Fiverr International Ltd. Q2 FY2025 earnings call

• Delivered 15% year-over-year revenue growth and 20% adjusted EBITDA margin in Q2 2025.
• AI-related services saw surging demand, with categories like AI agents, workflow automation, and video coding experiencing 5 to tenfold growth over 6 months.
• Managed services and dynamic matching products showed momentum, with spend per buyer growing 10% year-over-year across key verticals.
• AutoDS maintained strong growth, with progress in integrating platforms and launching an AI-powered Shopify Store Builder.
• Deployed AI across the business, including Neo as an AI matching agent for buyers, Fiverr Go as an AI assistant for sellers, and internal AI agents to boost operational efficiency.

In Q2 2025, Fiverr achieved 15% year-over-year revenue growth. Marketplace revenue was $74.7 million, contributing approximately 68.8% to total revenue. Services revenue was $34 million, making up around 31.2% of total revenue. Adjusted EBITDA margin was 20%. Marketplace saw strong demand for AI-related services and managed services, with over 50% of GMV from transactions over $200. Services revenue grew 84% year-over-year, driven by initiatives like the AI-powered Shopify Store Builder and cross-sell between AutoDS and the marketplace.

• Reiterated full-year 2025 revenue guidance: $425 million to $438 million (9%-12% YOY growth).
• Adjusted EBITDA guidance: $84 million to $90 million (20% midpoint margin).
• Q3 2025 revenue expected: $105 million to $110 million (5%-10% YOY growth).
• Q3 2025 adjusted EBITDA expected: $21.5 million to $23.5 million (21% midpoint margin).
• Long-term target: Aim to reach 25% adjusted EBITDA margin by 2027 and 40% CAGR in free cash generation by 2027.

Q: When thinking about services revenue growth and Seller Plus penetration, what investments are needed to unlock continued scaling and what's the long-term mix potential for Seller Plus?

A: Services revenue is expected to continue growing, with opportunities to expand value-added services and drive synergies between AutoDS and Fiverr. Seller Plus is expanding with added tools, and there's growth runway as they add more services and target a wider audience.

Q: Talk about managed services progress and upmarket mix shift, including conversion rates from Fiverr Go.

A: Managed services are part of the upmarket strategy, with over 50% of marketplace GMV from transactions over $200. Fiverr Go is increasing conversion rates and seller engagement, with a road map to provide more sophisticated support for sellers.

Q: On supply/demand balance and marketplace growth return, how is supply of AI expertise and when will marketplace growth return?

A: Supply of AI expertise is good as freelancers are AI native. Marketplace growth return is expected through upmarket efforts and AI tailwinds, though macro uncertainty means not baking into guidance yet.

Q: Specific AI categories and impact of AI on entry-level jobs on Fiverr services.

A: AI-related categories like AI agents, workflow automation, etc., are booming. AI elevates the floor for all jobs, including entry-level, moving them up rather than replacing them.

Q: Mix of services revenue between recurring and transactional and visibility on marketplace growth mix shift.

A: Services revenue includes Promoted Gigs (ongoing, high retention), Seller Plus (subscription-based), and AutoDS (subscription). Marketplace growth mix shift to upmarket will be a tailwind over time even without macro improvement.