Fiverr International Q2 Earnings Call Highlights

Fiverr’s Q2 revenue fell 10% to $97.8 million as AI reduced demand for lower-value freelance work.

Marketplace revenue declined 15.5%, active buyers dropped 22%, but spend per buyer rose 15.6% and higher-value projects continued to grow.

The company is transitioning toward complex, AI-related projects that combine technology with human expertise, including AI video, app development and workflow automation.

Fiverr is also investing in improved talent matching and fulfillment, but expects the transformation to take at least six quarters to materially affect results.

Traffic weakness led Fiverr to cut its outlook: Q3 revenue is expected at $80 million–$88 million, while full-year revenue is forecast at $356 million–$372 million.

The company remains profitable and cash-generative, ending the quarter with $308.5 million in cash and investments, though adjusted EBITDA declined 18.3% year over year.

Fiverr International NYSE: FVRR reported second-quarter revenue of $97.8 million, down 10% from a year earlier, as the company said accelerating adoption of artificial intelligence is compressing demand for lower-value transactional freelance work.

Founder and CEO Micha Kaufman described the quarter as transitional, saying Fiverr is shifting from a transaction-oriented marketplace toward a platform focused on higher-value, longer-duration projects that combine AI tools with human expertise, judgment and accountability.

Marketplace revenue totaled $63.1 million in the second quarter, declining 15.5% year over year.

Fiverr reported 2.7 million active buyers, a 22% decline from the prior-year period, while spend per buyer increased 15.6% to $368.

The marketplace take rate was 28%.

Chief Financial Officer Esti Levy Dadon said the active-buyer decline was primarily driven by the compression of low-value transactional work, which remains the majority of Fiverr’s marketplace activity.

Transaction volume fell by at least 10% year over year across most project categories below $1,000 on a trailing-12-month basis, she said.

Writing and translation recorded the steepest decline, at more than 24%.

At the same time, projects valued at $1,000 or more accounted for 15% of completed projects’ gross order amount on a trailing-12-month basis.

Clients completing projects above $1,000 grew 13% year over year, Kaufman said.

Programming and tech projects above that threshold increased 34%, while graphics and design grew 25%.

Management also pointed to growing demand for AI-related services.

Kaufman said demand for AI user-generated-content video ads rose 265%, while AI video ads increased 63%.

Search volume for AI voice agents climbed 49%, AI mobile app development rose 92%, and AI website development increased 39%.

According to Kaufman, businesses are increasingly seeking freelancers for complex AI integrations and workflow automation rather than basic chatbot deployment.

He said the company’s target market is outcome-based project work, including projects that can involve multiple specialists, rather than staffing placement.

Fiverr said it experienced a noticeable slowdown in marketplace traffic and demand in recent weeks, a trend that continued into the third quarter and is expected to persist for the foreseeable future.

Kaufman said ...