Slide 1: Half Year Results Presentation 2015
For personal use only 30 July 2015 Freelancer Limited Half Year Results Presentation 2015 Matt Barrie Executive Chairman, Chief Executive Officer
Slide 2: Key market statistics
Freelancer Limited (ASX: FLN) For personal use only Key market statistics ASX code FLN Listing price (15 November 2013) A$0.50 Share price (29 July 2015) A$1.32 Market capitalisation (29 July 2015) A$592 million Share Price Chart (2015 YTD) $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50
Slide 3: Projects, registered users and posted value
For personal use only 8,168,489 16,181,611 $2,558,748,000 USD Projects & Contests Posted Registered Users All time Projects & Contests Posted Value 3
Slide 4: Examples of projects and contests posted
HIGH FASHION LUXURY COMB =) Slucon Design a Wireless Music Headset Z DESIGN l@ I needa Flying lizard CGI . Develop options for a Corporate =m i) BG Bd P| BZ S| . Identity for an Architectural firm. : (9 3D House Render oe) Design for Children Role-Play Tent Goo) Fish and Chip Shop Design an App Mock
Slide 5: Financial Results
For personal use only Freelancer Limited FINANCIAL RESULTS
Slide 6: Continued exceptional marketplace growth (demand)
Continued exceptional marketplace growth (demand) Exceptional growth in registered users, and significant acceleration of growth in projects and contests posted For personal use only 14,000,000 Total registered users1 Total projects & contests posted1 13,000,000 6,000,000 12,000,000 As at 30 June 20
Slide 7: Financial highlights 1H15
Financial highlights 1H15 Freelancer delivers another record result with accelerating revenue growth, GPV and positive operating cashflow For personal use only ● Record Net Revenue of $16.8m in 1H15 (up 41% on pcp) – Acceleration from FY14 growth of 39% year on year ● Record Gross Payment Volume1 in
Slide 8: Revenue growth
Revenue growth Record 1H15 net revenue of $16.8m, up 41% on prior corresponding period For personal use only 16.8 Net Revenue (A$m) and Gross Margin (%) ● Record 1H15 Net Revenue of $16.8m, up +41% +41% on 1H14 16.0 100% 87% 87% 88% 88% 88% ● Acceleration from +39% FY14 year on year 14.0 83% 11.9 80
Slide 9: Gross payment volume
Gross payment volume Record Gross Payment Volume1 (GPV) of $64.1m (up 30% on pcp) and continued improvement in take rate2 in 1H 2015 For personal use only Gross Payment Volume1 (A$m) and Take Rate2 (%) 64.1 +30% 30.0% ● Record GPV of $64.1m up 30% on 1H14 26.2% 60.0 24.0% – Acceleration from +23% FY
Slide 10: Marketplace highlights 1H15
Marketplace highlights 1H15 Freelancer continues to hit record milestones For personal use only ● Passed key milestones of 16 million users and 8 million projects posted – added 1.8 million users in 1H15 ● Passed US$2.5 billion of all time posted project value ● Significant acceleration in the growt
Slide 11: Operational highlights 1H15
Operational highlights 1H15 Acquisition of a strong cornerstone for entering the payments space, and development of key products ● Acquisition of Escrow.com For personal use only – the leading provider of secure online payments on the Internet – 2014 gross payment volume of US$265 million, net reven
Slide 12: Operational highlights 1H15
Operational highlights 1H15 Successful capital raising priced at a premium, bolt-on acquisitions and key new hires ● Placement For personal use only – $10 million placement of new ordinary shares completed in April – priced at a premium to the last traded price ● Smaller bolt-on acquisitions of DoNa
Slide 13: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) 1H 2014 1H 2015 Change Half-year to 30 Jun Actual Actual (%) ● Record 1H15 net revenue of $16.8m – up 41% on 1H14 Net Re
Slide 14: Summary balance sheet
Summary balance sheet Strong balance sheet and no net debt For personal use only (A$m) 1H 2014 1H 2015 Change ● Total cash at period end of $31.1m Half-year to 30 Jun Actual Actual (%) – no net debt Cash and cash equivalents 19.7 31.1 58.1 Trade and other receivables 2.5 3.8 50.8 ● $10 million of ca
Slide 15: Outlook statement
Outlook statement Exceptional growth is expected to continue. Escrow.com in 2H15 expected to be an inflection point for the business. For personal use only • Freelancer continues its exceptional growth, with record net revenue, registered users and posted projects • We expect that this exceptional g
Slide 16: Operational Update
For personal use only Freelancer Limited OPERATIONAL UPDATE
Slide 17: Outstanding growth in marketplace liquidity (supply)
Outstanding growth in marketplace liquidity (supply) Number of bids on projects Number of entries in contests For personal use only Actual completed projects Actual contest entries 17
Slide 18: Global, and growing
Global, and growing For personal use only 18
Slide 19: NASA partners with Freelancer
NASA partners with Freelancer For personal use only Crowdsourcing solutions to complex problems faced by the astronauts on the International Space Station
Slide 20: NASA partners with Freelancer
3D model of flashlight for NASA: $50 To be used by robotic astronaut on the NASA partners with Freelancer For personal use only International Space Station Crowdsourcing solutions to complex problems faced by the astronauts on the International Space Station
Slide 21: Continued developments in Mobile
Continued developments in Mobile For personal use only Beautiful apps across Android and iOS Freelancer & Showcase apps 21
Slide 22: Launch of Local Jobs
[Single slide on local jobs] Launch of Local Jobs For personal use only Expands total addressable market to several hundred billion dollars per annum 22
Slide 23: Launch of Freelancer Showcase
[Single slide on showcase] Launch of Freelancer Showcase For personal use only A place for freelancers to exhibit their work and get hired, and for employers to browse and be inspired 23
Slide 24: Launch of Video Chat
Launch of Video Chat For personal use only Helping entrepreneurs connect and collaborate with freelancers worldwide
Slide 25: Acquisition of Escrow.com
For personal use only Freelancer Limited ACQUISITION OF ESCROW.COM
Slide 26: Escrow.com
Escrow.com The leading provider of secure online payments for consumers and businesses on the Internet For personal use only Escrow.com • Escrow.com is the leading provider of secure online payments and online transaction management for consumers and businesses on the Internet • 2014 gross payment v
Slide 27: Escrow.com revenue growth and revenue mix
Escrow.com A track record of revenue growth and a diversified revenue base For personal use only ● Provides online escrow services that facilitate and accelerate e-commerce by assuring secure settlement ● Escrow.com is the world’s #1 company for secure online payments Revenue Growth from 2010-2014 (
Slide 28: DRAFT
28 For personal use only DRAFT
Slide 29: Escrow.com is used to secure a wide range of transaction types
For personal use only 29 Escrow.com is used to secure a wide range of transactions types a Uv Lz P OM Domains Antiques Computer Equipment Jewelry Motorcycles a Ed 6 A =) dh GE Consultants Boats Classic Cars Contractors Refurbished Equipment Ce &d A Websites Heavy Equipment IT Services Copyrights Ele
Slide 30: Notable Partners
30 Notable Partners Escrow.com has become the recommended transaction settlement service of many of the top names in eCommerce ebay FedEx. Keron Z Autotrader Ebay Inc. FedEx.com Cars.com GoDaddy Auto Trader . . AMERICAN . , @, CAMPING WORLD © Flippa p i VTH KE. Reverb Say Helo toa Whole New Word Fli
Slide 31: eBay help page recommending Escrow.com
31 ex ay le Search... All Categories Home > Help Topics > Payment & shipping > Paying for items > Using escrow services Help Browse help Search the Help pages (Does not search for items or products) “*°""P!®* Payment methods! > Searching & researching > Bidding & buying Using escrow services for eBa
Slide 32: U.S. Commercial Service
U.S. Commercial Service Escrow.com is a strategic partner with U.S. Commercial Service (USCS) in support of President Obama's National Export Initiative designed to significantly grow US export volume. The USCS Strategic Partnership Program is an innovative public-private partnership that communicat
Slide 33: Company Overview
For personal use only Freelancer Limited COMPANY OVERVIEW
Slide 34: Freelancer.com is changing the global dynamics in the marketplace for people
For personal use only Freelancer.com is changing the global dynamics in the marketplace for people 34
Slide 35: 160 million jobs could be carried out remotely
For personal use only “160 million jobs, or about 11% of the projected 1.46 billion services jobs worldwide, could in theory be carried out remotely, barring any constraints in supply” * * McKinsey Global Institute, The Emerging Global Labor Market, Part I: The Demand for Offshore Talent in Services
Slide 36: We help small businesses, startups and entrepreneurs
For personal use only We help small businesses, startups and entrepreneurs turn that spark of an idea into reality. Industrial design of a 36 water kettle for $240
Slide 37: We are changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportunity and income. 37
Slide 38: Freelancer's Online Economy in 2013
Freelancer’s Online Economy in 2013 For personal use only Note: Sample of projects awarded. awarded in The 2013. pinkThe linespink indicate lines indicate where projects where projects are beingare posted beingby posted employers, by employers, and the blue and the lines blue indicate lines indicate
Slide 39: Freelancer's Online Economy in 2014
Freelancer’s Online Economy in 2014 For personal use only Note: Sample of projects awarded. awarded in The 2013. pinkThe linespink indicate lines indicate where projects where projects are beingare posted beingby posted employers, by employers, and the blue and the lines blue indicate lines indicate
Slide 40: Freelancer's Online Economy in 2015
Freelancer’s Online Economy in 2015 For personal use only Note: Sample of projects awarded. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by freelancers. 40 Thicker lines indicate a higher volume of work. Whit
Slide 41: Marketplace dynamics
Marketplace dynamics “Every job, every country, every language, every currency, at any time” For personal use only Top country sources for completed projects in 1H151 ● c.850 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, 29% United States Manufacturing, Mechanical Enginee
Slide 42: Revenue model
Revenue model Freelancer’s revenue is generated from users posting jobs – as a project (outsourcing) or a contest (crowdsourcing) For personal use only ● For employers it’s free to post a project, free to review bids, free to talk and review samples – 0-3% project commissions paid by employers when
Slide 43: Industry Drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS
Slide 44: The other 60% of the world's population are about to join the Internet
For personal use only The other 60% of the world’s population are about to join the Internet. 44
Slide 45: It's 2015
It’s 2015 The other four billion are connecting at a tremendous pace For personal use only ● World population1: 7,144,000,000 Internet Users by Development Level 2005-2014E Number on the Internet2: 3,035,749,340 (42.3%) Worldwide Internet Growth 2000-142 North America Oceania / Australia Europe The
Slide 46: Developing world self-educating to raise socio-economic status
Developing world self-educating to raise socio-economic status The wealth of human knowledge is available online For personal use only 86% of users of top 10 US sites are already foreign1 ● The other 4 billion people live on $10 a day or less ● The first thing they are looking to do online is raise
Slide 47: Example freelancer profile
W freelancer maraz2013 USS 10 per hour Logo Design, Website Design, Graphics Design, Banner Design, Character Design We T fi ila sie saameaiieas | 4975 | | 59/10 | My name is Maraz and I'm full time graphic designer. | act as a freelancer offering the ; highest of quality in creative and effective d
Slide 48: Software is eating the world
Software is eating the world “We are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy”1 For personal use only ● Every industry is being disrupted rapidly, and becoming Advertising dominated by soft
Slide 49: The world is repeating itself years later
The world is repeating itself 20 years later For personal use only 49
Slide 50: Beautiful Product
For personal use only Freelancer Limited BEAUTIFUL PRODUCT
Slide 51: Beautiful product
51 For personal use only Beautiful product
Slide 52: For personal use only
é e Ste ee Yggdrasil full color tattoo Ineed some Graphic Design for chosing color for studio design Create a packaging design and label for fruit company Design a Website Mockup for a . $0 stylish bespoke fashion brand - Ne Architectural design and 3d renders vc $500 of Hotels and Shopping Center D
Slide 53: Sliding Puzzle App Design for $40
Sliding Puzzle App Design for $40 For personal use only 53
Slide 54: Website for Fresh Futures for $200
Website for Fresh Futures for $200 For personal use only 54
Slide 55: Design of a Travel Pouch for $166
Design of a Travel Pouch for $166 For personal use only 55 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/
Slide 56: Logo design for a clothing chain for $50
Logo design for a clothing chain for $50 For personal use only 56
Slide 57: Ambient 3D Modelling of a Wardrobe for $90
Ambient 3D Modelling of a Wardrobe for $90 For personal use only 57 Source: https://www.freelancer.com/contest/Ambient-in-d-modeling-with-our-product-wardrobe-122619.html
Slide 58: apricotseeds.co.nz website
apricotseeds.co.nz website For personal use only Source: https://www.freelancer.com/contest/Graphic-Design-Redesign-FRONT-PAGE-Only-apricotseedsconz-website-13937.html 58
Slide 59: Design a contemporary (Bauhaus style) home for $215
Design a contemporary (Bauhaus style) home for $215 For personal use only 59 Source: https://www.freelancer.com/contest/Design-a-contemporary-house-Bauhaus-style-223900.html
Slide 60: Floor plans & rendering for $215
Floor plans & rendering for $215 For personal use only 60
Slide 61: Industrial Design of a Water Kettle for $240
Industrial Design of a Water Kettle for $240 For personal use only 61
Slide 62: apricotseeds.co.nz website
apricotseeds.co.nz website For personal use only Source: https://www.freelancer.com/contest/Graphic-Design-Redesign-FRONT-PAGE-Only-apricotseedsconz-website-13937.html 62
Slide 63: 3D Model of a Handrail for an EVA Spacewalk for NASA for $50
3D Model of a Handrail for an EVA Spacewalk for NASA for $50 For personal use only 63
Slide 64: For personal use only
For personal use only
Slide 65: Robonaut delivered to ISS
For personal use only Robonaut 2 delivered February 2011 to ISS. Pictured here with Zero-G leg upgrade which will climb using external handrails.
Slide 66: For personal use only
For personal use only
Slide 67: How Big Is the Market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET?
Slide 68: Estimated demand for Web Design services alone
Estimated demand for Web Design services alone Freelancer’s global web design revenue opportunity estimated as $2.7 billion per annum ($10.5b GPV) For personal use only ● Freelancer’s estimated global web design revenue opportunity at c.$2.7 billion ($10.5b GPV) ● This is as a replacement of existin
Slide 69: Estimated demand from Small Businesses
Estimated demand from Small Businesses Global small business revenue opportunity estimated as $31.9 billion per annum (571 million projects, $122 billion GPV) For personal use only ● There are about 28 million small businesses in the US 420-510 million – 22 million of these are informal non-employer
Slide 70: Estimated demand from Consumers
Estimated demand from Consumers Engaged active users on major product marketplaces are low hanging fruit for online services. Major product marketplaces as a proxy of consumer demand indicates TAM of c.$40 billion (700 million projects, $155 billion GPV) For personal use only GPV of Taking c.$155 bi
Slide 71: Estimated supply of professional labour in the developing world
Estimated supply of professional labour in the developing world 370 million people, or 10% of the 3.7 billion working age population in the developing world have a tertiary qualification ● 2010 global working age population: 3.7 billion, labour force: 2.9 billion1 For personal use only Educational a
Slide 72: Estimated demand from Local Jobs
Estimated demand from Local Jobs Freelancer’s expansion into 100 categories of Local Jobs expands the total addressable market by up to $800 billion For personal use only ● Online services is already a huge market, with enormous future potential – McKinsey Global Institute has estimated that “160 mi
Slide 73: Total Addressable Market
Total Addressable Market For personal use only c.A$72 billion 1.3 billion $800 billion plus Potential Net Revenue from SMBs and Potential projects / contests Potential through Local Jobs consumers 73
Slide 74: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Freelancer Limited (ACN 141 959 042) (Freelancer or the Company). The information contained in this presentation is current at the date of this presentation. The information is a summary overview of the current activities of the