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Propelled by pandemic, Fiverr reports 77% jump in 2020 revenue to $190 million

The company, which connects businesses with freelancers offering digital services, posts net loss of $14.8 million for the year; sees strong 2021 sales growth

Shoshanna Solomon is The Times of Israel's Startups and Business reporter

Fiverr employees at work in its Tel Aviv offices, August 6, 2017 (Shoshanna Solomon/Times of Israel)
Fiverr employees at work in its Tel Aviv offices, August 6, 2017 (Shoshanna Solomon/Times of Israel)

Fiverr International Ltd., a company that connects businesses with freelancers offering digital services, said revenue in “landmark year” 2020 jumped 77 percent, reaching $190 million, as the pandemic sent businesses online and owners searched for a variety of digital services.

For the fourth quarter of 2020, the firm said, revenue increased 89% to $55.9 million. Net loss in the fourth quarter of 2020 widened to $8.1 million compared to $7.4 million in the fourth quarter of 2019. Net loss for the full year was $14.8 million, compared to a net loss of $33.5 million in 2019.

“2020 was a landmark year for our business with 77% year over year revenue growth driven largely by bringing more freelancers and businesses together during a critical time of global change,” said Micha Kaufman, founder and CEO of Fiverr.

“We are carrying that momentum into the new year and I’m thrilled about what lies ahead for us in 2021. We started this year with our first Super Bowl campaign, which allowed us to reach millions of people in a way that was unprecedented for our brand. In the year ahead, we also expect to continue to roll out significant products, features and capabilities and continue to help lead and power the global trend towards digital transformation and remote work.”

The company forecast revenues in a range of $63 million to $65 million for the first quarter of 2021, a year-on-year growth of 84%-90%, and of $277 million to $284 million for the full year 2021, a rise of 46%-50% compared to full year 2020.

Fiverr’s co-founder and CEO, Micha Kaufman. (Courtesy/Yuval Taog)

“Given the uncertainty of the ongoing impact and unprecedented conditions surrounding the COVID-19 pandemic on economies globally, we will provide investors with updated business trends as they evolve,” the company said in a statement on Thursday.

Fiverr connects business with freelancers offering digital services, such as copy editing or website consulting. The company went public on the New York Stock Exchange in June 2019. It trades under the ticker FVRR and has a market cap of $11 billion.

The coronavirus has helped propel demand for the company’s services, bringing growth in the number of transactions between businesses and freelancers, as lockdowns forced people to stay home and businesses turned to online services.

During the fourth quarter of 2020 the firm added 30 new freelance services categories, and now offers digital services in more than 500 categories across eight verticals including graphic design, digital marketing, programming, video and animation.

The Shift initiative by Fiverr seeks to connect businesses with web designers and developers to help them set up an online presence amid the pandemic (Courtesy)

In the 12 months ending December 31, 2020, over 3.4 million customers bought a wide range of services from freelancers across more than 160 countries. The figure is a 45% jump in active buyers of services, compared to 2.4 million as of December 31, 2019, the statement said.

The company ran its first Super Bowl ad in February, resulting in a one-time expense of $8 million for the first quarter of 2021.

“Our marketplace significantly scaled during 2020,” said Ofer Katz, Fiverr’s CFO. “We believe the strong momentum is carrying into 2021 and the increased awareness and adoption of digital freelancing services will continue to provide tailwinds for our business.”

Fiver announced on Wednesday that it was building a new platform to help global corporate brands and agencies to manage teams of independent creative workers. Earlier this month the company said it has acquired a site for creative talent called Working Not Working, in a bid to expand its offering to customers.

Working Not Working was founded in 2011 by Justin Gignac and Adam Tompkins. The site was initially created to help their friends and connections in the creative industry find jobs and new opportunities. Today, the platform connects tens of thousands of full-time creatives and freelancers with brands and agencies through a subscription model. The company will remain a standalone organization and retain its team, with its founders remaining at the helm, Fiver said in a statement on February 12.

The Israeli economy shrank by 2.4 percent in 2020 due to the coronavirus pandemic, figures released by the Central Bureau of Statistics on Tuesday showed, the first contraction since 2002, and the worst on record. The data is nonetheless better than expected, with economic officials having predicted a contraction of at least 3.3%-4.6%. The data was far better than the 5.5% average contraction in OECD countries last year, as the nation’s tech industry kept the economy chugging even as the pandemic struck other sectors.

The Israeli tech sector plays a pivotal role in the nation’s economy, accounting for almost 15% the nation’s GDP, according to the Israel Innovation Authority.

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