Investor Presentation: July 2019

Investor
Presentation
July 2019
© 2019 Fiverr Int. Lmt. All Rights Reserved. Proprietary & Confidential.
1
Disclaimer
IMPORTANT NOTICE
Fiverr International Ltd. (the “Company” or “Fiverr”) has filed a Registration Statement on Form F-1 (File No. 333-231533 (the “Registration Statement”), including a prospectus, with the Securities and Exchange Commission (the "SEC") for an initial public
offering of the Company's ordinary shares (the “Ordinary Shares”) to which this communication relates. Before you invest, you should read the Registration Statement and any other documents the Company has filed with the SEC, each of which is available at
no charge on the SEC's website at http://www.sec.gov. The registration statement has not been declared effective.
This presentation is not a prospectus or an offer to sell securities or a solicitation of an offer to buy securities. The Ordinary Shares may not be sold, nor may offers to buy the Ordinary Shares be accepted, prior to the time the Registration Statement becomes
effective. The initial public offering is being made by the means of a prospectus only, copies of which may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at
866-803-9204 or by email at prospectus-eq_fi@jpmchase.com; or Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by telephone at 800-831-9146. Before you invest, you should read
the prospectus in the Registration Statement, including the "Risk Factors" set forth therein, and the other documents that the Company has filed with the SEC for more complete information about the Company and the initial public offering.
This presentation, and the accompanying oral presentation, include forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial
position, industry dynamics, business strategy and plans and our objectives for future operations, are forward-looking statements. These statements represent our opinions, expectations, beliefs, intentions, estimates or strategies regarding the future, which
may not be realized. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential”
or “continue” or the negative of these terms or other similar expressions that are intended to identify forward-looking statements. Forward-looking statements are based largely on our current expectations and projections about future events and financial
trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The forward-looking statements contained in this presentation are based on
assumptions that the Company has made in light of its industry experience and perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider
this presentation, you should understand that these statements are not guarantees of performance or results. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other
important factors, including those described under the heading “Risk Factors” in the Registration Statement that the company has filed with the SEC for the proposed offering to which this presentation relates, that may cause our actual results, performance
or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement. The Company believes these factors include, but are not limited to, the Company’s ability to attract and
retain a large community of buyers and freelancers; the Company’s ability to generate sufficient revenue to be profitable or to generate positive cash flow on a sustained basis; the continued growth of the market for freelancers and the services they offer; user
engagement on the Company’s platform and the Company’s ability to maintain and enhance its brand. Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect, the Company’s actual operating and
financial performance may vary in material respects from the performance projected in these forward-looking statements.
Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ
materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements.
The forward-looking statements included in this presentation are made only as of the date hereof. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of
activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, neither we nor our advisors nor any other person assumes responsibility for the accuracy and completeness of the
forward-looking statements. Neither we nor our advisors undertake any obligation to update any forward-looking statements for any reason after the date of this presentation to conform these statements to actual results or to changes in our expectations,
except as may be required by law. You should read this presentation with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.
Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources
and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by
us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our
future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties
and by us.
This presentation, and the accompanying oral presentation, include certain financial measures not presented in accordance with the generally accepted accounting principles in the United States (“GAAP”), including non-GAAP Gross Margin and Adjusted
EBITDA. These financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be
considered in isolation or as an alternative to net loss or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used
by other companies, which may be defined and calculated differently. See the appendix for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company or the initial public offering.
© 2019 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential.
2
Investment highlights
1 Large market opportunity with low online penetration
2 Our unique e-commerce approach creates efficiency and transparency
3 Powerful business model with high take rate, strong cohort, and marketing efficiency
4 Growth and operating leverage
5 Long-term growth drivers
3
Our mission is to change how the world works together.
4
1. Large market opportunity
5
Traditional Workplace
The world is Traditional Workplace Future of Work

changing and
Long-term employment Experience building and freelancing
the way
people work Work from the office Work from anywhere (nomads, co-working)
is changing Local teams Global & remote teams

with it.
Work offline Work digitally, leveraging collaboration tools
Work full time, receive monthly salary Get paid for action and results
Study young, standard profession Continuous study, gain unique expertise
Stability Fulfillment
6
Large $100B
market opportunity. Addressable Market 1,2
$750B+
Estimated US total
freelancer
income1
1
Derived based on the latest US Census Bureau Nonemployer Statistics data, which includes income data of all US businesses that
have no paid employees and are subject to federal income tax. Most U.S. businesses that have no paid employees but are subject to
federal income tax are self-employed individuals operating unincorporated businesses. We believe this provides a good proxy for total
freelancer income in the US 7
2
Includes occupations most relevant to Fiverr
Freelancing is still an
old-school business.
Just like e-commerce in 1994,
freelancing activity is gradually Online
migrating to the online world.
The majority of
freelancing still
happens offline.
`
Source: Staffing Industry Analysts (SIA), McKinsey, US Census of Bureau
8
High friction in traditional freelancing business.
Every stage of the process has traditionally been disconnected,
with little consistency from person to person.
Buyers
From finding To collaboration To reference To negotiating
The right talent and support during and trust the deal
transaction
Freelancers
From finding To winning To payment To delivery
customers jobs uncertainty and payment
9
2. Our unique e-commerce approach
10
Service-as-a-Product model
To buy and sell digital services in the same fashion
as physical goods on an e-commerce platform with a
comprehensive SKU-like service catalog.
Our On-demand
No hiring process. No long-term commitment.
e-commerce Getting businesses help when they need it.
approach to
freelancing. End-to-end platform
So businesses can focus on meeting deadlines and
freelancers can focus on doing what they love.
Global community
Bringing together a global community of businesses
and freelancers to shape the future of work.
11
We are not an Staffing company Fiverr
online staffing
Short/long term temporary employment Service-as-a-product (SaaP)
company.
Bidding, vetting and contract negotiation Browse, search, click to order
Opaque and non-standardized scope, timing and cost Transparent timing, price and deliverables
Connection only End-to-end platform
12
Our value to buyers Our value to freelancers
Transparency and certainty of price, No bidding / negotiation to win projects

scope of work and quality and speed
Maximize deal-flow
Value for money
Flexibility and control

Access to an expansive catalog
of digital services
Frictionless payment and business support
Access to a diverse pool of freelancers

Credentialed storefront
Trusted brand for customer service Success management and support
Buyer NPS: 61 Seller NPS: 65
NPS: Net Promoter Score © 2019 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential.
13
More
Quality
Demand
Our two-sided Better

marketplace Cross
category
opportunities
creates powerful Seller

flywheel effects. Higher Increase growth &
retention
Higher
LTV spend per earnings
buyer
More
Quality
Supply
14
Buyer Case Study
Services bought on Fiverr:
● Animation video
● Website optimization
● Legal writing
● Website copywriting
“
“
When you want to create a business bigger than
yourself, you’re going to need help. And that’s
what Fiverr does.
Haerfest, Buyer 3 4 $50-$4,000

Categories Countries Order price range
New York, NY
Functional and Stylish Leather Accessories
15
Buyer Case Study
Services bought on Fiverr:
● Voice over
● Presentation design
● UI design for mobile app
● Infographics design
“
“
What I love most is not only the variety of talents
and styles, but also the affordability of it and the
level of service I got on Fiverr.
The Game Agency, Buyer 5 7 $5-$450

Categories Countries Order price range
New York, NY; Chicago, IL; Los Angeles, CA
Game Developers for eLearning & Training
Seller Case Study
2010 2014 2017
Started his own Joined Fiverr, his Became a
offline digital company has since grown Pro-verified seller,
agency, 10x larger and served exclusively on
Zimamedia. more than 1.5K customers. Fiverr.
Offline Online
“
“
Thanks to Fiverr I became the owner of an
exciting business that enjoys a double-digit
growth rate.
Michael Zima, Seller 1,950+ 80 $150-$2,495

Orders completed Countries covered Service prices
Chicago, IL; Palma De Mallorca, Spain
Owner of Digital Agency focused on SEO
17
3. Powerful business model
18
$76M FY18 revenue 45% FY18 revenue
growth
Fiverr at
a glance.
5.5M+ Buyers
since inception
830K+ Sellers
since inception
160+ Countries 200+ Categories
25.7% FY18 take rate 57% FY18 revenue from

existing cohorts
Note: All figures are as of or for the year ended December 31, 2018. © 2019 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential.
19
Service A seller lists a service for $100
catalog
Under our SaaP model, sellers list their service offerings on our
marketplace first. Each gig has well defined scope of work, time
of delivery, price, and other spec of the service. Millions of these
gigs make up our extensive service catalog, which buyers use to
How we generate search and browse to find the exact service they are looking for.
The buyer pays $105 to Fiverr

revenue. Order
Once the buyer navigates through our catalog and finds the
service he/she wants, he places the order and pays Fiverr the
An illustrative example of cost of the gig plus 5% service fee. For transactions under $40,
buyers pay a minimum $2 service fee.
a $100 transaction.
Fulfillment Work starts immediately upon order

Upon order, Fiverr prompts the buyer to send the seller the files
required in the gig description, along with a briefing document
with instructions. Once received, the seller can start to work on
the project immediately. They can also communicate and
collaborate during the course of project through our platform.
Delivery & Fiverr pays the seller $80

Payment
14 days after the delivery of the project, if no issue raised by the
buyer, Fiverr makes 80% of the transaction value available for
seller to withdraw.
20
Consistent cohort behavior with majority from repeat buyers.
Revenue composition by annual cohort 2010-2018.
43% New
buyers in
2018
57% Existing
buyers in
2018
Cohorts:
21
Our strategy to Global Horizontal Organic network
effect drives majority
grow without of new buyers.
a sales force.
Target audience: High value Drive high LTV

SMBs, or “zero to creation from with repeat and
enterprise” as we transaction #1. cross-category
call it. purchases.
22
Strong unit economics on performance marketing.
1Q15 cohort: initial investment vs. subsequent revenue streams.
Short payback period Recurring quarterly revenue
Y4, Y5, Y6… Yx
23
Cumulative revenue to performance marketing investment by cohort
as of March 31, 2019
Our marketing
efficiency focuses
on efficient tROI
and consistently
increasing ROI over
the long term.
Represents multiple of revenue generated relative to original marketing investment, by cohort

tROI: Refers to time to return on investment for
performance marketing investment.
24
4. Growth and operating leverage
25
Strong revenue growth and its drivers.
Active buyers (M) x Spend per buyer x Take rate = Revenue ($M)
Non-GAAP 75% 81%

Gross Margin:
Note: See appendix for a reconciliation of Non-GAAP Gross Margin. © 2019 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential.
26
Going upmarket.
We continuously grow spend per buyer on our

platform by attracting high lifetime value
customers and by offering high-value Gigs.
We strive to provide a one-stop shop of digital

services for our buyers through category
expansion, leading to increasing cross-category
purchases and expanding wallet share.
High-value buyers, those with annual spend per

buyer of over $500, contributed to over 50% of Annual Spend per Buyer ($)
total revenue in 2018, up from 35% in 2012.
27
Revenue growth and cost efficiency drive operating leverage.
(Non-GAAP) 2017 2018 Q1’19
Revenue 52.1 75.5 23.8
Y/Y growth 45% 42%
Cost of revenue 12.9 14.5 4.5

as % of revenue 25% 19% 19%
Gross Profit 39.2 61.0 19.3
Gross margin % 75% 81% 81%
R&D 15.4 24.1 6.8

S&M 32.8 46.9 14.6
G&A 8.0 10.9 3.2

Adjusted EBITDA (17.0) (21.0) (5.4)
as % of revenue (33%) (28%) (23%)
*These are not projections; they are goals / targets and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and
contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are
subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please
consult the “Risk Factors” section of the Registration Statement. Nothing in this presentation should be regarded as a representation by any person that these goals /
targets will be achieved and the Company undertakes no duty to update its goals.
Note: All financials shown are non-GAAP and a reconciliation can be found in the appendix; $ millions unless otherwise noted. © 2019 Fiverr Int. Ltd. All Rights Reserved. Proprietary & Confidential.
28
5. Long-term growth drivers
29
Multiple levers expected to drive
long-term, sustainable growth.
Consolidation of
Encompassing every aspect of the future of work.
horizontal and
Geographic vertical players
expansion and
An online localization
and offline
Move ecosystem
up-market
Category for buyers and
expansion sellers
Continued & evolution
marketplace
innovation
30
Appendix.
31
Reconciliation of Non-GAAP measures
32
Statement of cash flows
33
Balance sheet
34
Welcome to the future of work.
35

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Investor

1 Large market opportunity with low online penetration

2 Our unique e-commerce approach creates eﬃciency and transparency

4 Growth and operating leverage

5 Long-term growth drivers

The world is Traditional Workplace Future of Work

is changing Local teams Global & remote teams

Study young, standard profession Continuous study, gain unique expertise

Source: Staﬃng Industry Analysts (SIA), McKinsey, US Census of Bureau

Connection only End-to-end platform

Transparency and certainty of price, No bidding / negotiation to win projects

Flexibility and control

Access to a diverse pool of freelancers

Trusted brand for customer service Success management and support

Buyer NPS: 61 Seller NPS: 65

Our two-sided Better

creates powerful Seller

Haerfest, Buyer 3 4 $50-$4,000

The Game Agency, Buyer 5 7 $5-$450

Michael Zima, Seller 1,950+ 80 $150-$2,495

160+ Countries 200+ Categories

25.7% FY18 take rate 57% FY18 revenue from

The buyer pays $105 to Fiverr

Fulﬁllment Work starts immediately upon order

Delivery & Fiverr pays the seller $80

Target audience: High value Drive high LTV

Short payback period Recurring quarterly revenue

Y4, Y5, Y6… Yx

Represents multiple of revenue generated relative to original marketing investment, by cohort

Non-GAAP 75% 81%

We continuously grow spend per buyer on our

We strive to provide a one-stop shop of digital

High-value buyers, those with annual spend per

Cost of revenue 12.9 14.5 4.5

R&D 15.4 24.1 6.8

G&A 8.0 10.9 3.2

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