this line.

Nine month revenue.

Yes. It is very helpful color. Thanks, and then just second one maybe following on to a few of the questions around marketplace growth.

Steve Roman: Yeah, it is. Very helpful color. Thanks. Just second one, maybe following on to a few of the questions around marketplace growth. You know, you've talked for a while about this whole mix shift between complex services and simple services. I guess, do you feel like you have visibility to when that mix shift might become a tailwind? I know you just said you're not ready to guide to that because of macro. I guess the question is like, do we need to see macro ultimately improve, or do we reach a point, maybe at some point soon where that mix shift is enough to push the marketplace back to growth? How to think about that? Thanks.

Brad Erickson: Yeah, it is. Very helpful color. Thanks. Just second one, maybe following on to a few of the questions around marketplace growth. You know, you've talked for a while about this whole mix shift between complex services and simple services. I guess, do you feel like you have visibility to when that mix shift might become a tailwind? I know you just said you're not ready to guide to that because of macro. I guess the question is like, do we need to see macro ultimately improve, or do we reach a point, maybe at some point soon where that mix shift is enough to push the marketplace back to growth? How to think about that? Thanks.

You've talked for a while about this whole mix shift between complex services and simple services I guess do you feel like you have visibility to when that mix shift might become a tailwind I know you just said youre not ready to guide to that because of macro. So I guess the question is like do we need to see macro ultimately.

We improve.

Or do we reach a point, maybe maybe at some point soon where that mix shift is enough to push the marketplace back to growth how to think about that thanks.

Yeah. Thank you.

Look.

Jinjin Qian: Yeah. Thank you. Look, I said it before, we don't know exactly when this is going to be the case given the volatility of the market. That said, we do believe that by going upmarket, enjoying the tailwind that AI is giving us, over time, this is going to bring us back into growth on the marketplace side, even without macro economy taking a turn.

Micha Kaufman: Yeah. Thank you. Look, I said it before, we don't know exactly when this is going to be the case given the volatility of the market. That said, we do believe that by going upmarket, enjoying the tailwind that AI is giving us, over time, this is going to bring us back into growth on the marketplace side, even without macro economy taking a turn.

I've said it before we don't know exactly when this is going to be the case, given the volatility of the market.

That said.

We do believe.

That by going up market.

And.

Enjoying the tailwind that AI is giving us.

<unk> time, this is going to bring us back into growth on the marketplace side, even without macro.

Economy.

Looking at turn.

Got it thanks.

Steve Roman: Got it. Thanks.

Brad Erickson: Got it. Thanks.

Thank you.

Our next question comes from the line of burning Chairman of Needham <unk> Company. Please go ahead Bernie.

Operator: Thank you. Our next question comes from the line of Bernie McTiernan of Needham & Company. Please go ahead, Bernie.

Great. Thanks for taking the question just one from me wanted to just follow up with one of the comments you made in your prepared remarks that you are in discussion with several.

Bernie McTiernan: Great. Thanks for taking the question. Just one for me. I want to, Micha, just follow up with one of the comments you made in your preparing marks that you were in discussion with several companies on potential partnerships on AI. Just wanted to. You know, I know it's too early to announce what those are, but what could those partnerships actually look like? Either, you know, the technology being better put into your marketplace or Fiverr's marketplace being on, like, other AI platforms. Just how we should think about those partnerships potentially playing out.

Bernie McTernan: Great. Thanks for taking the question. Just one for me. I want to, Micha, just follow up with one of the comments you made in your preparing marks that you were in discussion with several companies on potential partnerships on AI. Just wanted to. You know, I know it's too early to announce what those are, but what could those partnerships actually look like? Either, you know, the technology being better put into your marketplace or Fiverr's marketplace being on, like, other AI platforms. Just how we should think about those partnerships potentially playing out.

Companies on potential partnerships on on AI, just wanted to I know, it's too early to announce what those are but what could those partnerships actually look like either.

The technology being better.

Put into your marketplace or are you or fibers marketplace being on like other AI platforms, just how we should think about those partnerships potentially playing out.

Hey, Ernie Thanks for the question.

Jinjin Qian: Hey there, Bernie. Thanks for the question. Look, what I refer to is what we call internally, scaled AI, using experts. Essentially what we're seeing with technology is we're seeing technology allowing everyone to take a pretty meaningful step forward. That said, using many of these technologies in a way that would create either a complete product or would provide a competitive edge, usually requires either at the beginning or at the end or both, using someone who's an expert in using these tools. As friendly as they are, at some point, they become technical. At some point, they reach their limitations.

Micha Kaufman: Hey there, Bernie. Thanks for the question. Look, what I refer to is what we call internally, scaled AI, using experts. Essentially what we're seeing with technology is we're seeing technology allowing everyone to take a pretty meaningful step forward. That said, using many of these technologies in a way that would create either a complete product or would provide a competitive edge, usually requires either at the beginning or at the end or both, using someone who's an expert in using these tools. As friendly as they are, at some point, they become technical. At some point, they reach their limitations.

Okay.

What I referred to is what we call internally.

Scaled AI.

Using expertise.

Essentially what we're seeing with technology is we're seeing technology, allowing everyone to take off.

A pretty meaningful step forward.

That said using many of these technologies in a way that would create either a complete product or would provide.

A competitive edge usually requires either at the beginning or at the end or both using someone who is an expert in using diesel.

As friendly as they are.

At some point they become technical at some point they reach their limitation I think this is exactly this is exactly the concept.

Jinjin Qian: I think this is exactly the concept of actually working with those who can give you either the help to get to the finish line or the competitive edge required to build successful things. Without getting into specifics, you know, the things that we did with Certified could, you know, could give you a sense of how we're thinking about empowering our customers as they use these AI tools.

Micha Kaufman: I think this is exactly the concept of actually working with those who can give you either the help to get to the finish line or the competitive edge required to build successful things. Without getting into specifics, you know, the things that we did with Certified could, you know, could give you a sense of how we're thinking about empowering our customers as they use these AI tools.

We're actually working with those who are who can give you either to help to get to the finish line or the competitive edge required to build successful things.

And so without getting into.

Without getting into specifics.

The things that we do.

The thing that we did with certified.

Could.

Could could give you a sense of how we're thinking about empowering our customers.

<unk> used these.

<unk>.

Understood. Thank you.

Bernie McTiernan: Understood. Thank you.

Bernie McTernan: Understood. Thank you.

Okay.

Thank you.

Our next question.

Operator: Thank you. Our next question comes from the line of Joshua Chan of UBS. Please go ahead, Josh.

Comes from the line.

Josh Chan of UBS. Please go ahead Josh.

Hi, Thanks for taking my questions.

Joshua Chan: Hi, Amit, Ofer. Thanks for taking my questions. I guess two questions from me. One, on your AI capabilities. I know that because they're more complex that you're getting higher ASP from your AI type of services. I guess I'm wondering, are you also attracting new and different customers that weren't part of the Fiverr platform before that are attracted to your AI capabilities? I guess my second question is on the margin front. As you think about the path to targets, you know, how dependent on GMV improvement will your margin trajectory be? Thank you.

Two questions from me one.

Your AI capabilities, I know that because they're more complex.

Youre getting higher Asps from your AI type of services I guess I'm wondering are you also attracting new and different customers that weren't part of the fiber platform before.

That are attractive to our AI capabilities and then I guess my second question is on the margin front as you think about.

The path towards our targets.

How dependent on GMB improvement.

Will your margin trajectory be thank you.

Good morning, Josh Thanks for the question.

Micha Kaufman: Morning, Josh. Thanks for the question. The answer for your first question is yes. You know, given the fact that it's more complex types of projects, it allows us to actually get the types of customers that we're very much focused on, which are customers that are able to actually pay and fund these types of expertise. Again, having these experts on our platform is something that we've been working on for a while, and it's definitely paying off. You know, we called out the positive and accelerated growth around programming in tech, in video, and in animation verticals as an example.

The answer for your first question is yes.

<unk>.

Given the fact that.

It's more complex types of projects.

It allows us to actually get the types of customers that were very much focused on.

Which are customers that are able to actually.

Hey.

And fund.

But these these types of expertise.

And again, having these experts on our platform is something that we've been working on for a while and it's.

It's definitely up.

Paying off we called the.

The positive and accelerated growth around programming and tick.

And in video and animation verticals as an example, and obviously we're seeing that also.

Micha Kaufman: Obviously we're seeing that also accelerating our growth in the spend per buyer in a very nice way. Actually putting us in a, you know, in a great position where I don't think that there is any company in our space that delivers the performance at our level with double-digit growth and you know, and a 20% EBITDA. So, you know, investing in these areas allows us to deliver one of the best performing businesses in our space.

Accelerating our growth in the spend per buyer.

In a very in a very nice way actually putting us in a.

In.

In a great position where.

Don't think that there is any company in our space that delivers the performance that the performance at our level with double digit growth in.

And a 20% EBITDA.

And so investing in these areas allows us to.

Deliver one of the best.

Performing businesses.

In our space.

And on the second part on the on the margin and dependent on <unk> improvement I think.

Jinjin Qian: Yeah, on the second part on the margin and dependent on GMV improvement, I think we have a 2027 margin, long-term margin that we are committed to, 25%. I think as you can see, we are moving there step by step and have a full confidence with the ability to deliver on the margin improvement. This is taking into consideration multiple scenario of the GMV growth or GMV flat. I don't think there is a dependency. We have the flexibility, but also the confidence, the ability to deliver despite the different scenario.

Ofer Katz: Yeah, on the second part on the margin and dependent on GMV improvement, I think we have a 2027 margin, long-term margin that we are committed to, 25%. I think as you can see, we are moving there step by step and have a full confidence with the ability to deliver on the margin improvement. This is taking into consideration multiple scenario of the GMV growth or GMV flat. I don't think there is a dependency. We have the flexibility, but also the confidence, the ability to deliver despite the different scenario.

We have planned 2007 margin long term margin that we're committed to.

25% and I think as you can see we are moving the step by step and have full confidence.

With the ability to deliver.

On the margin improvement.

This is taken into consideration multiple scenario.

The GMB growth, though Jim.

Flat.

Uh huh.

So I don't think there is there is a dependency we have the flexibility, but those that would be.

For them the ability to deliver despite the different scenario.

That's great. Thank you for the color on the time.

Joshua Chan: That's great. Thank you for the color and the time.

Thank you.

Micha Kaufman: Thank you.

Thank you.

Next question.

Operator: Thank you. Our next question comes from the line of Matt Condon of Citizens. Please go ahead, Matt.

From the line.

Matt Condon.

Citizens. Please go ahead Matt.

Thank you so much for taking my questions. My first one is just on marketplace revenue in the quarter it looks like trends on a year over year basis.

Matthew Condon: Thank you so much for taking my questions. My first one is just on marketplace revenue in the quarter. It looks like trends on a year-over-year basis deteriorated in Q2, and that's just in the backdrop of a stable macro environment and the AI tailwinds that you guys are seeing. Can you just elaborate just on what you're seeing, I guess, real time, if there's anything to call out there? My second question is just on marketing spend. Specifically as you guys move up market, are you seeing any changes in your return on marketing spend, or any changes in your TROI framework, specifically as you move up market? Thank you so much.

Matt Condon: Thank you so much for taking my questions. My first one is just on marketplace revenue in the quarter. It looks like trends on a year-over-year basis deteriorated in Q2, and that's just in the backdrop of a stable macro environment and the AI tailwinds that you guys are seeing. Can you just elaborate just on what you're seeing, I guess, real time, if there's anything to call out there? My second question is just on marketing spend. Specifically as you guys move up market, are you seeing any changes in your return on marketing spend, or any changes in your TROI framework, specifically as you move up market? Thank you so much.

Deteriorated in the second quarter and Thats just in the backdrop.

Stable macro environment and the AI tailwind that you guys are seeing can you just elaborate just on what Youre seeing I guess real time, if there is anything to call out there and then my second question is just on marketing spend specifically as you guys move up market are you seeing any changes in your return on marketing spend.

Any changes in your Trs ROI framework, specifically as you move up market. Thank you so much.

So I think the answer for those question is that.

Jinjin Qian: Yeah. I think the answer for both question is that the quarter behave as expected. I think we have committed to marketplace being flat, maybe a low single digit decline, and that's exactly where we are. Honestly, I think that as we look to the second half of the year, we anticipate or predict a similar, a similar trend. As for the marketing trend, I mean, you can, you know, you can track and we provide TROI data in return. I think that those fall into the expectation without much exception.

Ofer Katz: Yeah. I think the answer for both question is that the quarter behave as expected. I think we have committed to marketplace being flat, maybe a low single digit decline, and that's exactly where we are. Honestly, I think that as we look to the second half of the year, we anticipate or predict a similar, a similar trend. As for the marketing trend, I mean, you can, you know, you can track and we provide TROI data in return. I think that those fall into the expectation without much exception.

The quarter behave as expected.

<unk> committed to marketplace being flat, maybe a low soon.

Did it.

Decline and Thats exactly where you are where we are and honestly I think that.

As we look to the second half of the year.

We anticipate the predictor of similar a similar trend.

And therefore, the marketing trend, but maybe you can you.

Contract.

We provide CLI data and return of things those.

Those folded into the into the expectation without without much much.

The exception.

Thank you.

Our next question.

Operator: Thank you. Our next question comes from the line of Rohit Kulkarni of Roth Capital Partners. Please go ahead, Rohit.

Comes from the line of Rohit Kulkarni.

Roth Capital Partners. Please go ahead Ryan.

Thank you.

One question on now you've mentioned.

Rohit Kulkarni: I hear you. Thank you. One question on, you've mentioned a few times AI agents workflow automation in the letter. Maybe talk about what you're seeing from a demand standpoint, what types of customers or what types of use cases you feel Fiverr is well positioned to address the demand in AI agents and robotic process automation, workflow automation in a new AI world? Then just on this, based on our calculation, I think GMV seems to have accelerated almost 3 or 4 quarters in a row.

<unk> agents workflow automation in the letter.

Maybe talk about what are you seeing from a demand standpoint.

Types of <unk>.

Customers are sort of what types of use cases, you're feeling.

Cyber is well positioned to.

Address the demand in Asia and soon.

Automotive crosses automation workflow automation.

And then just.

On this.

Based on our calculation I think <unk>, some sort of accelerated almost three or four quarters in a row.

Perhaps talk about what.

Rohit Kulkarni: Perhaps talk about what your assumptions are heading into second half as the guidance seems to be unchanged, but just talk through how you feel the sustainability of GMV acceleration, although from a -1% to +2%, but that's still encouraging in my opinion. Thanks.

Your assumptions are.

Heading into the second half.

Yes.

The guidance seems to be unchanged, but just talk through how you feel the sustainability of.

GMB acceleration although from a.

Minus 1% to plus 2% with Dutch demand producing in my opinion. Thanks.

Hey, good morning, Thanks for the question the first one.

Micha Kaufman: Hey, morning, Rohit. Thanks for the question. I'll start with the first one. Look, you know, AI-related services are booming and the demand is surging, especially around AI agents, workflow automation, vibe coding. As an example, AI agent 35% growth quarter-over-quarter, 10x growth in the last 6 months. Workflow automation and vibe coding growing 10x in the last 6 months is customers are using services like Make or HighLevel to create those workflows. AI development, 137% growth year-over-year. Mobile app, 47% year-over-year. AI consulting, 37% year-over-year.

Okay.

AI related services are booming and the demand is surging, especially around AI agents workflow automation by coding.

As an example, AI agent.

35% growth quarter over quarter, 10 X growth in the last six months.

Workflow automation and vibe coding growing tenex in the us.

Six months.

Customers are using services I can make dot com or.

Go high level.

To create those.

Workflows.

AI development, 137% growth year over year mobile up 47% year over year.

Consulting 37% year over year.

And also we're seeing some some proliferative categories that are benefiting from it such as.

Micha Kaufman: Also we're seeing some peripheral categories that are benefiting from it, such as data governance and protection with 58% growth, and crowdfunding with 51% growth where, you know, AI is now driving millions of startups. AI experts on Fiverr play a critical role in helping customers navigate the rapidly evolving AI landscape and bridge the gap between technology and tangible business impact. We're excited about this. We think that this is just the beginning, and we're gonna see a lot of more categories that are going to be affected as a result of it and experience accelerated growth.

Dave.

Governance and protection with 58% growth.

And crowd funding with 51% growth were.

I drive.

He is now driving millions of startup.

And so AI experts on fiber play a critical role in helping customers navigate the rapidly evolving AI landscape and bridge the gap between technology and tangible business impact.

So we're excited about this we think that this is just the beginning and we're going to see a lot of.

A lot of more categories that are going to be affected as a result of it in an experienced accelerated growth.

I think on the on the second part of the question.

Jinjin Qian: I think on the second part of the question, what we are seeing is a pretty stable macro. We don't interrupt, you know, small deceleration or acceleration as a trend. I think this take us to the assumption on the second half of the year, which is a reiteration of what we said at the beginning of the year. We don't think, you know, unless something materially change on the macro environment, we think that it's going to be stable between flat and maybe slightly one-digit decrease in GMV. That's what we anticipate for the second half of the year.

Ofer Katz: I think on the second part of the question, what we are seeing is a pretty stable macro. We don't interrupt, you know, small deceleration or acceleration as a trend. I think this take us to the assumption on the second half of the year, which is a reiteration of what we said at the beginning of the year. We don't think, you know, unless something materially change on the macro environment, we think that it's going to be stable between flat and maybe slightly one-digit decrease in GMV. That's what we anticipate for the second half of the year.

What we are seeing is.

Okay, just stable Macquarie.

We don't think they are up.

Morning, deceleration or acceleration of the trend.

And I think just take us through the assumption on the second half of the year.

Which is a reiteration of what you said at the beginning of sale.

We don't think unless something material.

The change in the macro environment, the things that is going to be.

On stable between flat.

And maybe slightly.

<unk> digits.

Because of this.

In.

And DMV, but thats, what we anticipate for the second half of it.

Thank you.

Great. Thank you.

Micha Kaufman: Thank you.

Ofer Katz: Thank you.

Rohit Kulkarni: Great. Thank you both.

Thank you I would now like to turn the conference back to Manhattan Kauffman for closing remarks, Sir.

Operator: Thank you. I would now like to turn the conference back to Micha Kaufman for closing remarks. Sir?

Thank you for moderating the call today and to everyone, who dialed in this morning, I look forward to speaking to all of you very soon have a great day.

Micha Kaufman: Thank you, Lateef, for moderating the call today and to everyone who dialed in this morning. I look forward to speaking to all of you very soon. Have a great day.

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