Fiverr, the Israeli multinational online marketplace for freelance services, released second quarter 2023 financial results on Thursday (Aug. 3), highlighting the positive impact new product launches have had on top and bottom line growth.
“Not only did we deliver strong financial results, but it has also been a highly productive quarter where we launched several game-changing products that contribute towards our next leg of growth,” Fiverr Founder and CEO Micha Kaufman told analysts on an earnings call, pointing the 5% year-over-year growth in Q2 revenue to $89.4 million.
Some of the products launched include Fiverr Pro, Fiverr Enterprise, Fiverr Certified, Fiverr Business Solutions, and Fiverr Neo which aim to enhance the search-to-find experience, attract higher lifetime value buyers, provide advanced business tools, and create new acquisition channels through partnerships, Kaufman explained.
Kaufman particularly emphasized the potential of Fiverr Neo, which he said leverages the latest large language models, neural networks, and natural language processing to drive conversion, engagement, and retention of Fiverr’s market base.
“Fiverr Neo fundamentally changes not only the search-to-find experience, moving from structured catalog experience to a free-form conversational experience, but also drastically changes how the underlying matching is done,” he said, adding that the product has “the ability to drive conversations and extract relevant information from buyers, generating perfectly matching results.”
Fiverr has been investing in upmarket solutions, such as Fiverr Business Solutions, to cater to the needs of larger companies. This investment has already started to pay off, the company said, with Fiverr Business Solutions contributing about 10% of their overall business and the Fiverr Pro segment doubling in size.
Partnerships with brands like Amazon, monday.com, and Stripe have also yielded positive results, Kaufman added, enabling Fiverr to better target small and medium-sized businesses (SMB), while enhancing the firm’s capability to address complex talent strategies employed by larger companies, the company said.
Looking ahead, the company intends to focus on clients known as high-value buyers — those who have higher spending capacity, have more frequent needs, and are a strong match with the solutions offered by the firm. This focus on high-value buyers is expected to drive growth in spend per buyer, even as the number of active buyers may decrease slightly.
As Kaufman said, the fact that these first-time buyers are “currently spending 15% more on their initial transaction compared to historical first-time buyers is incredible” and the “right strategic investment” for the firm.
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