Fiverr(FVRR)2023-02-22 17:10Financial Data and Key Metrics Changes - Revenue for Q4 2022 was 9.4 million with an adjusted EBITDA margin of 11.3%, marking the strongest quarter in terms of adjusted EBITDA in the company's history [18][25] - Active buyers reached 4.3 million, stable with modest growth, while spend per buyer increased to 10,000 or more annually, grew 29% year-over-year, significantly outpacing overall buyer growth [19][55] Market Data and Key Metrics Changes - The company noted that the majority of spend growth in 2022 occurred in the first half of the year, with a decline in the second half due to macroeconomic headwinds affecting small and medium-sized businesses (SMBs) [26][56] - Active buyers are expected to stabilize in Q1 2023, with gradual improvement anticipated in the latter half of the year [55] Company Strategy and Development Direction - The company has set three priorities for 2023: improving comparability in the marketplace, creating differentiated category experiences, and enhancing engagement and retention [10] - The long-term trend towards remote work and a flexible workforce remains intact, positioning the company to benefit when freelance demand rebounds [6][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macro environment while focusing on efficiency and profitability, with expectations of returning to a strong growth trajectory once freelance demand rebounds [4][6] - The company anticipates that 2023 will be a year of steady improvement in growth trajectory while accelerating towards a long-term adjusted EBITDA target of 25% [12][19] Other Important Information - The company is leveraging AI tools to improve productivity within its freelancer community, believing that innovation will create more jobs rather than eliminate them [8][21] - The company is focused on maintaining a disciplined cost structure while dynamically adjusting its marketing strategies in response to market conditions [58][100] Q&A Session Summary Question: Trends in active buyers and demand geographically - Management noted that active buyer trends are stabilizing, with a focus on improving comparability in the marketplace to enhance customer conversion [31][32] Question: Impact of macro environment on spend per buyer - Management indicated that spend per buyer declined in the second half of 2022, but large wallet customers continue to grow, representing a significant portion of the business [38][55] Question: Key drivers for profitability and investments in 2023 - Management highlighted the importance of improving search and discovery, differentiated experiences, and retention strategies as key areas for investment to drive profitability [70][72] Question: AI's impact on freelance talent - Management views AI as a friend rather than a foe, emphasizing that it will create new job opportunities and enhance the platform's offerings [79][103] Question: Update on Fiverr Business and international expansion - Management confirmed that Fiverr Business remains a priority, with ongoing investments and strong early signs of growth in large wallet customers [92][117]