Fiverr:Quarterly Results/2022 Q4
Back to Upwork:Quarterly Results/2022 Q4
Results[1]
Fiverr Q4 2022 revenue came in-line with analysts estimates. Revenue was $83.1 million (+4.2% y/y) versus analysts estimate of $83.45 (+4.57% y/y). Non-GAAP EPS was also in-line with the expectations. It came in at $0.26 per share versus the consensus of $0.20 per share.
The company was successful in lowering its operating losses.On a GAAP basis, its operating loss fell by 84% in Q4 to $2.2 million. Fiverr posted a net loss of $1.3 million, which compares with a loss of $19.5 million in the corresponding quarter of 2021.
The management noted that 2022 was likely the most challenging year since it was founded in 2010 due to rising energy prices and inflation, which affected small businesses who happen to be its main clients. It added, "We saw cohort spending moderated in 2022 due to macro impacts, as SMB spending became more cautious in the second half of 2022. Despite the pullback, older cohorts, those who joined before 2018, maintained a spend level that is higher than pre-COVID. Newer cohorts, with the stabilization period coupled with spending pullback in 2022, were trailing modestly in spend compared to historical levels."
Typically, the company normally sees an increase in spend per buyer from H1 to H2. However, in 2022, spend per buyer declined by an average of 3% from H1 to H2.
Fiverr expects Q1 2023 to be the most challenging quarter in terms of year over year growth rate. However, over the course of 2023, the company expects year-over-year revenue growth rate to increase and expects to exit 2023 with double digit revenue growth rate at midpoint. It expects revenue to come in $87.5 million at the mid-point(0.93% y/y growth rate) versus analysts estimate of $87.4 million(0.81% y/y growth rate). However, its guidance for FY 2023 is $357.5 million at the midpoint, misses analysts estimates by 2.3%. It's guiding EBITDA to double from $24 million in 2022 to $50 million(at the midpoint) in 2023.
| Key Numbers | Q4 2022 | Y/y Growth |
|---|---|---|
| Revenue | $83.1 million | 4.2% |
| Net Loss | $1.3 million | -93.33% |
| Operatin Loss | $2.2 million | -84% |
| GMV | $1.12 billion | 9.75% |
| Non-GAAP EPS | $0.26 | 4% |
Fiverr Versus Upwork Q4 2022 and full year comparissons
| Key Metrics | Upwork[2] | Fiverr[3] |
|---|---|---|
| Active clients at the end of Q4 | 814,000 | 4.3 million |
| Active clients growth rate(year-on-year) | -1% | +1% |
| Spend per buyer in Q4 | $5,045 | $262 |
| Spend per buyer growth rate (year-on-year) | +10% | +8% |
| GSV in 2022 | $4.1 billion | $1.12 billion |
| GSV in 2022 growth rate(year-on-year) | +5.0% | +9.75% |
| Revenue in the quarter | $161.4 million | $83.1 million |
| Revenue y/y growth rate | +18% | +4.2% |
| Take rate in Q4 | 15.7% | 29.2% |
| Take rate quarter-on-quarter growth rate | +1.95% | +7.75% |
Expectations
Yahoo Finance analysts expect Fiverr to beat its mid-point revenue guidance by 0.81%[4].
The Q4 guidance range given by the management is wider than the their typical Q4 guidance due to the continued macro uncertainty[5].
Management Guidance in $ million[6]
| Key metrics | Lower bound | Mid-point | Upper bound | Q4 2021 | Mid-point y/y growth |
|---|---|---|---|---|---|
| Revenue | 79.8 | 82.8 | 85.8 | 79.8 | 3.76% |
| Adjusted EBITDA | 7.0 | 7.5 | 8.0 | 8.9 | -15.73% |
Analysts expectations[4]
| Key Metrics | y/y growth | |
|---|---|---|
| Revenue average estimate | 83.45 | 4.57% |
| Non-GAAP EPS | $0.20 | -20% |
- ↑ Source: Fiverr shareholder letter
- ↑ https://investors.upwork.com/static-files/5463bf46-5aea-4c23-b61b-c3f37b4467e3
- ↑ Source: Fiverr Shareholder letter
- ↑ 4.0 4.1 https://finance.yahoo.com/quote/FVRR/analysis?p=FVRR
- ↑ https://seekingalpha.com/article/4555371-fiverr-international-ltd-fvrr-q3-2022-earnings-call-transcript
- ↑ https://s23.q4cdn.com/749308338/files/doc_financials/2022/q3/Third-Quarter-2022-Fiverr-Shareholder-Letter-November-9,-2022.pdf