Slide 1: 1HFY23 Results
1HFY23 Results 15 February 2023 ‘Gravel Bike’ art print Designed and sold by 2BROS Creative
Slide 2: 1HFY23 overview
1HFY23 overview Marketplace Revenue $289.3m Solid MPR Experimented Initiated 0% floating -5% cc result with new cost-reduction Gross Profit with MPR increasing promotional program during the second quarter, driven by activities to drive revenue to reduce the Group’s operating $101.3m strong apparel
Slide 3: Operational highlights
Operational highlights ‘Hot Stuff’ apron Designed and sold by evannave 3
Slide 4: The Group continues to be positioned to be a long-term beneficiary of macro tailwinds
The Group continues to be positioned to be a long-term beneficiary of macro tailwinds Increased Growing creator Increasing Sustainability eCommerce economy consumer demand and corporate penetration following accelerated by for unique and responsibility new concept of meaningful driving consumer pand
Slide 5: The Redbubble Group owns and operates two marketplaces of unique scale
1HFY23 Group metrics The Redbubble Group owns and operates two marketplaces of 80m 133 >4b unique scale Designs Products Product listings 0.7m 4.9m 5.8m Selling artists Customers Orders Europe and United Kingdom North America 72% 21% Gross Transaction Value Gross Transaction Value Australia and New
Slide 6: We remain focused on optimising each marketplace's flywheel
We remain focused on optimising each marketplace’s flywheel Ensuring additive Increasing the number of Enhancing content is uploaded to new customers and customer post purchase the marketplaces and turning existing experience and driving customers can ‘find the customers into repeat margin improveme
Slide 7: TeePublic delivered a strong revenue performance
TeePublic delivered a strong revenue performance, benefiting from its geographic exposure, product mix and approach to content TeePublic 1H MPR Proportion of Opportunities for future growth since acquisition1 TeePublic’s GTV ($m, 1HFY19 - 1HFY23) (1HFY23) Increase customer retention through improvem
Slide 8: The Redbubble marketplace is addressing the increase in non-additive content
The Redbubble marketplace is addressing the increase in non-additive content to improve customer and artist experience New content uploads (CY20 - CY22) Immediate actions have already had an impact 12 Surge in non-value adding content on Redbubble, Content uploads are down 35% from negatively impact
Slide 9: The Redbubble marketplace is uniquely placed to benefit from advancements in AI
The Redbubble marketplace is uniquely placed to benefit from advancements in AI, which may revolutionize search and discovery of the marketplace’s four billion product listings Redbubble marketplace’s search results Image Text Image for ‘spring and sunset’ using AI to Text to Image to Image Spring a
Slide 10: Proportion of MPR from repeat purchases at record first-half high
Proportion of MPR from repeat purchases at record first-half high, improvements in search and discover will help grow new customer acquisition Unique customers MPR by customer segment and proportion (m, 1HFY19 - 1HFY23) from repeat purchases1 ($m, %, 1HFY19 – 1HFY23) Unique customers on TeePublic 6.
Slide 11: Netflix fan-art licensing agreement assisting to reactivate existing customers
Netflix fan-art licensing agreement assisting to reactivate existing customers 16 popular shows 32% higher authorized for sale by artists average order on Redbubble value 62% >20,000 existing designs customers 11
Slide 12: Expanding successful initiatives across marketplaces to improve customer experience
Expanding successful initiatives across marketplaces to improve customer experience Strike-through pricing Proportion of customers purchasing above free shipping threshold (March 2022 – October 2022) Free Shipping Offered US Free Shipping Offered UK Showcasing deep discounts drives higher conversion
Slide 13: Improving customers post-purchase experience to encourage repeat business
Improving customers post-purchase experience to encourage repeat business Redbubble marketplace defect rate1 Number of units shipped within 2 days1 22% YoY (1HFY22 vs 1HFY23) Redbubble TeePublic Calendar days from paid to shipped 26% 6% YoY YoY Extending average standard last order by date Down 8% i
Slide 14: Senior leaders with experience gained at leading global marketplaces recruited
Senior leaders with experience gained at leading global marketplaces recruited to complement existing team Senior leaders hired since March 2021 Nicole Brolan Meahan Callaghan Rob Doyle Thilo Kaipert Vivek Kumar Chief Product Officer Chief People and Culture Officer CFO (from March 2023) VP, Artist
Slide 15: Financial results
https://www.redbubble.com/i/hat/Le o-Zodiac-Teacup-by- heysoleilart/58349849.XAK6W#&gi d=1&pid=2 Financial results ‘Jolly Corgis In Blue’ pet bowl Designed and sold by Colordrilos 15
Slide 16: 2QFY23 and 1HFY23 Profit and Loss
2QFY23 and 1HFY23 Profit and Loss YOY YOY 2Q 2Q FY23 1H 1H FY23 P&L ($million) v 2Q FY22 v 1H FY22 FY22 FY23 Growth FY22 FY23 Growth Total Revenue 214.9 222.6 4% 341.6 343.8 1% MPR momentum improved over the Less: Artist Revenue (32.7) (34.2) 5% (53.5) (54.5) 2% half, leading to MPR growth of 3% in
Slide 17: Double-digit growth in largest product category
Double-digit growth in largest product category 1HFY22-23 Gross Transaction Value by Product Category Category Total business change (millions, 1HFY19 - 1HFY23) $443 Accessories 7% (36%) Benefit of mask sales $381 $91 $378 during COVID-19 $40 $25 pandemic now fully $32 Artwork 9% (18%) $45 $39 cycle
Slide 18: Continued growth in our largest market
Continued growth in our largest market 1HFY23- 1H FY22 Gross Transaction Value by Region Region Total business change (millions, 1HFY19 - 1HFY23) $443 ROW 0% (19%) $26 $381 $378 $49 $27 $23 AU/NZ 6% (14%) $63 $39 $33 $48 $51 $233 UK 9% (16%) $13 $182 $24 $12 $34 $22 $302 $28 $262 $272 EU 13% (5%) $1
Slide 19: Cost-reduction initiatives are substantially progressed
Cost-reduction initiatives are substantially progressed and expected to have minimal impact on near-term revenue Operating Expenditure Guidance Estimated annualised savings of $20m-$25m (millions) (millions) Benefit of cost-reduction Full benefit of initiatives anticipated to be realized from plan t
Slide 20: Focused on accelerating return to cash-flow positive
Focused on accelerating return to cash-flow positive Closing cash balance ($m, 1HFY19 - 1HFY23) Key focus on cash reserves and returning to sustainable free cash flow $143 $130 Immediate actions include cost-reduction initiatives, GPAPA optimisation and working $97 capital management $59 $65 Consist
Slide 21: Outlook
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Slide 22: The pathway to cash flow positive
The pathway to cash flow positive 1 2 3 Reduce Increase Improve operating expenditure MPR GPAPA margin Implementing cost-reduction initiatives to reduce operating expenditure by $20m - $25m on annualized basis Full benefit expected to be realized from start of FY24 Implementation underway CY23 focus
Slide 23: Our CY23 focus is to increase MPR and improve the Group's GPAPA margin
Our CY23 focus is to increase MPR and improve the Group’s GPAPA margin Build on continued Grow MPR and drive strong performance margin improvement Increase Grow Improve onsite Leverage AI US market proportion of experience to technology to share in new MPR from increase revolutionize and existing ex
Slide 24: FY23 Guidance
FY23 Guidance In January 2023, the Group revised its FY23 guidance, given the Redbubble marketplace’s performance in 2QFY23, as well as initial January trading. In this environment, we have remained focused on optimizing our price, promotional activity and paid marketing to maximize GPAPA and our GP
Slide 25: Supplementary Information
Supplementary Information ‘Memphis Party’ backpack Designed and sold by nomadunicorn
Slide 26: Bridge between Reported and Underlying Marketplace Revenue
Bridge between Reported and Underlying Marketplace Revenue Marketplace Revenue (millions, 1HFY22 to 1HFY23) $3 $289 $2 $1 $290 $288 $8 $283 1H FY22 1H FY22 1H FY22 1H FY22 1H FY23 1H FY23 1H FY23 1H FY23 Reported DDA Masks Underlying Reported DDA Masks Underlying Underlying Marketplace Revenue is on
Slide 27: Glossary
Glossary Term Definition $ All references to dollar amounts or figures are in AUD unless stated otherwise. 1H First half of the financial year AI Artificial intelligence AOV Average order value b Billion CAGR Compound annual growth rate CY Calendar year COGS Cost of goods sold Reflects the underlyin
Slide 28: Disclaimer and basis of preparation
Disclaimer and basis of preparation The financial results have been reviewed by our external auditors and are on a delivered basis (unless otherwise noted). Strategic and operational metrics are from internal management reports and have not been subject to audit. All references to dollar amounts or
Slide 29: Contact us
Back page with contact us info Contact us: Virginia Spring VP, Investor Relations +61456441147 Love virginia.spring@redbubble.com Designed and sold by Frank Moth