What drove FVRR's earnings beat in Q3 2024?

FVRR's earnings beat in Q3 2024 can be attributed to several key factors:

1. **Revenue Growth**: FVRR reported a revenue of $103.67 million for Q3 2024, which included a revenue surprise of $2.33 million. This growth was driven by an increase in spend per buyer and an expansion in the company's addressable market.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|FVRR|FVRR.N|Fiverr International|2024 Q1|1040000|9.3524E7|169|
|FVRR|FVRR.N|Fiverr International|2024 Q2|40000|9.4663E7|169|
|FVRR|FVRR.N|Fiverr International|2024 Q3|3280000|9.9628E7|169|
|FVRR|FVRR.N|Fiverr International|2024 Q4|2330000|1.03666E8|169|

2. **Spend Per Buyer Increase**: The average spend per buyer reached $290 as of June 30, 2024, an increase of 10% year-over-year. This indicates a boost in the average transaction value, which contributes to revenue growth.
3. **Take Rate Improvement**: FVRR's take rate for the period ended June 30, 2024, was 33.0%, an increase from 30.7% in the same period of the previous year. A higher take rate means that FVRR retains a larger portion of the transaction value, leading to increased revenue.
4. **New Product Offerings and AI Integration**: The launch of a summer product release, including a profession-based catalog and time-based transactions, expanded FVRR's addressable market. Additionally, the integration of AI tool Neo is expected to enhance customer experience and drive product innovation, potentially leading to increased engagement and spending on the platform.
5. **Financial Outlook**: FVRR's financial outlook for Q3 2024 with revenue expected to be between $95.0 - $97.0 million, and for FY 2024 with revenue expected to be between $383.0 - $387.0 million, reflects recent trends on the marketplace. This guidance suggests a continued growth trajectory that could support earnings performance.

In summary, FVRR's earnings beat in Q3 2024 was driven by strong revenue growth, increased spend per buyer, higher take rate, new product offerings, and AI integration, as well as a positive financial outlook.