Israel-based talent platform Fiverr International (NYSE: FVRR) reported revenue today for the second quarter of 2024 ended 30 June 2024 of $94.7 million, an increase of 6% over the previous year.

Adjusted EBITDA in the second quarter of 2024 was $17.8 million, compared to $15.3 million in the second quarter of 2023. Adjusted EBITDA margin was 18.9% in the second quarter of 2024, compared to 17.1% in the second quarter of 2023.

In a press release, the company stated, “Revenue came in above the midpoint of our guidance despite macro volatility as we continued to expand customer wallet share and drive take rate increase. We also delivered strong adjusted EBITDA, near the top end of our guidance, and strong free cash flow as we continued to execute with strong discipline and efficiency.”

Fiverr also announced today the acquisition of AutoDS, which provides a subscription-based end-to-end solution for dropshippers, including product research and sourcing, inventory management, and automated fulfillment. Dropshippers are companies that sell goods on their website that they do not keep in stock.

AutoDS aggregates over 150 million products and serves tens of thousands of paying subscribers on its platform. The company was founded in 2018 and is managed by Lior Pozin, Michael Royf and Ofir Bokobza, with the goal of automating the dropshipping process, to help source products from major channels like Amazon and eBay and to help every business scale easily. AutoDS provides a single dashboard where multiple stores can be monitored, and prices are automatically updated as they increase from suppliers.

“It has been an incredible past six months at Fiverr on many fronts as we navigated the dynamic macro environment and delivered profitable growth through executional excellence and focused operational discipline,” said Fiverr founder and CEO Micha Kaufman in a press release. “In addition, we also made remarkable strides in our product evolution with the introduction of profession-based catalog and hourly contracts.”

Ofer Katz, president and CFO of Fiverr, said, “We delivered solid results for Q2 and reiterated our full-year guidance. While the SMB and freelancer hiring space remain volatile, we continue to execute with consistency and efficiency. At the same time, we are expanding our product portfolio through both organic and inorganic investments to create additional growth catalysts.

“We also aim to optimize our capital allocation strategy to deliver shareholder value. With strong free cash flow generation and a strong balance sheet to support capital return programs, we are paving a measurable and tangible path for steady growth in free cash flow for the next three years,” Katz said.

Fiverr also reported that the number of active buyers as of 30 June 2024 was 3.9 million, compared to 4.2 million as of 30 June 2023, a decline of 8% year over year.

Spend per buyer as of 30 June 2024 reached $290, compared to $265 as of 30 June 2023, an increase of 10% year over year.

On the AutoDS acquisition, Kaufman said, “AutoDS has built an impressive product and community that is highly synergetic with Fiverr. Dropshipping and its adjacent services in marketing and programming verticals are some of the fastest-growing categories on Fiverr. It is also a community that is deeply rooted in Fiverr’s origin, where anyone with talent and idea can leverage Fiverr’s platform to build a business.”

Kaufman continued, “This acquisition also marks another step in Fiverr’s transformation from a marketplace into a powerful platform that offers not only access to talent but also software solutions for its audience, making it a one-stop shop for their entire digital needs.”

Fiverr said AutoDS brings tens of thousands of dropshippers into the Fiverr ecosystem, adding to the existing dropshipping and e-commerce buyer base on Fiverr. This acquisition expands Fiverr’s footprint in the value chain in categories with existing dominance and growth momentum, including dropshipping, website development, e-commerce management and social media marketing. The global dropshipping market size was evaluated at US$285 billion in 2023 and it is expected to hit over $2 trillion by 2033.

AutoDS will remain independently operated while working together to maximize synergies between both companies.

Fiverr today also reported revenue for the six months period of $188.18 million, an increase of 6.1% over the same period a year ago.

Guidance

Looking ahead, Fiverr reiterated its full-year guidance.

“Our strategy to move upmarket and push into complex services continues to unlock long-term growth opportunities for our marketplace businesses,” the company stated. “This is complemented by our expansion into the long-term freelancer hiring space and the addition of subscription-based software to our product portfolio. As such, we are raising the bottom end of our full-year guidance for both revenue and Adjusted EBITDA to reflect recent updates.”

Fiverr forecasts revenue in the range of $95.0 million to $97.0 million for the third quarter of 2024, an increase of 3% to 5% over the year. For the full-year 2024, Fiverr forecasts revenue in the range of $383.0 to $387.0 million, which would be between 6% to 7% year-on-year growth.

Fiverr is also forecasting adjusted EBITDA in the range of $17.0 million to $19.0 million for the third quarter of 2024. For the full-year period, Fiverr forecasts adjusted EBITDA in the range of $69.0 million to $73.0 million.

The company published its results on 31 July. On Tuesday, Fiverr shares closed at $21.89, down 1.79% on the day and 16.25% above the 52-week low of 18.83 set on 10 April 2024. The company has a market cap of $847.19 million.