Fiverr and TeamViewer Report Strong Q2 2024 Results, Highlighting Growth in Enterprise Segments

Fiverr Announces Second Quarter 2024 Results - Fiverr Intl (NYSE:FVRR)

Solid Q2 execution: Revenue came in above the midpoint of our guidance despite macro volatility as we continued to expand customer wallet share and drive take rate increase. We also delivered strong Adjusted EBITDA, near the top end of our guidance, and strong free cash flow as we continued to execute with strong discipline and efficiency.Expanding product portfolio to create strong growth catalysts: Our Summer Product Release includes the launch of a brand new profession-based catalog along with capabilities to hire talent for long-term engagement, making a major stride in expanding our direct addressable market. We also folded in a subscription-based software business through the acquisition of AutoDS, deepening our value proposition to the creator community and adding a durable revenue stream to our business with significant synergy and growth potential.Optimizing capital allocation strategy to deliver shareholder value: We are committed to setting clear capital allocation priorities and creating a tangible path for delivering shareholder value. We have successfully completed the $100 million buyback program announced in April. We aim to drive a steady and measurable increase in free cash flow combined with a dynamic capital return program for the next three years.Reiterating full year guidance: Our strategy to move upmarket and push into complex services continues to unlock long-term growth opportunities for our marketplace businesses. This is complemented by our expansion into the long-term freelancer hiring space and the addition of subscription-based software to our product portfolio. As such, we are raising the bottom end of our full-year guidance for both revenue and Adjusted EBITDA to reflect recent updates. NEW YORK, July 31, 2024 (GLOBE NEWSWIRE) -- Fiverr International Ltd. FVRR, the company that is changing how the world works together, today reported financial results for the second quarter 2024. Additional operating results and management commentary can be found in the Company's shareholder letter, which is posted to its investor relations website at investors.fiverr.com. "It has been an incredible past six months at Fiverr on many fronts as we navigated the dynamic macro environment and delivered profitable growth through executional excellence and focused operational discipline. In addition, we also made remarkable strides in our product evolution with the introduction of profession-based catalog and hourly contracts," said Micha Kaufman, founder and CEO of Fiverr. "With these offerings, we look forward to becoming a more substantial partner with businesses of all sizes, for their need to engage with the flexible workforce, and significantly expand our direct addressable market. We also continue to be at the forefront of AI technology as we deepen the integration of Neo across search and order experiences on Fiverr. I'm very excited for what is still to come as we continue to innovate towards the future of work." "We delivered solid results for Q2 and reiterated our full year guidance. While the SMB and freelancer hiring space remain volatile, we continue to execute with consistency and efficiency. At the same time, we are expanding our product portfolio through both organic and inorganic investments to create additional growth catalysts," said Ofer Katz, President and CFO of Fiverr. "We also aim to optimize our capital allocation strategy to deliver shareholder value. With strong free cash flow generation and a strong balance sheet to support capital return programs, we are paving a measurable and tangible path for steady growth in free cash flow for the next three years." Second Quarter 2024 Financial Highlights Revenue in the second quarter of 2024 was $94.7 million, compared to $89.4 million in the second quarter of 2023, an increase of 6% year over year.Active buyers1 as of June 30, 2024 was 3.9 million, compared to 4.2 million as of June 30, 2023, a decline of 8% year over year.Spend per buyer1 as of June 30, 2024 reached $290, compared to $265 as of June 30, 2023, an increase of 10% year over year.Take rate1 for the period ended June 30, 2024 was 33.0%, up from 30.7% for the period ended June 30, 2023, an increase of 230 basis points year over year.GAAP gross margin in the second quarter of 2024 was 83.1%, an increase of 60 basis points from 82.5% in the second quarter of 2023. Non-GAAP gross margin1 in the second quarter of 2024 was 84.4%, an increase of 20 basis points from 84.2% in the second quarter of 2023.GAAP net income in the second quarter of 2024 was $3.3 million, or $0.09 basic and $0.08 diluted net income per share, compared to $0.01 basic and diluted net income per share, in the second quarter of 2023.Non-GAAP net income1 in the second quarter of 2024 was $23.8 million, or $0.63 basic non-GAAP net income per share1 and $0.58 diluted non-GAAP net income per share1, compared to $20.0 million non-GAAP net income, or $0.53 basic non-GAAP net income per share1 and $0.49 diluted non-GAAP net income per share1, in the second quarter of 2023.Net cash provided by operating activities in the second quarter of 2024 was $21.0 million, compared to $18.7 million in the second quarter of 2023, an increase of 11.9%.Free cash flow in the second quarter of 2024 was $20.7 million, compared to $18.4 million in the second quarter of 2023, an increase of 12.5%.Adjusted EBITDA1 in the second quarter of 2024 was $17.8 million, compared to $15.3 million in the second quarter of 2023. Adjusted EBITDA margin1 was 18.9% in the second quarter of 2024, compared to 17.1% in the second quarter of 2023. Financial Outlook Our Q3'24 outlook and updated full year 2024 guidance reflects the recent trends on our marketplace. Q3 2024FY 2024Revenue$95.0 - $97.0 million$383.0 - $387.0 milliony/y growth3% - 5% y/y growth6% - 7% y/y growthAdjusted EBITDA(1)$17.0 - $19.0 million$69.0 - $73.0 million Conference Call and Webcast Details Fiverr's management will host a conference call to discuss its financial results on Wednesday, July 31, 2024, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr's Investor Relations website. An archived version will be available on the website after the call. To participate in the Conference Call, please register at the link here. About Fiverr Fiverr's mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, around 4 million customers worldwide worked with freelance talent on Fiverr in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On Fiverr, you can find over 700 skills, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture. Don't get left behind - come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on X, Instagram, and Facebook. Investor Relations: Jinjin Qian [email protected] Press: Siobhan Aalders [email protected] Source: Fiverr International Ltd. CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2024 2023 (Unaudited) (Audited) Assets Current assets: Cash and cash equivalents $188,729 $183,674 Marketable securities 182,609 147,806 User funds 156,294 151,602 Bank deposits 115,862 85,893 Restricted deposit 1,203 1,284 Other receivables 29,366 24,217 Total current assets 674,063 594,476 Long-term assets: Marketable securities 216,911 328,332 Property and equipment, net 4,526 4,735 Operating lease right of use asset 6,393 6,720 Intangible assets, net 13,755 10,722 Goodwill 81,992 77,270 Other non-current assets 1,254 1,349 Total long-term assets 324,831 429,128 TOTAL ASSETS $998,894 $1,023,604 Liabilities and Shareholders' Equity Current liabilities: Trade payables $5,368 $5,494 User accounts 145,494 142,203 Deferred revenue 12,165 11,047 Other account payables and accrued expenses 47,074 44,110 Operating lease liabilities 2,575 2,571 Total current liabilities 212,676 205,425 Long-term liabilities: Convertible notes 456,580 455,305 Operating lease liabilities 3,882 4,482 Other non-current liabilities 4,111 2,618 Total long-term liabilities 464,573 462,405 TOTAL LIABILITIES $677,249 $667,830 Shareholders' equity: Share capital and additional paid-in capital 681,887 640,846 Accumulated deficit (357,404) (284,358) Accumulated other comprehensive income (loss) (2,838) (714) Total shareholders' equity 321,645 355,774 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $998,894 $1,023,604 CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (Unaudited) (Unaudited) Revenue $94,663 $89,385 $188,187 $177,341 Cost of revenue 16,024 15,632 31,472 31,298 Gross profit 78,639 73,753 156,715 146,043 Operating expenses: Research and development 21,855 23,289 45,488 45,176 Sales and marketing 41,324 38,870 83,476 80,920 General and administrative 17,764 15,604 34,215 31,103 Total operating expenses 80,943 77,763 163,179 157,199 Operating loss (2,304) (4,010) (6,464) (11,156) Financial income, net 8,502 4,487 15,163 7,571 Income (loss) before income taxes 6,198 477 8,699 (3,585) Income taxes (2,931) (250) (4,644) (460) Net income (loss) attributable to ordinary shareholders $3,267 $227 $4,055 $(4,045) Basic net income (loss) per share attributable to ordinary shareholders $0.09 $0.01 $0.11 $(0.11) Basic weighted average ordinary shares 38,089,060 37,906,971 38,422,605 37,677,180 Diluted net income (loss) per share attributable to ordinary shareholders $0.08 $0.01 $0.10 $(0.11) Diluted weighted average ordinary shares 38,755,863 41,192,132 39,180,421 37,677,180 CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (Unaudited) (Unaudited)Operating Activities Net income (loss) $3,267 $227 $4,055 $(4,045)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,606 1,654 2,756 3,379 Exchange rate fluctuations and other items, net 55 (95) 166 (6)Amortization of premium and accretion of discount of marketable securities, net (1,154) 378 (2,248) 1,234 Amortization of discount and issuance costs of convertible notes 638 635 1,275 1,269 Shared-based compensation 18,438 17,630 37,458 34,349 Changes in assets and liabilities: User funds 6,928 1,950 (4,692) (13,956)Operating lease ROU assets and liabilities (177) (164) (275) (412)Other receivables (2,197) (1,773) (5,173) (2,747)Trade payables 248 (2,569) (580) (6,354)Deferred revenue (777) (788) 1,118 831 User accounts (6,632) (1,608) 3,291 13,355 Account payable, accrued expenses and other (131) 3,141 4,134 4,699 Non-current liabilities 859 117 882 642 Net cash provided by operating activities 20,971 18,735 42,167 32,238 Investing Activities Investment in marketable securities - (118,450) (30,734) (181,008)Proceeds from maturities of marketable securities 68,512 108,621 108,597 162,921 Investment in short-term bank deposits (9,000) - (36,238) - Proceeds from short-term bank deposits 2,974 58,781 6,351 58,751 Acquisition of business, net of cash acquired (9,163) - (9,163) - Purchase of property and equipment (309) (367) (687) (695)Capitalization of internal-use software and other - (8) (20) (13)Net cash provided by investing activities 53,014 48,577 38,106 39,956 Financing Activities Repurchases of common stock (77,101) - (77,101) - Proceeds from exercise of share options 1,388 433 1,830 2,183 Tax withholding in connection with employees' options exercises and vested RSUs 441 (387) 220 (56)Net cash provided by (used in) financing activities (75,272) 46 (75,051) 2,127 Effect of exchange rate fluctuations on cash and cash equivalents (58) 100 (167) 37 Increase (decrease) in cash, cash equivalents and restricted cash (1,345) 67,458 5,055 74,358 Cash, cash equivalents and restricted cash at the beginning of period 190,074 94,789 183,674 87,889 Cash and cash equivalents at the end of period $188,729 $162,247 $188,729 $162,247 KEY PERFORMANCE METRICS Twelve Months Ended June 30, 2024 2023 Annual active buyers (in thousands) 3,888 4,222 Annual spend per buyer ($) 290 265 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT (in thousands, except gross margin data) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 FY 2022 FY 2023 (Unaudited) (Unaudited) (Unaudited) GAAP gross profit $73,753 $77,457 $76,029 $78,076 $78,639 $271,418 $299,529 Add: Share-based compensation 619 632 633 678 499 2,520 2,497 Depreciation and amortization 885 731 709 613 791 6,065 3,253 Non-GAAP gross profit $75,257 $78,820 $77,371 $79,367 $79,929 $280,003 $305,279 Non-GAAP gross margin 84.2% 85.2% 84.6% 84.9% 84.4% 83.0% 84.5% RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME AND NET INCOME PER SHARE (in thousands, except share and per share data) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 FY 2022 FY 2023 (Unaudited) (Unaudited) (Unaudited) GAAP net income (loss) attributable to ordinary shareholders $227 $3,025 $4,701 $788 $3,267 $(71,487) $3,681 Add: Depreciation and amortization 1,654 1,321 1,287 1,150 1,606 10,185 5,987 Share-based compensation 17,630 17,557 16,792 19,020 18,438 71,755 68,698 Impairment of intangible assets - - - - - 27,629 - Contingent consideration revaluation, acquisition related costs and other - - (359) 9 109 (10,613) (359) Convertible notes amortization of discount and issuance costs 635 635 637 637 638 2,527 2,541 Taxes on income related to non-GAAP adjustments - - - - (71) - - Exchange rate (gain)/loss, net (108) 98 42 128 (156) (1,141) (131) Non-GAAP net income $20,038 $22,636 $23,100 $21,732 $23,831 $28,855 $80,417 Weighted average number of ordinary shares - basic 37,906,971 38,164,996 38,501,155 38,756,151 38,089,060 36,856,140 38,066,203 Non-GAAP basic net income per share attributable to ordinary shareholders $0.53 $0.59 $0.60 $0.56 $0.63 $0.78 $2.11 Weighted average number of ordinary shares - diluted 41,192,132 41,389,621 41,440,827 41,758,840 40,909,724 40,662,057 41,304,907 Non-GAAP diluted net income per share attributable to ordinary shareholders $0.49 $0.55 $0.56 $0.52 $0.58 $0.71 $1.95 RECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA (in thousands, except adjusted EBITDA margin data) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 FY 2022 FY 2023 (Unaudited) (Unaudited) (Unaudited) GAAP net income (loss) $227 $3,025 $4,701 $788 $3,267 $(71,487) $3,681 Add: Financial expenses (income), net (4,487) (5,678) (6,914) (6,661) (8,502) (3,624) (20,163) Income taxes 250 308 605 1,713 2,931 577 1,373 Depreciation and amortization 1,654 1,321 1,287 1,150 1,606 10,185 5,987 Share-based compensation 17,630 17,557 16,792 19,020 18,438 71,755 68,698 Impairment of intangible assets - - - - - 27,629 - Contingent consideration revaluation, acquisition related costs and other - - (359) 9 109 (10,613) (359) Adjusted EBITDA $15,274 $16,533 $16,112 $16,019 $17,849 $24,422 $59,217 Adjusted EBITDA margin 17.1% 17.9% 17.6% 17.1% 18.9% 7.2% 16.4% RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES (In thousands) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 FY 2022 FY 2023 (Unaudited) (Unaudited) (Unaudited) GAAP research and development $23,289 $23,490 $22,054 $23,633 $21,855 $92,563 $90,720 Less: Share-based compensation 6,463 6,227 5,836 6,836 5,897 23,828 24,310 Depreciation and amortization 203 196 191 201 193 801 799 Non-GAAP research and development $16,623 $17,067 $16,027 $16,596 $15,765 $67,934 $65,611 GAAP sales and marketing $38,870 $40,521 $39,767 $42,152 $41,324 $174,599 $161,208 Less: Share-based compensation 3,477 3,392 3,166 3,436 3,389 17,196 13,304 Depreciation and amortization 476 314 309 264 553 2,889 1,601 Acquisition related costs - - - - - (24) - Non-GAAP sales and marketing $34,917 $36,815 $36,292 $38,452 $37,382 $154,538 $146,303 GAAP general and administrative $15,604 $15,791 $15,816 $16,451 $17,764 $51,161 $62,710 Less: Share-based compensation 7,071 7,306 7,157 8,070 8,653 28,211 28,587 Depreciation and amortization 90 80 78 72 69 430 334 Contingent consideration revaluation, acquisition related costs and other - - (359) 9 109 (10,589) (359) Non-GAAP general and administrative $8,443 $8,405 $8,940 $8,300 $8,933 $33,109 $34,148 RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (In thousands) Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 FY 2022 FY 2023 (Unaudited) (Unaudited) (Unaudited) Net cash provided by operating activities $18,735 $23,399 $27,549 $21,196 $20,971 $30,112 $83,186 Purchase of property and equipment (367) (223) (135) (378) (309) (1,198) (1,053) Capitalization of internal-use software (8) (44) (3) (20) - (1,000) (60) Free cash flow $18,360 $23,132 $27,411 $20,798 $20,662 $27,914 $82,073 Key Performance Metrics and Non-GAAP Financial Measures This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share and free cash flow, as well as operating metrics, including GMV, active buyers, spend per buyer and take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts. We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the above tables, adjusted for, as applicable, depreciation and amortization, share-based compensation expenses, contingent consideration revaluation, acquisition related costs and other, income taxes, amortization of discount and issuance costs of convertible note, financial (income) expenses, net. Non-GAAP gross profit margin represents non-GAAP gross profit expressed as a percentage of revenue. We define non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by GAAP weighted-average number of ordinary shares basic and diluted. We use free cash flow as a liquidity measure and define it as a net cash provided by operating activities less capital expenditures. We define GMV or Gross Merchandise Value as the total value of transactions ordered through our platform, excluding value added tax, goods and services tax, service chargebacks and refunds. Active buyers on any given date is defined as buyers who have ordered a Gig or other services on our platform within the last 12-month period, irrespective of cancellations. Spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of active buyers as of such date. Take rate is revenue for any such period divided by GMV for the same period. Management and our board of directors use certain metrics as supplemental measures of our performance that is not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and capital expenditures and to evaluate our capacity to expand our business. In addition, we believe that free cash flow, which we use as a liquidity measure, is useful in evaluating our business because free cash flow reflects the cash surplus available or used to fund the expansion of our business after the payment of capital expenditures relating to the necessary components of ongoing operations. Capital expenditures consist primarily of property and equipment purchases and capitalized software costs. Free cash flow should not be used as an alternative to, or superior to, cash from operating activities. In addition, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share as well as operating metrics, including GMV, active buyers, spend per buyer and take rate should not be considered in isolation, as an alternative to, or superior to net income (loss), revenue, cash flows or other performance measure derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business. These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measure of Adjusted EBITDA, free cash flow and other non-GAAP metrics used herein is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation. See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. We are not able to provide a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin guidance for the third quarter of 2024 and the fiscal year ending December 31, 2024, and long term to net income (loss), the nearest comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA and Adjusted EBITDA margin cannot be reasonably predicted or are not in our control. In particular, in the case of Adjusted EBITDA and Adjusted EBITDA margin, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, impairment of intangible assets, income or loss on revaluation of contingent consideration, other acquisition-related costs, convertible notes amortization of discount and issuance costs and exchange rate income or loss, in each case, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future. Forward Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including our long term free cash flow per share expectations, our business plans and strategy, our expectations regarding the integration of AutoDS, the growth of our business, AI services and developments, our product portfolio, our stock repurchase plan and expected shareholder value, our customer relationships and experiences, as well as statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: risks related to the acquistion of AutoDS and our ability to successfully integrate AutoDS into our business, political, economic and military instability in Israel, including related to the war in Israel; our ability to successfully implement our business plan within adverse economic conditions that may impact the demand for our services or have a material adverse impact on our business, financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to generate sufficient revenue to achieve or maintain profitability; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our dependence on traffic to our website; our ability to maintain user engagement on our website and to maintain and improve the quality of our platform; our operations within a competitive market; our ability and the ability of third parties to protect our users' personal or other data from a security breach and to comply with laws and regulations relating to data privacy, data protection and cybersecurity; our ability to manage our current and potential future growth; our dependence on decisions and developments in the mobile device industry, over which we do not have control; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States and our ability to manage the business and economic risks of international expansion and operations; our ability to achieve desired operating margins; our ability to comply with a wide variety of U.S. and international laws and regulations; our ability to attract, recruit, retain and develop qualified employees; our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; and the other important factors discussed under the caption "Risk Factors" in our annual report on Form 20-F filed with the U.S. Securities and Exchange Commission ("SEC") on February 22, 2024, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. ___________________________ 1 This is a non-GAAP financial measure or Key Performance Metric. See "Key Performance Metrics and Non-GAAP Financial Measures" and reconciliation tables at the end of this release for additional information regarding the non-GAAP metrics and Key Performance Metrics used in this release. Market News and Data brought to you by Benzinga APIs

Fiverr Announces Second Quarter 2024 Results

, (GLOBE NEWSWIRE) -- (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the second quarter 2024. Additional operating results and management commentary can be found in the Company's shareholder letter, which is posted to its investor relations website at investors.fiverr.com. "It has been an incredible past six months at on many fronts as we navigated the dynamic macro environment and delivered profitable growth through executional excellence and focused operational discipline. In addition, we also made remarkable strides in our product evolution with the introduction of profession-based catalog and hourly contracts," said , founder and CEO of . "With these offerings, we look forward to becoming a more substantial partner with businesses of all sizes, for their need to engage with the flexible workforce, and significantly expand our direct addressable market. We also continue to be at the forefront of AI technology as we deepen the integration of Neo across search and order experiences on . I'm very excited for what is still to come as we continue to innovate towards the future of work." "We delivered solid results for Q2 and reiterated our full year guidance. While the SMB and freelancer hiring space remain volatile, we continue to execute with consistency and efficiency. At the same time, we are expanding our product portfolio through both organic and inorganic investments to create additional growth catalysts," said , President and CFO of . "We also aim to optimize our capital allocation strategy to deliver shareholder value. With strong free cash flow generation and a strong balance sheet to support capital return programs, we are paving a measurable and tangible path for steady growth in free cash flow for the next three years." Our Q3'24 outlook and updated full year 2024 guidance reflects the recent trends on our marketplace. Conference Call and Webcast Details Fiverr's management will host a conference call to discuss its financial results on , at . A live webcast of the call can be accessed from Fiverr's Investor Relations website. An archived version will be available on the website after the call. To participate in the Conference Call, please register at the link here. About Fiverr's mission is to change how the world works together. We exist to democratize access to talent and to provide talent with access to opportunities so anyone can grow their business, brand, or dreams. From small businesses to Fortune 500, around 4 million customers worldwide worked with freelance talent on in the past year, ensuring their workforces remain flexible, adaptive, and agile. With Fiverr Business Solutions, large companies can find the right talent and tools, tailored to their needs to help them thrive and grow. On , you can find over 700 skills, ranging from programming to 3D design, digital marketing to content creation, from video animation to architecture. Don't get left behind - come be a part of the future of work by visiting fiverr.com, read our blog, and follow us on X, Instagram, and Facebook. Key Performance Metrics and Non-GAAP Financial Measures This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share and free cash flow, as well as operating metrics, including GMV, active buyers, spend per buyer and take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts. We define each of our non-GAAP measures of financial performance, as the respective GAAP balances shown in the above tables, adjusted for, as applicable, depreciation and amortization, share-based compensation expenses, contingent consideration revaluation, acquisition related costs and other, income taxes, amortization of discount and issuance costs of convertible note, financial (income) expenses, net. Non-GAAP gross profit margin represents non-GAAP gross profit expressed as a percentage of revenue. We define non-GAAP net income (loss) per share as non-GAAP net income (loss) divided by GAAP weighted-average number of ordinary shares basic and diluted. We use free cash flow as a liquidity measure and define it as a net cash provided by operating activities less capital expenditures. We define GMV or Gross Merchandise Value as the total value of transactions ordered through our platform, excluding value added tax, goods and services tax, service chargebacks and refunds. Active buyers on any given date is defined as buyers who have ordered a Gig or other services on our platform within the last 12-month period, irrespective of cancellations. Spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of active buyers as of such date. Take rate is revenue for any such period divided by GMV for the same period. Management and our board of directors use certain metrics as supplemental measures of our performance that is not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and capital expenditures and to evaluate our capacity to expand our business. In addition, we believe that free cash flow, which we use as a liquidity measure, is useful in evaluating our business because free cash flow reflects the cash surplus available or used to fund the expansion of our business after the payment of capital expenditures relating to the necessary components of ongoing operations. Capital expenditures consist primarily of property and equipment purchases and capitalized software costs. Free cash flow should not be used as an alternative to, or superior to, cash from operating activities. In addition, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP net income (loss) and non-GAAP net income (loss) per share as well as operating metrics, including GMV, active buyers, spend per buyer and take rate should not be considered in isolation, as an alternative to, or superior to net income (loss), revenue, cash flows or other performance measure derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business. These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measure of Adjusted EBITDA, free cash flow and other non-GAAP metrics used herein is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation. See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. We are not able to provide a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin guidance for the third quarter of 2024 and the fiscal year ending , and long term to net income (loss), the nearest comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA and Adjusted EBITDA margin cannot be reasonably predicted or are not in our control. In particular, in the case of Adjusted EBITDA and Adjusted EBITDA margin, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, impairment of intangible assets, income or loss on revaluation of contingent consideration, other acquisition-related costs, convertible notes amortization of discount and issuance costs and exchange rate income or loss, in each case, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future. Forward Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance including our long term free cash flow per share expectations, our business plans and strategy, our expectations regarding the integration of AutoDS, the growth of our business, AI services and developments, our product portfolio, our stock repurchase plan and expected shareholder value, our customer relationships and experiences, as well as statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: risks related to the acquistion of AutoDS and our ability to successfully integrate AutoDS into our business, political, economic and military instability in , including related to the war in ; our ability to successfully implement our business plan within adverse economic conditions that may impact the demand for our services or have a material adverse impact on our business, financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to generate sufficient revenue to achieve or maintain profitability; our ability to maintain and enhance our brand; our dependence on the continued growth and expansion of the market for freelancers and the services they offer; our dependence on traffic to our website; our ability to maintain user engagement on our website and to maintain and improve the quality of our platform; our operations within a competitive market; our ability and the ability of third parties to protect our users' personal or other data from a security breach and to comply with laws and regulations relating to data privacy, data protection and cybersecurity; our ability to manage our current and potential future growth; our dependence on decisions and developments in the mobile device industry, over which we do not have control; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside and our ability to manage the business and economic risks of international expansion and operations; our ability to achieve desired operating margins; our ability to comply with a wide variety of and international laws and regulations; our ability to attract, recruit, retain and develop qualified employees; our reliance on ; our ability to mitigate payment and fraud risks; our dependence on relationships with payment partners, banks and disbursement partners; and the other important factors discussed under the caption "Risk Factors" in our annual report on Form 20-F filed with the ("SEC") on , as such factors may be updated from time to time in our other filings with the , which are accessible on the SEC's website at www.sec.gov. In addition, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. In addition, the forward-looking statements made in this release relate only to events or information as of the date on which the statements are made in this release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. ___________________________ This is a non-GAAP financial measure or Key Performance Metric. See "Key Performance Metrics and Non-GAAP Financial Measures" and reconciliation tables at the end of this release for additional information regarding the non-GAAP metrics and Key Performance Metrics used in this release.

TeamViewer delivers strong second quarter with sustained Enterprise momentum; reiterates FY 2024 guidance

" Q2 2024 saw a strong performance with particularly good progress in the Enterprise business and the Americas region. We successfully converted our pipeline into relevant deals, leading to a 60% LTM Billings increase in the highest value range. Billings from new subscribers grew strongly and we noted an enhanced customer interest in operational technology and Frontline use cases as well as a higher demand for longer-term contracts. This underlines the persistent relevance of our solutions for digital transformation and the trust our customers place in us and our products. " " We ended the second quarter with a strong set of results. Revenue was up 9% yoy in constant currency. We continued to deliver on profitability with a strong Adjusted EBITDA margin of 41% while investing in Enterprise growth. We anticipate further improvements in profitability during the second half of the year and remain confident to deliver on our guidance for FY 2024. In addition, I am very pleased to announce that we have successfully extended the maturity of our EUR 450m Revolving Credit Facility (RCF) in full by further two years until 2029. This reflects confidence in our business model and strategy, it further strengthens our maturity profile and it provides a sound foundation for sustained profitable growth. " Key Figures (consolidated, unaudited) Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. Billings growth rate in constant currency (cc) translates Billings in foreign currencies using the average exchange rates from the comparative period instead of the current period. Business Highlights The second quarter 2024 was characterized by a strong focus on the Enterprise business and an impressive pipeline conversion. TeamViewer was able to replicate successful use cases across industries, win new large Enterprise customers and expand existing contracts in all regions with particular momentum in the AMERICAS. For example, Performance Food Group, a leading US food and beverage distributor, leverages TeamViewer Tensor for an attractive OT use case to remotely connect to industrial refrigeration units for maintenance and problem solving. Other notable new Enterprise wins include a Fortune 500 pharmaceutical company as well as the US operations of a global leader in consumer goods manufacturing, both with TeamViewer Frontline vision picking projects in their warehouses. Additionally, TeamViewer convinced one of the three largest banks in Germany with its Tensor security features to become a customer. Overall, TeamViewer saw a strong uptick of 60% in LTM Billings in the highest value range, meaning Enterprise deals of more than EUR 200k. TeamViewer also expanded its tech partner ecosystem. The company forged a new partnership with Sony including the integration of its technology into Sony BRAVIA Professional Displays to improve maintenance and troubleshooting of commercial displays in airports and shopping malls. In addition, TeamViewer won the Microsoft Partner of the Year award for its integration with Microsoft Teams and the value it adds for Microsoft Teams users. In May, TeamViewer introduced enterprise software sales executive Rupert Clayson as new President EMEA to further strengthen the sales organization and bolster the Enterprise business in the EMEA region. During TeamViewer's AGM in June, enterprise technology sales expert Dr. Joachim (Joe) Heel was elected to join the company's Supervisory Board. Towards the end of the quarter, TeamViewer successfully demonstrated that the continuous high investments in its cyber security posture over the last years are paying off. Being confronted with a cyber-attack, the company reacted fast in detecting, investigating and remediating the incident. Based on the results of the diligent investigation together with leading cyber security experts from Microsoft, TeamViewer reconfirmed that the incident was contained to its internal corporate IT environment and that neither its separated product environment, nor the connectivity platform, nor any customer data had been affected. The swift solution of the incident as well as transparent communication ensured the customers' continued trust in TeamViewer's products. In July, TeamViewer was named the market-leading vendor for connected worker platforms with its industrial AR solution Frontline in the "PAC Innovation Radar". According to PAC's evaluation, industry analysts recognized TeamViewer for its strengths in addressing relevant use cases, establishing strong partnerships, expanding go-to-market strategies, and maintaining robust financial health. Revenue and Billings Development In Q2 2024, TeamViewer's Revenue increased by 6% yoy to EUR 164.1m. FX headwinds from 2023 Billings had a combined negative impact of EUR 3.3m in the quarter. Total Revenue increased by 9% yoy in constant currency. Billings for the quarter reached EUR 158.3m (+5% / +5% cc yoy), reflecting a strong momentum in Enterprise. Billings from new subscribers have consistently shown significant growth for the third consecutive quarter (+26% yoy), highlighting TeamViewer's ability to attract new customers even in a challenging macroeconomic environment. Additionally, Billings from multi-year deals with upfront payment increased by EUR 2.7m yoy, reaching a total of EUR 17.4m in the second quarter (Q2 2023: EUR 14.7m). This increase is attributable to a considerable demand from new customers for long-term contracts, underscoring their confidence in TeamViewer's solutions. Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. Billings growth rate in constant currency (cc) translates Billings in foreign currencies using the average exchange rates from the comparative period instead of the current period. In Q2 2024, Enterprise Revenue demonstrated strong and continuous growth, reaching EUR 35.1m, which corresponds to a year-over-year increase of 19% (+21% cc). Enterprise Billings experienced sustained momentum in the second quarter, despite ongoing macro uncertainties. The considerable 29% yoy growth (+29% cc) in Enterprise Billings was fueled by several factors, including new customer acquisitions, an expanding customer base, and larger deal sizes. Notably, similar to Q1, the highest value range of Enterprise LTM Billings (ACV >EUR 200k) exhibited very strong growth of 60% yoy, underscoring TeamViewer's strong foothold among large corporate clients. The Enterprise customer base expanded by 10% yoy, totaling 4,342. Additionally, Enterprise NRR showed a significant increase, rising by 8 percentage points sequentially to 116%. In Q2 2024, SMB Revenue reached EUR 129.0m, up 3% (+6% cc) yoy. This increase was supported by pricing adjustments implemented over the past twelve months and a consistently strong subscriber base, reaching 638k subscribers in Q2 2024. SMB Billings remained stable at EUR 121.3m (0% / 0% cc yoy). This compares to strong Q2 2023 SMB Billings that were mainly fueled by multi-year deals and monetization campaigns. Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. Billings growth rate in constant currency (cc) translates Billings in foreign currencies using the average exchange rates from the comparative period instead of the current period. In Q2 2024, all regions experienced year-over-year growth in both Revenue and Billings, measured in constant currency. Particularly in EMEA and AMERICAS, Billings benefitted from a number of larger customer deals in Enterprise and from an increase in multi-year deals with upfront payment. In EMEA, Revenue reached EUR 89.2m, up 9% (+9% cc) yoy, while Billings reached EUR 81.9m, showing yoy growth of 4% (+4% cc), a considerable sequential improvement compared to the yoy Billings decrease in Q1 2024 of -3% (-3% cc) yoy. AMERICAS Revenue reached EUR 57.2m, up 4% (+8% cc) yoy, while Billings reached EUR 55.1m, strongly up by +10% (+9% cc) yoy, mainly fueled by larger deal sizes followed by new customer acquisitions. APAC Revenue faced considerable FX headwinds, resulting in flat yoy development (+8% cc), whilst Billings came in at -2% (+2% cc) yoy. All regions continue to see a persistently demanding macroeconomic climate and prolonged decision-making processes of some customers. Earnings Development TeamViewer continued to deliver on profitability whilst investing in Enterprise growth. Total recurring costs increased by 7% yoy to EUR 96.6m, broadly in line with reported Revenue growth yoy. Adjusted EBITDA increased to EUR 67.5m. Adjusted EBITDA margin reached 41% in Q2 2024. Excluding the negative effect from FX headwinds from 2023 Billings of -1 pp on the margin, Adj. EBITDA margin would have been 42%. As anticipated, profitability will further benefit from the scaled-back partnership with Manchester United in the second half of this year. Net income amounted to EUR 26.5m in Q2 2024, -22% yoy. Net income in Q2 2023 benefitted from a positive tax one-off effect of EUR 8m, which negatively affects the year-over-year comparison. Adjusted (basic) EPS increased by 8% yoy to EUR 0.24 in the quarter. Recurring cost (adjusted for non-recurring items and D&A) incl. other income/expenses and bad debt expenses of EUR 2.5m in Q2 2024 and EUR 1.6m in Q2 2023 / EUR 5.2m in 6M 2024 and EUR 4.0m in 6M 2023. In Q2 2024, Cost of Goods Sold (COGS) increased by 27% yoy, mainly driven by continued investments in TeamViewer's customer platform and deployment costs of Frontline projects. Sales expenses were up 13% yoy, mainly due to the hiring of new sales talent and continued investments in partnership channels. Marketing costs were slightly down by 2% yoy, while investments in brand awareness campaigns targeted at Enterprise customers continued. R&D expenses increased slightly by 1% yoy. G&A expenses were broadly in line with the previous year's levels, while Other costs came in at EUR -0.9m, which was mainly due to higher bad debt expenses in Q2 2024. Financial Position TeamViewer's highly cash generative business is reflected in the development of its cash flows. Pre-tax Unlevered Free Cash Flow (pre-tax UFCF) amounted to EUR 79.0m at the end of Q2 2024. This year-over-year increase of 33% was mainly driven by positive effects from the revised scope of the Manchester United partnership. Levered Free Cash Flow (FCFE) amounted to EUR 60.8m (+29% yoy). Cash Conversion (FCFE in relation to Adjusted EBITDA) was at 90% in Q2 2024. Cash and cash equivalents were at EUR 45.9m at the end of Q2 2024, down EUR 26.9m year to date. This trend mainly reflects strong cash flows from operating activities of EUR 119m in H1 2024, offset by share buybacks of EUR 94.3m (thereof EUR 26.6m in Q2 2024) and a net debt repayment of EUR 30.0m in the first half of 2024. In May 2024, TeamViewer further strengthened its debt maturity profile with a promissory note loan in the amount of EUR 100m, which was used in full to refinance a term loan facility of EUR 100m as part of an existing syndicated loan that was set to mature in 2025. The new promissory note is set to mature in two steps with EUR 48.5m due in 2027 and EUR 51.5m due in 2029. In H1 2024, TeamViewer delivered Revenue of EUR 325.8m, +7% (+9% cc) yoy and high profitability with an Adjusted EBITDA margin of 41%. TeamViewer expects a continued high level of demand for its products in FY 2024 despite a challenging macro environment outlook. Based on the average FX rates of 2023, the company forecasts Revenue in a range of EUR 660m to 685m. This Revenue outlook includes FX headwinds from 2023 billings of around EUR 10-12 million on a full year basis. Corrected for these FX headwinds, guided revenue range corresponds therefore to 7 to 11% growth on a constant currency basis. Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. TeamViewer published its Half-Year Report H1 2024 on 31 July 2024. The report is available for download under ir.teamviewer.com. Webcast Oliver Steil (CEO) and Michael Wilkens (CFO) will speak at an analyst and investor conference call at 9:00am CEST on 31 July 2024 to discuss the Q2 2024 results. The audio webcast can be followed via https://www.webcast-eqs.com/teamviewer-2024-q2. A recording will be available on the Investor Relations website at ir.teamviewer.com. The accompanying presentation is also available for download there. About TeamViewer TeamViewer is a leading global technology company that provides a connectivity platform to remotely access, control, manage, monitor, and repair devices of any kind - from laptops and mobile phones to industrial machines and robots. Although TeamViewer is free of charge for private use, it has around 640,000 subscribers and enables companies of all sizes and from all industries to digitalize their business-critical processes through seamless connectivity. Against the backdrop of global megatrends like device proliferation, automation and new work, TeamViewer proactively shapes digital transformation and continuously innovates in the fields of Augmented Reality, Internet of Things and Artificial Intelligence. Since the company's foundation in 2005, TeamViewer's software has been installed on more than 2.5 billion devices around the world. The company is headquartered in Goppingen, Germany, and employs more than 1,500 people globally. In 2023, TeamViewer achieved a revenue of around EUR 627m. TeamViewer SE (TMV) is listed at Frankfurt Stock Exchange and is a member of the MDAX. Further information can be found at www.teamviewer.com. Certain statements in this communication may constitute forward-looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties, including, but not limited to, those risks and uncertainties described in TeamViewer's disclosures. You should not rely on these forward-looking statements as predictions of future events, and TeamViewer's actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to several factors, including without limitation, risks from macroeconomic developments, external fraud, lack of innovation capabilities, inadequate data security and changes in competition levels. TeamViewer undertakes no obligation, and does not expect to publicly update, or publicly revise, any forward-looking statement, whether as a result of new information, future events or otherwise. All stated figures are unaudited. Percentage change data and totals presented in tables throughout this document are generally calculated on unrounded numbers. Therefore, numbers in tables may not add up precisely to the totals indicated and percentage change data may not precisely reflect the change data of the rounded figures for the same reason. This document contains alternative performance measures (APM) that are not defined under IFRS. The APMs (non-IFRS) can be reconciled to the key performance indicators included in the IFRS consolidated financial statements and should not be viewed in isolation, but only as supplementary information for assessing the operating performance. TeamViewer believes that these APMs provide an additional, deeper understanding of the Company's performance. TeamViewer has defined each of the following APMs as follows: Consolidated Balance Sheet Total Assets (unaudited)