Shares of freelance marketplace Fiverr International (NYSE: FVRR) dropped on Thursday after the company reported financial results for the fourth quarter of 2023 and gave financial guidance for 2024. As of 11:30 a.m. ET, Fiverr stock was down about 9%.

In Q4, Fiverr generated revenue of $91.5 million, up 10% year over year and squarely inside of management's guidance. That's good. However, active buyers on the platform fell from 4.3 million in 2022 to just 4.1 million in 2023.

Fiverr's management tried to put a positive spin on the drop in active buyers, saying it focused marketing dollars on more high-quality users. That may well be. However, the company still spent $161 million on sales and marketing in 2023 -- 54% of its gross profit -- and lost roughly 200,000 active buyers. That's not good.

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Source Fool.com