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Fiverr Releases Its First Quarter 2020 Financial Report

Fiverr Releases its first quarter 2020 financial report
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Written by Hussein Yassine

Fiverr’ first quarter 2020 financial report has arrived, and there are several interesting points to cover. The prominent international freelance company appears happy with its new figures, which it shared on its investor relations page on Thursday, May 7th.

“Our growth and financial results reflect the strength and resilience of our marketplace even in a challenging global environment,” said Founder and CEO, Micha Kaufman,  in the introduction of the year-over-year report.

Strong and Resilient 

Between the first quarter (Q1) of 2019 and that of the current year, Fiverr has accumulated $34.2 million in revenue, which equates to a 44% increase over last year’s results.

When it comes to active buyers, Fiverr has recorded a 17% increase between March 31st, 2019 (2.1 million buyers), and March 31st, 2020 (2.5 million).

Over the same period, the company’s average spend-per-buyer has also grown. In Q1 2019, buyers spent an average of $150 whereas, by April of this year, the figure was $177. This translates to an increase of 18% since last year.

Additionally, Fiverr’s take rate, or the percentage of collected fees and commissions, rose by 0.9 percentage points over the past 12 months, from 26.2% to 27.1%.f



Gross margin is the difference between revenue and cost of goods sold divided by revenue. For Fiverr, this value saw 0.8 percentage points of growth since Q1 2019, from 80% to 80.8%.

Not only has Fiverr recorded an increase in revenue over the past year but also a noteworthy drop in its losses. In Q1 2019, the company’s net loss was $8.3 million. Year-over-year, this number has shrunk to $6.2 million.

The Impact of New Languages

Fiverr has enjoyed a strong and solid revenue growth between Q1 2019 and Q1 2020; a growth partly fed by its platform’s recently-introduced, French-localized version.

According to the financial report, revenue from non-English speaking countries now represents 32% of Fiverr’s total revenue, up from approximately 30% in 2019.

To capitalize on this advantage, Fiverr recently added new languages to its platform, which expanded its global reach. Moreover, the company has recently introduced user-generated content for non-English websites, run by machine translation.

Unlike Upwork, which recently released its own Q1 2020 financials, Fiverr has provided revenue guidance for the full year of 2020, in addition to its outlook for the second quarter of the year.

The dominant freelance marketplace predicts that its year-over-year revenue will grow by 37% – 41% ($35.5 million – $36.5 million) by Q2 2020. 

As for its full-year guidance, Fiverr expects to see 36% – 38% of year-over-year growth in 2020, or $145.5 million – $147.5 million of revenue.

Fiverr notes that, due to the significant negative impact of COVID-19 on the world’s economies, it will be updating its business trends as they evolve.

 

About the author

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Hussein Yassine

Hussein Yassine is a lifelong gaming aficionado and technology enthusiast. He also happens to be an avid writer, so he writes about these and other interesting topics. When he's not writing or gaming, he can usually be found fumbling around his piano.

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