Fiverr International Ltd. (NYSE:FVRR) saw its stock rise 2.48% in after-hours trading on Wednesday after releasing second-quarter results that outpaced analyst forecasts, largely driven by robust growth in AI-focused offerings and its Managed Services division.
The freelance marketplace reported adjusted earnings per share of $0.69, beating expectations of $0.67, while revenue came in at $108.6 million, slightly above the consensus estimate of $107.73 million, marking a 14.8% year-over-year increase.
Despite an overall positive quarter, Fiverr’s core marketplace revenue dipped 2% to $74.7 million compared to last year. This decline was more than compensated by the company’s Services segment, which surged 83.8% to $34 million. Meanwhile, the number of active annual buyers fell 10.9% to 3.4 million, though average spending per buyer grew 9.8% to $318.
“AI continues to be a power driver for everything we do, from rapid catalog expansion around AI-related services, to enabling transformative customer experiences, or driving workflow automation within Fiverr,” stated Micha Kaufman, founder and CEO.
Looking ahead, Fiverr projects third-quarter revenue between $105 million and $110 million, close to analyst expectations of $109 million. The company also reaffirmed its full-year 2025 revenue target of $425 million to $438 million.
Adjusted EBITDA for the quarter stood at $21.4 million, translating to a margin of 19.7%, which represents an 80 basis-point improvement year-over-year. Free cash flow increased 21.1% to $25 million compared to the previous year.
“We delivered strong Q2 results as we continue to take a balanced approach between growth and profitability,” said Ofer Katz, President and CFO. “Growth and innovation remain a top priority for us, especially at a time when AI is unlocking opportunities across almost every discipline.”
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