Shares of Fiverr International Ltd. (FVRR) surged 9.57% in a 24-hour period on Wednesday, following the release of the company's impressive third-quarter 2025 financial results. The freelance services marketplace reported strong earnings that exceeded analyst expectations, demonstrating resilience in a dynamic economic environment.
Fiverr's Q3 revenue reached $107.903 million, marking an 8.31% increase from the same period last year and slightly beating the analyst consensus estimate of $107.898 million. The company's adjusted earnings per share of $0.77 significantly outperformed the expected $0.69, representing a 20.31% year-over-year growth. Notably, Fiverr achieved its highest-ever quarter of Adjusted EBITDA and Adjusted EBITDA margin, highlighting the scalability of its marketplace and disciplined approach to operational efficiency.
The strong performance was attributed to several factors, including the continued growth in AI-related categories and the expansion of Managed Services and Dynamic Matching. Fiverr's marketplace benefited from an increase in complex projects, resulting in higher-value purchases and growth in customer wallet size. The company's annual spend per buyer rose to $330, up 11.7% year-over-year, despite a slight decline in the number of active buyers. Fiverr's strategic focus on AI transformation and capturing higher-value client projects appears to be paying off, with management expressing confidence in the company's positioning for continued momentum in the year ahead.
Comments