Slide 1: FY24 Results
FY24 Results 21 August 2024
Slide 2: Our Vision
Our Vision Global leader for connecting digital creators with their customers
Slide 3: Financial highlights
Financial highlights Q4FY24 FY24 Significant uplift in Gross Profit margin (+570 bps) and GPAPA Marketplace margin (+470 bps) in FY24 $84.6m Revenue $423.1m on pcp Q4FY23: $89.9m, -6% FY23: $467.5m, -9.5% Gross profit Gross profit margin Gross margin $38.4m 45.4% Q4FY23: profit 42.9% FY23: $181.7m FY24 O
Slide 4: Delivered first phase of turnaround in FY24
Delivered first phase of turnaround in FY24 FY24 Priorities Achievements New name and organisational restructure: Provided greater insights into the performance of each marketplace Group and two operating companies and enhanced sharing of knowledge and expertise across the Group Leverage core strengt
Slide 5: FY24 marketplace highlights
FY24 marketplace highlights Delivered Prioritised profitable $241.3m Marketplace $181.8m revenue growth and margin revenue over volume FY23: $290.7m, -17% revenue FY23: $176.8m, +3% expansion Gross Gross profit margin profit margin $103.3m 42.8% Gross 43.1% $78.4m FY23: $104.9m, -2% FY23: 36.1% profit
Slide 6: Marketplace updates
Marketplace updates
Slide 7: Redbubble update
FY24 operational FY24 Redbubble update metrics financial metrics Selling artists Customer on Redbubble 575k Artist earnings 57% FY23: 569k $51.2m Pick any subject you like, and I bet you’ll be able FY23: $65.0m to find art on that subject, created in a style that appeals to you. Not only that, but you
Slide 8: Optimising the Redbubble flywheel to return to profitable revenue growth
Optimising the Redbubble flywheel to return to profitable revenue growth Artists & Fulfilment & Content Discovery Customers Service Operations Ensure we have the right Attract and Optimising margins and continued Goal content that can be discovered retain customers cost discipline Successfully controll
Slide 9: TeePublic update
FY24 FY24 TeePublic update operational metrics financial metrics Selling artists Customer on TeePublic 136k Artist earnings 43% FY23: 96k $18.7m I Love TeePublic because you offer a variety of FY23: $22.6m content that is relatable to my life. You also provide sizes for people who have a little more
Slide 10: Leverage strong foundation to expand global footprint and product offering
Leverage strong foundation to expand global footprint and product offering Artists & Fulfilment & Content Discovery Customers Service Operations Improving Artists’ Attract and Optimising our Goal Customer experience retain customers supply chain Introduce new incentives for Launch advanced account fe
Slide 11: AI is driving operational efficiencies and enhancing the user experience
AI is driving operational efficiencies and enhancing the user experience Customer Internal Acquisition Content Operations Engagement Efficiency Enhanced Campaigns Vector Search Duplicate Detection Fraud Detection AI Assistants Demand Content Knowledge Base Search Ranking Moderation Categorisation Cate
Slide 12: FY24 financial overview
FY24 financial overview
Slide 13: 4QFY24 and FY24 Group profit and loss statement
4QFY24 and FY24 Group profit and loss statement P&L (A$M) 4QFY23 4QFY24 % change FY23 FY24 % change Expected decrease in MPR due to focus on profitable revenue over volume with the rate of Total revenue 106.0 98.9 (7%) 555.1 493.0 (11%) decline moderating during the 2HFY24 MPR 89.9 84.6 (6%) 467.5 423
Slide 14: GPAPA margin expansion and significant cost savings drive increased profitability
GPAPA margin expansion and significant cost savings drive increased profitability Key drivers of GPAPA margin improvement Operating expenditure (FY23 to FY24) (FY23 to FY24) Redbubble $150 6.7% -0.8% 28.6% 30% 24% 22.7% 27% decrease decrease 20% $100 Invest in paid 10% marketing Uplift driven spend wh
Slide 15: Delivered positive underlying cash flow in FY24
Delivered positive underlying cash flow in FY24 Closing cash balance (millions, FY20- FY24) $100 Positive underlying cash flow $99 of $0.9m delivered in FY24, $47.8m turnaround on pcp $89 $75 Closing cash balance of $36.9m, up 3% on pcp $50 $58 Launch of on-market buyback in June 2024 was an important
Slide 16: Strategy and Outlook
Strategy and Outlook
Slide 17: New growth will build on the Group vision and leverage core strategic assets
New growth will build on the Group vision and leverage core strategic assets Group vision Strategic assets How strategic assets will be leveraged Leading network of creators Global leader with commercial content for connecting Provide additional revenue streams for digital creators Scaled and growin
Slide 18: Leveraging solid base of new and existing creators
Leveraging solid base of new and existing creators Selling artists profile111 (millions, FY24) Large community of active selling artists with solid base of long term contributors to marketplace $150m or >30% of MPR from long standing creators who have been on the platform since Pre-FY20 ~$50m of MPR
Slide 19: Two distinct marketplaces operating at a global scale
Two distinct marketplaces operating at a global scale Geographic Diversity (% of gross transaction value) North America North America 71% 71% Europe and United Kingdom Gross transaction value 22% North America 56% Apparel 51% 46 third-party fulfiller sites Australia and New Zealand 7% 93% 94% North A
Slide 20: FY25 priorities and guidance
FY25 priorities and guidance Build on solid foundations established in FY24 to deliver the next phase of growth. ● Extract maximum value from both marketplaces by optimising COGS and paid marketing activities ● Maintain cost discipline and maximise synergies across the Group ● Remain underlying cash
Slide 21: Supplementary information
Supplementary information
Slide 22: 4QFY24 and FY24 profit and loss statement
4QFY24 and FY24 profit and loss statement % % P&L(A$M) 4QFY23 4QFY24 % cc change FY23 FY24 % cc change change change Total revenue 106.0 98.9 (7%) (8%) 555.1 493.0 (11%) (14%) Less: artist revenue (16.2) (14.3) (12%) (13%) (87.6) (69.9) (20%) (23%) MPR 89.9 84.6 (6%) (7%) 467.5 423.1 (10%) (12%) Unde
Slide 23: Reconciliation of segment results
Reconciliation of segment results (A$M) % FY23 FY24 change Redbubble MPR 290.7 241.3 (17%) TeePublic MPR 176.8 181.8 3% Articore MPR 467.5 423.1 (10%) Redbubble gross profit 104.9 103.3 (2%) TeePublic gross profit 69.2 78.4 13% Articore gross profit 174.2 181.7 4% Redbubble GPAPA 65.9 69.0 5% TeePublic
Slide 24: Glossary
Glossary Term Definition $ All references to dollar amounts or figures are in AUD unless stated otherwise 1H/2H First or second half of the financial year 1Q/2Q/3Q/4Q First, second, third or fourth quarter of the financial year AI Artificial intelligence Selling artists Number of active artists who sold
Slide 25: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Articore Group Limited (ACN 119 200 592) and its related bodies corporate (together, the Articore Group or the Group) and the Group’s activities as at the date of this presentation. It is information given in summar
Slide 26: Contact us
Contact us: investor.relations@articore.com