Fiverr reports 100% revenue growth in Q1 as buyers continuously purchase more expensive gigs
Freelancer platform Fiverr released its Q1 figures on Thursday, showing a 100% year-over-year growth in revenue of $68.3 million, one of the highest Q1 revenue figures reported in the company's history.
The company showed increases across the board, with its active buyer base growing to 3.8 million, a 56% increase year over year. According to a company statement, Fiverr Business users purchased more often in Q1 and bought more expensive gigs compared to those in the platform's marketplace.
Those using Fiverr Business spent three times as much on average compared to the site's other users.
Fiverr CEO Micha Kaufman and CFO Ofer Katz said the company now expects the growth to continue throughout 2021, upgrading expectations from 46-50% to 59-63% revenue growth.
Kaufman said Fiverr was capitalizing on "the ongoing digital transformation" and noted that the business momentum remained strong as the company continues to scale.
The company is now expecting to bring in up to $75 million in revenue for Q2 and an EBITDA of up to $7 million. For 2021 as a whole, revenue expectations have been bumped up to a projected high of $308 million. Fiverr brought in $189.5 million in revenue in 2020.
Spend per buyer reached a high of $216 compared to the $177 the company saw in March 2020.
"We continue to capitalize and execute on the ongoing digital transformation as we delivered one of the strongest quarters in Fiverr's history with outstanding results across the board, supported by continued execution on our strategy," Kaufman said.
"Fiverr's business momentum remains strong and resilient as we continue to scale at accelerating levels while leading companies through this new world of work."
The company's shareholder letter featured stories of small business owners who saw significant changes to their business due to COVID-19 and needed help from freelancers to adjust.
Fiverr, along with other freelancer platforms like Upwork, have seen a massive uptick in users and spending due to the newfound reliance on remote work that emerged last year due to the pandemic.
In March, Fiverr announced that it would expand its offerings to include data and analytics, and overall, the company told shareholders it had expanded from eight to now 25 different verticals. The newest vertical will offer users access to freelance experts in data science, analytics, data processing, visualization, databases, and data entry.