Micha Kaufman: Thank you. So in general, I think we’ve given color on this on our remarks. But again, this really reflects our confidence in Fiverr’s long-term opportunity. And given the fact that we have a very strong balance sheet and free cash flow, we have the ability to invest into growth, while also returning some shareholder value. So we’ve put this plan in place so that we can execute it as fast as possible so for as long as the stock is cheap, right? And the speed really will depend on strategic decisions and market conditions. And we said that this would be our strategy moving forward. So as you said, this is the first time that we’re doing it. But as long as these conditions are met, we’re going to do it as fast as possible.
Matt Farrell: Awesome. Thanks again, guys.
Micha Kaufman: Thank you. Operator Thank you. We will now take the next question from the line of Eric Sheridan from Goldman Sachs. Please go ahead.
Eric Sheridan: Thanks so much for taking the question. Just one, if I could. When you think about the international opportunity, how should we be thinking about going deeper in the markets you’re already in versus continue and expand the geographic footprint in the years ahead? And how much of an element of the decision between either or both of those options are down to a better macro environment? And maybe a little bit more visibility into return on investment to sort of widen out that purview. Thank you.
Micha Kaufman: Good morning, Eric. Thanks for the questions. Yes. So as we noted, the focus that we have on the international is mostly around U.K. and Germany right now, and we’re seeing that they’re doing well. They’re growing faster than the U.S. under these conditions. And I think that the key to that is, A, there is more of an untapped potential outside of the U.S. U.S. has a different level of maturation when you think about working with freelancers and agencies and Europe is picking up. Macro conditions are not materially different, but they are different. And the strategy of optimizing the different marketing channels or customer engagement channels are something that we’ve been perfecting over the past few quarters.
I think that coupled with the fact that we’ve identified some cultural changes that require some product tweaking in order to optimize the experience in different locales has altogether proven itself to be working out well, which is the reason why it’s growing faster. We’ll continue doing that. The opportunity for growth is, obviously, very, very large. If you think about just Europe combined in terms of SMB size, the SMBs in Europe combined is 1.5 times larger than the U.S.. Meaning, that there is plenty of potential to continue growing there. And obviously, when macro improves, growth is going to be easier and cheaper.
Operator: Thank you. We will now take the next question from the line of Bernie McTernan from Needham & Company. Please go ahead.
Stefanos Crist: Hi, this is Stefanos Crist calling in for Bernie. Thanks for taking our questions. Just wanted to clarify, the complex services getting over to one-third of the marketplace, is that GMV or the number of jobs? And maybe what are you contemplating for that mix shift for your full year guidance? Thank you.
Micha Kaufman: The short answer is, it’s GMV. And our expectation is that, complex will continue to grow.
Stefanos Crist: Got it. Thank you.
Operator: Thank you. We will now take the next question from the line of Rohit Kulkarni from ROTH MKM. Please go ahead.
Rohit Kulkarni: Hi, thanks for taking my questions. A couple, if I could. One on AI, this 95% growth in AI GMV. It might be coming off of a small base, but do you see that trend line accelerate as I’m sure there are new types of use cases getting unlocked as well as new types of buyers coming in? And any more color on this AI-related GMV that — where is it coming from? Where is the strength manifesting in right now, either small versus high-value buyers or repeat buyers getting more active versus net new buyers coming to the platform? So that’s my first question on AI. And second, to the extend you can comment on how you feel about the long-term profitability of the business. Clearly, with the share buyback, you have greater conviction and there’s a high likelihood that you’re closing in on high-teens EBITDA margin as the year exists.
So perhaps talk about how high do you think this business’ profitability can go? And there are marketplaces that — of your similar characteristic that have demonstrated 30%, 35% margins over the future. So I would love to see how you’re thinking now that last 18 months you’ve provided a very strong track record of kind of stabilizing, growing and then improving profitability? Thank you.
Micha Kaufman: Good morning, Rohit. Thanks for the question. Yes. So you’re right, AI is still pretty new. So as a base it is growing off. It is obviously a new category, but we continue to add a lot of new AI categories constantly as the technology evolves. And overall, we’re seeing lots of buyers coming to Fiverr as a destination for those services. So we are becoming synonymous with these types of services. And as we mentioned on the call, we’re seeing over 10,000 AI experts on the supply side, it’s continuing to grow. And we’re seeing that demand coming both from new customers and repeat customers. Some customers are getting to us through these categories. And we see these categories of a higher ticket size. They are, by definition, more complex and require a bespoke development.
And we’re seeing our existing customers using that. So this is definitely a great influence both on the top-of-funnel for acquisition, but also for retention. As to long term, so I think you’ve said it. We’ve been doing very consistent — we’ve been taking very consistent steps to improve EBITDA margin over the past few quarters. Nothing was a huge step function, but more a very thoughtful way of improving the margin as we continue to not neglect growth, which is very important. We set up the 25% and the idea is to get there. Will there be an opportunity to increase that after we meet that number? Potentially yes. And we’ll — instead of throwing promises at this point, we want to make sure that we continue the consistent execution towards the long-term margin goal that we’ve set-up.
Rohit Kulkarni: Great. Thank you.
Operator: Thank you. We will now take the last question from the line of Marvin Fong from BTIG. Please go ahead.
