Fiverr International Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
July 30, 2025

Key Takeaways

  • Positive Sentiment: Revenue grew 15% YoY to $108.6 M in Q2 2025 with a 20% adjusted EBITDA margin and $25 M free cash flow, up 21% year over year.
  • Positive Sentiment: Sustained AI-related services momentum on the platform, with categories like AI agents and workflow automation seeing 5–10× growth over the past six months.
  • Positive Sentiment: Upmarket expansion continues: over 50% of marketplace GMV now comes from transactions above $200, growing at double-digit rates.
  • Negative Sentiment: Macro uncertainty and cautious SMB spending kept Marketplace revenue flat to slightly down, with GMV expected to be stable or decline modestly in H2 2025.
  • Neutral Sentiment: Full-year 2025 guidance reiterated for 9–12% revenue growth ($425 M–$438 M) and ~20% adjusted EBITDA margin, targeting 25% by 2027.
AI Generated. May Contain Errors.
Earnings Conference Call
Fiverr International Q2 2025
00:00 / 00:00

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Operator

Thank you for standing by and welcome to Fiverr's Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. To remove yourself from the queue, you may press 11 again.

Operator

I would now like to hand the call over to Jinjin Qian, EVP, Strategic Finance. Please go ahead.

Jinjin Qian
EVP - Strategic Finance & IR at Fiverr

Thank you, operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the second quarter that ended 06/30/2025. Joining me on the call today are Micha Kaufman, Founder and CEO and Ofer Katz, President and CFO. Before we start, I'd like to remind you that during this call, we may make forward looking statements and that these statements are based on our current expectations and assumptions as of today, and Fiverr assumes no obligation to update or revise them. A discussion of some of the important risk factors that could cause actual results to differ materially from any forward looking statements can be found under the Risk Factors section of most recent Form 20 F and other filings with the SEC.

Jinjin Qian
EVP - Strategic Finance & IR at Fiverr

During this call, we'll be referring to some key performance metrics and non GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin and free cash flow. Further explanation and a reconciliation of each of the non GAAP financial measures to the most directly comparable GAAP measures is provided in the earnings release we issued today in our shareholder letter, each of which is available on our website at investors.fiverr.com. And now I'll turn the call over to Miha.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Thank you, Jinjin. Good morning, everyone, and thank you for joining us. We delivered another strong quarter, building on a solid start to the year with continued momentum across our business. In Q2 twenty twenty five, we achieved 15% year over year revenue growth and a 20% adjusted EBITDA margin, as we continue to drive profitable growth with disciplined execution. Within our platform, we are seeing strong signs of durability and growth, including surging demand for AI related services and the continued momentum of managed services and dynamic matching products.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

While SMBs continue to take a cautious stance on spending and hiring amidst a volatile economic environment, our success in these efforts contributed to the acceleration in spend per buyer, which grew 10% year over year alongside robust growth across key verticals such as programming and tech, digital marketing and video animation. Additionally, we continue to expand our value added services across our ecosystem. AutoDS continues to maintain strong growth momentum, and we've made meaningful progress in integrating our platform to drive adoption and scale. Notable highlights include the launch of an AI powered Shopify store builder, as well as the development of a deeper integration to enable seamless upselling and cross selling between AutoDS and Fiverr's Marketplace. The strong performance of the services segment contributed to the revenue upside this quarter.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

We are also incredibly excited about how AI is positively impacting every dimension of our business, driving demand through AI related services, improving discovery and conversion for buyers and sellers on the marketplace, and unlocking operational efficiencies through AI agents across function. Today, I wanna delve deeper into each of these areas and demonstrate how we are at the forefront of AI adoption with the speed, conviction and clarity that sets us apart. First, the rapid development of AI technology is giving rise to numerous new skills and Fiverr's marketplace is becoming the go to destination for accessing and engaging with AI experts. Categories such as AI agents, workflow automation, and vibe coding have experienced five to tenfold growth on our marketplace over the past six months. With AI fundamentally changing how humans and machines interact, it allows many non technical entrepreneurs and professionals to build and leverage the technology.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

At the same time, we are increasingly seeing the gaps between on the shelf AI tools and the real world problems our customers are trying to solve. This is where Fiverr comes in. Freelancers on our platform are filling the critical first and last mile gaps for our customers. This could involve setting up AI systems, selecting the most efficient AI models, integrating the backend with existing systems, adding functionality, creating custom workflows, or simply debugging when the customer encounters issues. Fibro's free answers help our customers turn concepts and prototypes into high impact solutions and tangible business results.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

These exciting trends underscore our conviction that human expertise is crucial in unlocking the full potential of AI. With the proliferation of AI tools in the market and the increasingly ubiquitous access to these tools, we believe this represents a long term tailwind for our business, driven by an increasing number of buyers who are deploying AI and their growing need and budget for tackling AI related problems. That's why we are not only expanding our catalog to meet this demand, but also exploring ways to embed Fiverr's talent network and transaction infrastructure directly into AI driven workflows. These efforts include several ongoing strategic partnership discussions, the development of a targeted fulfillment capabilities, and laying the technical foundations to build scalable AI powered by experts. Our goal is simple.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Fiverr freelancers are addressing critical challenges for businesses adopting AI, and we must strive to meet customers where they are and build an integrated experience that makes it seamless for them to leverage our platform. Second, we are shipping at an incredible pace so that we can leverage AI to strengthen our marketplace flywheel. Every transaction in our marketplace involves three core participants, the buyer, the seller, and the platform. Our vision is to create an intelligent, agentic experience for each. Two years ago, Fiverr launched Neo, the first of its kind AI matching agent for buyers in a marketplace environment.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Since then, Neo has evolved into a powerful AI engine that drives underlying KYC and matching across all of our front end products. As we continue to build out the agentic experience on the buyer side, we envision a future where each buyer will be accompanied by a recruiting agent who can assist with drafting job briefs, communicating with freelancers, curating candidate lists, and even managing project execution end to end. This is the beginning of a search less vision for the future, at least in the traditional keyword based sense of search that makes room for more expressive and nuanced way to address customer needs. One that unleashes the power of the multiple solutions Fiverr has built on the platform to tackle any project from simple tasks to the most complex ones imagined that requires multitask and multitalent orchestration and assembly. On the seller side, we introduced Fiverr Go earlier this year, an AI assistant designed to help freelancers with project discovery, client engagement, and creative ideation.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Following the successful launch in February, Fiverr Go continues to drive strong seller engagement and meaningful conversion uplift across the funnel it touches. Similar to the agentic AI experience on the buyer side, we have an extensive roadmap for Fiverr Go that will enable seller agents to provide more sophisticated support and guidance for our sellers, including service listing optimization, lead generation and qualification, in other marketing analytics, operations and production capabilities. Last but not least, we are deploying AgenDek AI across the internal functions to boost platform level efficiency from automating customer support workflows to enhancing market based integrity operations, from improving job post matching algorithms to empowering customer success managers. These systems are designed to enable faster, more seamless orchestration between buyers and sellers while scaling operational productivity behind the scenes. As these agents become more capable over time, we believe they'll increasingly act autonomously, not only to improve individual workflows, but ultimately to enable agent to agent transactions that reduce friction and eliminate the need for their human counterparts to manually navigate the platform. While this is an ambitious long term vision, the path is clear. Having this roadmap enables us to make informed architectural and product investments today, and these early bets would position Fiverr at the forefront of market based innovation, further reinforcing our leadership through AI powered differentiation. As we wrap up the 2025, I'm incredibly proud of how our team has delivered and even more excited about our strategy and roadmap for the second half of this year. I look forward to updating you on our continued progress in the months to come. And with that, I will turn the call to Ofer.

Ofer Katz
President & CFO at Fiverr

Thank you, Micha, and good morning, everyone. We delivered a strong second quarter with both top and bottom line exceeding expectations. Revenue for the second quarter was $108,600,000 up 15% year over year. Adjusted EBITDA for Q2 was $21,400,000 representing an adjusted EBITDA margin of 20%, an improvement of 80 basis points from a year earlier. We continue to generate strong cash flow, with free cash flow totaling $25,000,000 up 21% year over year.

Ofer Katz
President & CFO at Fiverr

As always, we remain focused on taking a balanced approach between growth and profitability, while maintaining discipline with capital allocation. Q2 saw solid performance across both our Marketplace and Services segments. Marketplace revenue was $74,700,000 driven by 3,400,000 active buyers, three eighteen of spent per buyer and 27.6% of Marketplace take rate. Within the Marketplace segment, we saw strong demand for AI related services and AI category expansion and managed services remains an important channel for upmarket penetration. We are encouraged by the accelerating growth across several of our core verticals and the steady increase in larger, more complex projects on the platform.

Ofer Katz
President & CFO at Fiverr

In Q2, over 50% of GMV on our Marketplace came from transactions over $200 and these higher value transactions are growing at a double digit pace year over year. This is a strong indicator of our marketplace ongoing evolution for serving more sophisticated business needs. While the overall macro conditions do not warrant us to revise our assumption going into the second half of the year, we believe the structural tailwind within the marketplace segment, particularly around AI and upmarket adoption, will continue to help offset broader economic headwinds and serve as a sustained growth driver. Services revenue was $34,000,000 representing year over year growth of 8431% of our total revenue in Q2. The upside was driven by several key initiatives, including the launch of AI powered Shopify store builder, streamlined cross sell execution between AutoDS and the marketplace and continued momentum in Seller plus We continue to see strong engagement and positive conversion impact from Fiverr Go, leading to incremental uplift to Seller plus premium tier subscription in Q2.

Ofer Katz
President & CFO at Fiverr

Looking ahead, we expect services revenue to maintain healthy momentum and as mentioned previously, expect it to represent a little over 30% of total revenue for the full year 2025. Now on to guidance. We are reiterating our revenue and adjusted EBITDA guidance for the full year 2025. We expect full year 2025 revenue to be in the range of $425,000,000 to $438,000,000 representing year over year growth of 9% to 12%. Adjusted EBITDA is expected to be in the range of 84,000,000 to 90,000,000 representing an adjusted EBITA margin of 20% at the midpoint.

Ofer Katz
President & CFO at Fiverr

For the 2025, revenue is expected to be 105,000,000 to 110,000,000 representing year over year growth of 5% to 10%. Adjusted EBITDA is expected to be 21,500,000.0 to 23,500,000.0 representing an adjusted EBITA margin of 21% at the midpoint. We continue to operate with the highest level of discipline and efficiency. We believe we are on track towards our long term target to reach 25% adjusted EBITA target in 2027 and deliver 40% CAGR in free cash generation for the three years ending in 2027. To close, we continue to execute on the goals and roadmap we set at the beginning of the year and are looking forward to the second half as we remain well positioned to capture the enormous opportunity ahead of us.

Ofer Katz
President & CFO at Fiverr

With that, we'll now turn the call over to the operator for questions.

Operator

Thank you. Our first question comes from the line of Eric Sheridan of Goldman Sachs. Please go ahead, Eric.

Eric Sheridan
Eric Sheridan
Managing Director at Goldman Sachs

Thanks so much for taking the question and thanks for all the detailed information guys. When you think about services revenue growth building and momentum deeper into the second half of this year, but more on a multi year view, what do you guys see as some of the key investments you need to make to sort of unlock continued scaling of that service revenue? And maybe honing in a little bit on Seller Plus, understood the goal you have around getting to a certain rate of penetration. But how do we think about maybe over the longer term where that can go in terms of a percentage of the mix? Thanks so much.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Good morning, Eric. Thanks for the questions. So for the services, we expect service revenue to continue growing at a healthy double digit rate exiting this year after we lap both Fiverr ads and AutoDS acquisition in, q four. And we believe that services still have a long growth runway ahead of us as we continue to expand value added services to productivity, financial and other adjacent tools for our freelancers. In addition, we're seeing opportunities to drive synergies between AutoDS and Fiverr.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

And as we mentioned this quarter, we unlocked some nice Shopify affiliates revenue through the new AI powered Shopify store builder tool. And we believe that services will continue to be a growth catalyst for overall revenue growth. As to Seller Plus, it continues to, expand, value added services to to drive adoption among wider range of audience. But Go is an example of that and and we're we we keep adding tools and the audience of Seller Plus is growing as they see this as a as a net positive contributor to the growth of their business. And, you know, broadly, we are expanding value added services, to a wider range of, services for freelancers.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

We want to empower, the entire, freelancer, career, including those financial tools and benefits. So there's a lot of growth runway there.

Eric Sheridan
Eric Sheridan
Managing Director at Goldman Sachs

Great. Thank you.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Thank you.

Operator

Thank you. Our next question comes from the line of Ron Josey of Citi. Please go ahead,

Ron Josey
Ron Josey
Managing Director at Citi

Great. Thanks for taking the question and good to talk to you all guys. Mihaly, I wanted to talk and ask a little bit more about the managed services offering and the broader mix shift to upmarket. Talk to us a little bit more about the progress here. I know there were some stats in the letter around 50% of marketplace driven by transactions over $200 And so as we see greater demand for managed services, as we see the mix shift to up market, help us understand just the progress overall and maybe the size. And then from an AI or, I guess, fiber go perspective, I think we saw and heard a little bit more about conversion rates. Any more insights there would be great. Thank you.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Morning, Rohan. Thanks for the question. So essentially, managed services as as we as we think about it in general is a part of our going up market strategy. And as we said time and time again, this is it. I mean, you you can think about the history of the company, a company that starts from services of $5 and now more than half of our business is coming from transactions of over $200, which is incredible.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

And this is thanks to the fact that we've actually extended beyond just being a market base into becoming a platform where we offer a whole suite of different services so that we can mature with our customers and cater to more of their needs. And this is really demonstrated in the fact that these managed services are growing very nicely. And this also has to do with our acquisition strategy, which means we're focusing on customers that have larger wallets, that have more sophisticated and complex needs, and making sure that we have the right tools to answer for those needs. And we're seeing this and by the way, as this grows, It is actually decreasing our exposure to the segment of the market of SMBs where they're more exposed to macroeconomics than the larger customers. So this remains very much in the focus of what we're doing and we're very encouraged by the growth that we're seeing there.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

In terms of Go, I think we we we provided color in our letter to shareholders. As you noted, yes, it is increasing the the conversion rates and the speed and, efficiency and decreasing the time to convert for our sellers. And this is why we've seen a a 50%, jump in the amount of sellers that are that are using it. They love it. It's, you know, it's a it's an incredible tool that actually let them sleep at night, quietly knowing that their business is continuing to run.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

In addition, the way we're thinking about this, and this is a part of our entire agenda vision for the company, what we're doing is we're building sophisticated tools that allow them to not just deal with communication, but actually smart AI that will allow them to optimize their offerings and actually take actions for them to make sure that they get the best exposure and they maximize their potential for deal flow. And I think that this is I mean, we're we're pretty early in that phase, but the things that we're building internally are just incredible. And I think the fact that we've started with Neo way, way ahead of any company, any marketplace out there allowed us to build the muscle and build one of the most incredible AI teams that I know in the world. And we're building incredible tools that I'm sure we're gonna be able to talk about in the next few quarters.

Ron Josey
Ron Josey
Managing Director at Citi

Thank you, Misha.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Thanks, Ron.

Operator

Thank you. Our next question comes from the line of Doug Anmuth of JPMorgan. Your line is open, Doug.

Douglas Anmuth
Douglas Anmuth
MD & Internet Analyst at JP Morgan

Great. Thanks so much for taking the questions. I have two. Maybe just first in terms of supply demand, just balance on the marketplace, maybe I'm just curious how you're thinking about the supply and the freelancer side with AI expertise and whether that's where you need it to be? And then second, just as you think about the marketplace business, what what would it take for marketplace to return to growth in your view? Thank you.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Morning, Doug. Thanks for the question. As for supply and demand, I think we're in a good place there. You know, the one benefit that we have with free answers is that they are ahead of most full time employees in terms of embracing new technology and new tools. A lot of them are what we call AI native, and we're we're seeing how they're actually elevating the outputs of their work in an incredible way.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

In obviously when we open new categories, sometimes it takes a little bit of time, couple of weeks to build a new supply. And as we go into the areas of more sophisticated types of services, obviously we allow more sophisticated types of sellers to join the marketplace. But I think that we're in a very good place. We don't have a category where we don't have the right supply to entertain the needs of the customers. As we think about the market based business, you know, we believe that the efforts that we're doing around AI and upmarket will allow us to turn to growth even in the current macro.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

But given the macro uncertainty, we don't think that we're ready to bake this into guidance yet. As we said a number of times before, and I think I mentioned this in my first answer, the fact that we're going up market and actually acquiring high value buyers by definition lowers our exposure to the segments of the buyers that are mostly affected by macro economical conditions. And therefore, even without the macro turning, over time, we will continue, we will turn into growth and obviously, if macro turns, it's going to be a further tailwind for us.

Douglas Anmuth
Douglas Anmuth
MD & Internet Analyst at JP Morgan

Thank you.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Thank you.

Operator

Thank you. Our next question comes from the line of Jason Helfstein of Oppenheimer and Company. Please go ahead, Jason.

Analyst

Hi. This is Steve Roman on for Jason. So two questions from us. One is, have you seen any specific categories relating to AI? And second, if more entry level jobs are going to be replaced with or by AI, how does that affect demand for fiber services? Thanks.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Hi. Good morning. Thanks for the question. Essentially, I mean, if if, you know, we we haven't seen any accelerated, decline.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

But as as we said, before, we we made the comment about simple versus complex types of services. And we said that the simple type of services, and usually they're associated with very, very low prices, are going through displacement. But at the same time, there is many new categories and many new needs that we can answer for. And by the way, that's a good thing for us because we're obviously less focused on the micro types of services and more interested in the more complex, nuanced types of services that our larger customers need. The as as to entry level jobs, look, I think the definition of an entry level job is changing.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

I think the expectation of of everyone is to do more, thanks to technology. And again, I think that much like free answers, I I think that people that are in their very beginning of their career cycle have the benefit of actually being AI natives, which means that even on entry level jobs, they can do much, much more than that. I I I said that many times, I'll I'll repeat it now. I think that what AI has done is to elevate the floor for everyone. Meaning, it's providing incredible tools and capabilities to everyone, but that's exactly the thing.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

No one has an advantage thanks to AI. The tools are available for everyone. So essentially, they're changing the starting point, the floor, but it is not changing the ceiling. So I think that it moves all it moved all jobs up, including entry level jobs. This is what we're seeing at least. Thank you.

Analyst

Great. Thank you.

Operator

Thank you. Our next question comes from the line of Brad Erickson of RBC Capital Markets. Please go ahead, Brad.

Brad Erickson
Brad Erickson
Equity Analyst - Internet at RBC Capital Markets

Yes. Thanks, guys. I have two. First, on the services revenue, can you just update us on the mix within that line item between what you might regard as sort of recurring revenue versus more transactional? And then kind of how you think about the general visibility level? And then I have a follow-up.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Hey. Good morning. So, essentially, when when you look at the services side, it is mostly made out of promoted gig, seller plus, and auto DS. And all of them are continuing their momentum. There is nothing specifically to call out there. Was there a second part to your question?

Brad Erickson
Brad Erickson
Equity Analyst - Internet at RBC Capital Markets

It was just kind of general visibility related to, obviously, some of the revenue being sort of what might look like recurring versus purely transactional.

Ofer Katz
President & CFO at Fiverr

I I think that, you know, to to give some more color. So I think promoted gigs, you know, is not recurring by design. It's but it's pretty much ongoing, and we see a very high retention of seller who are using this product. It's aligned with the with the GMV on one hand, but it has more room to expand as we have more inventory that hasn't been utilized yet. And I think, you know, one territory that we haven't expanded to in terms of promoted gigs is the Fiverr Pro environment, which is growing faster than the marketplace.

Ofer Katz
President & CFO at Fiverr

So I think that, but but this is one example. Then on the on the seller on the seller plus seller plus is is subscription by design. This is the offering. There are multi tiered. There are few tiers of offering for for for different services being offered and packaged.

Ofer Katz
President & CFO at Fiverr

And as time goes, we expand those offering, adding more capabilities and opening more tiers. So I think HandeSeller plus as well, it has the room for us to offer more services and to charge accordingly, and then also to expand in terms of the target audience, approaching seller that, were not entitled for the program before and and offering them a different class or different type of tool to improve their business. And lastly, AutoDS' subscription is being growing nicely and contribute more than expected on the second quarter. And we see this business building up nicely as we just finalized the integration with Fiverr ecosystem. We see that building nicely looking forward.

Ofer Katz
President & CFO at Fiverr

I don't think we break down each and any of those, to line item. But this is, this is this is, I hope more color and visibility to this line of revenue.

Brad Erickson
Brad Erickson
Equity Analyst - Internet at RBC Capital Markets

Yeah. It is. Very helpful color. Thanks. And then just second one, maybe following on to a few of the questions around marketplace growth.

Brad Erickson
Brad Erickson
Equity Analyst - Internet at RBC Capital Markets

You know, you've talked for a while about this whole mix shift between complex services and simple services. I guess, do you feel like you have visibility to when that mix shift might become a tailwind? I know you just said you're not ready to guide to that because of macro. So I guess the question is like, do we need to see macro ultimately improve? Or do we reach a point maybe at some point soon where that mix shift is enough to push the marketplace back to growth? How to think about that? Thanks.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Yeah. Thank you. Look, I said it before. We don't know exactly when this is going to be the case given the volatility of the market. That said, we do believe that by going up market and enjoying the tailwinds that AI is giving us, over time, this is going to bring us back into growth on the marketplace side even without macro economy taking a turn.

Brad Erickson
Brad Erickson
Equity Analyst - Internet at RBC Capital Markets

Got it. Thanks.

Operator

Thank you. Our next question comes from the line of Bernie MacTurnan of Needham and Company. Please go ahead,

Bernie Mcternan
Senior Analyst at Needham & Company

Great. Thanks for taking the question. Just one for me. One to me, I'll just follow-up with one of the comments you made in your prepared remarks that you were in discussion with several companies on potential partnerships on AI. Just wanted to I know it's too early to announce what those are, but what could those partnerships actually look like?

Bernie Mcternan
Senior Analyst at Needham & Company

Either, you know, the the technology being better, put into your marketplace or are you or or Fiverr's marketplace being on, like, other AI platforms. Just how we should think about those partnerships potentially playing out.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Hey, Vernee. Thanks for the question. Look, what I refer to is what we call internally scaled AI using experts. Essentially, what we're seeing with technology is we're seeing technology allowing everyone to take a pretty meaningful step forward. That said, using many of these technologies in a way that would create either a complete product or would provide competitive edge usually requires either at the beginning or at the end or both using someone who's an expert in using these tools as as friendly as they are.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

At some point, they become technical. At some point, they reach their limitations. I think this is exactly this is exactly the concept of actually working with those who are who who can give you either the help to get to the finish line or the competitive edge required build successful things. And so without getting into without getting into specifics, you know, the the things that we the the things that we can do did with certified could, you know, could could give you a sense of how we're thinking about empowering our customers as they use these AI tools.

Bernie Mcternan
Senior Analyst at Needham & Company

Understood. Thank you.

Operator

Thank you. Our next question comes from the line of Josh Chan of UBS. Please go ahead, Josh.

Josh Chan
Josh Chan
Executive Director & Equity Research Analyst at UBS Group

Hi, Mitra, Ofer. Thanks for taking my questions. I guess two questions for me. One, on your AI capabilities. I know that because they're more complex that you're getting higher ASP from your AI type of services.

Josh Chan
Josh Chan
Executive Director & Equity Research Analyst at UBS Group

I guess I'm wondering, are you also attracting new and different customers that weren't part of the fiber platform before that are attracted to your AI capabilities? And then I guess my second question is on the margin front as you think about the the path to targets. Yeah. How dependent on GMV improvement will will your margin trajectory be? Thank you.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Morning, Josh. Thanks for the question. The answer for your first question is yes. You know, given the fact that it's more complex types of projects, it allows us to actually get the types of customers that we're very much focused on, which are customers that are able to actually pay and fund these these types of of expertise. And, again, having these experts on our platform is something that we've been working on for a while, and it's it's definitely paying off.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Know, we called out the positive and accelerated growth around programming and tech and video and animation verticals as an example. And obviously we're seeing that also accelerating our growth in the spend per buyer in a very nice way, actually putting us in a great position where I don't think that there is any company in our space that delivers the the performance that the performance at our level with with double digit growth and and, you know, and and and a 20% EBITDA. So investing in these areas allows us to deliver one of the best performing businesses in our space.

Ofer Katz
President & CFO at Fiverr

And on the second part on the margin and dependent on GMV improvement, I think we have a twenty twenty seven margin, long term margin that we are committed to, the 25%. And I think as you can see, we are moving there step by step and have a full confidence, with the ability to deliver on the margin improvement. And this is taking into consideration multiple scenario of GMV growth or GMV flat. So I don't think there is a dependency. We have flexibility, but also the confident, the ability to deliver despite a different scenario.

Josh Chan
Josh Chan
Executive Director & Equity Research Analyst at UBS Group

That's great. Thank you for the color and the time.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Thank you.

Operator

Thank you. Our next question comes from the line of Matt Condon of Citizens. Please go ahead,

Matthew Condon
Director Equity Research - Internet & Digital Media at Citizens JMP

Thank you so much for taking my questions. My first one is just on Marketplace revenue in the quarter. It looks like trends on a year over year basis deteriorated in the second quarter, and that's just in the backdrop of a stable macro environment and the AI tailwinds that you guys are seeing. Can you just elaborate just on what you're seeing, I guess, time, if there's anything to call out there? And then my second question is just on marketing spend, specifically as you guys move up market, are you seeing any changes in your return on marketing spend or any changes in your TROI framework, specifically as you move up market? Thank you so much.

Ofer Katz
President & CFO at Fiverr

Yes. So I think the answer for both question is that the quota behave as expected. I think we have committed to marketplace being flat, maybe a low single digit decline, and that's exactly where we are. And honestly, I think that as we look to the second half of the year, we anticipate or predict a similar trend. And as for the marketing trend, I mean, you can track and we provide the ROI data and return.

Ofer Katz
President & CFO at Fiverr

I think that those fold into the expectation without much exception.

Operator

Thank you. Our next question comes from the line of Rohit Kulkarni of Roth Capital Partners. Please go ahead, Rohit.

Rohit Kulkarni
MD & Senior Research Analyst at Roth Capital Partners, LLC

Hey, thank you. One question on you've mentioned a few times AI agents, workflow automation in the letter. Maybe talk about what you're seeing from a demand standpoint, what types of customers or what types of use cases you feel fiber is well positioned to address the demand in AI agents and robotic process automation, workflow automation in a new AI world. And then just on this based on our calculation, I think GMV seems to have accelerated almost three or four quarters in a row. Perhaps talk about what your assumptions are heading into second half as the guidance seems to be unchanged, but just talk through how you feel the sustainability of GMV acceleration, although from a minus 1% to plus 2%, but that's still encouraging in my opinion. Thanks.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Hey, morning, Rohit. Thanks for the questions. I'll start with the first one. Look, you know, AI related services are booming and and the demand is surging, around AI agents, workflow automation, byte coding. As an example, AI agents, 35% growth quarter over quarter, 10 x growth in the last six months.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Workflow automation and vibe coding growing 10 x in in the last six months. As as customers are using services like make.com or go high level to to create those workflows. AI development, a 137% growth year over year. Mobile app, 47% year over year. AI consulting 37% year over year.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

And also, we're seeing some, some peripheral categories that are benefiting from it such as data governance and protection with 58% growth in crowdfunding with 51% growth where, you know, AI drives is now driving millions of startups. And so AI experts on Fiverr play a critical role in helping customers navigate the rapidly evolving AI landscape and bridge the gap between technology and tangible business impact. So we're excited about this. We think that this is just the beginning and we're going to see a lot of more categories that are going to be affected as a result of it and experience accelerated growth.

Ofer Katz
President & CFO at Fiverr

I think on the second part of the question, what we are seeing is a pretty stable macro. We don't interrupt, you know, small deceleration or acceleration as a trend. And I think this take us to the assumption on the second half of the year, which is a reiteration of what we said at the beginning of the year. We don't think unless something materially change on macro environment, we think that it's going to be stable, between flat and maybe, slightly, one digit, decrease in GMV. But that's what we anticipate to the second half of it.

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Thank

Rohit Kulkarni
MD & Senior Research Analyst at Roth Capital Partners, LLC

Great. Thank you both.

Operator

Thank you. I would now like to turn the conference back to Micha Kaufman for closing remarks. Sir?

Micha Kaufman
Founder, CEO & Chair of the Board at Fiverr

Thank you, Latif, for moderating the call today and to everyone who dialed in this morning. I look forward to speaking to all of you very soon. Have a great day.

Operator

This concludes today's conference call. Thank you for participating. You may now disconnect.

Analysts
    • Jinjin Qian
      EVP - Strategic Finance & IR at Fiverr
    • Micha Kaufman
      Founder, CEO & Chair of the Board at Fiverr
    • Ofer Katz
      President & CFO at Fiverr
    • Eric Sheridan
      Managing Director at Goldman Sachs
    • Ron Josey
      Managing Director at Citi
    • Douglas Anmuth
      MD & Internet Analyst at JP Morgan
    • Analyst
    • Brad Erickson
      Equity Analyst - Internet at RBC Capital Markets
    • Bernie Mcternan
      Senior Analyst at Needham & Company
    • Josh Chan
      Executive Director & Equity Research Analyst at UBS Group
    • Matthew Condon
      Director Equity Research - Internet & Digital Media at Citizens JMP
    • Rohit Kulkarni
      MD & Senior Research Analyst at Roth Capital Partners, LLC
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