Fiverr publishes positive earnings and announces acquisition of Israeli dropshipping startup
Fiverr publishes positive earnings and announces acquisition of Israeli dropshipping startup
AutoDS’s platform automates the dropshipping process to help source products from major channels like Amazon and eBay and to help businesses scale easily.
Fiverr, which develops an online marketplace for freelance services, has published positive financial reports and announced the acquisition of an Israeli startup, AutoDS. AutoDS provides a subscription-based end-to-end solution for dropshippers, including product research and sourcing, inventory management, and automated fulfillment. The company’s platform aggregates over 150 million products and serves tens of thousands of paying subscribers on its platform.
Founded in 2018, AutoDS is managed by Lior Pozin, Michael Royf, and Ofir Bokobza. The company has been bootstrapped to date, meaning it has never raised money from outside investors. AutoDS employs several hundred workers in Tel Aviv and dozens of additional workers outside Israel through subcontractors. Its platform automates the dropshipping process to help source products from major channels like Amazon and eBay and to help businesses scale easily.
For Fiverr, this acquisition expands its presence in the dropshipping, website development, and e-commerce management sectors, which are considered among the fastest-growing and most dominant categories in the freelance world.
Simultaneously, Fiverr released its financial results for the second quarter, which met expectations and reiterated its annual forecast. The company's revenue reached $94.7 million, marking a modest growth rate of 6% compared to the same quarter last year. The number of active buyers on Fiverr's freelancer platform decreased by 8% to 3.9 million, but the average spending per buyer increased by 10% to $290. This contributed to an improvement in Fiverr's gross profitability, resulting in a net profit of $3.3 million, or 8 cents per share, compared to 1 cent per share in the same period last year.
Cash flow from operations increased by 12% to $21 million. For the third quarter, Fiverr estimates that revenue will reach between $95 million and $97 million, bringing its annual revenue projection to $383 million to $387 million. This would reflect a growth rate of 6%-7% compared to 2023.
“Our audiences are very similar - ambitious entrepreneurs who are building and growing their businesses - so the opportunity is clear,” said Lior Pozin, co-founder and CEO of AutoDS. “With Fiverr’s experience growing a global brand, together we will be able to accelerate our growth and take the company to the next level, helping us build the company to be the world’s number 1 solution for dropshipping that we always envisioned.”
