Fiverr Expands eCommerce Offerings with AutoDS Acquisition Amid Q2 Growth

Fiverr Deepens eCommerce Solutions with Acquisition of Leading Dropshipping Automation Tool AutoDS - Fiverr Intl (NYSE:FVRR)

NEW YORK, July 31, 2024 (GLOBE NEWSWIRE) -- Today, Fiverr, the company changing how the world works together, announced its acquisition of AutoDS, which provides a subscription-based end-to-end solution for dropshippers, including product research and sourcing, inventory management, and automated fulfillment. With its expansive global reach and an omni-channel approach, it aggregates over 150 million products and serves tens of thousands of paying subscribers on its platform. "AutoDS has built an impressive product and community that is highly synergetic with Fiverr. Dropshipping and its adjacent services in marketing and programming verticals are some of the fastest growing categories on Fiverr. It is also a community that is deeply rooted in Fiverr's origin, where anyone with talent and idea can leverage FIverr's platform to build a business," said founder and CEO of Fiverr, Micha Kaufman. "This acquisition also marks another step in Fiverr's transformation from a marketplace into a powerful platform that offers not only access to talent but also software solutions for its audience, making it a one-stop shop for their entire digital needs." AutoDS brings tens of thousands of dropshippers into the Fiverr ecosystem, adding to the existing dropshipping and e-commerce buyer base on Fiverr. This acquisition expands Fiverr's footprint in the value chain in categories with existing dominance and growth momentum, including dropshipping, website development, e-commerce management and social media marketing. The global dropshipping market size was evaluated at USD 285 billion in 2023 and it is expected to hit over USD 2 trillion by 2033. AutoDS was founded in 2018 and is managed by Lior Pozin, Michael Royf, and Ofir Bokobza, with the goal of automating the dropshipping process, to help source products from major channels like Amazon and eBay and to help every business scale easily. AutoDS provides a single dashboard where multiple stores can be monitored, and prices are automatically updated as they increase from suppliers. Since then it has grown dramatically over the years, adding more and more partners and tools including the AutoDS AIWrite tool designed to empower dropshippers by optimizing listings. "Our audiences are very similar - ambitious entrepreneurs who are building and growing their businesses - so the opportunity is clear," said Lior Pozin, co-founder and CEO of AutoDS. "With Fiverr's experience growing a global brand, together we will be able to accelerate our growth and take the company to the next level, helping us build the company to be the world's #1 solution for dropshipping that we always envisioned." AutoDS will remain independently operated while working together to maximize synergies between both companies. 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 skill categories, ranging from AI to programming and 3D design, digital marketing to content creation, and from video animation to architecture. Don't get left behind - come be a part of the future of work by visiting fiverr.com, reading our blog, and following us on Instagram, X, and Facebook. Contact Press: Siobhan Aalders press@fiverr.com 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 the potential synergies with AutoDS, the expected growth of the dropshipping market and expected growth of the number of buyers and the Company's business including AutoSD business, 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 acquisition of AutoDS and our ability to successfully integrate AutoDS and 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. 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. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3283e6d7-3b91-420b-9757-0598823bc0d7 Market News and Data brought to you by Benzinga APIs

Fiverr Deepens eCommerce Solutions with Acquisition of Leading Dropshipping Automation Tool AutoDS

AutoDS brings a new subscription-based revenue stream to Fiverr as well as strong synergies to accelerate growth NEW YORK, July 31, 2024 (GLOBE NEWSWIRE) -- Today, Fiverr, the company changing how the world works together, announced its acquisition of AutoDS, which provides a subscription-based end-to-end solution for dropshippers, including product research and sourcing, inventory management, and automated fulfillment. With its expansive global reach and an omni-channel approach, it aggregates over 150 million products and serves tens of thousands of paying subscribers on its platform. "AutoDS has built an impressive product and community that is highly synergetic with Fiverr. Dropshipping and its adjacent services in marketing and programming verticals are some of the fastest growing categories on Fiverr. It is also a community that is deeply rooted in Fiverr's origin, where anyone with talent and idea can leverage FIverr's platform to build a business," said founder and CEO of Fiverr, Micha Kaufman. "This acquisition also marks another step in Fiverr's transformation from a marketplace into a powerful platform that offers not only access to talent but also software solutions for its audience, making it a one-stop shop for their entire digital needs." AutoDS brings tens of thousands of dropshippers into the Fiverr ecosystem, adding to the existing dropshipping and e-commerce buyer base on Fiverr. This acquisition expands Fiverr's footprint in the value chain in categories with existing dominance and growth momentum, including dropshipping, website development, e-commerce management and social media marketing. The global dropshipping market size was evaluated at USD 285 billion in 2023 and it is expected to hit over USD 2 trillion by 2033. AutoDS was founded in 2018 and is managed by Lior Pozin, Michael Royf, and Ofir Bokobza, with the goal of automating the dropshipping process, to help source products from major channels like Amazon and eBay and to help every business scale easily. AutoDS provides a single dashboard where multiple stores can be monitored, and prices are automatically updated as they increase from suppliers. Since then it has grown dramatically over the years, adding more and more partners and tools including the AutoDS AIWrite tool designed to empower dropshippers by optimizing listings. "Our audiences are very similar - ambitious entrepreneurs who are building and growing their businesses - so the opportunity is clear," said Lior Pozin, co-founder and CEO of AutoDS. "With Fiverr's experience growing a global brand, together we will be able to accelerate our growth and take the company to the next level, helping us build the company to be the world's #1 solution for dropshipping that we always envisioned." AutoDS will remain independently operated while working together to maximize synergies between both companies. 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 skill categories, ranging from AI to programming and 3D design, digital marketing to content creation, and from video animation to architecture. 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 the potential synergies with AutoDS, the expected growth of the dropshipping market and expected growth of the number of buyers and the Company's business including AutoSD business, 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 acquisition of AutoDS and our ability to successfully integrate AutoDS and 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. 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. A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3283e6d7-3b91-420b-9757-0598823bc0d7

Fiverr Sees 6% Revenue Rise in Q2, Announces Acquisition of AutoDS

In the company's Wednesday (July 31) earnings report, Fiverr also announced its acquisition of AutoDS, a subscription-based drop-shipping platform. AutoDS, known for its product research, inventory management and automated fulfillment services, is set to enhance Fiverr's eCommerce capabilities and introduce a new subscription-based revenue stream. In addition to the acquisition, Fiverr launched a new profession-based catalog and hourly contracts, broadening its market reach and aligning with its strategy to evolve from a marketplace to a comprehensive platform offering talent access and software solutions. Fiverr also completed a $100 million share buyback program, focusing on optimizing capital allocation to drive steady growth in free cash flow. "We delivered solid results for Q2 and reiterated our full-year guidance," Fiverr founder and CEO Micha Kaufman said during the company's Wednesday earnings call. "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." The company's active buyers dropped 8% during the quarter, from 4.2 million to 3.9 million. Spending per buyer, however, increased 10%, from $265 to $290. Kaufman said the acquisition of AutoDS, which manages over 150 million products and serves tens of thousands of subscribers, supports Fiverr's transition from a marketplace to a platform offering talent and software solutions. As the global drop-shipping market is projected to grow from $285 billion to over $2 trillion by 2033, AutoDS's automation tools and extensive network will bolster Fiverr's growth and digital service capabilities. "Drop-shipping is a category that we've been seeing growth," Kaufman said. "We had a very sizable community of people who either are offering drop-shipping or offer services related to drop-shipping. It allows us to double down and accelerate." One of Fiverr's summer product releases is Neo, an advanced artificial intelligence-driven tool designed to assist customers in accurately defining their projects and matching with freelance talent. It combines technology and algorithms to offer a personalized recruiting experience, providing an alternative to traditional human recruiters. "For new customers, Neo provides the guidance you need to navigate Fiverr's massive catalog of services and talent," a Fiverr shareholder letter said. "For long-time loyalists, Neo is trained to understand your preferences and provide you the most relevant recommendations for your next project." "Having Neo is like having a strategist by your side when it comes to product briefing," the letter added. "It transforms customers' ideas into a structured brief that not only looks good, but also delivers better business results." Kaufman said during the call, "We are in the early innings of releasing the full potential of AI in our marketplace." Fiverr experienced a traffic pullback in June and July, particularly in programming and tech, reflecting broader macroeconomic challenges and persistent weakness in small- to medium-sized business (SMB) sentiment. Despite a 7% year-over-year decline in U.S. job openings and a 17% drop in the information sector, AI continues to drive growth for Fiverr, particularly in complex services, and is expected to be a growth driver moving forward, Kaufman said on the call. "The hiring space is not seeing its brightest moment right now," Kaufman said, but cautioned, "what we're seeing is something we can't call a steady trend."

Why Fiverr International Stock Is Soaring Today

Fiverr's stock jumped on robust earnings and a strategic acquisition. Shares of Fiverr International (FVRR 18.82%) started Wednesday's trading session strong, having gained 11.9% at 10 a.m. ET. The freelance services marketplace operator reported robust results in the second quarter of 2024, narrowed its full-year revenue guidance on the high end of previous projections, and announced a strategic buyout in the dropshipping e-commerce space. Fiverr's Q2 by the numbers Fiverr's second-quarter sales rose 5.9% year over year, landing at $94.7 million. Adjusted earnings fell from $0.58 to $0.49 per diluted share, based on $20.0 million in adjusted net income. At the same time, free cash flow increased 13% to $20.7 million. Your average Wall Street analyst would have settled for earnings near $0.55 per share, though their consensus revenue projections turned out to be precisely on target. Looking ahead, Fiverr's management raised the midpoint of their full-year revenue guidance from $384 million to $385 million -- a slight tweak inspired by rising interest in more complex, skill-based, and costly freelancer services. Moreover, the company is buying the dropshipping services expert AutoDS for an undisclosed sum. The deal boosts Fiverr's presence in a global market worth $285 billion last year, estimated to expand by a compound annual growth rate of 24% over the next nine years. AI's place in Fiverr's business plan Fiverr continued to deliver solid results despite the rise of artificial intelligence (AI) tools such as ChatGPT and DALL-E 3. As it turns out, it still takes human creativity to craft effective AI prompts, select promising results from AI-generated texts or images, and turn generative AI products from raw ideas into business-grade results. "AI continues to be a net positive for us, with the growth of complex services more than offsetting the decline in simple services," Fiverr's management stated in the earnings report. "In fact, we continue to see improving trends on simple services, as the overall mix of projects within these categories shift [sic] toward higher-end skills." It's no surprise to see Fiverr's shares rise on this solid report, given the positive developments in the company's revenue trends and product mix. Still, the stock remains 27% below its 52-week highs and much further below the all-time peak price of $323 per share in February 2021. Changing hands at just 16 times free cash flows today, Fiverr's stock looks like a no-brainer buy, despite the morning's big jump.