Fiverr International Ltd., based in New York, has reported its financial results for the first quarter of 2025.

The company announced revenue of US$107.2 million, marking a 14.6% increase compared to the same period last year.

Adjusted EBITDA for the quarter was US$19.4 million, up from US$16 million a year earlier.

Marketplace revenue decreased by 0.8% to US$77.7 million, while services revenue increased significantly by 94% year-on-year to US$29.5 million.

The number of annual active buyers fell by 10.6% to 3.5 million. However, annual spending per buyer rose by 8.8% to US$309.

🔗 Source: Fiverr

🧠 Food for thought

1️⃣ Platform maturation: from growth to quality monetization

Fiverr’s user metrics reveal a significant shift in business strategy that aligns with the broader gig economy’s evolution towards sustainability.

While active buyers declined by 10.6% year-over-year to 3.5 million in Q1 2025, annual spend per buyer increased by 8.8% to $309 during the same period 1.

This trend has persisted for several quarters, with research showing approximately 58% of Fiverr’s core marketplace revenue now comes from buyers spending over $500 annually 2.

The company’s focus on “upmarket efforts” and securing “six-digit, multi-month contracts” reflects a deliberate pivot from prioritizing user acquisition to maximizing value from higher-quality customers.

Despite fewer customers, EPS has grown at a 58.6% compounded annual growth rate over three years, significantly outpacing the 9.6% annualized revenue growth 3, demonstrating how platform businesses can successfully transition from user acquisition to monetization phases.

2️⃣ Revenue diversification beyond the core marketplace

Fiverr’s financial results reveal a critical business model transformation from a pure marketplace to a multi-revenue stream operation.

While marketplace revenue declined slightly by 0.8% year-over-year, services revenue surged by 94.0% in the same period 1, indicating a successful diversification strategy.