Fiverr’s second quarter saw revenue and non-GAAP profit both exceed Wall Street expectations, yet the market responded negatively to the results. Management attributed revenue growth primarily to strong demand for AI-related services and increased spend per buyer, even as active buyers declined year over year. CEO Micha Kaufman highlighted that “surging demand for AI-related services and the continued momentum of managed services and dynamic matching products” supported performance, with categories like programming, digital marketing, and animation driving growth. However, management also acknowledged that small and midsize businesses remain cautious in their spending, contributing to the ongoing contraction in Fiverr’s active buyer base.
Is now the time to buy FVRR? Find out in our full research report (it’s free).
Fiverr (FVRR) Q2 CY2025 Highlights:
- Revenue: $108.6 million vs analyst estimates of $107.7 million (14.8% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.69 vs analyst estimates of $0.65 (6.7% beat)
- Adjusted EBITDA: $21.45 million vs analyst estimates of $21.36 million (19.7% margin, in line)
- The company reconfirmed its revenue guidance for the full year of $431.5 million at the midpoint
- EBITDA guidance for the full year is $87 million at the midpoint, below analyst estimates of $87.64 million
- Operating Margin: -1.8%, in line with the same quarter last year
- Active Buyers: 3.43 million, down 421,000 year on year
- Market Capitalization: $789.3 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Fiverr’s Q2 Earnings Call
- Eric Sheridan (Goldman Sachs): Asked about the long-term scaling of services revenue and the potential penetration of Seller Plus; CEO Micha Kaufman said services have a long runway, highlighting ongoing expansion of value-added tools for freelancers and deeper integration across Fiverr’s platforms.
- Ron Josey (Citi): Inquired about the progress of managed services and the shift upmarket; Kaufman described the upmarket strategy as reducing exposure to small businesses and noted managed services are growing, with over half of GMV now from higher-value transactions.
- Doug Anmuth (JPMorgan): Sought clarity on supply of AI expertise and conditions needed for marketplace revenue growth; Kaufman said Fiverr’s freelancers are quick to adopt AI, and upmarket initiatives may eventually drive growth even without macroeconomic improvement.
- Brad Erickson (RBC Capital Markets): Questioned the mix of recurring versus transactional services revenue; CFO Ofer Katz explained that Seller Plus and AutoDS are subscription-based while Promoted Gigs is ongoing but not strictly recurring.
- Bernie McTernan (Needham & Company): Asked about potential AI partnership structures; Kaufman outlined a vision where Fiverr’s network of experts helps companies leverage AI tools, with future partnerships aimed at embedding Fiverr talent into AI-driven workflows.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely watch (1) the pace at which new AI-driven services and value-added offerings are adopted by buyers and freelancers, (2) whether the upmarket shift can compensate for declines in the active buyer base, and (3) progress on strategic partnerships that embed Fiverr’s talent network into broader AI ecosystems. Execution on these fronts and stabilization in buyer trends will be critical markers of Fiverr’s trajectory.
Fiverr currently trades at $21.45, down from $25 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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