Fiverr International Ltd. (NYSE: FVRR) reported a wider loss in the third quarter of 2019 due to higher costs and expenses. The bottom line was narrower than the analysts’ expectations while the top line exceeded consensus estimates. Further, the company guided fourth-quarter revenue above the Street’s view.
Net loss was $8.4 million or $0.26 per share compared to a loss of $7.2 million or $1.10 per share in the previous year quarter. Adjusted loss per share narrowed to $0.12 from $0.17 a year ago. Revenues grew by 42% to $27.9 million.
The number of active buyers increased 16% in Q3 to 2.3 million, while spend per buyer was $163, up 15% year-over-year. The growth of the active buyer base was driven by continued and consistent cohort behavior, further gains in performance marketing efficiency, and its latest product and technology enhancements.
Looking ahead into the fourth quarter, the company expects revenue to grow by 35% to 40% to the range of $28 million to $29 million. Adjusted EBITDA loss is predicted to be in the range of $4.3 million to $3.5 million for the fourth quarter.
The Israeli company added that its revenues for the full year are now expected to grow by 40% to 41% to the range of $105.5 million to $106.5 million. Adjusted EBITDA loss is now anticipated in the range of $19 million to $18.2 million.
For the 12 months ended September 30, 2019, take rate was 26.6%, compared to 25.2% in the previous year, an increase of 140 basis points year-over-year.
During the third quarter, the company launched the first four industry stores on its platform: Gaming, E-commerce, Architecture, and Politics. Also, the company experienced continued strong growth momentum in Germany driven by the successful execution of its summer brand campaign in Berlin.