Freelancer Ltd. · ASX:FLN
Freelancer — Non-Deal Roadshow (May 2015)
75 slides from Freelancer's roadshow presentation, May 18, 2015
Slide 1: US Investor Roadshow
For personal use only May 2015 Freelancer Limited US Investor Roadshow 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 (15 May 2015) A$1.03 Market capitalisation (14 May 2015) A$458m Placement price (27 April 2015) A$1.00 Share Price Chart $1.20 $1.10 $1.00 $0.90 $0.80 $0.70 $0.6
Slide 3: Projects & Contests Posted
For personal use only 7,673,567 15,467,379 US$2,337,889,000 Projects & Contests Posted Projects & Contests Posted Projects & Contests Posted 3
Slide 4: For personal use only
MicioTrip Needs You! EVV UNSALNEO By ysfworks uss77 Android Application For Dating ‘ Design a Logo, business card, By lubus USS$384 and letter head design for TWO By mahsanamavar uUss100 Dishoom Board Game By nitexbiue US$100 Design a Conference T-shirt jentinminai7 US$77 Design a Logo for 901Drones
Slide 5: 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 6: World's largest freelancing and crowdsourcing marketplace
For personal use only Freelancer is the world’s largest freelancing and crowdsourcing marketplace by total number of users and number of projects posted. 6
Slide 7: Helping small businesses turn ideas into reality
For personal use only We help small businesses, startups and entrepreneurs turn that spark of an idea into reality. Industrial design of a 7 water kettle for $240
Slide 8: Changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportunity and income. 8
Slide 9: Marketplace growth
Marketplace growth Exceptional growth in registered users, projects and contests posted For personal use only 14,000,000 Total registered users1 Total projects & contests posted1 13,000,000 6,000,000 12,000,000 Freelancer.com population overtakes Belgium 11,000,000 5,000,000 10,000,000 As at 31 Dece
Slide 10: Global regional websites, currencies and languages
Global, and growing 40 regional websites Our 24×7×365 multilingual support team For personal use only 19 supported currencies 32 supported languages USD HKD MXN PHP Afrikaans Español 日本語 ру́сский язы́ AUD INR SEK PLN বাাংলা Suomi 한국어 Shqip CAD CLP JPY SGD Català Filipino Bahasa Malaysia Svenska EUR
Slide 11: Key financial highlights FY14
Key financial highlights FY14 Freelancer delivers another record full year result For personal use only A$m, 31 Dec FYE FY13 FY14 Change % Net Revenue $18.8m $26.1m 39% Gross Payment Volume1 $84.4m $103.7m 23% Take rate4 (%) 22.2% 25.1% 13% Gross margin (%) 87.6% 87.1% ~ Operating EBITDA2 $1.2m $(2.
Slide 12: Industry Drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS
Slide 13: The other 60% of the world about to join the Internet
For personal use only The other 60% of the world’s population are about to join the Internet. 13
Slide 14: The other four billion are connecting
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 15: 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 $10 a day or less ● The first thing they are looking to do online is raise
Slide 16: For personal use only
~W freelancer maraz2013 US$ 10 per hour Logo Design, Website Design, Graphics Design, Banner Design, Character Design We my profi Feet ane Se | 49/5 | | 5910 | My name is Maraz and I'm full time graphic designer. | act as a freelancer offering the highest of quality in creative and effective design
Slide 17: 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 18: The world is repeating itself years later
The world is repeating itself 20 years later For personal use only 18
Slide 19: Company Overview
For personal use only Freelancer Limited COMPANY OVERVIEW
Slide 20: Marketplace dynamics
Marketplace dynamics “Every job, every country, every language, every currency, at any time” For personal use only Top country sources for project & contests in FY141 ● c.750 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, 23% United States Manufacturing, Mechanical Enginee
Slide 21: 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 linesblue indicate lines where ind
Slide 22: Freelancer's Online Economy in 2014
Freelancer’s Online Economy in 2014 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. 22 Thicker lines indicate a higher volume of work. Whit
Slide 23: 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 24: Beautiful Product
For personal use only Freelancer Limited BEAUTIFUL PRODUCT
Slide 25: Beautiful product
25 For personal use only Beautiful product
Slide 26: For personal use only
Paper Towel design and render Ey Blucero iPhone App Design By stniavia uss250 Houses in Uruguay By arhivan uss500 Tribal Pit Bull Dog By crayonserayola Logo and Website design By uniquectick Us$300 Proposal booklet design By Olywebart Us$193 Ze Wurst Food Truck Logo By marissagillies US$50 3D Archit
Slide 27: Sliding Puzzle App Design for $55
Sliding Puzzle App Design for $55 For personal use only 27 Source: https://www.freelancer.com/jobs/Graphic-Design-Photoshop/Design-App-Mockup.6453239/
Slide 28: Design of a Fader for 3D Printing for $64
Design of a Fader for 3D Printing for $64 For personal use only 28 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/
Slide 29: Logo for a Fast Food Takeaway Shop for $175
Logo for a Fast Food Takeaway Shop for $175 For personal use only 29 Source: https://www.freelancer.com/contest/Design-a-Logo-for-fast-food-takeaway-shop-139166.html
Slide 30: Ambient 3D Modelling of a Wardrobe for $90
Ambient 3D Modelling of a Wardrobe for $90 For personal use only 30 Source: https://www.freelancer.com/contest/Ambient-in-d-modeling-with-our-product-wardrobe-122619.html
Slide 31: 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 31
Slide 32: Industrial Design of a Water Kettle for $240
Industrial Design of a Water Kettle for $240 For personal use only 32
Slide 33: 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 33
Slide 34: Design of an Optical Store for $10 USD
Design of an Optical Store for $10 USD For personal use only 34 Source: https://www.freelancer.com/contest/118908.html. Prize ₹600.
Slide 35: Mobile
MOBILE elancer” fre > / y Ajuo esn feuosied JOS
Slide 36: Mobile app features
36 Find jobs that match your skills or just filter them by categories, latest and more. 9% 4 & 1230 Design, Media & Architecture Engineering & Science Don't wait until you get to your desk, get work anywhere, anytime. ‘Amy Lockhart © eH HI 4.5 (35: $1,150 USD in 15 days Paul Lestat $1,230 USD ia 12
Slide 37: Crowdsource your job with Freelancer Contests
For personal use only Crowdsource your job with Freelancer Contests Over 82,000 Contests posted in 2014. An amazing 100% year on year growth! 37
Slide 38: Contests launched, entries and prizes won
For personal use only 154,000+ 4.8 million US $10.5 million CONTESTS LAUNCHED CONTEST ENTRIES WON BY FREELANCERS 38
Slide 39: Financial Results
For personal use only Freelancer Limited FINANCIAL RESULTS
Slide 40: Key financial highlights FY14
Key financial highlights FY14 Freelancer delivered another record full year result For personal use only ● Record Net Revenue of $26.1m for FY14 (up 39% on pcp) ● Gross Payment Volume (GPV)1 grew strongly to $103.7m (up 23% on pcp) ● Gross margins of 87.1% in line with prior year (FY13: 87.6%) ● Con
Slide 41: Revenue growth
Revenue growth Record FY14 net revenue of $26.1m, up +39% on prior corresponding period For personal use only Net Revenue (A$m) and Gross Margin (%) 160. 0% 26.1 25.0 ● Record net revenue of $26.1m in FY14, Net Revenue 140. 0% up +39% on FY13 +39% Gross margin 120. 0% ● Consistently high gross margi
Slide 42: Gross payment volume
Gross payment volume Annual Gross Payment Volume1 (GPV) exceeding $100 million with continued improvement in take rate2 in FY14 For personal use only Gross Payment Volume1 (A$m) and Take Rate2 (%) 103.7 35.0% 100. 0 ● GPV of $103.7m in FY14, up +23% on pcp +23% ● Continued take rate improvement to 2
Slide 43: Key operational highlights FY14
Key operational highlights FY14 Expanded international footprint and increased its investment in talent to position for growth in FY14 For personal use only FTEs 31 Dec 2013 31 Dec 2014 Change % Sydney 80 100 25% Manila 217 280 29% London 0 3 - Vancouver 0 7 - Total 297 390 31% ● Sydney headquarters
Slide 44: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) FY13 FY14 Change 31 Dec y/e Actual Actual (%) Net Revenue 18.8 26.1 39% ● Continued strong revenue and gross profit grow
Slide 45: Summary balance sheet
Summary balance sheet Strong balance sheet For personal use only (A$m) FY13 FY14 Change 31 Dec y/e Actual Actual (%) Cash and cash equivalents 24.4 20.2 (17%) ● Total cash at period end of $20.2m, no net debt Trade and other receivables 2.3 2.9 26% Other current assets 0.4 1.1 187% ● Trade and other
Slide 46: Delivered another exceptional quarter in Q1 2015
Delivered another exceptional quarter in Q1 2015 Cash flow statement for quarter ending March 31 2014 For personal use only ● Record cash receipts of $8.0 million – Up 8% on Q4 2014 and up 42% on prior corresponding period ● Positive operating cash flow of $1 million ● Cash balance of $22.1 million
Slide 47: FY15 outlook
FY15 outlook Exceptional growth is expected to continue For personal use only • Freelancer continues to demonstrate exceptional growth, with record net revenue, registered users and posted “160 million jobs, projects for the 2014 full financial year. or about 11% of the projected 1.46 • We expect th
Slide 48: Acquisition of Escrow.com
For personal use only Freelancer Limited ACQUISITION OF ESCROW.COM
Slide 49: For personal use only
49 your ideas into 15,298,859 Freelancer.com #1 in Online Services Marketplaces Over USS$2.2 Billion in projects posted Escrow.com #1 in Secure Online Payments Over USS2.2 Billion in secured transactions
Slide 50: Transaction highlights
Transaction highlights An attractive strategic acquisition consistent with Freelancer’s growth strategy For personal use only Transaction • Freelancer has executed a definitive agreement to acquire Escrow.com from a private vendor Details • US$7.5 million cash acquisition price • Funded by a capital
Slide 51: Overview of Escrow.com
Overview of Escrow.com A business with 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 Re
Slide 52: DRAFT
52 For personal use only DRAFT
Slide 53: Escrow.com is used to secure a wide range of transaction types
For personal use only 53 Escrow.com is used to secure a wide range of transactions types TOT a U Ey P om Domains Antiques Computer Equipment Jewelry Motorcycles a Fe 6 A =) ch fe Consultants Boats Classic Cars Contractors Refurbished Equipment (a) &d A Websites Heavy Equipment IT Services Copyrights
Slide 54: Notable Partners
54 Notable Partners Escrow.com has become the recommended transaction settlement service of many of the top names in eCommerce ebay FedEx. > Autotrader Ebay Inc. FedEx.com Cars.com GoDaddy Auto Trader . . AMERICAN ° * @\ CAMPING WORLD D Flippa p TT > | ic KE:. Reverb Sa Helo to a Whole New Word Flip
Slide 55: eBay recommends Escrow.com
55 ef AY pele He Search... All Categories Home > Help Topics > Payment & shipping > Paying foritems > Using escrow services Help Browse help Search the Help pages (Does not search for items or products) _EX2™Pple: ‘payment methods Searching & researching Bidding & buying Using escrow services for eB
Slide 56: 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 57: All major global marketplaces have captive payments businesses
All major global marketplaces have captive payments businesses A strong cornerstone for entering the payments space amazon.com ebay ED dlibaba com amazonpayments P PayPal Ose SHE YY freelancer + (© Escrow.com
Slide 58: Recent Developments
For personal use only Freelancer Limited RECENT DEVELOPMENTS
Slide 59: Good help is just around the corner
FOr personal use only 59 g freelancer Good help is just around the corner The world's best marketplace for online jobs is now the world’s best marketplace for local jobs.
Slide 60: Post a job, get offers, pick the best
‘W freelancer From carpentry to collecting your laundry. No job is too big or too small. eco Micha 2 on ( Natalie B Diegom . J thhhe $50 nee? @) dames w - —=X<__E______=r esse 1. Post a job 2. Get offers 3. Pick the best Tell us what you need done and Award the job to your favourite bidder, Review t
Slide 61: Hire plumbers, cleaners and other local workers on demand
FOr personal use only 61 freelancer You can now hire plumbers, cleaners and other local workers on demand. Collect my laundry from the laundromat
Slide 62: Introducing Freelancer Showcase
FOimpersonal-use only Introducing Freelancer Showcase Inspiration to turn your dreams into reality W ireelancer
Slide 63: Freelancer Showcase
Foigpersonal. use only 63 Freelancer Showcase is an exciting new place for anyone to exhibit their work and get hired. Wrireetancer
Slide 64: Now available on desktop and Android
For personal use only 64 Now available on desktop and Android, with an iOS version coming very soon. Wrireetancer
Slide 65: Acquisitions FY14
Acquisitions FY14 Freelancer continues to consolidate the industry For personal use only The world’s largest Internet marketing marketplace & community since 1997. 900,000 Internet marketing professionals. Australia’s leading startup Largest pure play freelance Virtual content marketplace. conferenc
Slide 66: Winner of Four Webby Awards for 2015
66 For personal use only si Winner of Four Webby Awards for 2015 Best Employment Website People’s Voice Award - Employment Best Professional Services Website People’s Voice Award - Professional Services
Slide 67: Exceptional Community
For personal use only Freelancer Limited EXCEPTIONAL COMMUNITY
Slide 68: Bangladesh
For personal use only Bangladesh
Slide 69: Bangladesh
69 For personal use only Bangladesh
Slide 70: Pakistan
70 For personal use only Pakistan
Slide 71: Nepal
71 For personal use only Nepal
Slide 72: India
72 For personal use only India
Slide 73: Bangladesh
73 For personal use only Bangladesh
Slide 74: Philippines
74 For personal use only Philippines
Slide 75: 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