[Management View]
Revenue for Q3 2025 was $107.9 million, up 8% YoY. Adjusted EBITDA was $24.2 million, with a margin of 22%. Strategic priorities include moving upmarket and investing in AI to support complex use cases and larger customers.

[Outlook]
Full-year revenue guidance raised to $428-$436 million, implying 9%-11% YoY growth. Q4 revenue guidance is $104.3-$112.3 million, reflecting 1%-8% YoY growth. Management plans to continue investing in AI talent and infrastructure.

[Financial Performance]
Revenue grew 8% YoY to $107.9 million. Adjusted EBITDA margin improved by 260 basis points to 22%. Free cash flow was $29.1 million. Market-based revenue was $73.6 million, driven by 3.3 million active buyers and a 12% increase in spend per buyer.

[Q&A Highlights]
Question 1: Micha, I wanted to double-click on how you are reimagining the marketplace to be AI-first. Specifically, the pillars around evolving the buyer experience and improving matching. Could you just double-click and help us better understand your vision here and why you believe Fiverr International Ltd. is uniquely positioned to be AI-first? Thanks so much.
Answer: AI allows us to change how people express their needs, improving search and matching accuracy. This leads to better project management and orchestration. We are already seeing benefits in larger project sizes and higher customer satisfaction.

Question 2: Given the wider Q4 revenue guidance, could you just touch on the key assumptions that would get you to the low end versus the high end? Maybe specifically around GMV trends. Thanks a lot.
Answer: Revenue from services will continue to grow, while marketplace revenue depends on GMV trends. The account seems flat and might decline by a single digit. The guidance range is wide due to market volatility.

Question 3: How does the reorganization tie into the ability to ever get back to the SMB opportunity? Is the assumption now that you have reorganized the business to focus on higher-value jobs and if SMBs ever come back, that is great, but there is no assumption?
Answer: We do not assume changes in SMB demand due to uncertain macro conditions. We expect market-based revenue to be flat or show a low single-digit decline, with services revenue growing double digits. Upmarket projects are driving growth.

Question 4: Can you talk about the key investments you need to make in 2026 to transform into an AI-first company and how should we think about timing? Also, what are the drivers of spend per buyer and the 12% growth?
Answer: Investments include AI talent, infrastructure improvements, and enhancing marketplace experience. Spend per buyer is driven by upmarket projects and AI-related categories, leading to higher project sizes and strategic engagements.

Question 5: With these product catalysts across AI and moving upmarket, what is your confidence level that these products can return the marketplace business to growth in 2026? Also, has AI displacement of commoditized jobs plateaued?
Answer: AI-driven products are growing faster and will drive overall growth. Transactions over $200 are now the majority and growing double digits. Displacement of low-skill jobs is minimal and not a significant concern.

Question 6: Are you seeing anything different in the macro environment that led to the wider guidance? Also, could you talk about the phasing of the restructuring benefits into Q4 and 2026?
Answer: No change in the macro environment, hence the wide guidance. Restructuring benefits will have a bigger impact in Q4, with further improvements expected in 2026.

Question 7: How are other major categories benefiting from AI? Are you satisfied with the product suite for upmarket expansion, or are there new features planned?
Answer: Programming and tech, digital marketing, and video and animation are growing due to AI. Customers are more educated and explicit about their needs, improving matching accuracy. There is still significant opportunity in dynamic matching and managed services.

[Sentiment Analysis]
Analysts were positive about the company's AI integration and upmarket expansion. Management was confident in their strategic direction and growth potential despite macroeconomic uncertainties.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------|---------|---------|
| Revenue | $107.9M | $99.9M |
| Adjusted EBITDA | $24.2M | $20.1M |
| Adjusted EBITDA Margin | 22% | 19.4% |
| Free Cash Flow | $29.1M | $26.0M |
| Market-based Revenue | $73.6M | $68.1M |
| Service Revenue | $34.3M | $24.5M |

[Risks and Concerns]
Potential pressure on active buyer numbers and uncertainty in revenue outlook due to macroeconomic conditions. Management's guidance reflects this uncertainty.

[Final Takeaway]
Fiverr's Q3 2025 performance was strong, driven by AI integration and upmarket expansion. The company is well-positioned for future growth, with strategic investments in AI and a focus on higher-value projects. However, macroeconomic uncertainties remain a concern, and management has provided a wide guidance range to account for potential volatility.