Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

Fiverr Announces Second Quarter 2021 Results


Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the second quarter of 2021. Complete operating results and management commentary can be found in the Company's shareholder letter which is posted to its investor relations website at investors.fiverr.com.

"Fiverr delivered another great quarter as we saw robust revenue growth of 60% y/y driven by strong active buyer growth as businesses continue turning to Fiverr to access digital service providers," said Micha Kaufman, Fiverr's Founder and CEO, "We are accelerating the pace of investments to make Fiverr into a powerhouse that enables more buyers and sellers to participate in the digital service economy."

Ofer Katz, Fiverr's President and CFO, added, "Fiverr continues to deliver strong results across all metrics as we continue expanding market share and executing on our long-term strategic initiatives. Our business is well positioned to successfully navigate the uncertain environment."

Second Quarter 2021 Financial Highlights

Financial Outlook

Our Q3'21 outlook and updated full year 2021 guidance reflects the new post-COVID effect we saw in recent weeks. As COVID restrictions are lifted in many parts of the world, people are spending more time out of home and less time on screens. The reduced online activity translates into more modest new customer cohorts and less activity for older cohorts. We are providing the following guidance accordingly. Given the uncertainty of the ongoing impact and unprecedented conditions surrounding the COVID-19 pandemic on economies globally, we will provide investors with updated business trends as they evolve.

 

Q3 2021

FY 2021

Revenue

$68.0-$72.0 million

$280.0-$288.0 million

Year over year growth

30-38%

48-52%

Adjusted EBITDA

$2.5-$3.5 million

$12.0-$14.0 million

1Adjusted EBITDA is a non-GAAP financial measure. See "Key Performance Metrics and Non-GAAP Financial Measure" for additional information regarding this and other non-GAAP metrics used in this release.

Conference Call and Webcast Details

Fiverr will host a conference call to discuss its financial results on Thursday, August 5, 2021, at 8:30 a.m. Eastern Time. A live webcast of the call can be accessed from Fiverr's Investor Relations website. An archived version will be available on the website after the call. Investors and analysts can participate in the conference call by dialing (866) 360-3590, or (412) 317-5278 for callers outside the United States, and mention the passcode, "Fiverr." A telephonic replay of the conference call will be available until Thursday, August 12, 2021, beginning one hour after the end of the conference call. To listen to the replay please dial (877) 344-7529, or (412) 317-0088 for callers outside the United States, and enter replay code 10157464.

About Fiverr

Fiverr's mission is to change how the world works together. Since 2010, the Fiverr platform has been at the forefront of the future of work connecting businesses of all sizes with skilled freelancers offering digital services in more than 500 categories, across 9 verticals including graphic design, digital marketing, programming, video and animation. In the twelve months ended June 30, 2021, 4.0 million customers bought a wide range of services from freelancers across more than 160 countries. We invite you to become part of the future of work by visiting us at fiverr.com, read our blog and follow us on Facebook, Twitter and Instagram.

CONSOLIDATED BALANCE SHEETS

(in thousands)

June 30,

 

December 31,

2021

 

2020

(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents

$

146,722

 

$

268,030

 

Marketable securities

 

166,117

 

 

129,372

 

User funds

 

121,613

 

 

97,984

 

Bank deposits

 

129,000

 

 

90,000

 

Restricted deposit

 

346

 

 

346

 

Other receivables

 

7,667

 

 

5,418

 

Total current assets

 

571,465

 

 

591,150

 

 
Marketable securities

 

274,863

 

 

228,048

 

Property and equipment, net

 

6,367

 

 

6,265

 

Operating lease right of use asset

 

14,136

 

 

15,611

 

Intangible assets, net

 

9,767

 

 

5,884

 

Goodwill

 

15,900

 

 

11,240

 

Restricted deposit

 

2,589

 

 

2,589

 

Other non-current assets

 

528

 

 

415

 

Total assets

$

895,615

 

$

861,202

 

 
Liabilities and Shareholders' Equity
Current liabilities:
Trade payables

$

3,962

 

$

3,622

 

User accounts

 

113,723

 

 

92,027

 

Deferred revenue

 

8,375

 

 

5,957

 

Other account payables and accrued expenses

 

43,591

 

 

40,396

 

Operating lease liabilities, net

 

3,340

 

 

3,307

 

Current maturities of long-term loan

 

507

 

 

560

 

Total current liabilities

 

173,498

 

 

145,869

 

 
Long-term liabilities:
Convertible notes

 

361,923

 

 

352,034

 

Operating lease liabilities

 

12,096

 

 

13,861

 

Long-term loan and other non-current liabilities

 

2,348

 

 

4,035

 

Total long-term liabilities

 

376,367

 

 

369,930

 

Total liabilities

$

549,865

 

$

515,799

 

 
Shareholders' equity:
Share capital and additional paid-in capital

 

549,372

 

 

517,444

 

Accumulated deficit

 

(203,716

)

 

(172,573

)

Accumulated other comprehensive income

 

94

 

 

532

 

Total shareholders' equity

 

345,750

 

 

345,403

 

Total liabilities and shareholders' equity

$

895,615

 

$

861,202

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

2021

 

2020

 

2021

 

2020

(Unaudited)

 

(Unaudited)

Revenue

$

75,263

 

$

47,130

 

$

143,583

 

$

81,280

 

Cost of revenue

 

12,528

 

 

7,957

 

 

24,074

 

 

14,777

 

Gross profit

 

62,735

 

 

39,173

 

 

119,509

 

 

66,503

 

 
Operating expenses:
Research and development

 

20,106

 

 

10,533

 

 

36,979

 

 

20,507

 

Sales and marketing

 

38,184

 

 

23,207

 

 

80,823

 

 

41,428

 

General and administrative

 

12,789

 

 

6,031

 

 

23,876

 

 

11,621

 

Total operating expenses

 

71,079

 

 

39,771

 

 

141,678

 

 

73,556

 

Operating loss

 

(8,344

)

 

(598

)

 

(22,169

)

 

(7,053

)

Financial income (expenses), net

 

(4,944

)

 

491

 

 

(8,918

)

 

822

 

Loss before income taxes

 

(13,288

)

 

(107

)

 

(31,087

)

 

(6,231

)

Income taxes

 

(11

)

 

(17

)

 

(56

)

 

(48

)

Net loss attributable to ordinary shareholders

$

(13,299

)

$

(124

)

$

(31,143

)

$

(6,279

)

Basic and diluted net loss per share attributable to ordinary shareholders

$

(0.37

)

(*)

$

(0.87

)

$

(0.19

)

Basic and diluted weighted average ordinary shares

 

36,338,172

 

 

33,172,593

 

 

35,988,608

 

 

32,484,425

 

 

* Represents amounts less than 0.01

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

Three Months Ended

 

 

Six Months Ended

June 30,

 

 

June 30,

2021

 

2020

 

 

2021

 

2020

(Unaudited)

 

 

(Unaudited)

Operating Activities
Net loss

(13,299

)

(124

)

(31,143

)

(6,279

)

Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization

1,373

 

1,016

 

2,691

 

1,981

 

Amortization of discount of marketable securities

1,658

 

(66

)

3,481

 

(337

)

Amortization of discount and issuance costs of convertible notes

4,973

 

-

 

9,877

 

-

 

Shared-based compensation

13,174

 

3,062

 

23,657

 

5,824

 

Net income from exchange rate fluctuations

393

 

19

 

302

 

213

 

Changes in assets and liabilities:
User funds

(1,286

)

(20,737

)

(23,629

)

(28,665

)

Operating lease ROU assets and liabilities, net

272

 

-

 

(257

)

-

 

Other receivables

(559

)

(335

)

(1,267

)

113

 

Trade payables

(837

)

2,764

 

253

 

2,180

 

Deferred revenue

121

 

796

 

2,395

 

1,806

 

User accounts

1,403

 

19,782

 

21,696

 

26,920

 

Other account payables and accrued expenses

8,630

 

857

 

12,736

 

3,582

 

Payment of contingent consideration

(507

)

(1,960

)

(507

)

(1,960

)

Non-current liabilities

6

 

164

 

(235

)

162

 

Net cash provided by operating activities

15,515

 

5,238

 

20,050

 

5,540

 

 
Investing Activities
Investment in marketable securities

(40,833

)

(135,036

)

(166,831

)

(171,822

)

Proceeds from sale of marketable securities

39,065

 

113,451

 

78,995

 

150,539

 

Bank deposits

(39,000

)

(15,000

)

(39,000

)

(15,000

)

Acquisition of business, net of cash acquired

(410

)

-

 

(9,288

)

-

 

Purchase of property and equipment

(389

)

(406

)

(700

)

(537

)

Capitalization of internal-use software

(180

)

(166

)

(322

)

(451

)

Other receivables and non-current assets

-

 

2

 

-

 

54

 

Net cash used in investing activities

(41,747

)

(37,155

)

(137,146

)

(37,217

)

 
Financing Activities
Proceeds from follow on offering, net

-

 

130,670

 

-

 

130,670

 

Payment of deferred issuance costs related to follow on offering

(5

)

-

 

(381

)

-

 

Payment of convertible notes deferred issuance costs

-

 

-

 

(34

)

-

 

Payment of contingent consideration

(1,105

)

(2,040

)

(1,105

)

(2,040

)

Proceeds from exercise of share options

1,563

 

2,704

 

6,351

 

4,652

 

Tax withholding in connection with employees' options exercises and vested RSUs

(10,951

)

(16

)

(8,629

)

2,256

 

Repayment of long-term loan

(139

)

(124

)

(273

)

(244

)

Net cash provided by (used in) financing activities

(10,637

)

131,194

 

(4,071

)

135,294

 

 
Effect of exchange rate fluctuations on cash and cash equivalents

236

 

55

 

(141

)

(246

)

Increase (decrease) in cash and cash equivalents

(36,633

)

99,332

 

(121,308

)

103,371

 

Cash and cash equivalents at the beginning of period

183,355

 

28,210

 

268,030

 

24,171

 

Cash and cash equivalents at the end of period

146,722

 

127,542

 

146,722

 

127,542

 

KEY PERFORMANCE METRICS

 

Six Months Ended

June 30,

2021

 

2020

 
Annual active buyers (in thousands)

 

3,998

 

2,792

Annual spend per buyer ($)

$

226

$

184

RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT

(in thousands, except gross margin data)

 

Three Months Ended

Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

(Unaudited) (Unaudited)
GAAP gross profit

$

62,735

 

$

39,173

 

$

119,509

 

$

66,503

 

Add:
Share-based compensation and other

 

338

 

 

87

 

 

617

 

 

157

 

Depreciation and amortization

 

440

 

 

499

 

 

877

 

 

973

 

Non-GAAP gross profit

$

63,513

 

$

39,759

 

$

121,003

 

$

67,633

 

Non-GAAP gross margin

 

84.4

%

 

84.4

%

 

84.3

%

 

83.2

%

RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME AND NET INCOME PER SHARE

(in thousands, except share and per share data)

 
Three Months Ended Six Months Ended

June 30,

 

June 30,

2021

 

2020

 

2021

 

2020

(Unaudited) (Unaudited)
GAAP net loss attributable to ordinary shareholders

$

(13,299

)

$

(124

)

$

(31,143

)

$

(6,279

)

Add:
Depreciation and amortization

$

1,373

 

$

1,016

 

$

2,691

 

$

1,981

 

Share-based compensation

 

13,174

 

 

3,062

 

 

23,657

 

 

5,824

 

Contingent consideration revaluation, acquisition related costs and other

 

1,201

 

 

(337

)

 

2,521

 

 

(466

)

Convertible notes amortization of discount and issuance costs

 

4,973

 

 

-

 

 

9,877

 

 

-

 

Exchange rate loss (income), net

 

432

 

 

-

 

 

(23

)

 

-

 

Non-GAAP net income

$

7,854

 

$

3,617

 

$

7,580

 

$

1,060

 

Weighted average number of ordinary shares - basic

$

36,338,172

 

$

33,172,593

 

$

35,988,608

 

$

32,484,425

 

Non-GAAP basic net income per share attributable to ordinary shareholders

 

0.22

 

 

0.11

 

 

0.21

 

 

0.03

 

 
Weighted average number of ordinary shares - diluted

$

40,921,663

 

$

36,053,713

 

$

40,854,045

 

$

34,715,990

 

Non-GAAP diluted net income per share attributable to ordinary shareholders

$

0.19

 

$

0.10

 

$

0.19

 

$

0.03

 

RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA

(in thousands, except adjusted EBITDA margin data)

 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

2021

 

2020

 

2021

 

2020

(Unaudited) (Unaudited)
GAAP net loss

$

(13,299

)

$

(124

)

$

(31,143

)

$

(6,279

)

Add:
Financial expense (income), net

$

4,944

 

$

(491

)

$

8,918

 

$

(822

)

Income taxes

 

11

 

 

17

 

 

56

 

 

48

 

Depreciation and amortization

 

1,373

 

 

1,016

 

 

2,691

 

 

1,981

 

Share-based compensation

 

13,174

 

 

3,062

 

 

23,657

 

 

5,824

 

Contingent consideration revaluation, acquisition related costs and other

 

1,201

 

 

(337

)

 

2,521

 

 

(466

)

Adjusted EBITDA

$

7,404

 

$

3,143

 

$

6,700

 

$

286

 

Adjusted EBITDA margin

 

9.8

%

 

6.7

%

 

4.7

%

 

0.4

%

RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES

(in thousands)

 

Three Months Ended

 

Six Months Ended

June 30,

 

June 30,

2021

 

2020

 

2021

 

2020

(Unaudited) (Unaudited)
GAAP research and development

$

20,106

$

10,533

 

$

36,979

$

20,507

 

Less:
Share-based compensation

 

4,909

 

 

1,202

 

 

9,011

 

 

2,244

 

Depreciation and amortization

 

190

 

 

130

 

 

377

 

 

246

 

Non-GAAP research and development

$

15,007

 

$

9,201

 

$

27,591

 

$

18,017

 

 
GAAP sales and marketing

$

38,184

 

$

23,207

 

$

80,823

 

$

41,428

 

Less:
Share-based compensation

 

3,457

 

 

552

 

 

6,045

 

 

1,079

 

Depreciation and amortization

 

686

 

 

338

 

 

1,325

 

 

668

 

Contingent consideration revaluation, acquisition related costs and other

 

398

 

 

-

 

 

695

 

 

121

 

Non-GAAP sales and marketing

$

33,643

 

$

22,317

 

$

72,758

 

$

39,560

 

 
GAAP general and administrative

$

12,789

 

$

6,031

 

$

23,876

 

$

11,621

 

Less:
Share-based compensation

 

4,470

 

 

1,221

 

 

7,984

 

 

2,344

 

Depreciation and amortization

 

57

 

 

49

 

 

112

 

 

94

 

Contingent consideration revaluation, acquisition related costs and other

 

803

 

 

(337

)

 

1,826

 

 

(587

)

Non-GAAP general and administrative

$

7,459

 

$

5,098

 

$

13,954

 

$

9,770

 

 

Key Performance Metrics and Non-GAAP Financial Measures

This release includes certain key performance metrics and financial measures not based on GAAP, including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share as well as operating metrics, including GMV, spend per buyer, active buyers and take rate. Some amounts in this release may not total due to rounding. All percentages have been calculated using unrounded amounts.

We define GMV or Gross Merchandise Value as the total value of transactions ordered through our platform, excluding value added tax, goods and services tax, service chargebacks and refunds. We define active buyers on any given date as buyers who have ordered a Gig or other services on our platform within the last 12-month period, irrespective of cancellations. Spend per buyer on any given date is calculated by dividing our GMV within the last 12-month period by the number of active buyers as of such date. Take rate is revenue for any such period divided by GMV for the same period.

Management and our board of directors use these metrics as supplemental measures of our performance that is not required by, or presented in accordance with GAAP because they assist us in comparing our operating performance on a consistent basis, as they remove the impact of items not directly resulting from our core operations. We also use these metrics for planning purposes, including the preparation of our internal annual operating budget and financial projections, to evaluate the performance and effectiveness of our strategic initiatives and to evaluate our capacity to expand our business.

Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP net income (loss) and Non-GAAP net income (loss) per share as well as operating metrics, including GMV, spend per buyer, active buyers and take rate should not be considered in isolation, as an alternative to, or superior to net loss, revenue, cash flows or other performance measure derived in accordance with GAAP. These metrics are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Management believes that the presentation of non-GAAP metrics is an appropriate measure of operating performance because they eliminate the impact of expenses that do not relate directly to the performance of our underlying business.

These non-GAAP metrics should not be construed as an inference that our future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA and other non-GAAP metrics used herein are not intended to be a measure of free cash flow for management's discretionary use, as they do not reflect our tax payments and certain other cash costs that may recur in the future, including, among other things, cash requirements for costs to replace assets being depreciated and amortized. Management compensates for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA and other non-GAAP metrics as supplemental measures of our performance. Our measure of Adjusted EBITDA and other non-GAAP metrics used herein is not necessarily comparable to similarly titled captions of other companies due to different methods of calculation.

See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.

We are not able to provide a reconciliation of non-GAAP financial measures guidance for the third quarter of 2021, and the fiscal year ending December 31, 2021 to the comparable GAAP measures, because certain items that are excluded from non-GAAP financial measures cannot be reasonably predicted or are not in our control. In particular, we are unable to forecast the timing or magnitude of share based compensation, amortization of intangible assets, income or loss on revaluation of contingent consideration, convertible notes amortization of discount and issuance costs and exchange rate income or loss as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future.

Forward Looking Statements

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 our expected financial performance and operational performance for the third quarter of 2021 and the fiscal year ending December 31, 2021, our expected future Adjusted EBITDA profitability, 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: our ability to successfully implement our business plan during a global economic downturn caused by the COVID-19 pandemic that may impact the demand for our services or have a material adverse impact on our and our business partners' financial condition and results of operations; our ability to attract and retain a large community of buyers and freelancers; our ability to achieve 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 ability to maintain user engagement on our website and to maintain and improve the quality of our platform; our dependence on the interoperability of our platform with mobile operating systems that we do not control; 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 consumer data privacy and data protection; 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; our ability to achieve desired operating margins; our compliance with a wide variety of U.S. and international laws and regulations; our ability to protect our intellectual property rights and to successfully halt the operations of copycat websites or misappropriation of data; 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; our dependence on our senior management and our ability to attract new talent; 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 18, 2021, 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. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that we may make. 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.


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transcosmos inc. is honored to announces that the company's proposal submitted to the Ministry of Internal Affairs and Communications (MIC) for its public appeal for "The fiscal 2021 development demonstrations for realizing local 5G services to solve...

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Zentiva announces the launch of the Zentiva Academy, its new digital learning and development platform aimed at providing its employees with the best opportunities for their professional and personal growth. The program gathers a range of assets...



News published on 5 august 2021 at 01:05 and distributed by: