The company, which hosts a platform for freelance services, has seen its stock scaling new all-time highs in recent months.
Fiverr released its fourth-quarter and full-year 2020 earnings during the month, and announced an extraordinary year with strong growth in both revenue and active buyers. Revenue for the year surged 77% year over year to $189.5 million, with gross profit margin improving from 79.2% in 2019 to an impressive 82.5% last year. Active buyers climbed 45% year over year to hit 3.4 million as the company added 30 new categories of services in the fourth quarter.
With this addition, Fiverr now offers a service catalog spanning more than 500 categories, vastly expanding the choices for freelancers and increasing the attractiveness of its platform. Other encouraging statistics included a 20% year-over-year increase in the average spend per buyer to $205, and the proportion of high-value buyers (defined as those with annual spend per buyer of over $500) growing to represent 58% of marketplace revenue.
There's more to come for the company. Fiverr announced the acquisition of Working Not Working, a platform that caters to high-end creative talent, in a move to go upmarket. At the same time, the company also unveiled a new subscriptions feature that forges long-term relationships between freelancers and their customers. Freelancers can now charge for ongoing work that provides them with a more stable, assured source of income, a boon for them as the pandemic has upended many lives as we know it.
Fiverr has provided strong guidance for 2021 with revenue expected to grow by 46% to 50% year over year to between $277 million and $284 million. With its recent acquisition and the introduction of a new subscriptions model, the company is positioning itself as the platform of choice for freelancers as the world evolves to a new hybrid working model.