Talent platform Fiverr International Ltd. (NYSE: FVRR) reported fourth-quarter revenue rose 10.1% to $91.5 million as spend per buyer increased amid efforts to focus on higher value customers. The Tel Aviv, Israel-based company also noted the positive effects of AI.

Searches on Fiverr’s marketplace containing AI-related keywords on rose sevenfold in 2023 compared to 2022, founder and CEO Micha Kaufman said in a conference call with analysts.

“Overall, we estimate AI created a net positive impact of 4% to our business in 2023, as we see a category mix shift from simple services, such as translation and voiceover, to more complex services, such as mobile app development, e-commerce management or financial consulting,” Kaufman said.

The 4% uplift came in Fiverr’s gross merchandise value — the total value of transactions on its platform — for full year 2023.

Active buyers

The number of active buyers was down 5% as of Dec. 31, 2023, to 4.1 million when compared to Dec. 31, 2022, according to the company. However, spend per buyer was up 6% to $278 during the same time period.

Fiverr also achieved annual GAAP profitability for first time in its history.

“We entered 2023 with a backdrop of a challenging macroeconomic environment, weak SMB sentiment and waves of layoffs and hiring freezes across industries,” Kaufman said in the conference call. “It was also a year of increasing geopolitical uncertainties, with the ongoing war in Ukraine and the onset of war in the Middle East. The entire Fiverr team showed extraordinary resilience against these tough conditions and delivered strong execution towards the strategic priorities set at the beginning of the year.”

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Guidance

Fiverr forecast first-quarter revenue to rise between 4% and 6% to between $91.5 million and $93.5 million.

For the full year 2024, Fiverr forecast revenue will be up between 5% and 7% to between $379.0 million and $387.0 million.

Share price

Shares in Fiverr were down 9.62% to $23.40 as of 11:57 a.m. Eastern time today. They were 16.77% above their 52-week low.