Fiverr Announces Fourth Quarter and Full Year 2021 Results
Fiverr International Ltd. (NYSE: FVRR) reported a robust financial performance for Q4 2021, with revenue increasing 43% year over year to $79.8 million, and a full-year revenue growth of 57% to $297.7 million. The company witnessed strong retention trends, with all cohorts retaining over 110% of their previous year's revenue. Active buyers grew to 4.2 million, a 23% increase from the prior year. Adjusted EBITDA improved to $8.9 million (11.1% margin). Looking ahead, Fiverr expects Q1 2022 revenue of $85.0 - $87.0 million and FY 2022 revenue of $373.0 - $379.0 million.
- Revenue growth of 43% year over year in Q4 2021 to $79.8 million.
- Full-year revenue of $297.7 million, marking a 57% increase.
- Active buyers rose to 4.2 million, a 23% increase year over year.
- Improvement in Adjusted EBITDA to $8.9 million, with an 11.1% margin.
- GAAP net loss of $19.5 million in Q4 2021, up from a loss of $8.1 million in Q4 2020.
- GAAP net loss for full year 2021 was $65 million, compared to a loss of $14.8 million in 2020.
- GAAP gross margin decreased to 80.9% in Q4 2021 from 82.6% in Q4 2020.
-
Strong finish to 2021: We concluded another year of robust growth with revenue increasing
57% y/y, or178% over two years -
Strong retention trends: For a second year in a row, all older cohorts, those who joined on or before 2018, retained over
110% of revenue from previous year. Newer cohorts also experienced stronger retention trends compared to a historical cohort at a similar life stage - Launch of Fiverr Inspire: We launched a brand new browsing experience for buyers to find freelancers through their past projects and deliveries
- Provided both Q1’22 and FY22 guidance: We continue to provide both quarterly and annual guidance on a consistent basis, underscoring the visibility of our business and the confidence of our execution capabilities
“We live in a dynamic and ever evolving work environment in which the world has embraced the vision
“Our growth has been exceptional over the last two years at
Fourth Quarter 2021 Financial Highlights
-
Revenue in the fourth quarter of 2021 was
, an increase of$79.8 million 43% year over year. -
Active buyers as of
December 31, 2021 grew to 4.2 million, compared to 3.4 million as ofDecember 31, 2020 , an increase of23% year over year. -
Spend per buyer as of
December 31, 2021 reached , compared to$242 as of$205 December 31, 2020 , an increase of18% year over year. -
Take rate for the quarter ended
December 31, 2021 was29.2% , up from27.1% for the quarter endedDecember 31, 2020 , an increase of 210 basis points year over year. -
GAAP gross margin in the fourth quarter of 2021 was
80.9% , a decrease of 170 basis points from82.6% in the fourth quarter of 2020. Non-GAAP gross margin in the fourth quarter of 2021 was83.4% , a decrease of 50 basis points from83.9% in the fourth quarter of 2020. -
GAAP net loss in the fourth quarter of 2021 was
( , or ($19.5) million ) basic and diluted net loss per share, compared to$0.53 ( , or ($8.1) million ) basic and diluted net loss per share, in the fourth quarter of 2020. Non-GAAP net income in the fourth quarter of 2021 was$0.23 , or$9.2 million basic net income per share and$0.25 diluted net income per share, compared to$0.22 , or$4.8 million basic net income per share and$0.13 diluted net income per share, in the fourth quarter of 2020.$0.12 -
Adjusted EBITDA1 in the fourth quarter of 2021 improved to
, compared to$8.9 million in the fourth quarter of 2020. Adjusted EBITDA margin was$4.6 million 11.1% in the fourth quarter of 2021, an improvement of 280 basis points from8.3% in the fourth quarter of 2020.
Full Year 2021 Financial Highlights
-
Revenue in 2021 was
, an increase of$297.7 million 57% year over year. -
GAAP gross margin in 2021 was
82.6% , an increase of 10 basis points from82.5% in 2020. Non-GAAP gross margin in 2021 was84.1% , an increase of 40 basis points from83.7% in 2020. -
GAAP net loss in 2021 was
( , or ($65.0) million ) net loss per share, compared to a net loss of$1.81 ( , or ($14.8) million ) net loss per share, in 2020. Non-GAAP net income in 2021 was$0.46 , or$24.5 million and$0.68 basic and diluted net income per share, respectively, compared to a$0.60 , or$10.4 million and$0.32 basic and diluted net income per share, in 2020.$0.29 -
Adjusted EBITDA in 2021 improved to
, compared to$22.9 million in 2020. Adjusted EBITDA margin was$9.1 million 7.7% in 2021, an improvement of 290 basis points from4.8% in 2020.
Financial Outlook
We are introducing Q1’22 and full-year 2022 guidance as follows:
|
Q1 2022 |
FY 2022 |
Revenue |
|
|
Year over year growth |
|
|
Adjusted EBITDA |
|
|
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.
While the development of COVID-19 and its impact on the global economy continues to be highly uncertain, we are confident about our business model and continue to provide both quarterly and annual guidance in a consistent manner. We will provide investors with updated business trends as macro conditions evolve.
Given the unusual growth spikes we experienced during the COVID quarters, we want to provide additional color on the cadence of our business outlook implied in our 2022 guidance. We expect a tough comparison in the early part of 2021 to weigh on the growth rates of H1’22, and growth to accelerate in H2’22. We also expect active buyers to grow in the high single digits and spend per buyer to grow in the teens year over year for full-year 2022. Take rate is expected to remain steady with modest upside.
On the expense side, we expect some catch-up hiring for both customer support as well as product and engineering teams. We expect to continue improving sales and marketing as a percentage of revenue. Overall, we expect to continue making progress towards our long-term Adjusted EBITDA margin target of
Conference Call and Webcast Details
About
Fiverr’s mission is to change how the world works together. Since 2010, the
CONSOLIDATED BALANCE SHEETS (In thousands) |
||||||||
2021 |
2020 |
|||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ |
71,151 |
$ |
268,030 |
||||
Restricted cash |
|
2,919 |
|
|
- |
|
||
Marketable securities |
|
118,150 |
|
|
129,372 |
|
||
User funds |
|
127,713 |
|
|
97,984 |
|
||
Bank deposits |
|
134,000 |
|
|
90,000 |
|
||
Restricted deposit |
|
35 |
|
|
346 |
|
||
Other receivables |
|
14,250 |
|
|
5,418 |
|
||
Total current assets |
|
468,218 |
|
|
591,150 |
|
||
Marketable securities |
|
317,524 |
|
|
228,048 |
|
||
Property and equipment, net |
|
6,555 |
|
|
6,265 |
|
||
Operating lease right of use asset |
|
11,727 |
|
|
15,611 |
|
||
Intangible assets, net |
|
49,221 |
|
|
5,884 |
|
||
|
77,270 |
|
|
11,240 |
|
|||
Restricted deposit |
|
15 |
|
|
2,589 |
|
||
Other non-current assets |
|
1,040 |
|
|
415 |
|
||
Total assets | $ |
931,570 |
|
$ |
861,202 |
|
||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities: | ||||||||
Trade payables | $ |
8,699 |
|
$ |
3,622 |
|
||
User accounts |
|
118,616 |
|
|
92,027 |
|
||
Deferred revenue |
|
12,145 |
|
|
5,957 |
|
||
Other account payables and accrued expenses |
|
44,260 |
|
|
40,396 |
|
||
Operating lease liabilities, net |
|
3,055 |
|
|
3,307 |
|
||
Current maturities of long-term loan |
|
2,269 |
|
|
560 |
|
||
Total current liabilities |
|
189,044 |
|
|
145,869 |
|
||
Long-term liabilities: | ||||||||
Convertible notes |
|
372,076 |
|
|
352,034 |
|
||
Operating lease liabilities |
|
10,483 |
|
|
13,861 |
|
||
Long-term loan and other non-current liabilities |
|
13,099 |
|
|
4,035 |
|
||
Total long-term liabilities |
|
395,658 |
|
|
369,930 |
|
||
Total liabilities | $ |
584,702 |
|
$ |
515,799 |
|
||
Shareholders' equity: | ||||||||
Share capital and additional paid-in capital |
|
585,548 |
|
|
517,444 |
|
||
Accumulated deficit |
|
(237,585 |
) |
|
(172,573 |
) |
||
Accumulated other comprehensive income |
|
(1,095 |
) |
|
532 |
|
||
Total shareholders' equity |
|
346,868 |
|
|
345,403 |
|
||
Total liabilities and shareholders' equity | $ |
931,570 |
|
$ |
861,202 |
|
||
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) |
||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenue | $ |
79,755 |
|
$ |
55,885 |
|
$ |
297,662 |
|
$ |
189,510 |
|
||||
Cost of revenue |
|
15,213 |
|
|
9,703 |
|
|
51,723 |
|
|
33,188 |
|
||||
Gross profit |
|
64,542 |
|
|
46,182 |
|
|
245,939 |
|
|
156,322 |
|
||||
Operating expenses: | ||||||||||||||||
Research and development |
|
21,829 |
|
|
13,570 |
|
|
79,298 |
|
|
45,719 |
|
||||
Sales and marketing |
|
40,244 |
|
|
27,403 |
|
|
159,365 |
|
|
94,379 |
|
||||
General and administrative |
|
16,345 |
|
|
8,983 |
|
|
52,616 |
|
|
28,034 |
|
||||
Total operating expenses |
|
78,418 |
|
|
49,956 |
|
|
291,279 |
|
|
168,132 |
|
||||
Operating loss |
|
(13,876 |
) |
|
(3,774 |
) |
|
(45,340 |
) |
|
(11,810 |
) |
||||
Financial expenses, net |
|
(5,636 |
) |
|
(4,192 |
) |
|
(19,513 |
) |
|
(2,800 |
) |
||||
Loss before income taxes |
|
(19,512 |
) |
|
(7,966 |
) |
|
(64,853 |
) |
|
(14,610 |
) |
||||
Income taxes |
|
(8 |
) |
|
(111 |
) |
|
(159 |
) |
|
(200 |
) |
||||
Net loss attributable to ordinary shareholders | $ |
(19,520 |
) |
$ |
(8,077 |
) |
$ |
(65,012 |
) |
$ |
(14,810 |
) |
||||
Basic and diluted net loss per share attributable to ordinary shareholders | $ |
(0.53 |
) |
$ |
(0.23 |
) |
$ |
(1.81 |
) |
$ |
(0.46 |
) |
||||
Basic and diluted weighted average ordinary shares |
|
36,666,637 |
|
|
35,643,919 |
|
|
35,955,014 |
|
|
32,323,636 |
|
||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Operating Activities | ||||||||||||||||
Net loss | (19,520 |
) |
(8,077 |
) |
(65,012 |
) |
(14,810 |
) |
||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||
Depreciation and amortization |
|
2,772 |
|
|
1,227 |
|
|
6,876 |
|
|
4,338 |
|
||||
Loss from disposal of property plant and equipment, net |
|
19 |
|
|
- |
|
|
(13 |
) |
|||||||
Amortization of discount of marketable securities |
|
2,287 |
|
|
933 |
|
|
7,903 |
|
|
1,091 |
|
||||
Amortization of discount and issuance costs of convertible notes |
|
5,112 |
|
|
4,036 |
|
|
20,029 |
|
|
4,036 |
|
||||
Shared-based compensation |
|
16,646 |
|
|
6,235 |
|
|
55,407 |
|
|
15,815 |
|
||||
Net loss (gain) from exchange rate fluctuations |
|
(86 |
) |
|
(987 |
) |
|
242 |
|
|
(1,076 |
) |
||||
Changes in assets and liabilities: | ||||||||||||||||
User funds |
|
(967 |
) |
|
(4,831 |
) |
|
(29,729 |
) |
|
(42,039 |
) |
||||
Operating lease ROU assets and liabilities, net |
|
424 |
|
|
1,068 |
|
|
253 |
|
|
1,068 |
|
||||
Other receivables |
|
(3,909 |
) |
|
(1,446 |
) |
|
(6,240 |
) |
|
(1,777 |
) |
||||
Trade payables |
|
4,052 |
|
|
(2,404 |
) |
|
4,667 |
|
|
(127 |
) |
||||
Deferred revenue |
|
990 |
|
|
120 |
|
|
4,123 |
|
|
2,680 |
|
||||
User accounts |
|
445 |
|
|
4,653 |
|
|
26,589 |
|
|
39,014 |
|
||||
Account payable, accrued expenses and other |
|
(20 |
) |
|
4,251 |
|
|
13,449 |
|
|
10,882 |
|
||||
Payment of contingent consideration |
|
- |
|
|
- |
|
|
(507 |
) |
|
(1,960 |
) |
||||
Net cash provided by operating activities |
|
8,245 |
|
|
4,778 |
|
|
38,037 |
|
|
17,135 |
|
||||
Investing Activities | ||||||||||||||||
Investment in marketable securities |
|
(46,512 |
) |
|
(235,229 |
) |
|
(282,450 |
) |
|
(431,176 |
) |
||||
Proceeds from sale of marketable securities |
|
49,437 |
|
|
25,800 |
|
|
193,757 |
|
|
183,190 |
|
||||
Bank and restricted deposits |
|
2,885 |
|
|
(49,443 |
) |
|
(41,115 |
) |
|
(74,443 |
) |
||||
Acquisition of business, net of cash acquired |
|
(87,796 |
) |
|
- |
|
|
(97,084 |
) |
|
- |
|
||||
Acquisition of intangible asset |
|
- |
|
|
- |
|
|
- |
|
|
(1,230 |
) |
||||
Purchase of property and equipment |
|
(330 |
) |
|
(1,041 |
) |
|
(1,684 |
) |
|
(2,094 |
) |
||||
Capitalization of internal-use software |
|
(322 |
) |
|
(64 |
) |
|
(894 |
) |
|
(711 |
) |
||||
Other receivables and non-current assets |
|
- |
|
|
39 |
|
|
- |
|
|
107 |
|
||||
Net cash used in investing activities |
|
(82,638 |
) |
|
(259,938 |
) |
|
(229,470 |
) |
|
(326,357 |
) |
||||
Financing Activities | ||||||||||||||||
Proceeds from follow on offering, net |
|
- |
|
|
(40 |
) |
|
- |
|
|
129,853 |
|
||||
Deferred issuance cost |
|
381 |
|
|
- |
|
|
- |
|
|
- |
|
||||
Proceeds from issuance of convertible notes, net |
|
- |
|
|
447,264 |
|
|
(34 |
) |
|
447,264 |
|
||||
Purchase of capped call |
|
- |
|
|
(43,240 |
) |
|
- |
|
|
(43,240 |
) |
||||
Payment of contingent consideration |
|
- |
|
|
- |
|
|
(1,105 |
) |
|
(2,040 |
) |
||||
Proceeds from exercise of share options |
|
1,028 |
|
|
2,696 |
|
|
8,294 |
|
|
9,189 |
|
||||
Tax withholding in connection with employees' options exercises and vested RSUs |
|
1,374 |
|
|
9,528 |
|
|
(8,987 |
) |
|
11,311 |
|
||||
Repayment of long-term loan |
|
(149 |
) |
|
(152 |
) |
|
(565 |
) |
|
(524 |
) |
||||
Net cash provided by (used in) financing activities |
|
2,634 |
|
|
416,056 |
|
|
(2,397 |
) |
|
551,813 |
|
||||
Effect of exchange rate fluctuations on cash and cash equivalents |
|
188 |
|
|
1,170 |
|
|
(130 |
) |
|
1,268 |
|
||||
Increase (decrease) in cash, cash equivalents and restricted cash |
|
(71,571 |
) |
|
162,066 |
|
|
(193,960 |
) |
|
243,859 |
|
||||
Cash and cash equivalents at the beginning of period |
|
145,641 |
|
|
105,964 |
|
|
268,030 |
|
|
24,171 |
|
||||
Cash, cash equivalents and restricted cash at the end of period |
|
74,070 |
|
|
268,030 |
|
|
74,070 |
|
|
268,030 |
|
||||
KEY PERFORMANCE METRICS |
||||||||
Twelve Months Ended | ||||||||
2021 |
2020 |
|||||||
Annual active buyers (in thousands) |
|
4,217 |
|
3,418 |
||||
Annual spend per buyer ($) | $ |
242 |
|
$ |
205 |
|
||
RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT (In thousands, except gross margin data) |
||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
GAAP gross profit | $ |
64,542 |
|
$ |
46,182 |
|
$ |
245,939 |
|
$ |
156,322 |
|
||||
Add: | ||||||||||||||||
Share-based compensation and other |
|
447 |
|
|
172 |
|
|
1,436 |
|
|
384 |
|
||||
Depreciation and amortization |
|
1,548 |
|
|
506 |
|
|
2,879 |
|
|
1,962 |
|
||||
Non-GAAP gross profit | $ |
66,537 |
|
$ |
46,860 |
|
$ |
250,254 |
|
$ |
158,668 |
|
||||
Non-GAAP gross margin |
|
83.4 |
% |
|
83.9 |
% |
|
84.1 |
% |
|
83.7 |
% |
||||
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP NET INCOME AND NET INCOME PER SHARE (In thousands, except share and per share data) |
||||||||||||||||
Three Months Ended |
Year Ended |
|||||||||||||||
|
|
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
GAAP net loss attributable to ordinary shareholders | $ |
(19,520 |
) |
$ |
(8,077 |
) |
$ |
(65,012 |
) |
$ |
(14,810 |
) |
||||
Add: | ||||||||||||||||
Depreciation and amortization | $ |
2,772 |
|
$ |
1,227 |
|
$ |
6,876 |
|
$ |
4,338 |
|
||||
Share-based compensation |
|
16,646 |
|
|
6,235 |
|
|
55,407 |
|
|
15,815 |
|
||||
Contingent consideration revaluation, acquisition related costs and other |
|
3,338 |
|
|
932 |
|
|
5,914 |
|
|
768 |
|
||||
Convertible notes amortization of discount and issuance costs |
|
5,112 |
|
|
4,036 |
|
|
20,029 |
|
|
4,036 |
|
||||
Exchange rate loss, net |
|
896 |
|
|
416 |
|
|
1,273 |
|
|
262 |
|
||||
Non-GAAP net income | $ |
9,244 |
|
$ |
4,769 |
|
$ |
24,487 |
|
$ |
10,409 |
|
||||
Weighted average number of ordinary shares - basic |
|
36,666,637 |
|
|
35,643,919 |
|
|
35,955,014 |
|
|
32,323,636 |
|
||||
Non-GAAP basic net income per share attributable to ordinary shareholders |
|
0.25 |
|
|
0.13 |
|
|
0.68 |
|
|
0.32 |
|
||||
Weighted average number of ordinary shares - diluted |
|
41,231,973 |
|
|
41,176,573 |
|
|
40,883,007 |
|
|
35,607,317 |
|
||||
Non-GAAP diluted net income per share attributable to ordinary shareholders | $ |
0.22 |
|
$ |
0.12 |
|
$ |
0.60 |
|
$ |
0.29 |
|
||||
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (In thousands, except adjusted EBITDA margin data) |
||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
GAAP net loss | $ |
(19,520 |
) |
$ |
(8,077 |
) |
$ |
(65,012 |
) |
$ |
(14,810 |
) |
||||
Add: | ||||||||||||||||
Financial expense, net | $ |
5,636 |
|
$ |
4,192 |
|
$ |
19,513 |
|
$ |
2,800 |
|
||||
Income taxes |
|
8 |
|
|
111 |
|
|
159 |
|
|
200 |
|
||||
Depreciation and amortization |
|
2,772 |
|
|
1,227 |
|
|
6,876 |
|
|
4,338 |
|
||||
Share-based compensation |
|
16,646 |
|
|
6,235 |
|
|
55,407 |
|
|
15,815 |
|
||||
Contingent consideration revaluation, acquisition related costs and other |
|
3,338 |
|
|
932 |
|
|
5,914 |
|
|
768 |
|
||||
Adjusted EBITDA | $ |
8,880 |
|
$ |
4,620 |
|
$ |
22,857 |
|
$ |
9,111 |
|
||||
Adjusted EBITDA margin |
|
11.1 |
% |
|
8.3 |
% |
|
7.7 |
% |
|
4.8 |
% |
||||
RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES (In thousands) |
||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
GAAP research and development | $ |
21,829 |
$ |
13,570 |
$ |
79,298 |
|
45,719 |
||||||||
Less: | ||||||||||||||||
Share-based compensation |
|
5,750 |
|
|
2,331 |
|
|
20,008 |
|
|
5,842 |
|
||||
Depreciation and amortization |
|
204 |
|
|
156 |
|
|
786 |
|
|
551 |
|
||||
Non-GAAP research and development | $ |
15,875 |
|
$ |
11,083 |
|
$ |
58,504 |
|
$ |
39,326 |
|
||||
GAAP sales and marketing | $ |
40,244 |
|
$ |
27,403 |
|
$ |
159,365 |
|
$ |
94,379 |
|
||||
Less: | ||||||||||||||||
Share-based compensation |
|
4,296 |
|
|
1,196 |
|
|
14,106 |
|
|
3,084 |
|
||||
Depreciation and amortization |
|
957 |
|
|
513 |
|
|
2,977 |
|
|
1,625 |
|
||||
Contingent consideration revaluation, acquisition related costs and other |
|
402 |
|
|
- |
|
|
1,499 |
|
|
121 |
|
||||
Non-GAAP sales and marketing | $ |
34,589 |
|
$ |
25,694 |
|
$ |
140,783 |
|
$ |
89,549 |
|
||||
GAAP general and administrative | $ |
16,345 |
|
$ |
8,983 |
|
$ |
52,616 |
|
$ |
28,034 |
|
||||
Less: | ||||||||||||||||
Share-based compensation |
|
6,153 |
|
|
2,536 |
|
|
19,857 |
|
|
6,505 |
|
||||
Depreciation and amortization |
|
63 |
|
|
52 |
|
|
234 |
|
|
200 |
|
||||
Contingent consideration revaluation, acquisition related costs and other |
|
2,936 |
|
|
932 |
|
|
4,415 |
|
|
647 |
|
||||
Non-GAAP general and administrative | $ |
7,193 |
|
$ |
5,463 |
|
$ |
28,110 |
|
$ |
20,682 |
|
||||
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.
See the tables above regarding reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.
We are not able to provide a reconciliation of non-GAAP financial measures guidance for the first quarter of 2022, and the fiscal year ending
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our expected financial performance and operational performance for the first quarter of 2022 and the fiscal year ending
View source version on businesswire.com: https://www.businesswire.com/news/home/20220216006257/en/
Investor Relations:
investors@fiverr.com
Press:
press@fiverr.com
Source:
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