Fiverr International Ltd. (NYSE:FVRR) Q3 2022 Earnings Conference Call November 9, 2022 8:30 AM ET

Company Participants

Jinjin Qian - Vice President, Strategic Finance

Micha Kaufman - Founder & Chief Executive Officer

Ofer Katz - President & Chief Financial Officer

Conference Call Participants

Doug Anmuth - JPMorgan

Brad Erickson - RBC Capital Markets

Matt Farrell - Piper Sandler

Andrew Boone - JMP

Operator

Hello, everyone, and welcome to the Fiverr Q3 Fiscal 2022 Earnings Conference Call. My name is Julie, and I will be coordinating your call today. [Operator Instructions]

I'd now like to turn the call over to Jinjin Qian. Please go ahead.

Jinjin Qian

Thank you, operator, and good morning everyone. Thank you for joining us on Fiverr’s earnings conference call for the third quarter that ended September 30, 2022. Joining me on the call today are Micha Kaufman, Founder and CEO, and Ofer Katz, President and CFO.

Before we start, I would like to remind you that during this call we may make forward-looking statements and that these statements are based on our current expectations and assumptions as of today and Fiverr assumes no obligation to update or revise them.

A discussion of some of the important risk factors that could cause actual results to differ materially from any forward-looking statements can be found under the Risk Factors section in Fiverr’s most recent Form 20-F and other filings with the SEC.

During this call, we’ll be referring to some non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is provided in the earnings release we issued today and our shareholder letter, each of which is available on our website at investors.fiverr.com.

And now, I will turn the call over to Micha.

Micha Kaufman

Thank you, Jinjin. Good morning everyone and thank you for joining us today. We are pleased to report strong results today. In the third quarter of 2022, revenue was $82.5 million at the top end of our guidance, and adjusted EBITDA was $6.6 million, above our guidance range. This performance is the direct result of the actions we took to strengthen the flywheel of our marketplace. That is improving our efficiency in buyer acquisition, optimizing our catalog, building a better product experience and, in turn, driving more buyers to buy more from our platform.

Our decision a few months ago to optimize our cost structure and accelerate our pace towards long-term margin targets is also paying off. Our Q3 adjusted EBITDA margin of 7.9% represents a 250 basis point improvement from Q2 with a strong gross margin of 82.8% and cost savings across all expense lines.