Afternoon Coffee: Fiverr reports rapid growth; Seal Software joins SAP App Center; Beyond Meat a no go in Japan; La-Z-Boy to close plant

The online freelancer marketplace Fiverr, which released its Q2 2019 financials this week, reported continuing high top-line growth. Q2 2019 revenue came in at $25.9 million, an increase of 41% over Q2 2018 (Q1 2019 revenue was reported at $23.8 million).

Q2 2019 gross merchandise volume (GMV) — which we were able to estimate based on revenue and take rate — was $98 million, up about 32% from Q2 2018's $74.4 million. (Note: Fiverr does not report quarterly GMV.) Its take rate rose sharply from 24.7% in Q2 2018 to 26.4% in Q2 2019, an increase of 170 basis points.

Fiverr’s CFO, Ofer Katz, was quoted as saying, “We continued to grow our active buyer base through consistent cohort behavior, efficient performance marketing and ongoing product improvement. The strong growth in spend per buyer highlights our continued success in going upmarket, and we continued to enjoy a robust take rate with improving monetization.”

The number of “active buyers” for Q2 2019 was 2.2 million, up 4% from Q2 2018. Spend per buyer Q2 2019 was $157 compared to $135 in Q2 2018 — an extension of a long-term trend, as the chart below shows.

Source: Fiverr Investor Presentation, July 2019

The company’s GAAP gross profit in Q2 2019 was $20.6 million, and the gross margin percentage was 79.5%, a modest increase over Q2 2018 in the second quarter of 2018.  The company’s GAAP net loss in Q2 2019 was ($9.4 million) compared to ($6.7 million) in Q2 2018. However, Fiverr’s adjusted EBITDA in Q2 2019 was ($4.9 million), compared to ($5.6 million) in Q2 2018. The company’s adjusted EBITDA margin was (19.0%) in Q2 2019 — an improvement from (30.3%) Q2 2018.

On Wednesday before the Q2 2019 announcement, Fiverr’s share price rose from $24.50 to $26.90 at the market close. On Thursday, following the morning fiscal announcement, the share price peaked at $27.90 and ended the day at $24.70.

Check out Spend Matters’ coverage of Fiverr, and look for more analysis to come.

Seal now on SAP App Center

Seal Software has expanded its partnership with SAP, joining the SAP App Center with its AI-powered contract solutions for users of SAP Ariba Contracts, SAP Ariba Contract Lifecycle Management and SAP Ariba Procurement, according to a Seal announcement this week.

“The contract management market continues to accelerate the adoption of artificial intelligence and machine learning as a means to power a broader set of business cases,” Seal’s Dan Daehler, global VP alliances, wrote in a separate post. “Seal Software has been solving these challenges for the past nine years, going deep into risk, regulatory, audit and compliance applications. SAP Ariba will now promote Seal Software as part of their Contracts offering as a seamlessly integrated solution.”

Beyond Meat shelves plan to enter Japanese market

California-based Beyond Meat Inc. will not enter the Japanese market for now, Reuters said. The report quoted Japanese trading house Mitsui & Co. as saying Beyond Meat would focus more on the U.S. market. In 2016, Mitsui had bought a small stake in Beyond Meat, and said it previously planned to partner with the U.S. company to sell plant-based meat alternatives in Japan.

Cray supercomputer to aid Air Force weather forecasting

The global supercomputer company Cray Inc. will supply a supercomputing system to the Air Force Life Cycle Management Center and Oak Ridge National Laboratory to improve weather forecasting. Cray will provide its HPC11 Shasta supercomputing system for operational weather forecasting and meteorology.

La-Z-Boy to optimize supply chain

La-Z-Boy plans to close a plant and realign its supply chain manufacturing footprint. In addition to closing its Redlands, California, upholstery manufacturing facility, it plans to move production to available capacity to its other North American facilities. It will transition the leather cut-and-sew operation from its Newton, Mississippi, upholstery manufacturing plant to its other North American-based cut-and-sew facility.

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