Fiverr International Ltd. Price & Performance (FVRR)

Thank you, operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the fourth quarter that ended this 12/31/2024.

Joining me on the call today are Michel Kaufmann, Founder and CEO and Ofer Katz, President and CFO. Before we start, I'd like to remind you that during this call, we may make forward looking statements. And that these statements are based on our current expectations, assumptions As of today, and Fiverr assumes no obligation to update or revise them. A discussion of some of the important risk factors that could cause actual results to differ materially from any forward looking statements can be found under the Risk Factors section in Fiverr's most recent Form and other filings with the SEC. During this call, we'll be referring to some key performance metrics in non GAAP financial measures. Including adjusted EBITDA, adjusted EBITDA margin and free cash flow. Further explanation and a reconciliation of each of the non GAAP financial measures to the most directly comparable GAAP measures is provided in the earnings release we issued today and our shareholder letter. Each of which is available on our website at investors.fiber.com. And now, I'll turn the call over to Meehan.

Thank you, Jin Jin. Good morning, everyone, and thank you for joining us. As we close another year, I've honestly never been more excited by what we've achieved how it's positioning us for 2025. We delivered incredible execution throughout 2024 topped off by an outstanding Q4 with 13% revenue growth and a 20% adjusted EBITDA margin. This puts us firmly in the elite group of companies hitting the rule of 30, no small feat, especially at a time when our entire industry is facing macro headwinds. We executed with discipline just as we said we would. And made steady progress towards our three year targets. We maintain a high velocity of innovation and continue to solidify our position as a leader in the freelancer economy. Our strategy is straightforward. On the one hand, pursuing quality of revenue upmarket opportunities in the market based segment. On the other hand, expanding our offerings and diversifying revenue in the services segment. This has clearly paid off. Allowing us to drive double digit growth under macro headwinds. All of this momentum provides us with a very strong where we believe we can continue to deliver Rule of 30.

At the center of our success is our freelancer community. For the past fifteen years, Fiverr has always stayed true to our mission of empowering talent around the world to grow and succeed. We grow only when they grow. And we succeed only if they succeed. We pride ourselves on being the most talent focused freelancing platform with the biggest most robust global community. To give you some idea of the scale of things, in 2024 alone, we hosted about 100 community events in every corner of the world with an aggregated of over 100,000 registrations into these events. Our public forum actively facilitates over 10,000 discussions with nearly 1,000,000 interruptions among our community members. Hundreds of thousands of freelancers see Fiverr as the go to platform to build and grow their careers. It is through this scale and intimacy with our community that we know it hasn't been the easiest time for freelancers and creators. The high interest rates and inflation are putting pressure on their day to day life and the rapid advancement of artificial intelligence Feels like barbarians at the gate. Threatening to exploit their creative assets and creative rights. It is under those premises we announced two groundbreaking initiatives to demonstrate our continued commitment to our talent community.

First, is the launch of FiberGo, FiberGo is an open platform for personalized AI tools that include the personalized AI assistant and the AI creation model. Different from other AI platforms, that often exploit human creativity without proper attribution or compensation Fiverr Go is uniquely designed to reshape this power dynamic by giving creditors full control over their credit processing rights. It also enables freelancers to build personalized AI models without the need to collect training data sets or understand AI engineering, thanks to fiber's unparalleled foundation of over 6,500,000,000 interactions and nearly 150,000,000 transactions on the marketplace. And most importantly, it allows freelancers to become a one person production house making more money while focusing on the things that matter. By giving freelancers control over configuration, pricing and creative rights and leveling the playing field, of implementing AI technology Fiverr Go ensures that creators remain at the center of the creative It decisively turned the power dynamic between humans and AI towards the human side. It's a refreshing and unique approach to Gen AI just like how our service as a product model provides a unique mechanism that fundamentally changed the dynamics of freelancing fifteen years ago. For customers, Fiverr is also fundamentally different from other AI platforms.

It is Gen AI with human accountability. AI results often feel unreliable generic and very hard to edit. What is good enough for a simple question and answer on Chargebee does not cut it for business mission critical tasks. In fact, many customers come to Fytr today with AI generated content because they miss the confidence that comes from another human eye and talent helping them perfect the results FiberGo eliminates all of this friction and frustration. Every delivery on Fiverr is bought by the full pace of the creator behind it with an included revision the freelancer defines. This means that the quality and service you get from FiberGo is no different from a direct order from the freelancers themselves except for a faster, easier and more delightful experience. The personalized AI assistant on Fiverr can communicate with potential clients when the freelancer is away or busy, handle routine tasks and provide actionable business insights effectively becoming the creator's business partner. It often feels smarter than an average human assistant because it's equipped with all the history of how the freelancer works as well as knowledge of trends and best practices on the fiber market base. And we didn't stop there.

To take the future of work to the next level, we've also announced an open developer platform on Fiverr to allow AI specialists and model developers to build generative AI applications across any discipline. We provide them with an ecosystem to collaborate with DomainX experts on Fiverr and the ability to leverage fiber's massive data assets so that these applications can solve real world problems. And most important of all, fiber provides them an avenue to generate revenue from those applications through our market base. We are envisioning a very exciting future of work here as Fiverr Go can turn any individual into a powerhouse and supercharge their earnings potential. The second initiative we announced along with Fiverr Go is a brand new freelancer equity program. An industry first initiative designed to give top performing freelancers equity shares of Fiverr. We have been wanting to do this for a while And we are extremely happy to finally make it happen. Just as FiberGo empowers freelancers to scale like never before, the Freelancer Equity Program ensures that our freelancer community does not just help us shape the future of work, they own a piece of it. I'm very excited about these bold moves.

As freelancers increasingly become the backbone of our economy, and as AI technology promises transformative shifts to the way people work, I firmly believe that Fiverr is uniquely positioned to lead the innovation and drive the industry forward. With the depth and breadth of data we have, the expansive scale of categories, buyers and sellers we cover and the deep technological expertise we have built over the years we can empower a robust ecosystem of humans, and AI that Fiverr beautiful results for customers while supercharging freelancers earning power. Finally, would like to take this opportunity to thank our incredible team for building what very few teams in the world can build with passion, velocity and determination. All of this could not have happened without this world class team. With that, I'll turn the call over to Ofer. Thank you, Mikhail, and good morning, everyone. I'm pleased to report an exceptional quarter with both top and bottom line exceeding expectations. Revenue for the fourth quarter was $103,700,000 dollars up 13% year over year representing an acceleration from 8% year over year growth in Q3. Adjusted EBITDA for Q4 was $30,700,000 representing an adjusted EBITDA margin of 20% an improvement of two forty basis points from my year earlier.

While we have yet to see meaningful improvements on the macro front in terms of S and P sentiment of freelancer hiring demand, we were able to deliver growth catalysts through strong execution and At the same time, we continue to optimize the quality of revenue for the marketplace, extending our penetration into larger buyer and more complex projects with Fiverr pro and dynamic matching. All in all, I'm very happy with how we delivered strong results in Q4 and throughout 2024 I believe we are kicking off [indiscernible] with a solid financial position and formed business momentum. In order to give more clarity and different parts forward business Starting this quarter, we will provide you with a quarterly and annual revenue and services revenue. Marketplace revenue represents the transaction commission paid by buyer and seller based on order completed on our marketplace. We generate services revenue from subscription products such as Seller Plus and AutoVest, advertising services RemediLib via Spyder ad and other services such as financial or learning tools all of which are optional value added services to our customers. For the full year 2024, marketplace revenue was $303,100,000 driven by $3,600,000 annual active buyers dollars $3.00 2 annual spend per buyer, and 27.6% marketplace take rate.

While the overall active buyer are not growing due to macro headwinds, It is worth noting that buyers with Amneon SPIM of over $10,000 continue to show resilient growth. We are also seeing larger and more complex projects show robust growth. With GMV from a project Up over $500 growing 8% Fiverr over year in 2024, compared to 2023. Going into 2025, given that marketplace revenue is largely tied to GMV volume, we've yet to see signs of macro improvement We expect that growth of this revenue segment will continue to be muted That said, we believe MacroServ as a growth catalyst for this revenue segment down the road. Given that macro rebound is a matter of when when it does rebound, we expect our marketplace will be one of the first areas to experience the uplift. Services revenue was $88,400,000 representing Eurobary growth of 62% driven by continued strength in fiber ad [indiscernible] Services revenue represent 23% of our total revenue in 2024 up from 15% in 2023. As we continue to expand the adoption of these services, and as we launch new monetization products, such as Fizerv Fiverr, FythePro subscriptions and seller team accounts, [indiscernible] there is a lot of growth runway for services revenue ahead of us.

For 2025, we expect services revenue to continue growing at a healthy double digit rate with contribution to total revenue reaching over 30%. Now on to guidance. For the full year 2025, we expect revenue to be in the range of $422,000,000 to $438,000,000 representing Eroberil growth of 8% to 12%. Adjusted EBITDA is expected to be in the range of $82,000,000 to $90,000,000 dollars representing an adjusted EBITDA margin of 20% at the midpoint. For the first quarter of twenty twenty five, revenue is expected to be $103,500,000 to $108,500,000 representing year over year growth as 11% to 16%. Adjusted EBITDA is expected to be $18,000,000 to $20,000,000 representing an adjusted EBITDA margin of 18% at the midpoint. We believe revenue growth will be higher in the first half of the year compared to the second half due to the lapping of fiber ad expansion the launch of the Kickstart program and the inclusion of AutoDS in the second half of We believe adjusted EBITDA margin and margin improvement will be lower in the first half of twenty twenty five compared to the second half as we accelerate the investment and development base of Fiverr. Overall, I believe we are firmly on track to achieve the three years target we set last year for both adjusted EBITDA margin and free cash flow.

To close, I'm very excited to kick off 2025. I believe it's going to be another strong year of growth and innovation. With that, we'll now turn the call over to the operator for questions. Thank you. Thank This is from the line of Eric Sheridan from Goldman Sachs. Please go ahead.

Thanks so much for taking the questions.

Maybe two if I could. In terms of the new initiatives in Fiverr, really interesting stuff in terms of the presentation yesterday. How should we think about those types of tools and the platform evolution helping conversion over the medium to long term? Possibly resulting in better top of the funnel dynamics from a growth perspective and then also conversion as well. And then in terms of what you laid out yesterday during the presentation, how much of it could put pressure on margins in 2025 in terms of incremental investments to sort of accomplish those goals around Fiverr or how much of that on the investment side is more behind you than ahead of you? Thank you so much.

Hey, Eric. Good morning. Thanks for the question. So for FiberGo Fiverr, FiberGo is actually a tool for conversion.

That's the entire idea. As we know that customers these days expect instant responses and instant results in as a result of that, we designed those two tools.

The AI personal assistant which is able to answer customer question immediately even as the freelancer is away or busy. We know that the first three minutes after a customer writes to a freelancer the most crucial time for conversion. And this is why we designed this tool In this tool, essentially encapsulating the entire knowledge of the freelancer and basing itself on it being able to address any possible questions and bring it to conversion and actually it's fresh from yesterday, but we have many thousand of assistance running on the system converting customers already which is an amazing sign. When we think about the creation model, the creation model allows customers to get the confidence that this is the freelancer, this is a style that they're looking for.

Because now instead of asking the freelancer for samples, waiting for it, Closing the Freonster to essentially work for free, They can get those samples right away.

Now the quarterly results is just mind blowing. The level of accuracy that these samples our exact match with the style of the freelancer. Which gives the customer the confidence that if they played and liked it, this is the type of freelancer that they should engage with. So essentially, conversion was one of the most important factors when designing these.

And then Eric on the second part of the question. So obviously, we have invested in this product in the last few months. And we'll continue to invest in the next few months But having said that, I think the guidance the peak for the improvement in EBITDA throughout the year take into consideration those investments Thank you.

Thank you. We'll now take our next question This is from Ron Josey from Citi. Please go ahead.

Great. Thanks for taking the questions. I quick follow-up on the Fiverr Fiverr, Yeehaw. I understand the value of the Fiverr to the conversion and the creation model that they fit the conversion rate that sits into creation model, I wonder if you can talk to us more about category expansion. I know we're launching with around 60 categories today. Do you think this goes to all categories over time? That's question one.

And then question two, just on the newer cohorts, believe in the letter we talked about them being bigger on average than per buyer in their first year. Want to understand what's driving this specifically? Is this dynamic matching? Which I think is pretty impressive? And then any insights on year two for these newer cohorts as they are higher value higher spend cohorts? Thank you, Ron.

Good morning.

So S2 Fiverr I would say the following. [indiscernible] [indiscernible] [indiscernible] every possible category. There's no technology for And some of these technologies were developing ourselves. The fact that we're able to ship this basically from day one in 60 categories in my mind, Because you need to understand that the level of accuracy that these models need to have is something that no one has seen before. They need to stay super true to the actual [indiscernible] the actual freelancer, the talent, and one of the things that we're doing and obviously we will continue to ship more and more [indiscernible] But what we also introduced is the developer ecosystem. Now what we're doing with this is actually we're opening up the Go platform two outside developers, Think about it as an up store. In essence. So what we're doing is we're allowing them to develop models [indiscernible] [indiscernible] but then train those models on probably the biggest transactional dataset in existence today that we hold so that they can actually help build models that freelancers can join can enjoy from.

And we believe that by doing so, and giving those developers incentives to do so because every time they're up going to be used for a transaction, they're going to make money out of it. This will allow us to accelerate the pace of the development of newer models for more thyroid why 60 categories, why not 600? Why not 6,000? This is exactly how we're thinking about this.

So I think that the developer Network can push us forward much [indiscernible] But not only for SymblTalk, because we know that it is possible to create not just smart agents, but a GenTIC AI which can handle very complex types. Of transactions that sometimes require multiple sets of talent which we all have on our platform.

This is I don't think that the market still realizes the So the magnitude and the potential of this program. We're so excited about this and we were able to pull this off in an incredible time And we have high expectations.

And then Ron, on the second half, of the question on the biggest and the Fiverr behind the scene. So I think multiple elements and we mentioned that several times before.

As we go upmarket. I think the first one is is quality. The release of Pro a while ago has matured and we see more and more business contributing by this segment And then we are able to attract better quality sellers We launched agency A few weeks ago, [indiscernible] So generally speaking, in terms of quality, I think that the professional part of the business is growing So that's one. Second, in terms of product, so complex project are being handled by the dynamic matching that we have released that demonstrate pretty well Just as an indication, conversion rate [indiscernible] the marketplace. And then lastly, on the acquisition projects, so going up market means that we focus on high value buying.

And we indicate in the shareholders letter that buyer that spend more than $10,000 are growing. By 2% last theme. Which is one indication. The second is that high value bio dose are those who spend more than $500 on market will buy 7.9%. Last year. So going up market and acquisitions, Progyny, is definitely one of the driver And then lastly, when we look into the category breakdown, we see more and more programming and tech contributing to the to the overall GMV and programming attack [indiscernible] longer projects. And I think product like the hourly that we have released a few months ago also contributes to this success. So just to summarize, a combination of quality projects, complex projects, acquisition strategy, and programming attack contributing Thank you, Ofer Sajibiha.

Thank you. We'll now take the next question. This is from Jason Helfstein from Oppenheimer. Please go ahead.

Thanks for taking the question. So kind of a bit more on Fiverr.

So I guess is your conclusion that no matter how sophisticated AI gets, that it will struggle to bring unique or creative enough results For what? Effectively your buyers want And that's why there still needs to be a human driving a the creative decision even if the AI tools make the human more efficient and that the idea that your buyer is just people would if the price is right rather pay somebody else to figure it out for them. Like, I mean, obviously, you've been thinking about this for a long time, right? We've been talking about AI for, I don't know, two years now almost. It's just like with all the iterations, is this ultimately the conclusion and kind of what's driving the fiber go strategy? Morning, Jason. [indiscernible] from our experience with AI, what's What we come to learning that a little bit of creation process using AI is very random. And take you through figuring out what are the best tools because there's thousands of different options. Around the AI and each one will break but the difference And you need to master each one of them. And you need to become a prompt engineer.

And then editing is extremely, extremely hard. [indiscernible] don't get the feedback that comes from working with a human being that can actually Look at the creation from a human eye and give you a sense if this is actually capturing you're trying to do? Because of these reasons and without compromising on the power of AI, Because We love AI. We love the technology. We just think that there is a different way to design it. There's this entire debate about human versus AI. It's not the right question. The question is who's in the center? And we think that in order to continue motivating people to create they should be rewarded for it. Right now, the way AI is designed, it's just sucking up whatever everyone writes designs without giving any reward. And our fear is that in the long run, this would demotivate people from creating. Which for humanity is going to be very bad news. So there is a different way to design AI. And the way we've done it doesn't compromise to anything on its power. [indiscernible] It allows us or allow freelancers to design their own [indiscernible] in a way that rewards them, but remains extremely accurate to their style.

Allowing customers to get the results they expect to get because they see the portfolio of the freelancer like this style, writing or design or singing or narration and they can get exactly this So we think that that combination and that confidence that comes from the fact that the creator itself is always there So if whatever AI turns out 95% great. There is a human being to help you cross the finish line. That is the premise under which we developed Fiverr or ago, And we think that this introduces a new approach and and who knows, maybe other companies will follow this I think it's important because because if we'll keep people in the center and continue motivating them to create Appreciate the color. Thank you.

Thank you.

We'll now take the next question. This is from the line of Doug Anmer from JPMorgan. Please go ahead.

Thanks guys for taking the question. One for Mikhail and one for Ofer. First, Mikaela, just on Fiverr, you talked about model creation and AI assistance really being the first pieces.

Maybe you can talk more about just how you envision AI agents working in fiber ecosystem Fiverr time? And then, Ofer, just on the double digit revenue growth at the midpoint of the 25% guide, does that suggest a return to marketplace growth And more importantly, what are the factors you need to see there for that to happen?

Good morning, Doug. Thanks for the question.

So when we think about AI agents, If you look at the AI personal assistant, the very basic functionality that [indiscernible] is really handling routine tasks for the freelancers.

Allowing the the talent to actually have more time to create think and recharge. When needed. [indiscernible] this is done in a very sophisticated way. Because the assistance is is reach with capabilities such as being able to convince the customers of the qualities of the Freidancers by showcasing them during the conversation their portfolio, [indiscernible] consulting meetings in real time within the conversation And actually, the assistance is aware of the present of the freelancer, meaning is the freelancer online right now or not? And can invite the pre announcer in real time if they that the best scenario of the conversation is to hand it over to the freelancer. These are unique capabilities that we've developed that I don't know anyone who has done it before, that will allow the assistant to work as a partner with a freelancer.

But this is just the first step.

Because as the assistant learns the freelancer better Fiverr time It will start providing with business insights for the freelancer in order to grow the business, As an example, The assistance can do a research to figure out how to optimize the service page or the profile to be better positioned in search results. It might suggest to the freelancer to add certain Keyword or description or portfolio in order to maximize their potential. In addition, as I've said, through the developer ecosystem, we think that we can create endless amount of different agents for Gen AI so that we can actually reach this future of [indiscernible] where you have agents that can actually do some complex for you. In an automated manner And obviously, those capabilities are going to be also included in the AI personal assistant.

And then, Doug, for the second part of the question, about the growth in 2025. So I think as you probably noticed, we have break the the revenue into into two different segments, the marketplace and the services. And I think while the marketplace is tied up with macro and GMV. What we haven't seen yet any sign of strong sign of improvement The services The services revenue line is where we are innovating and building many product to drive sustainable growth. As we've seen last year. So in terms of 2024, 23% of the revenue is driven by services and we anticipate that in 2025, this portion will grow all the way to 30 We believe that this [indiscernible] revenue approach works well And when the macro rebound we'll see the marketplace go back to growth On top of the growth in in the service engine. In terms of 2025, So the guidance [indiscernible] for double digit revenue growth at the midpoint, and it's based on a flat small decline in GMV [indiscernible] where we think that the center buyer is going to grow [indiscernible] active bio declines throughout the year. While the revenue part of the business is going to grow rapidly as we release more product and as we see the existing product contributing more to the top line.

Great. Thank you both.

Thank you.

We'll take our next question. This is from Bernie McTernan from Needham and Company. Please go ahead.

Great. Thanks for taking the questions. Neha, you mentioned to an earlier question incentivizing developers in Fiverr Fiverr. Would your take rate be different in Fiverr Go? Just trying to get a sense if you're paying the developer or maybe they're paying you to be on the platform? And then on investments this year, just want to see if it's mostly sales and marketing we should be expecting or something else? And then lastly, as you think about the $25,000,000 guide, was there any impact of FX contemplated in the guide? Thank you. Good morning, Bernie. For now, the pay creates remain the same [indiscernible] And as we roll it out and as we see usage, We will figure out what to do or what's the right thing to do. For now, we treat it as a normal transaction with the same take rate. There are components [indiscernible] the technology itself is actually paid for. Meaning that it's an additional subscription line that comes to us from providing these the tool [indiscernible] to our community But once we have more history with it. We're going to be able to to know what's the best strategy around it.

For now, I think that it creates incentivizes sellers to to have those models up And I think that the contribution to their conversion is going to be noticeable which will make the entire market base more efficient and because [indiscernible] results in Evolve AI, I think that's this will also allow us to influence top of funnel even more which is one of the areas where we're focused on.

And in terms of the investment, and the progress So there's no material change in the way we invest throughout the year. And there is some heavy lifting at the beginning of the year. On the release of Go as you probably have seen a very exciting product that we had released yesterday. I think we'll continue to invest in certain marketing in the Is the most efficient as we have done before. [indiscernible] And lastly on the forward exchange, as the prices on fiber are based on U. S. Dollar, there is no there is no impact on the top line. In terms of forward and we are well hedged in terms of the OpEx. Cover for any material impact on the EBITDA as well.

Great. Thank you. Appreciate the color.

Thank you. We'll now take the next question. This is from Marvin Fong from BTIG. Please go ahead.

Good morning. Thanks for taking my questions congratulations on the launch of GO with a pretty exciting product. I'd actually like to drill down a little bit on what 30% of your revenue, then you're looking for very strong growth, something by my math around 45% next year. I was just curious how much of that should we or could you break down how you think about the contribution from your value added fiscal twenty twenty five between ad products and in particular how much is the subscription revenue from Fiverr Go impacting that outlook? And then just separately on the marketplace take rate, should we view that as being a stable in fiscal twenty twenty five? Are there any levers that you can pull to change that? Thanks a lot. [indiscernible] the second part of the question, yes, there are leverage we can pull. But the guidance Must assume any such any change in the marketplace [indiscernible] [indiscernible] beyond the the services itself, There are multiple product [indiscernible] to this line item all the way from Pella Plus which is Subscription to promote the gigs which is ad advertising on the marketplace, We have a kickstarter that goes to subscription We have the AutoDS implies for subscription as well.

And we have the goal that we just launched that we've had some subscription as well. So that's this is kind of the breakdown between subscription and ad services [indiscernible] apply for the 30% Let me Thank you.

We'll take our next question.

This is from Andrew Boone from Citizens.

Please go ahead.

Thanks so much for taking my questions.

I wanted to ask on the services side. There's is certain characteristics that investors use in terms of taking out a ceiling for the percentage of advertising as a percentage GMV Can you guys talk about that? Like how do we think about advertising and whether there's a potential peak for what you guys are able to monetize the platform, the advertising as And then secondly, as we think about Fiverr and AI creating more of the actual work, Can you help us understand kind of theoretically how do you think about that as a deflationary aspect as technology is doing more of the work versus the pre realtor. How do we think about that? And then clearly, you're starting to monetize that product. As Fiverr continues to improve, how do we think about Fyber's ability to take more of that aspect as your own software and AI models are helping freelancers do more.

So much.

On the first part of the question, [indiscernible] [indiscernible] a lot of runway ahead of us. Us.

This product is just evolving Fiverr time. There's a of real estate that we haven't monetized and [indiscernible] which are undertaking So feel very confident On the And on a question on Go, first of all, it's very early to tell But the idea of Fiverr is really [indiscernible] the talent that actually creates their model is basing this model on their entire world of creating. They need to continue creating to fine tune this model and create new models There is no [indiscernible] to give it for a very cheap price. Plus it is always connected with human work that is included in the order where they define the price and the scope of editing that they add to anything that is generated.

So while it remains to be seen how there are better prices, What we think should happen [indiscernible] and their investment in the model is included that this was not put a meaningful pressure Thank you. Thank you. We'll now take our next question This is from Josh Chan from UBS. Please go ahead.

Hi, Mikhail. Thanks for taking my questions.

I guess my first question is on the lag between SMB and the results of fiber, I guess as you are aware, some of the SMB sentiment has improved somewhat in the recent months. And so I was just wondering your thoughts about ultimately translates into Fiverr from a timing perspective. And then my second question is on services revenue. Is there any notable seasonality within services? I'm not sure if AutoDS has a major Q4 weighting, but just some color on how services kind of waits through the year would be helpful. Thank you.

I think we have noted earlier, we don't we haven't identify or seen [indiscernible] [indiscernible] There are some fluctuations throughout the week, but [indiscernible] I think it's too early for us to close our trend of improvement in the S and P sentiment And then on the seasonality, so the answer is Pretty flat of freight line behavior over the year. There is no significant seasonality That we cannot [indiscernible] Thank you. We'll now take our last question today.

And this is from Rohit Kulkarni from ROTH.

Please go ahead.

Hey, thanks for taking my questions. A couple In this upmarket demand, clearly strategy is working Perhaps any more color you can provide on what are the categories of products and projects that you're getting that are unlocking new verticals for you and over the near term, any learnings from the last eighteen months that you can help accelerate some of the growth that you're seeing in upmarket demand? And second would be just on this freelancer equity program. Any sounds very interesting and to incentivize freelancers, but perhaps talk about the genesis behind it, why now? And what do you hope to achieve from that?

On the first part, as I mentioned earlier, I think that programming tech [indiscernible] Getting a bigger piece of the cake. And I think this is driven by acquisition quality, but also product like dynamic matching, which is which is doing really well. I mentioned earlier on the call, As to the question on the freelancer equity program, we're very excited about this program and we've been wanting to do this for a while. This program is designed for top performers on the platform. And in our mind, those are extremely loyal and are building meaningful businesses with us. And helping us shape the future of work, should have the option to own a piece of it. And obviously, we're going to we're going to have the details of the plan announced in our filing soon.

It's an industry first as a public company. And And we're very excited about this and we know that our freelancers Thank you.

And there are no further questions. So I will now hand back to the speakers for any closing comments.

Thank you, everyone, for joining the call today and thank you, Sarah, for moderating the call. I wish all of you a great day and hope to see you soon.

Thank you. This concludes today's conference call. Thank you for participating and you may now disconnect.