Read on TwitterIt had a run of 545%
Revenue grew 82% in Q2 ’20
As JOBS and GIGS move online
Here is a SHORT thread
82% GROWTH https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">It had a run of 545% https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> Taking the stock from $ 24 to $ 156 THIS YEAR https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎊" title="Konfettiball" aria-label="Emoji: Konfettiball">Revenue grew 82% in Q2 ’20 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> Gross Margins stand at 83% https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein">As JOBS and GIGS move online https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑💻" title="Technologist" aria-label="Emoji: Technologist"> It is BOOSTED by “Remote Everything” https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden">https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen"> Can it KEEP UP https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen">Here is a SHORT thread https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">" title="https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht"> 82% GROWTH https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚨" title="Polizeiautos mit drehendem Licht" aria-label="Emoji: Polizeiautos mit drehendem Licht">It had a run of 545% https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> Taking the stock from $ 24 to $ 156 THIS YEAR https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎊" title="Konfettiball" aria-label="Emoji: Konfettiball">Revenue grew 82% in Q2 ’20 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> Gross Margins stand at 83% https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein">As JOBS and GIGS move online https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑💻" title="Technologist" aria-label="Emoji: Technologist"> It is BOOSTED by “Remote Everything” https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌐" title="Weltkugel mit Längengraden" aria-label="Emoji: Weltkugel mit Längengraden">https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen"> Can it KEEP UP https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen">Here is a SHORT thread https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">" class="img-responsive" style="max-width:100%;"/>
$FVRR Fiver was founded in 2010 by Micha Kaufman and Shai Wininger 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👥" title="Silhouette von Büsten" aria-label="Emoji: Silhouette von Büsten"> The website matches freelancers selling digital services to buyers https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑💻" title="Technologist" aria-label="Emoji: Technologist">
Simplicityhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="💡" title="Elektrische Glühbirne" aria-label="Emoji: Elektrische Glühbirne"> and standardisation https://abs.twimg.com/emoji/v2/... draggable="false" alt="📐" title="Geodreieck" aria-label="Emoji: Geodreieck"> were the two KEY https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔑" title="Schlüssel" aria-label="Emoji: Schlüssel"> elements that made $FVRR the #198 in the https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇺🇸" title="Flagge der Vereinigten Staaten" aria-label="Emoji: Flagge der Vereinigten Staaten"> U.S. (Alexa rank)
Simplicity
How was it done earlier https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen">
The conventional freelancing website works this wayhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Buyers post a job they need to be done https://abs.twimg.com/emoji/v2/... draggable="false" alt="📃" title="Seite mit Eselsohr" aria-label="Emoji: Seite mit Eselsohr">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Multiple freelancers https://abs.twimg.com/emoji/v2/... draggable="false" alt="👥" title="Silhouette von Büsten" aria-label="Emoji: Silhouette von Büsten"> apply and “sell their services” https://abs.twimg.com/emoji/v2/... draggable="false" alt="💼" title="Aktenkoffer" aria-label="Emoji: Aktenkoffer"> to the prospective buyer
The conventional freelancing website works this way
It is not hard to see https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen"> This process is the same as recruiting an employee for your company / project https://abs.twimg.com/emoji/v2/... draggable="false" alt="💼" title="Aktenkoffer" aria-label="Emoji: Aktenkoffer">
Is this easy? Well, nohttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf"> Why?
Is this easy? Well, no
In the end https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts"> This creates a lot of uncertainty and frictions for both buyers and freelancers https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤕" title="Gesicht mit Kopfbandage" aria-label="Emoji: Gesicht mit Kopfbandage">
And that is exactly what the $FVRR founders wanted to changehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🏋️♂️" title="Man lifting weights" aria-label="Emoji: Man lifting weights">
Here is what they have to say in $FVRR S-1 Fillinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎭" title="Darstellende Künste" aria-label="Emoji: Darstellende Künste"> $FVRR became the “$5 micro-services” platform https://abs.twimg.com/emoji/v2/... draggable="false" alt="💸" title="Geld mit Flügeln" aria-label="Emoji: Geld mit Flügeln">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Where freelancers listed THEIR SERVICES for $ 5 https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> and buyers could simply buy what they needed https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen">
This is what led Adam Fisher from Bessemer Venture Partners to invest in $FVRR back in 2011 https://abs.twimg.com/emoji/v2/... draggable="false" alt="⏳" title="Sanduhr mit fließendem Sand" aria-label="Emoji: Sanduhr mit fließendem Sand"> Here are some key highlights https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏷" title="Etikett" aria-label="Emoji: Etikett"> In December 2010, the company was counting 60k transactions / month and had 8 employees
The $ 5 price limit was removed early on in 2011 but the spirit of transparent and simple pricing STAYEDhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> $FVRR reached 100k buyers in 2011 and 1m in 2014https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑💻" title="Technologist" aria-label="Emoji: Technologist"> In 2018 $FVRR reached 5m buyers and buyers could purchase services from over 200 categories" title="https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> The $ 5 price limit was removed early on in 2011 but the spirit of transparent and simple pricing STAYEDhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> $FVRR reached 100k buyers in 2011 and 1m in 2014https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑💻" title="Technologist" aria-label="Emoji: Technologist"> In 2018 $FVRR reached 5m buyers and buyers could purchase services from over 200 categories" class="img-responsive" style="max-width:100%;"/>
Here is the full Bessemer Venture Partners memo https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten"> https://www.bvp.com/memos/fiverr ">https://www.bvp.com/memos/fiv...
That’s all good https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> But how does $FVRR make money https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧾" title="Receipt" aria-label="Emoji: Receipt"> Sellers get 80% of the total order value https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts"> $FVRR takes an 20% commission on selling price
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> Buyers pay $ 2 in Service Fees for orders under $ 40 and 5% of order value above that
How doest that translates into saleshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen">
How doest that translates into sales
$FVRR is speeding https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏎" title="Rennauto" aria-label="Emoji: Rennauto"> Some key insights from Q2 ’20
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Revenue grew 82% YoY reaching $ 47m
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🛍" title="Einkaufstaschen" aria-label="Emoji: Einkaufstaschen"> Active buyers grew 28% YoY to 2.8m, implying net adds of 300K in Q2’20 vs Q1’20.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💵" title="Banknote mit Dollar-Zeichen" aria-label="Emoji: Banknote mit Dollar-Zeichen"> Quarterly Adjusted EBITDA of positive 6.7%
What about GMs, OMs and EBITDA?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⚙️" title="Zahnrad" aria-label="Emoji: Zahnrad"> Gross margins of 84% (increase from 81% in Q1) providing a Gross Profit of $ 39m
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein"> Operating expenses grew 32.9% YoY while revenue grew 82% in the same period
$FVRR looks good on paper https://abs.twimg.com/emoji/v2/... draggable="false" alt="📃" title="Seite mit Eselsohr" aria-label="Emoji: Seite mit Eselsohr"> Compelling solution and huge growth https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚀" title="Rakete" aria-label="Emoji: Rakete"> Let’s review 2 key questionshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen"> Is the total market for freelancing services growing?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen"> Are customers preferring $FVRR over alternatives such as $UPWK
Market is growing https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> as both employees AND employers are turning to freelancing https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> The pandemic accelerated some changes that were well underway https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts"> Flexible working
As employees and employers turn to flexible sources of work https://abs.twimg.com/emoji/v2/... draggable="false" alt="👉" title="Rückhand Zeigefinger nach rechts" aria-label="Emoji: Rückhand Zeigefinger nach rechts"> Is $FVRR winning https://abs.twimg.com/emoji/v2/... draggable="false" alt="⁉️" title="Ausrufe-Fragezeichen" aria-label="Emoji: Ausrufe-Fragezeichen">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📊" title="Balkendiagramm" aria-label="Emoji: Balkendiagramm"> $FVRR counted 61m visits in Aug ’20 vs 43m in Mar ’20 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> 42% increase
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📉" title="Tabelle mit Abwärtstrend" aria-label="Emoji: Tabelle mit Abwärtstrend"> $UPWK counted 33m visits in Aug ’20 vs 30m in Mar ’20 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎭" title="Darstellende Künste" aria-label="Emoji: Darstellende Künste"> 10% increase
Soooo the freelance market is growing fast https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> and got a pandemic https://abs.twimg.com/emoji/v2/... draggable="false" alt="😷" title="Gesicht mit Mundschutz" aria-label="Emoji: Gesicht mit Mundschutz"> related boost as *BOTH* employers and employees https://abs.twimg.com/emoji/v2/... draggable="false" alt="💼" title="Aktenkoffer" aria-label="Emoji: Aktenkoffer"> 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 buyerhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
On top of that, $FVRR is delivering on it strategy to move UPMARKET by increasing the spend per buyer
and got a pandemic https://abs.twimg.com/emoji/v2/... draggable="false" alt="😷" title="Gesicht mit Mundschutz" aria-label="Emoji: Gesicht mit Mundschutz"> related boost as *BOTH* employers and employees https://abs.twimg.com/emoji/v2/... draggable="false" alt="💼" title="Aktenkoffer" aria-label="Emoji: Aktenkoffer"> looked for more flexible ways of workingOn top of that, $FVRR is delivering on it strategy to move UPMARKET by increasing the spend per buyer https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">" title="Soooo the freelance market is growing fast https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> and got a pandemic https://abs.twimg.com/emoji/v2/... draggable="false" alt="😷" title="Gesicht mit Mundschutz" aria-label="Emoji: Gesicht mit Mundschutz"> related boost as *BOTH* employers and employees https://abs.twimg.com/emoji/v2/... draggable="false" alt="💼" title="Aktenkoffer" aria-label="Emoji: Aktenkoffer"> looked for more flexible ways of workingOn top of that, $FVRR is delivering on it strategy to move UPMARKET by increasing the spend per buyer https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">" class="img-responsive" style="max-width:100%;"/>
What’s more ? https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer"> Fiverr has just launched Fiverr Business https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏢" title="Bürogebäude" aria-label="Emoji: Bürogebäude"> Here is what Micha Kaufman ( CEO of $FVRR ) told TechCrunch https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
“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 https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧑💻" title="Technologist" aria-label="Emoji: Technologist"> Would love to hear your take on the matter https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">
@AnthonyOhayon
@TheMarkCooke
@jeremymday
@ArtJonak
@AnthonyOhayon
@TheMarkCooke
@jeremymday
@ArtJonak
Hope you liked this thread!
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> For more content, follow us on Twitter https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="✅" title="Fettes weißes Häkchen" aria-label="Emoji: Fettes weißes Häkchen"> Want to get UNDER HYPED companies delivered straight to your inbox https://abs.twimg.com/emoji/v2/... draggable="false" alt="📩" title="Umschlag mit nach unten zeigendem Pfeil darüber" aria-label="Emoji: Umschlag mit nach unten zeigendem Pfeil darüber"> Don’t MISS IT https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten"> https://getbenchmark.substack.com"> https://getbenchmark.substack.com
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
