Fiverr embraces AI tools to boost freelancer marketplace
Company adapts to AI disruption with new features for both freelancers and clients.
If you can't beat it, join it: Fiverr is responding to the AI revolution—both a threat and an opportunity for its business—by integrating artificial intelligence into its platform. The company announced its new AI-driven tools on Tuesday alongside the release of its latest earnings.
Fiverr operates a marketplace that connects freelancers offering services such as programming, graphic design, translation, and voice-over work with organizations. However, many of these tasks can now be performed using AI, a shift that has significantly impacted the freelance market. In response, Fiverr is launching new products designed to adapt to this transformation.
"AI is not the enemy, but a very powerful technology," said Micha Kaufman, Fiverr’s founder and CEO, during a company event marking the launch. Fiverr's new AI feature, Fiverr Go, will allow freelancers to automatically generate samples of their work for potential clients. Meanwhile, clients will be able to create products using AI that maintain the freelancer’s personal style and branding—at a lower cost.
Another newly introduced tool is an AI-powered personal assistant for freelancers. This feature can respond to potential clients' inquiries on their behalf, enabling freelancers to take time off without losing business. Additionally, Fiverr announced a special equity compensation plan for select freelancers, offering them shares in the company as an incentive to stay on the platform.
Related articles:
The financial statements released by Fiverr illustrate the impact of AI on its business. The number of active buyers on the platform fell by 10% in 2024, dropping to 3.6 million. This decline coincided with decreased marketplace activity, which worsened toward the end of the year.
Revenue from Fiverr’s core marketplace business fell by 4% in the final quarter of 2024 and showed a more moderate decline on an annual basis. Despite these challenges, Fiverr still managed to achieve 8% annual revenue growth, reaching $392 million.
Although the company’s gross profit margin was affected, Fiverr reported a net profit of $18 million in 2024, up from $3.7 million in 2023. The fourth quarter saw an even stronger performance, with revenue growing 13% year-over-year to $103.7 million. Net profit surged to $12.7 million—nearly triple the profit recorded in the same period the previous year.
Looking ahead, Fiverr projects revenue of $103–108 million for the first quarter of 2025 and expects annual revenue to reach $422–428 million. This forecast suggests the company anticipates a growth rate similar to that of the past year.
