Despite seeing a slow start in 2023 against the backdrop of the macroeconomic situation, Fiverr reported a 7% increase in revenue on Thursday, part of which it attributes to its AI applications.
The biggest freelance marketplace posted Q4 2023 revenue of $91.5 million, raising its revenue for the year to $361.4 million.
Fiverr Says AI Helped Drive Its Growth
During the earnings call, the CEO Micha Kaufman precisely the growth was driven by their strategy to go upmarket, expand value-added products, and invest in AI services. “[It] really paid off and helped us drive growth in this macro environment,” he said.
Just as GenAI began pulling off in early 2023, Fiverr moved to launch an AI services vertical, enabling companies to hire AI talents. Kaufman said the demand and search for AI services were “tremendous” throughout 2023, growing over sevenfold compared to the previous year.
Kaufman said they made other significant investments in AI that brought key improvements to Fiverr. “Overall, we estimate AI created a net positive impact of 4% to our business in 2023,” he added.
Fiverr Bets Big on AI
Going forward, Fiverr plans to continuously develop proprietary AI applications to improve customer experience. “On Fiverr Pro, our flagship business product, we are opening ways for clients to match with talent, whether it’s through high-touch point of contact from a customer success manager or AI-assisted brief and match functionalities,” the CEO said.
The company remains confident that AI will be a multi-year driver for their growth and expects to hit between $379-387 million in revenue this year, with an adjusted EBITDA of $65-73 million.
