Earnings Call Transcript - FVRR Q3 2023

Operator, Operator

Good day, and thank you for standing by. Welcome to the Fiverr Q3 Fiscal 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Brian Lan, Investor Relations Manager. Please go ahead.

Brian Lan, Investor Relations Manager

Thank you, Operator, and good morning, everyone. Thank you for joining us on Fiverr's earnings conference call for the third quarter that ended September 30, 2023. Joining me on the call today are Micha Kaufman, Founder and CEO, and Ofer Katz, President and CFO. Before we start, I would like to remind you that during this call, we may make forward-looking statements and that these statements are based on our current expectations and assumptions as of today, and Fiverr assumes no obligation to update or revise them. A discussion of some of the important risk factors that could cause actual results to differ materially from any forward-looking statements can be found under the Risk Factors section in Fiverr's most recent Form 20-F and other filings with the SEC. During this call, we'll be referring to some key performance metrics and non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin. Further explanation and a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measures is provided in the earnings release we issued today and our shareholder letter, each of which is available on our website at investors.fiverr.com. And now, I will turn the call over to Micha.

Micha Kaufman, CEO

Thank you, Brian. Good morning, everyone, and thank you for joining us. Q3 was another strong quarter as we continued to accelerate our revenue growth and drive EBITDA margin expansion. Both revenue and adjusted EBITDA came at the top-end of our guidance range. A number of factors drove the strong performance. The cohorts in our core marketplace continue to stabilize from the COVID growth spikes and our push upmarket has allowed us to grow spend per buyer at a strong pace. Finally, healthy growth in our value-added services contributed to our take rate of over 31%. All of this was extremely well executed with continued expense discipline, which is reflected in the strong delivery of our adjusted EBITDA margin. These results underscore the power of our business model and the progress we are making to solidify our position as the global leader of freelancing marketplaces. This, together with the strength and resilience of the Fiverr team, allows us to focus, adapt, and thrive amid external changes. As you all know, Israel went through a horrific attack a month ago. Our first priority has been to help our employees, their families, and the Fiverr community and support those the deadly attacks impacted. As some of our employees are being called up, we are ensuring their families will get what they need while they are on the front lines. As a company, we are quickly adapting so that we continue to operate and execute at the highest level of focus and consistency, thanks to our hybrid operation that's already in place. Since we laid out our strategic focus this year, to strengthen our core marketplace and accelerate our pace to push upmarket, we have been working on knocking down barriers that prevent buyers from shopping more often and fulfilling more complex projects. We know that Fiverr's unique transaction model and global access to talent provide great convenience and access to our customers that are unmatched anywhere else. But there are also pain points, such as the difficulty of finding the best talent among so many choices, the uneasiness when a project is only partially scoped, or the headache when a project requires coordination between multiple freelancers. This is why we created products such as Fiverr Neo, Fiverr Enterprise, and the project planning service in Fiverr Pro to address those issues. The vision for Fiverr Neo is quite wild. We imagine Neo will serve as a personalized recruiting expert that can help our customers more accurately scope their projects and get matched with freelance talent, just like a human recruiter, only with more data and more brain power. What we have done so far is leverage the existing LLM engines to allow customers to express their project needs in natural language, which Neo will synthesize and define the scope before matching the client with a short list of choices pulled from the entire Fiverr freelance database. It's a substantial step forward from the existing experience and streamlines the time the customer needs to make an informed decision. To improve the experience further, we continue incorporating cutting-edge technology into our production to advance the algorithm and provide a much faster processing speed. We already see thousands of customers utilizing the service, and early results show a positive impact on match quality and delivery. On the Fiverr Business Solutions side, we are targeting higher-end customers, expanding our wallet share, and expanding our product suite to accommodate more use cases that are sometimes difficult to execute through a typical marketplace order. When a customer comes through the funnel without a well-defined project scope, sometimes they need a domain expert to help carry out a specific function of the business, say a social media marketing expert. Sometimes they have a vaguely scoped project with an evolving roadmap, say building a complex mobile app. In both cases, they are looking for a freelancer to engage for an extended period of time. This is where Fiverr Enterprise comes in. Through Fiverr Enterprise, clients can manage an ongoing engagement with a pool of freelance talent, continuously updated tasks and project milestones, and ongoing budget management and payment tools. This allows us to address the freelancing needs of larger businesses that otherwise might be stuck with the complexity of creating detailed scopes for open-ended goals at the beginning of a project. Finally, in Fiverr Pro, we are seeing great traction for the newly introduced Project Partner service. Since its launch last year, we've seen many business customers utilizing the service to fulfill significantly larger projects. We've further expanded the offering to include separate project planning and project management services to cater to a wider range of businesses. The project planning offering is a popular option among customers who need help with scoping and staffing, and we have found that most customers who use the project planning capabilities end up utilizing the full project management capabilities as well. As you can see, there have been a lot of exciting developments at Fiverr this year. Leveraging the flywheel of our marketplace built over the years, we are taking our business to the next level with new products and services that cater to a wider range of customers and their needs. There is tremendous potential for us to expand our customer base and grow their wallet share with us, and we should be able to build on these opportunities in the years ahead. With that, I'll turn the call now to Ofer, who will walk you through our financial highlights.

Ofer Katz, President and CFO

Thank you, Micha, and good morning, everyone. We delivered another quarter of strong results driven by the resilience of our cohorts, our recent upmarket efforts, as well as growth in our value-added seller services. Revenue was $92.5 million, representing a year-over-year growth of 12.1%. Adjusted EBITDA was $16.5 million, or 17.9% in adjusted EBITDA margin. Both were at the top-end of our guidance range. For the second quarter in a row, we have also achieved GAAP profitability, thanks to our ongoing efforts in improving our operational efficiency. All of this demonstrated the impact of the strategy we set at the beginning of the year, the strong execution of our team, as well as the strength of our business model. Our annual active buyers were at 4.2 million, and spend per buyer improved to $271, up 4% year-over-year and a $6 increase from Q2. Our Fiverr Business Solutions continue to make meaningful progress as we add more partners to Certified and onboard customers to our premium marketplace, Fiverr Pro. These efforts help to drive the accelerated pace of our spend per buyer increase as our buyer base continues to evolve towards higher quality, higher budget demographics. We continue to maintain strong efficiency and unit economics in our performance marketing. This quarter, our tROI for performance marketing remains very stable at slightly over three months. On a longer-term basis, our lifetime value to CAC over three years remains healthy at over 3x and for five years exceeds 4x. We expect to continue to invest as efficiently as possible as we push forward on our upmarket efforts and focus our investments on higher-value buyers. Our Q3 take rate improved to 31.3%, representing a year-over-year expansion of 130 basis points, as we increased seller monetization of Promoted Gigs and Seller Plus. We continue to expand and optimize our ad placement for Promoted Gigs while Seller Plus benefited from the introduction of our two-tier pricing model that we launched a year ago. We are excited to report that Seller Plus subscribers have now reached 25,000, more than doubled from the end of last year. Our improving take rate signifies the value that we are able to provide for our freelancers, and we continue to develop additional tools to help them grow their businesses. Now turning to guidance. In the immediate weeks after the onset of the war, we experienced some volatility in our marketplace, primarily from buyers and sellers in countries in the region. This volatility has already created a headwind to revenue this quarter. While some of this volatility has subsided, the risk of it increasing again remains, and we have incorporated this risk into our outlook for the remainder of the year. As such, for the full year of 2023, we are maintaining our revenue guidance in the range of $358 million to $365 million, representing a year-over-year growth of 6% to 8%. We are raising the adjusted EBITDA range to be $58 million to $60 million, representing an adjusted EBITDA margin of 16.3% at the midpoint. This implies fourth quarter revenue guidance of $88.1 million to $95.1 million, representing a year-over-year growth of 6% to 14%, reflecting the increased uncertainty for the remainder of the year. We expect adjusted EBITDA guidance of $14.9 million to $16.9 million, representing an adjusted EBITDA margin of 17% at the midpoint for the fourth quarter. That said, just as how we have navigated our business through a series of macro conditions in the past few years, we are confident in our ability to continue executing with the strongest discipline and focus, and the long-term thesis of our business and our strong market-leading position remain intact.

Operator, Operator

Our first question comes from the line of Ron Josey from Citi.

Ron Josey, Analyst

Thank you for taking my question. I want to express that we're thinking about you and your team given the recent events. I would appreciate hearing more about how operations are progressing. Ofer, you mentioned that the revenue headwind has eased since the beginning. Any insights on that would be helpful. We are keeping you in our thoughts. Additionally, from a Fiverr Neo perspective, despite everything, the Neo rollouts are gaining momentum. Micha, could you elaborate on what you're observing regarding some early successes and the roadmap? Thank you.

Micha Kaufman, CEO

Good morning, Ron. Thank you for the note and the question. Since the events of October 7, we have observed some volatility in the region. For example, sellers in Israel experienced a decline in their business during the first two weeks following October 7, but that has mostly stabilized now. There remains some uncertainty regarding how things will develop in this area. Regarding Fiverr Neo, we are very pleased with its rollout. Although it's a relatively new product, we have over 100,000 users trying it out. Their feedback indicates that we are providing more accurate matches, which is our goal, along with higher engagement and satisfaction levels, leading to repeat usage. We are learning a lot as we build this product, which combines various technologies; some are developed in-house, while others are from leading companies in LLM that we've partnered with. While many of these systems are not fully optimized for large scale and high performance yet, we are finding effective ways to enhance this technology to provide a smooth experience for our customers. The feedback from them has been extremely positive.

Ron Josey, Analyst

Thank you, Micha.

Operator, Operator

Thank you. One moment for our next question. Our next question comes from the line of Doug Anmuth from JPMorgan.

Doug Anmuth, Analyst

Thank you for the questions. I also want to share my appreciation for everyone at Fiverr. I have two questions. First, could you provide more details about Fiverr Pro and how customers are utilizing the platform in different ways? Additionally, is there a way to quantify the increased spending you're experiencing there compared to the marketplace? Second, I see that you're making solid progress on take rates. Can you help us understand your perspective on the potential and opportunities surrounding Promoted Gigs and Seller Plus, particularly as you continue to increase their availability? Thank you.

Micha Kaufman, CEO

Thank you, Doug, and good morning. Regarding Fiverr Pro, I'll start and Ofer can add more. We've developed Fiverr Pro to address various needs, particularly the demand for vetted talent with experience, strong portfolios, and notable clients. Our clients using this service prioritize quality, which is a key reason for their choice. Additionally, we provide several value-added features that our Pro customers appreciate. As we've previously mentioned, we continually expand these features, including team collaboration on the platform, budget management, and more complex project execution. For customers needing project management, there's an option to hire a project manager for their tasks. Consequently, those utilizing this product have greater needs, which requires more experienced freelancers or agencies, leading them to spend more and enjoy better retention. Regarding the second question on take rate, this is a recurring question we've received since going public. We see potential for growth in this area. Every product we've introduced is experiencing growth, including Promoted Listings and Seller Plus. These have contributed to the increasing take rates we've observed over the past four years, which aligns with our expectations. The ongoing message is that we believe there are further opportunities for investment and expansion of these offerings, and our observations indicate that increased efforts yield better results from these products.

Doug Anmuth, Analyst

Thank you, Micha.

Micha Kaufman, CEO

Thank you.

Operator, Operator

Thank you. One moment for our next question. Our next question comes from the line of Jason Helfstein from Oppenheimer.

Jason Helfstein, Analyst

Thank you for the question and for your support. Can you help us understand that there seem to be three key factors at play here? The first is the decline following COVID, the second is the general economic weakness affecting small and medium-sized businesses, and the third is the progress you are making in moving upmarket. At some point, we would appreciate if you could separate the non-SMB business to give us more clarity. Can you also share your thoughts on whether you believe the SMB side has hit its lowest point? Thank you.

Micha Kaufman, CEO

Thank you, Jason, and good morning. You are correct to identify those various factors. Currently, we have not observed any significant changes worth noting. The effects of COVID have largely diminished, leading us into a new phase of remote work, which is now facing challenges as employees are called back to the office. In terms of the overall economy, the struggles among small and medium-sized businesses due to macroeconomic conditions have remained stable; it isn't getting worse, but it's also not improving. This is why we communicated several quarters ago our strategy to focus on moving upmarket and engaging customers who are less affected by the economic environment. If you look at the numbers and the growth of these segments, you'll see that we are making significant progress in increasing their share. The customers we are acquiring today differ greatly from those we brought on board a year ago. In fact, they tend to spend about 20% more on their initial purchase, which is substantial. Their lifetime spending habits are also notably different. Some of this is due to our Fiverr Pro initiative, which generates higher spending per buyer than our average, as well as how we identify and connect with these customers. This has enabled us to make significant strides, and we're witnessing growth in spending per buyer as well. However, we have not experienced any significant changes in these trends thus far. We continue to assert our belief that when the market begins to recover, we will have incredible growth opportunities ahead. That moment is yet to arrive.

Jason Helfstein, Analyst

Thanks for the color.

Operator, Operator

Thank you. One moment for our next question. Our next question comes from the line of Eric Sheridan from Goldman Sachs.

Eric Sheridan, Analyst

Thanks so much for taking the question. Maybe one following on Jason's. When you think about the demand environment and turning it back to incremental margins and investments to stimulate growth, you made a lot of progress this year on margins on a very consistent basis. How do you think about the balance of investing in growth as you see signals of a stable to rising environment versus elements of continuing to produce very solid incrementals in the business on the margin side going forward? Maybe thinking about in terms of key investments that need to be made and what signals you're looking for to possibly turn on some of the demand investments on the cost side? Thank you.

Micha Kaufman, CEO

Thank you, Eric. Good morning. So, essentially, again, I want to reiterate our approach as a business. We are a growth company. And we double down on growth when growth is a good option. And essentially, the way we manage the businesses, we're pushing for the Rule of 40. It's that simple, right? So, we're optimizing growth and profitability profile and putting a sustainable path to maximizing long-term shareholder value. Right now, it seems that it's more on the cohorts of mid-sized businesses and up, and less on the micro businesses and the very small businesses, which is why we've been doubling down there. And bear in mind as well that even though we can theoretically invest more in smaller businesses right now because of the dynamics of macro, the efficiency of our marketing spend would get hurt, which I don't think is going to serve anyone, not us and not the shareholders, for the long term, which is why we're resisting the temptation of actually doing that. Right now, the sentiment is such where to keep the extremely efficient machine that we have, and again, you can see that in the very short tROI, and you can see that in the growing LTV to CAC ratios over time that this strategy actually works.

Ofer Katz, President and CFO

And I think that just to augment on what Micha said, I think that we have proven to improve margin in a sunny day and a rainy day. And I think the plan is to continue this path. There's a long-term EBITDA margin ahead of us, and we're getting there.

Operator, Operator

Thank you. One moment for our next question. Our next question comes from the line of Matt Farrell from Piper Sandler.

Matt Farrell, Analyst

Thanks, guys, for letting me ask the question. Two, if I may. The first one, the Q4 guidance range is much wider than you normally provide for a given quarter. You kind of hinted at the uncertainty you're seeing. Could you walk us through the assumptions? Or just how to think about you getting to the high-end of the range? And what would happen to get to the low-end of the range? My second question is, I know you're not going to provide any quantitative commentary on next year, but would love to hear some of the strategic priorities for 2024 across various parts of the business. Thanks.

Ofer Katz, President and CFO

Thank you for your question, Matt. Regarding the guidance, we've observed significant volatility in the first few weeks of this quarter. We're assuming that this volatility will continue in the upcoming weeks, which could potentially create either challenges or opportunities. Given this uncertainty, we've expanded our guidance range to provide investors with a clearer view of our situation, and our operating plan has been adjusted accordingly. As for 2024, there is even greater uncertainty, and we will review the numbers early next year. I'll hand it over to Micha to discuss the strategic outlook for 2024.

Micha Kaufman, CEO

For our priorities in 2024, I believe that much of what we've been doing over the years is yielding positive outcomes. There are a few specific focuses for the upcoming year. Continuing on my earlier point, given the current macro environment, targeting upmarket is a strategic initiative for us. Until there are changes in the macro landscape, this will remain a key focus. Another important area is AI integration, both within our team to enhance efficiency and speed, and within our products to improve our customers' experiences and help them achieve their goals more swiftly. Additionally, expanding our catalog is vital as we are observing many new areas of professionalism emerging with the evolving landscape. It is important to continue expanding the catalog and to add the necessary categories and skills. International expansion is also a priority; 2023 has proven successful in this regard, and our strategies are effective, showing that regions where we're increasing our investment are growing significantly faster than the average marketplace growth. Team excellence is an ongoing investment for us, and we will continuously seek growth opportunities, both organically and through acquisitions.

Operator, Operator

Thank you. One moment for our next question. Our next question comes on the line of Kunal Madhukar from UBS.

Kunal Madhukar, Analyst

Hi, thank you for taking my questions. Two, if I could. One, on the take rate. Given your focus towards going up market and the increasing adoption of Neo, how do you think that impacts the take rate insofar as it relates to Promoted Gigs or Seller Plus? And then, in terms of volatility on the revenue side, can you help us understand, you are a global company. And so, is demand across the globe kind of volatile, or is it in specific areas? And similarly on the seller side, is the supply affected across the globe, or is it just in specific areas? Thank you.

Micha Kaufman, CEO

Thank you. Good morning. To address your question about the take rate, it is sustainable, as we have demonstrated consistently each quarter without exception. There's still potential for growth. Promoted Gigs and Seller Plus are both programs that continue to expand each quarter. I'm not certain about the connection to Neo, but we don’t anticipate these programs shrinking or being affected by new technologies. We can also integrate Promoted Gigs and similar solutions into our new products. Regarding the second question about revenue volatility, being a global company, we've observed that certain regions experience volatility due to wartime activities. We've seen this in Ukraine and are now seeing it in the Middle East, where the situation can fluctuate over short or longer periods. We've noted that most of this volatility has diminished. However, because wars are inherently unpredictable, it’s challenging to forecast how things might develop, which is why we're exercising caution in our outlook.

Kunal Madhukar, Analyst

Thank you.

Operator, Operator

Thank you. One moment for our next question. Our next question comes from the line of Andrew Boone from JMP Securities.

Andrew Boone, Analyst

Good morning, guys. I'd also just like to echo my thoughts about thinking about you all. On take rates, I understood that that's a trailing 12-month metric, and it stepped up almost 1 point in the last two quarters. So, is there anything that you guys can disclose in terms of the take rate as it's at in 3Q '23? Meaning, did we have a significant step-up and we're plateauing from here, but we'll see it in the figures as that trailing 12-months catches up to 3Q, or how do we think about just the increase over the last couple quarters, and then how do we play that going forward?

Ofer Katz, President and CFO

So, Andrew, this is Ofer. I believe we discussed this in the prepared remarks; the take rate is influenced by Promoted Gigs and Seller Plus, which are the two programs we have been expanding for several quarters now. Micha mentioned earlier that Seller Plus has over 25,000 subscribers, more than double the number we had at the end of last year. The retention for both programs is quite strong. For Seller Plus, we currently have two different deals with varying offerings and pricing. Our strategy for both Seller Plus and Promoted Gigs is to continue expanding, as there is potential for growth. We have recently launched Promoted Gigs on mobile, providing us with additional opportunities to monetize and helping sellers maximize their skills and time. This is why we are seeing a steady increase in both adoption and retention, and we plan to continue this expansion over the next few quarters.

Andrew Boone, Analyst

Thank you for that. I wanted to inquire about brand marketing specifically. With the launch of your new U.S. campaign, how should we view brand marketing as part of sales marketing? Additionally, how has it been affected by the challenging macro environment? Thank you very much.

Micha Kaufman, CEO

Thank you. So, we, for many reasons, mostly competitive. We're not providing an accurate breakdown between brand and performance marketing. However, as evidence in what we're doing around the world, not just in the U.S., this is an area where we're definitely continuing to invest. It's a long-term investment, and one that goes hand-in-hand with performance. So, to us, it's really the funnel that supports the brand and the brand supports the performance. And this is why depending on new categories that we enter, new areas of interest for us, trends in the market that define how we break down between brand and performance. I hope this gives a little bit of color.

Andrew Boone, Analyst

That was great. Thank you.

Operator, Operator

Thank you. One moment for our next question. Our next question comes from the line of Marvin Fong from BTIG.

Marvin Fong, Analyst

Good morning. Thank you for taking my questions and I hope everyone on the Fiverr team is doing well. I wanted to ask about the significant increase in the take rate this quarter, as Andrew noted, over the trailing 12 months. How much of this do you think might be attributed to the current economic challenges? Are freelancers perhaps more focused on investing in their businesses? Have we noticed any indicators, such as increased bidding prices for Promoted Gigs, related to this? Any thoughts on the potential cyclicality of value-added services would be interesting.

Micha Kaufman, CEO

Sure. 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, Analyst

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, CEO

Sure. So, I did address this also in how we think about next year, and the fact that AI 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, Analyst

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, CEO

Yeah, well...

Operator, Operator

Thank you. One moment for our next question. Our final question comes from the line of Rohit Kulkarni from ROTH MKM.

Rohit Kulkarni, Analyst

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 subscriptions? 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, CEO

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, Analyst

Okay, thank you. Good answers.

Operator, Operator

I would now like to turn the conference back over to management for closing remarks.

Micha Kaufman, CEO

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, Operator

This concludes today's conference call. Thank you for participating. You may now disconnect.