Fiverr Pivots to AI-Driven Model Due to Decline in Traditional Search Traffic

Freelance platform Fiverr is transforming its digital architecture into an AI-centric structure to adapt to fundamental shifts in internet search habits. Company CEO Micha Kaufman stated that the internet as we have known it for the last 20 years is changing as AI assistants replace traditional search engines.

Fiverr aims to enable users to access services directly through AI rather than search engines by establishing direct integrations with AI platforms such as ChatGPT and Claude. As part of this strategy, the company launched its AI-powered hiring tool, Mira, and announced that the volume of first-time buyers coming through AI channels increased by 64 percent compared to the previous quarter.

Company management notes that customers are shifting away from low-cost, simple tasks toward complex corporate projects. Projects valued at $1,000 and above account for 16 percent of the total value of completed orders. Fiverr, which generated $90.9 million in revenue in the third quarter, managed to exceed market expectations.

Assessment: While the company's core marketplace revenue fell 24.7 percent year-over-year to $55.4 million, the number of active buyers also decreased by 25.8 percent to 2.4 million. However, the average spend per buyer increased by 12.9 percent to $373, indicating that the platform is evolving into a structure focused on fewer but higher-budget transactions.