Fiverr Announces Second Quarter 2020 Results
- Strong growth: Revenue grew 82% y/y in Q2’20 with strong execution across product, marketing and operation during the global pandemic
- Historical level of new buyers: Active buyers grew 28% y/y to 2.8 million, implying net adds of over 300K in Q2’20 vs Q1’20
- Achieved profitability: Achieved quarterly Adjusted EBITDA profitability for the first time in Fiverr’s history and targeting Adjusted EBITDA profitability for future quarters in 2020
- Promoted Gigs expansion: Promoted Gigs are now available to many more sellers, in 15 categories, and on both search and category pages
- Two new localized sites: Launched two additional non-English websites in Italian and Dutch as we continued to expand into European countries
- Introduced Fiverr Business: a dedicated environment for business buyers to transact and collaborate on Fiverr – marking a key investment in going upmarket
- Our guidance: Provided Q3’20 and raised FY20 guidance – revenue is now expected to grow 66-68% for FY20 with expected FY20 Adjusted EBITDA profitability
NEW YORK–(BUSINESS WIRE)–Fiverr International Ltd. (NYSE: FVRR), the company that is changing how the world works together, today reported financial results for the second quarter of 2020 ended June 30, 2020. Complete operating results and management commentary can be found by accessing the Company’s shareholder letter posted to its investor relations website at investors.fiverr.com.
“We have delivered an outstanding quarter of results as our strong execution amidst the COVID-19 pandemic resulted in 82% y/y growth in revenue and Adjusted EBITDA profitability. I’m incredibly proud that Fiverr has been playing an important role in the livelihoods of individuals and businesses everywhere during this challenging global environment,” said Fiverr founder and CEO Micha Kaufman. “As businesses endeavor to reshape their team structures and accelerate the pace of digital transformation, I believe there is a tremendous amount of growth runway ahead of us.”
Ofer Katz, Fiverr CFO, added, “Fiverr has reached an inflection point in Q2, having achieved Adjusted EBITDA profitability and brought our topline scale to the next level. While the global macroeconomic conditions remain highly uncertain, we are confident that our business model, strong execution ability and financial discipline will continue to drive our growth forward.”
Second Quarter 2020 Financial Highlights
- Revenue in the second quarter of 2020 was $47.1 million, an increase of 82% year over year.
- Active buyers as of June 30, 2020, grew to 2.8 million, compared to 2.2 million as of June 30, 2019, an increase of 28% year over year.
- Spend per buyer as of June 30, 2020, reached $184, compared to $157 as of June 30, 2019, an increase of 18% year over year.
- Take rate for the twelve months ended June 30, 2020, was 27.0%, up from 26.4% for the twelve months ended June 30, 2019, an increase of 60 basis points year over year.
- GAAP gross margin in the second quarter of 2020 was 83.1%, an increase of 360 basis points from 79.5% in the second quarter of 2019. Non-GAAP gross margin in the second quarter of 2020 was 84.4%, an increase of 300 basis points from 81.4% in the second quarter of 2019.
- GAAP net loss in the second quarter of 2020 was ($0.1) million, or less than ($0.01) net loss per share, compared to ($9.4) million, or ($0.88) net loss per share, in the second quarter of 2019. Non-GAAP net income (loss) in the second quarter of 2020 was $3.6 million, or $0.11 and $0.10 basic and diluted net income (loss) per share, respectively, compared to ($4.9) million, or ($0.19) for both basic and diluted net income (loss) per share, in the second quarter of 2019.
- Adjusted EBITDA1 in the second quarter of 2020 improved to $3.1 million, compared to ($4.9) million in the second quarter of 2019. Adjusted EBITDA margin was 6.7% in the second quarter of 2020, an improvement of 2,570 basis points from (19.0%) in the second quarter of 2019.
Financial Outlook
We are introducing Q3’20 guidance and raising our full-year guidance. Given these unprecedented times and the dynamic impact of COVID-19 on economies globally, we will provide investors with updated business trends as they evolve.
|
|
Q3 2020 |
FY 2020 |
|
Revenue |
$48.0 – $49.0 million |
$177.5 – $179.5 million |
|
Year over year growth |
72 – 76% |
66 – 68% |
|
Adjusted EBITDA |
$2.0 – $3.0 million |
$4.5 – $6.5 million |
| _____________________________ |
|
1 Adjusted 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 Wednesday, August 5, 2020, 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 Wednesday, August 12, 2020, 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 10145989.
About Fiverr
Fiverr’s mission is to change how the world works together. The Fiverr platform connects businesses of all sizes with skilled freelancers offering digital services in more than 400 categories, across 8 verticals including graphic design, digital marketing, programming, video and animation. In the twelve months ended June 30, 2020, 2.8 million customers bought a wide range of services from freelancers across more than 160 countries. We invite you to visit us at fiverr.com, read our blog and follow us on Facebook, Twitter and Instagram.
|
CONSOLIDATED BALANCE SHEETS |
||||||||
|
(in thousands) |
||||||||
|
June 30, |
|
December 31, |
||||||
|
2020 |
|
2019 |
||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents |
$ |
127,542 |
|
$ |
24,171 |
|
||
| Marketable securities |
|
44,300 |
|
|
88,559 |
|
||
| User funds |
|
84,610 |
|
|
55,945 |
|
||
| Bank deposits |
|
30,000 |
|
|
15,000 |
|
||
| Restricted deposit |
|
324 |
|
|
324 |
|
||
| Other receivables |
|
3,570 |
|
|
3,117 |
|
||
| Total current assets |
|
290,346 |
|
|
187,116 |
|
||
| Marketable securities |
|
87,841 |
|
|
21,805 |
|
||
| Property and equipment, net |
|
5,499 |
|
|
5,321 |
|
||
| Intangible assets, net |
|
6,048 |
|
|
7,188 |
|
||
| Goodwill |
|
11,240 |
|
|
11,240 |
|
||
| Restricted deposit |
|
3,168 |
|
|
3,168 |
|
||
| Other non-current assets |
|
471 |
|
|
522 |
|
||
| Total assets |
$ |
404,613 |
|
$ |
236,360 |
|
||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Trade payables |
$ |
5,963 |
|
$ |
3,749 |
|
||
| User accounts |
|
79,933 |
|
|
53,013 |
|
||
| Deferred revenue |
|
5,054 |
|
|
3,248 |
|
||
| Other account payables and accrued expenses |
|
25,601 |
|
|
21,426 |
|
||
| Current maturities of long-term loan |
|
508 |
|
|
503 |
|
||
| Total current liabilities |
|
117,059 |
|
|
81,939 |
|
||
| Long-term loan and other non-current liabilities |
|
3,970 |
|
|
5,612 |
|
||
| Total liabilities |
|
121,029 |
|
|
87,551 |
|
||
| Shareholders’ equity: | ||||||||
| Share capital and additional paid-in capital |
|
446,819 |
|
|
306,334 |
|
||
| Accumulated deficit |
|
(164,042 |
) |
|
(157,763 |
) |
||
| Accumulated other comprehensive income |
|
807 |
|
|
238 |
|
||
| Total shareholders’ equity |
|
283,584 |
|
|
148,809 |
|
||
| Total liabilities and shareholders’ equity |
$ |
404,613 |
|
$ |
236,360 |
|
||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(in thousands, except loss per share data) |
||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
|||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenue |
$ |
47,130 |
|
$ |
25,912 |
|
$ |
81,280 |
|
$ |
49,675 |
|
||||
| Cost of revenue |
|
7,957 |
|
|
5,305 |
|
|
14,777 |
|
|
10,241 |
|
||||
| Gross profit |
|
39,173 |
|
|
20,607 |
|
|
66,503 |
|
|
39,434 |
|
||||
| Operating expenses: | ||||||||||||||||
| Research and development |
|
10,533 |
|
|
8,457 |
|
|
20,507 |
|
|
16,073 |
|
||||
| Sales and marketing |
|
23,207 |
|
|
15,852 |
|
|
41,428 |
|
|
31,228 |
|
||||
| General and administrative |
|
6,031 |
|
|
5,621 |
|
|
11,621 |
|
|
9,977 |
|
||||
| Total operating expenses |
|
39,771 |
|
|
29,930 |
|
|
73,556 |
|
|
57,278 |
|
||||
| Operating loss |
|
(598 |
) |
|
(9,323 |
) |
|
(7,053 |
) |
|
(17,844 |
) |
||||
| Financial income (expense), net |
|
491 |
|
|
(10 |
) |
|
822 |
|
|
204 |
|
||||
| Loss before income taxes |
|
(107 |
) |
|
(9,333 |
) |
|
(6,231 |
) |
|
(17,640 |
) |
||||
| Income taxes |
|
(17 |
) |
|
(20 |
) |
|
(48 |
) |
|
(26 |
) |
||||
| Net loss |
|
(124 |
) |
|
(9,353 |
) |
|
(6,279 |
) |
|
(17,666 |
) |
||||
| Deemed dividend to protected ordinary shareholders |
|
– |
|
|
– |
|
|
– |
|
|
(632 |
) |
||||
| Net loss attributable to ordinary shareholders |
|
(124 |
) |
|
(9,353 |
) |
|
(6,279 |
) |
|
(18,298 |
) |
||||
| Basic and diluted net loss per share attributable to ordinary shareholders | $ (*) |
$ |
(0.88 |
) |
$ |
(0.19 |
) |
$ |
(2.06 |
) |
||||||
| Basic and diluted weighted average ordinary shares |
|
33,172,593 |
|
|
10,664,285 |
|
|
32,484,425 |
|
|
8,868,123 |
|
||||
| * Represents amounts less than 0.01 | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
|
(in thousands) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
June 30, |
|
June 30, |
||||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
|
(Unaudited) |
|
(Unaudited) |
||||||||||||||
| Operating Activities | ||||||||||||||||
| Net loss |
$ |
(124 |
) |
$ |
(9,353 |
) |
$ |
(6,279 |
) |
$ |
(17,666 |
) |
||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||||
| Depreciation and amortization |
|
1,016 |
|
|
910 |
|
|
1,981 |
|
|
1,717 |
|
||||
| Amortization of discount on marketable securities |
|
(66 |
) |
|
– |
|
|
(337 |
) |
|
– |
|
||||
| Shared-based compensation |
|
3,062 |
|
|
2,216 |
|
|
5,824 |
|
|
3,962 |
|
||||
| Net income from exchange rate fluctuations |
|
19 |
|
|
116 |
|
|
213 |
|
|
63 |
|
||||
| Changes in assets and liabilities: | ||||||||||||||||
| User funds |
|
(20,737 |
) |
|
(1,942 |
) |
|
(28,665 |
) |
|
(10,267 |
) |
||||
| Other receivables |
|
(335 |
) |
|
(44 |
) |
|
113 |
|
|
(1,291 |
) |
||||
| Trade payables |
|
2,764 |
|
|
365 |
|
|
2,180 |
|
|
876 |
|
||||
| User accounts |
|
19,782 |
|
|
1,942 |
|
|
26,920 |
|
|
10,267 |
|
||||
| Deferred revenue |
|
796 |
|
|
– |
|
|
1,806 |
|
|
– |
|
||||
| Other account payables and accrued expenses |
|
857 |
|
|
2,599 |
|
|
3,582 |
|
|
4,093 |
|
||||
| Payment of contingent consideration |
|
(1,960 |
) |
|
– |
|
|
(1,960 |
) |
|
– |
|
||||
| Non-current liabilities |
|
164 |
|
|
(163 |
) |
|
162 |
|
|
(105 |
) |
||||
| Net cash provided by (used in) operating activities |
|
5,238 |
|
|
(3,354 |
) |
|
5,540 |
|
|
(8,351 |
) |
||||
| Investing Activities | ||||||||||||||||
| Acquisition of business, net of cash acquired |
|
– |
|
|
– |
|
|
– |
|
|
(9,967 |
) |
||||
| Purchase of property and equipment |
|
(406 |
) |
|
(282 |
) |
|
(537 |
) |
|
(459 |
) |
||||
| Capitalization of internal-use software |
|
(166 |
) |
|
(221 |
) |
|
(451 |
) |
|
(324 |
) |
||||
| Other receivables and non-current assets |
|
2 |
|
|
– |
|
|
54 |
|
|
(122 |
) |
||||
| Bank deposits |
|
(15,000 |
) |
|
(10,000 |
) |
|
(15,000 |
) |
|
(20,000 |
) |
||||
| Investment in marketable securities |
|
(135,036 |
) |
|
(109,391 |
) |
|
(171,822 |
) |
|
(109,391 |
) |
||||
| Proceeds from sale of marketable securities |
|
113,451 |
|
|
– |
|
|
150,539 |
|
|
– |
|
||||
| Net cash used in investing activities |
|
(37,155 |
) |
|
(119,894 |
) |
|
(37,217 |
) |
|
(140,263 |
) |
||||
| Financing Activities | ||||||||||||||||
| Proceeds from exercise of options |
|
2,704 |
|
|
485 |
|
|
4,652 |
|
|
541 |
|
||||
| Proceeds from initial public offering, net |
|
– |
|
|
117,362 |
|
|
– |
|
|
117,362 |
|
||||
| Proceeds from issuance of protected ordinary shares, net |
|
– |
|
|
– |
|
|
– |
|
|
4,340 |
|
||||
| Payment of deferred issuance costs related to initial public offering |
|
– |
|
|
– |
|
|
– |
|
|
(405 |
) |
||||
| Proceeds from follow on offering, net |
|
130,670 |
|
|
– |
|
|
130,670 |
|
|
– |
|
||||
| Payment of contingent consideration |
|
(2,040 |
) |
|
– |
|
|
(2,040 |
) |
|
– |
|
||||
| Repayment of long-term loan |
|
(124 |
) |
|
(116 |
) |
|
(244 |
) |
|
(228 |
) |
||||
| Tax withholding in connection with employees’ options exercises |
|
(16 |
) |
|
– |
|
|
2,256 |
|
|
– |
|
||||
| Net cash provided by financing activities |
|
131,194 |
|
|
117,731 |
|
|
135,294 |
|
|
121,610 |
|
||||
| Effect of exchange rate fluctuations on cash and cash equivalents |
|
55 |
|
|
(7 |
) |
|
(246 |
) |
|
161 |
|
||||
| Increase (decrease) in cash and cash equivalents |
|
99,332 |
|
|
(5,524 |
) |
|
103,371 |
|
|
(26,843 |
) |
||||
| Cash and cash equivalents at the beginning of period |
|
28,210 |
|
|
34,636 |
|
|
24,171 |
|
|
55,955 |
|
||||
| Cash and cash equivalents at the end of period |
$ |
127,542 |
|
$ |
29,112 |
|
$ |
127,542 |
|
$ |
29,112 |
|
||||
|
KEY PERFORMANCE METRICS |
||||||
|
Twelve Months Ended |
||||||
|
June 30, |
||||||
|
2020 |
|
2019 |
||||
| (Unaudited) | ||||||
| Annual active buyers (in thousands) |
|
2,792 |
|
2,175 |
||
| Annual spend per buyer ($) |
$ |
184 |
$ |
157 |
||
|
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT |
|||||||||||||||||
|
(in thousands, except gross margin data) |
|||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| GAAP gross profit |
$ |
39,173 |
|
$ |
20,607 |
|
$ |
66,503 |
|
$ |
39,434 |
|
|||||
| Add: | |||||||||||||||||
| Share-based compensation |
|
87 |
|
|
28 |
|
|
157 |
|
|
50 |
|
|||||
| Depreciation and amortization |
|
499 |
|
|
450 |
|
|
973 |
|
|
856 |
|
|||||
| Non-GAAP gross profit |
$ |
39,759 |
|
$ |
21,085 |
|
$ |
67,633 |
|
$ |
40,340 |
|
|||||
| Non-GAAP gross margin |
|
84.4 |
% |
|
81.4 |
% |
|
83.2 |
% |
|
81.2 |
% |
|||||
|
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS) AND NET INCOME (LOSS) PER SHARE |
|||||||||||||||||
|
(in thousands, except share and per share data) |
|||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| GAAP net loss attributable to ordinary shareholders |
$ |
(124 |
) |
$ |
(9,353 |
) |
$ |
(6,279 |
) |
$ |
(18,298 |
) |
|||||
| Add: | |||||||||||||||||
| Deemed dividend to protected ordinary shareholders |
|
– |
|
|
– |
|
|
– |
|
|
632 |
|
|||||
| Depreciation and amortization |
|
1,016 |
|
|
910 |
|
|
1,981 |
|
|
1,717 |
|
|||||
| Share-based compensation |
|
3,062 |
|
|
2,216 |
|
|
5,824 |
|
|
3,962 |
|
|||||
| Other initial public offering related expenses |
|
– |
|
|
416 |
|
|
– |
|
|
416 |
|
|||||
| Contingent consideration revaluation and acquisition related costs |
|
(337 |
) |
|
868 |
|
|
(466 |
) |
|
1,446 |
|
|||||
| Non-GAAP net income (loss) |
|
3,617 |
|
|
(4,943 |
) |
|
1,060 |
|
|
(10,125 |
) |
|||||
| GAAP basic weighted average number of ordinary shares outstanding |
|
33,172,593 |
|
|
10,664,285 |
|
|
32,484,425 |
|
|
8,868,123 |
|
|||||
| Add: | |||||||||||||||||
| Additional weighted average shares giving effect to exchange of protected ordinary shares at the beginning of the period |
|
– |
|
|
15,959,764 |
|
|
– |
|
|
17,266,411 |
|
|||||
| Non-GAAP basic weighted average number of ordinary shares outstanding |
|
33,172,593 |
|
|
26,624,049 |
|
|
32,484,425 |
|
|
26,134,534 |
|
|||||
| Non-GAAP basic net income (loss) per share attributable to ordinary shareholders |
$ |
0.11 |
|
$ |
(0.19 |
) |
$ |
0.03 |
|
$ |
(0.39 |
) |
|||||
| Non-GAAP diluted weighted average number of ordinary shares outstanding |
|
36,053,713 |
|
|
26,624,049 |
|
|
34,715,990 |
|
|
26,134,534 |
|
|||||
| Non-GAAP diluted net income (loss) per share attributable to ordinary shareholders |
$ |
0.10 |
|
$ |
(0.19 |
) |
$ |
0.03 |
|
$ |
(0.39 |
) |
|||||
|
Note: Non-GAAP basic and diluted net loss per ordinary share for the three and six months ended June 30, 2019 were calculated based on ordinary shares outstanding after accounting for the exchange of Fiverr’s then outstanding protected ordinary shares into 18.7 million ordinary shares as though such event had occurred at the beginning of the periods. |
|
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, | ||||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| GAAP net loss |
$ |
(124 |
) |
$ |
(9,353 |
) |
$ |
(6,279 |
) |
$ |
(17,666 |
) |
|||||
| Add: | |||||||||||||||||
| Financial (income) expense, net |
|
(491 |
) |
|
10 |
|
|
(822 |
) |
|
(204 |
) |
|||||
| Income taxes |
|
17 |
|
|
20 |
|
|
48 |
|
|
26 |
|
|||||
| Depreciation and amortization |
|
1,016 |
|
|
910 |
|
|
1,981 |
|
|
1,717 |
|
|||||
| Share-based compensation |
|
3,062 |
|
|
2,216 |
|
|
5,824 |
|
|
3,962 |
|
|||||
| Other initial public offering related expenses |
|
– |
|
|
416 |
|
|
– |
|
|
416 |
|
|||||
| Contingent consideration revaluation and acquisition related costs |
|
(337 |
) |
|
868 |
|
|
(466 |
) |
|
1,446 |
|
|||||
| Adjusted EBITDA |
$ |
3,143 |
|
$ |
(4,913 |
) |
$ |
286 |
|
$ |
(10,303 |
) |
|||||
| Adjusted EBITDA margin |
|
6.7 |
% |
|
(19.0 |
%) |
|
0.4 |
% |
|
(20.7 |
%) |
|||||
|
RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES |
|||||||||||||||||
|
(in thousands) |
|||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
|
2020 |
2019 |
2020 |
2019 |
||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||
| GAAP research and development |
$ |
10,533 |
|
$ |
8,457 |
|
$ |
20,507 |
|
$ |
16,073 |
|
|||||
| Less: | |||||||||||||||||
| Share-based compensation |
|
1,202 |
|
|
901 |
|
|
2,244 |
|
|
1,536 |
|
|||||
| Depreciation and amortization |
|
130 |
|
|
109 |
|
|
246 |
|
|
212 |
|
|||||
| Acquisition related costs |
|
– |
|
|
47 |
|
|
– |
|
|
94 |
|
|||||
| Non-GAAP research and development |
$ |
9,201 |
|
$ |
7,400 |
|
$ |
18,017 |
|
$ |
14,231 |
|
|||||
| GAAP sales and marketing |
$ |
23,207 |
|
$ |
15,852 |
|
|
41,428 |
|
$ |
31,228 |
|
|||||
| Less: | |||||||||||||||||
| Share-based compensation |
|
552 |
|
|
467 |
|
|
1,079 |
|
|
723 |
|
|||||
| Depreciation and amortization |
|
338 |
|
|
308 |
|
|
668 |
|
|
564 |
|
|||||
| Acquisition related costs |
|
– |
|
|
410 |
|
|
121 |
|
|
698 |
|
|||||
| Non-GAAP sales and marketing |
$ |
22,317 |
|
$ |
14,667 |
|
$ |
39,560 |
|
$ |
29,243 |
|
|||||
| GAAP general and administrative |
$ |
6,031 |
|
$ |
5,621 |
|
$ |
11,621 |
|
$ |
9,977 |
|
|||||
| Less: | |||||||||||||||||
| Share-based compensation |
|
1,221 |
|
|
820 |
|
|
2,344 |
|
|
1,653 |
|
|||||
| Depreciation and amortization |
|
49 |
|
|
43 |
|
|
94 |
|
|
85 |
|
|||||
| Other initial public offering related expenses |
|
– |
|
|
416 |
|
|
– |
|
|
416 |
|
|||||
| Contingent consideration revaluation and acquisition related costs |
|
(337 |
) |
|
411 |
|
|
(587 |
) |
|
654 |
|
|||||
| Non-GAAP general and administrative |
$ |
5,098 |
|
$ |
3,931 |
|
$ |
9,770 |
|
$ |
7,169 |
|
|||||
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.
We are not able to provide a reconciliation of Non-GAAP financial measures guidance for the third quarter of 2020, and the fiscal year 2020 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, and income or loss on revaluation of contingent consideration, as applicable without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, GAAP measures in the future.
See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.
Forward Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Contacts
Investor Relations:
Jinjin Qian
investors@fiverr.com
Press:
Siobhan Aalders
press@fiverr.com