Fiverr International Ltd. (NYSE:FVRR) reported first-quarter results on Wednesday that came in ahead of revenue expectations and lifted its full-year adjusted EBITDA forecast.
Shares surged 10.23% in premarket trading following the announcement.
The company posted adjusted earnings per share of $0.62, in line with analyst estimates, while revenue reached $105.5 million, exceeding the consensus forecast of $104.23 million. However, revenue declined 1.6% year over year from $107.2 million in the same period last year.
Fiverr pointed to continued strength in higher-value work, noting that projects above $1,000 expanded at a strong double-digit pace, supported by an 18% increase in clients completing projects at that level.
Adjusted EBITDA came in at $22.6 million, up from $19.4 million a year earlier, with margins improving by 330 basis points to 21.4%.
The company raised its full-year adjusted EBITDA guidance to a range of $64 million to $80 million, while maintaining its revenue outlook of $380 million to $420 million, which implies a year-over-year change of between a 12% decline and 3% growth.
“The year started with execution reflecting the early momentum of our AI-led transformation,” said Micha Kaufman. “We are seeing a healthy flywheel effect in the high-value work on Fiverr, with growth momentum across clients and talent who are engaged in complex projects.”
For the second quarter, Fiverr expects revenue in the range of $95 million to $103 million, representing a decline of 13% to 5% year over year, with adjusted EBITDA projected between $16 million and $20 million. The midpoint of this revenue outlook, at $99 million, falls below current analyst expectations.
Annual active buyers decreased 17.8% year over year to 2.9 million, while average spend per buyer rose 15.4% to $356, reflecting the company’s strategic shift toward higher-value engagements.