Israeli tech company Fiverr announced a record-high $86.7 million in revenue in the first fiscal quarter of 2022 — the first time the company has turned a profit in a Q1 period in the company’s history, as Fiverr typically frontloads marketing investment for the rest of the year in Q1.
The record revenue marks a 27% increase in year-over-year Q1 revenues, even as the global economy teeters on the brink of recession, war rages in Eastern Europe, and the COVID-19 pandemic continues to ravage much of the world.
“Our solid results in the first quarter demonstrate the resilience of our business and ability to execute amid volatile macro conditions,” said Fiverr’s President and CFO Ofer Katz. "We are very pleased with the ongoing momentum in Fiverr Business and the exciting upmarket opportunities ahead of us. Our strong balance sheet and disciplined financial strategy provides a solid foundation for us to continue investing for growth and long-term shareholder value.”
Revenue rises arise from positive business results, of which Fiverr had many recent successes. Active buyers as of March 31, 2022 grew to 4.2 million — compared to 3.8 million as of March 31, 2021, for an increase of 11% year over year. Money spent per buyer reached $251 as of March 31, 2022 – compared to $216 as of March 31, 2021, for an increase of 17% year over year.
While Fiverr’s results are promising, the company’s stock has suffered amid macroeconomic headwinds, as the stock has fallen from a 52-week high of $262.90 USD per share to $34.46 USD per share.
Fiverr, among the world’s leading freelancer platforms, rolled out major innovations ahead of Q1. Along with improving their search browser, Fiverr rolled out an initiative that allows buyers to input their text and listen to an AI-generated sample narration from a voice-over artist instantaneously.
Founded in 2010, Fiverr was founded in Tel Aviv and has seen success come from the concept they named themselves after — that most, if not all services offered, should cost no more than five dollars. A recent Ipsos survey indicated that Fiverr is the strongest freelance marketplace brand in terms of brand awareness.
“Millions of businesses continue to turn to Fiverr to find a freelancer, as they enjoy the unmatched convenience, speed and selection of the on-demand digital services we provide,“ said Micha Kaufman, founder and CEO of Fiverr. “The Fiverr community is active, engaged and growing, and it is our relentless focus to innovate and bring value to our community every day.”