How did Fiverr's revenue and expenses trend in Q4 2024?

**Fiverr's revenue for Q4 2024 is expected to show growth, while net income and profit margin are anticipated to face pressure due to increased expenses.**

1. **Revenue Trend**: Fiverr International Ltd. anticipates revenue for the fourth quarter of 2024 to be in the range of $100.2 million to $102.2 million. This represents a continuation of the company's revenue growth trend, with a year-over-year increase of 9% to 12% in the fourth quarter and 7% to 8% for the full year 2024.

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|FVRR|FVRR.N|Fiverr International|2024 Q1|118.44569288389512|788000|169|
|FVRR|FVRR.N|Fiverr International|2024 Q2|1339.2070484581498|3267000|169|
|FVRR|FVRR.N|Fiverr International|2024 Q3|-55.27272727272727|1353000|169|
|FVRR|FVRR.N|Fiverr International|2024 Q4|173.09083173792808|1.2838E7|169|

2. **Net Income and Profit Margin**: However, Fiverr is facing challenges in maintaining net income and profit margin. The company's net income for the third quarter of 2024 was $1.35 million, which is a 55% decrease from the same period in the previous year. The profit margin also declined to 1.4% in the third quarter of 2024, down from 3.3% in the same period of the previous year. These trends suggest that Fiverr's expenses are increasing, compressing margins.
3. **Expense Trend**: The increase in expenses is a key factor behind the decline in net income and profit margin. Fiverr's third-quarter financial results showed a 7.7% year-over-year increase in revenue, but this was not enough to offset the higher expenses, which led to a significant drop in net income.
4. **Earnings Estimate**: Analysts had estimated a slightly higher revenue for the fourth quarter of $100.7 million, which Fiverr is expecting to slightly exceed with its guidance of $100.2 to $102.2 million. However, the company's earnings per share (EPS) for the quarter were anticipated to be $0.59, but Fiverr reported an EPS of $0.55, missing the estimate by $0.04. This indicates that while revenue may be robust, earnings are not keeping up due to higher expenses.

In conclusion, Fiverr is experiencing a period of robust revenue growth, but this is being partly offset by increased expenses, which are impacting net income and profit margins. The company's updated earnings guidance for the fourth quarter reflects these trends, with a slight revenue beat and a notable miss on EPS.