Fiverr’s Programming and Tech segment delivered a second-quarter revenue gain of 28% year-over-year, driven by a 35% increase in buyer spend on AI-related services such as custom model development and prompt engineering. This vertical now accounts for 22% of total revenues, up from 17% a year ago, reflecting accelerated adoption of AI solutions by small and medium-sized enterprises. Management noted that new listings in AI categories grew by 42% in the quarter, and average transaction value in the Tech vertical rose to $190, marking a 15% increase sequentially.

Shares of Fiverr jumped 5.0% during the most recent session, on trading volume 60% above the 30-day average. Market participants attributed the rally to upgraded buy ratings from two independent research firms, which cited improving margin profiles and the strong momentum in AI services. Although consensus revenue estimates for the full year were trimmed by 1.5%, analysts maintained that revenue could exceed $450 million, reflecting sustained buyer engagement in higher-value premium offerings.

While the overall active buyer count declined by 3% sequentially to 4.8 million, average spend per buyer climbed 12% to $360. The core Creative and Digital Marketing categories saw buyer numbers dip by 5%, but new subscriptions to the Fiverr Business tier rose 27%, contributing an additional $9 million in annualized recurring revenue. Executives emphasized that enhanced vetting for top-rated sellers and expanded guaranteed delivery options helped retain higher-spend clients even as lower-value demand softened.

To address marketplace pressure, Fiverr is rolling out targeted marketing campaigns in Europe and Latin America, where revenue growth accelerated by 33% in Q2. The company also plans to invest $25 million over the next 12 months in AI-powered matching algorithms to improve buyer conversion rates. Investors should weigh the trade-off between near-term buyer count contraction and long-term revenue per user expansion, noting that adjusted EBITDA margin is projected to expand by 200 basis points through operational efficiency gains and scale benefits.