

It had a run of 545%


Revenue grew 82% in Q2 ’20


As JOBS and GIGS move online




Here is a SHORT thread

$FVRR Fiver was founded in 2010 by Micha Kaufman and Shai Wininger
The website matches freelancers selling digital services to buyers 
Simplicity
and standardisation
were the two KEY
elements that made $FVRR the #198 in the
U.S. (Alexa rank)


Simplicity




How was it done earlier 
The conventional freelancing website works this way
Buyers post a job they need to be done 
Multiple freelancers
apply and “sell their services”
to the prospective buyer

The conventional freelancing website works this way















It is not hard to see
This process is the same as recruiting an employee for your company / project 
Is this easy? Well, no
Why?


Is this easy? Well, no





In the end
This creates a lot of uncertainty and frictions for both buyers and freelancers 
And that is exactly what the $FVRR founders wanted to change
Here is what they have to say in $FVRR S-1 Filling


And that is exactly what the $FVRR founders wanted to change

Here is what they have to say in $FVRR S-1 Filling

“We started with the simple idea that people should be able to buy and sell digital services in the same fashion as physical goods on an e-commerce platform.”
“On that basis, we set out to design a digital marketplace that is built with a comprehensive SKU-like services catalog and an efficient search, find and order process that mirrors a typical e-commerce transaction.”
Turning the freelancing industry on its head
$FVRR became the “$5 micro-services” platform 
Where freelancers listed THEIR SERVICES for $ 5
and buyers could simply buy what they needed










This is what led Adam Fisher from Bessemer Venture Partners to invest in $FVRR back in 2011
Here are some key highlights 
In December 2010, the company was counting 60k transactions / month and had 8 employees









Here is the full Bessemer Venture Partners memo
https://www.bvp.com/memos/fiverr

That’s all good
But how does $FVRR make money 
Sellers get 80% of the total order value
$FVRR takes an 20% commission on selling price
Buyers pay $ 2 in Service Fees for orders under $ 40 and 5% of order value above that
How doest that translates into sales





How doest that translates into sales

$FVRR is speeding
Some key insights from Q2 ’20
Revenue grew 82% YoY reaching $ 47m
Active buyers grew 28% YoY to 2.8m, implying net adds of 300K in Q2’20 vs Q1’20.
Quarterly Adjusted EBITDA of positive 6.7%




What about GMs, OMs and EBITDA?
Gross margins of 84% (increase from 81% in Q1) providing a Gross Profit of $ 39m
Operating expenses grew 32.9% YoY while revenue grew 82% in the same period





$FVRR looks good on paper
Compelling solution and huge growth
Let’s review 2 key questions
Is the total market for freelancing services growing?
Are customers preferring $FVRR over alternatives such as $UPWK





Market is growing
as both employees AND employers are turning to freelancing 
The pandemic accelerated some changes that were well underway
Flexible working




















As employees and employers turn to flexible sources of work
Is $FVRR winning 
$FVRR counted 61m visits in Aug ’20 vs 43m in Mar ’20
42% increase
$UPWK counted 33m visits in Aug ’20 vs 30m in Mar ’20
10% increase









Soooo the freelance market is growing fast
and got a pandemic
related boost as *BOTH* employers and employees
looked for more flexible ways of working
On top of that, $FVRR is delivering on it strategy to move UPMARKET by increasing the spend per buyer



On top of that, $FVRR is delivering on it strategy to move UPMARKET by increasing the spend per buyer

What’s more ?
Fiverr has just launched Fiverr Business
Here is what Micha Kaufman ( CEO of $FVRR ) told TechCrunch 
“2020 marks the beginning of a decade where businesses will invest and learn how to truly integrate freelancers into their workflows”



“2020 marks the beginning of a decade where businesses will invest and learn how to truly integrate freelancers into their workflows”
“Organisations require tools to manage their team accounts, defining projects, assigning budgets, tracking progress and collaborating internally”














Here is a review for $FVRR
Would love to hear your take on the matter 
@AnthonyOhayon
@TheMarkCooke
@jeremymday
@ArtJonak


@AnthonyOhayon
@TheMarkCooke
@jeremymday
@ArtJonak
Hope you liked this thread!
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Disclaimer - This is not investment advice in any form and investors are responsible for conducting their own research before investing.
Sources
✑ Investor presentation
✑ Company website
✑ TechCrunch
✑ Bessemer Venture Partners
✑ Forbes
✑ McKinsey & Company
✑ Alexa
Sources
✑ Investor presentation
✑ Company website
✑ TechCrunch
✑ Bessemer Venture Partners
✑ Forbes
✑ McKinsey & Company
✑ Alexa
✑ SimilarWeb