Andrew Boone: That was great. Thank you.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Marvin Fong from BTIG.
Marvin Fong: Great, good morning. Thanks for taking my questions and certainly hope everyone on the Fiverr team is well and stays that way. Question, I guess, just to pile on here on take rate, big jump this quarter, and like Andrew observed, it is in trailing 12 months. But should we — how much of this do you think is perhaps in tougher economic times? Freelancers are sort of doubling down on investing in their business. Do we see any signals of that? So, for instance, was bidding prices up for Promoted Gigs, things of that nature? Or any thought there on perhaps the kind of cyclicality of the value-added services would be interesting.
Micha Kaufman: Sure. Thanks, Marvin. So, I’ll give it a very, very simple answer. Promoted Gigs is an ROI-positive program since we launched it. It makes money for sellers. It doesn’t matter if it’s good times or bad times, the impact they have is positive. And as long as it’s positive, they will continue using it more and over time. And because of that, in many ways, it is disconnected from the economical times. I hope this addresses the…
Marvin Fong: Yeah, sure. Understood. Thanks. And then maybe my follow-up. A lot less talk on AI this call, and I guess I’ll just lob a question in here. Could you speak to anything about the growth of the business? And I guess just interested, I know you won’t give us anything specific, but taken as a whole, are these kind of categories related to AI that you’ve launched in, let’s call it, the last year, has that become a pretty measurable part of GMV? Any characterization of that would be great. Thanks.
Micha Kaufman: Sure. So, I did address this also in how we think about next year, and the fact that AI both impacts the efficiency of how we work, allows us to do pretty incredible things in our product, and also has a positive impact on the categories that we can introduce. So again, we’re not getting into specific category breakdown. But what we’re seeing on the buyer side, I think we’ve introduced these categories. These categories continue growing. I think that a lot of the hype that surrounded AI in the beginning of the year subsided, and right now, it’s really looking for the killer applications that could be developed with AI, and we’re developing some of them, and our customers are as well. So, these are definitely areas where we continue seeing growth, but not just that, but we continue investing in the catalog side to ensure that the new types of skills that pop-up are going to be addressed on the Fiverr marketplace.
Marvin Fong: Yeah. Just to be clear, when I said let’s talk about AI, I guess I meant questions from us, sell side. I mean, you guys are doing…
Micha Kaufman: Yeah, well…
Marvin Fong: Just didn’t want to short shrift you on AI. So, thanks for that, Micha. That’s all I had. Thanks.
Micha Kaufman: Yeah, thank you.
Operator: Thank you. One moment for our next question. Our final question comes from the line of Rohit Kulkarni from ROTH MKM.
Rohit Kulkarni: Hey, thank you. Thank you for taking my questions. And again, kudos to you and your team for the level of resilience that you’ve demonstrated through these times. Two questions. One, just a big picture, and probably it’s kind of skinning this take rate cat in a different direction. Pardon the pun here. But I guess a big picture, there are Internet marketplaces with advertising and subscriptions. They are clearly well developed. We have seen subscription penetration up to 40%, 50% of active users. We have seen advertising penetration up to 10% of global volume of that marketplace. I guess, we’d love to hear kind of your thoughts around where you are right now internally, looking at those metrics at Fiverr? And what are the puts and takes of Fiverr’s marketplace to evolve into having much more significant penetration in advertising and subscription?
Because perhaps that kind of goes back to the multiple questions on take rate on this call. So that’s one question. And then, tactically speaking, how important is it for you to grow buyers on the platform right now over the next three, six months or so? And then, what is it tactically that you’re doing differently versus probably over the last nine months?
Micha Kaufman: Thank you, Rohit. Thanks for the question. So, as to the first question, I would say the following. First, these are still products that are being evolved, and they continue growing. It is important to also know that if that is being compared to other marketplaces where the component of promoted is much higher, then if you would follow the makeup of their revenues, you would notice that their transactional component is far, far lower than ours. Meaning that when you make the majority of your take rate from the transactional component, then the expectation that you would be able to match this on promoted is unreasonable. In the marketplaces where the component of promoted is much higher, then the take rate is tiny in comparison to ours.
So, this has some explanation for the ratio between those two. Having said that, there’s obviously more room to grow these offerings as they’ve been growing so far. In terms of the importance of growing buyers on our platform, as I’ve said, we are a growth company and we are focused on delivering growth. Now there’s the balance of quantity and quality. And this has a lot to do with the opportunities that the market and the economy is providing to us. And as we said, the focus is less on quantity and more on quality. It doesn’t mean that we don’t want far more, and we’re optimizing everything, the product and our marketing to do that, but it means that in this economy, in this environment, we’re very much focused on the quality of our customers.
Again, if you look at an indicator like spend per buyer, you see that spend per buyer is increasing pretty dramatically, and we believe will continue to. And when the environment would shift, as I’ve said, I think we’re going to see tremendous opportunity for growth across all segments of the market.
Rohit Kulkarni: Okay, thank you. Good answers.
Operator: Thank you. I would now like to turn the conference back over to management for closing remarks.
Micha Kaufman: Thank you, Gigi, for moderating today’s call. And to everyone who joined the call today, wishing all of us much better and more peaceful times. Have a great day.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
