Shares of Fiverr International sank after the company lowered its revenue guidance for the year and said it would have to reorient itself to account for artificial intelligence's impact on freelance work.

The stock was down 16% at $9.70 in Wednesday's premarket trading. Shares are on track to open near a 52-week low.

The online marketplace for freelance services said it now expects $356 million to $372 million in revenue for the year, down from its previous projection for $380 million to $420 million.

The freelance market is changing faster than expected because of AI adoption, Chief Executive Micha Kaufman said. As a result, the company is now repositioning itself toward higher-value work, Kaufman said.

"We have adjusted our guidance to reflect these ongoing dynamics and the time required for our transformation initiatives to materialize in the financial results," Chief Financial Officer Esti Levy-Dadon said.

For the second quarter, revenue fell 10% to $97.8 million in the second quarter. That missed analyst projections for $99.7 million, according to FactSet.

The company posted a profit of $4.5 million, or 12 cents a share, compared with $3.2 million, or 9 cents a share, in the same quarter a year earlier.

Stripping out one-time items, adjusted earnings were 50 cents a share, 2 cents shy of the figure Wall Street had been expecting.