Slide 1: FY17 Full Year Results Presentation
For personal use only 27 February 2018 Freelancer Limited FY17 Full Year Results Presentation Video presentation of these results available at http://frln.cr/DdwLJe Chief Executive Officer investor@freelancer.com 1
Slide 2: #1 Online Services Marketplace
For personal use only #1 Online Services Marketplace #1 for Secure Online Payments Over US$3 billion in jobs posted Over US$3.5 billion in transactions 2
Slide 3: FY17 completed with 27 million users and 13 million jobs
FY17 completed with 27 million users and 13 million jobs 4.3 million registered users and 2.4 million jobs were added to the marketplace in 2017 For personal use only Total Registered Users Total Jobs Posted (Filtered) 1.Number of user accounts, and jobs (projects/contests posted) in the Freelancer
Slide 4: Freelancer FY17 Results
Freelancer FY17 Results For personal use only ● GPV $588m (down 11.8% on pcp) ● Net Revenue $50.3m (down 4.7% on pcp) ● Gross Profit $44m (down 4.2% on pcp) ● Gross margin 87.5% ● Operating Cash Flow ($0.6m) ● Operating EBITDA ($3.7m) ● Operating NPAT ($3.8m) ● Cash & equivalents at 31 December $32m
Slide 5: Freelancer GMV returning to growth
Freelancer.com Freelancer GMV returning to growth over the last 7 months, 1Q18 so far up 14% on pcp and climbing* For personal use only Freelancer.com GMV Milestones released (US$) last 5 years * Gross Marketplace Volume (GMV is a measure of total payments out of the system, i.e. to freelancers) * C
Slide 6: Freelancer volume issues constrained to fixed-price desktop projects
Freelancer.com Freelancer volume issues have been constrained to fixed-price desktop web projects which has been resolved For personal use only Recruiter Projects (count) Hourly, recruiter and mobile projects continue to grow well ● Hourly projects - paid tracked hours up 26% 4Q17/3Q17 and 54% 4Q17/
Slide 7: Freelancer.com revenue impacted by quality initiatives
Freelancer.com Freelancer.com revenue has been impacted by quality initiatives to improve customer feedback and retention ● Membership fees - were lowered as we deliberately tightened up the subscription funnels to ensure For personal use only that only customers that would achieve tangible value fr
Slide 8: Escrow GPV affected by China domain bubble and AML rollout
Escrow.com Escrow GPV affected by China domain name bubble (now passed) and rollout of enhanced AML program 4Q16 For personal use only Enhanced China KYC/AML Bubble 8
Slide 9: Escrow.com KYC/AML approvals
Escrow.com While improved KYC/AML churned volume, >70% of Tier 2 KYC submissions approved in 15 minutes, 90% in 1 hour For personal use only 9
Slide 10: Freelancer.com is changing the global dynamics
For personal use only Freelancer.com is changing the global dynamics in the marketplace for people 10
Slide 11: In a trillion dollar market
In a trillion dollar market For personal use only 11
Slide 12: We help entrepreneurs build the future
CAD Design rumored Apple Electric Car For personal use only We help entrepreneurs build the future. We help small businesses, startups and entrepreneurs turn that spark of an idea into reality. 12
Slide 13: We continue to redefine the future of work
For personal use only We continue to redefine the future of work. “Coming from a third-world country and the smallest in West Africa where opportunities are very limited, Freelancer.com has helped me expand globally by helping me make a living from something that I really have a passion for, design.
Slide 14: Your idea brought to life in stunning visuals
For personal use only Your idea brought to life in stunning visuals. Architectural Design 14
Slide 15: Key financial highlights FY17
Key financial highlights FY17 GPV $588m (down 12%), Net Revenue $50m (down 5%), Operating Cash Flow breakeven ($0.6m) For personal use only A$m, 31 December year end FY17 FY16 Change Gross Payment Volume1,2 $587.5m $666.2m -11.8% Net Revenue1 $50.3 $52.7m -4.6% Gross Profit $44.1 $45.6m -3.3% Gross
Slide 16: Net Revenue
Net Revenue FY17 net revenue of $50.3m (down 5% on pcp) For personal use only ● Net revenue of $50.3m, down 4.7% on FY16 ○ Freelancer revenue $43.9m (pcp $45.2m) ○ Escrow revenue was $6.1m (pcp $7.6m) ○ Includes $0.3m of proceeds from working capital adjustment on acquisition of escrow.com ● Revenue
Slide 17: Gross Payment Volume (GPV)
Gross Payment Volume (GPV) Gross Payment Volume1 of $587.5m (down 12% on pcp) For personal use only ● GPV of $587.5m in FY17, down 12% on pcp ○ $159.4m from Freelancer.com (27.5% M/R) ○ $428.2m from Escrow.com (1.4% M/R) ● GPV adversely impacted by: ○ Drop in core desktop funnel driven by introducti
Slide 18: Cash flow profile FY17
Cash flow profile FY17 Breakeven operating cashflow of -$0.6m, cash balances at AU$31.9m For personal use only ● Total cash at period end of $31.9m (down 8% on pcp) ● Operating cash flow includes $1.7m of legal and regulatory outgoings, of which approximately $0.7m are one off ● Other comprises incr
Slide 19: Summary profit & loss statement FY17
Summary profit & loss statement FY17 Operating EBITDA and NPAT impacted by one off compliance and legal costs associated with financial licenses (A$m) FY17 FY16 Change ● Decline in revenue of 5% on pcp For personal use only 31 Dec y/e Actual Actual Net Revenue 50.3 52.7 -5% ● Improved gross margins
Slide 20: Summary balance sheet FY17
Summary balance sheet FY17 Strong balance sheet, no net debt For personal use only (A$m) FY17 FY16 Change 31 Dec y/e Actual Actual ● Total cash at period end of $31.9m, no net debt Cash and cash equivalents 31.9 34.8 -8% ● Escrow.com additionally holds approximately $32 Trade and other receivables 3
Slide 21: Freelancer Limited: Company
For personal use only Freelancer Limited COMPANY 21
Slide 22: Freelancer's Online Economy in 2017
Freelancer’s Online Economy in 2017 For personal use only Note: Sample of projects awarded in 2017. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 22 freelancers. Thicker lines indicate a higher volume of wo
Slide 23: Freelancer's Online Economy in 2017 – USA
Freelancer’s Online Economy in 2017 – USA For personal use only Note: Sample of projects awarded in 2017. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 23 freelancers. Thicker lines indicate a higher volume
Slide 24: Freelancer's Online Economy in 2017 – Europe
Freelancer’s Online Economy in 2017 – Europe For personal use only Note: Sample of projects awarded in 2017. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 24 freelancers. Thicker lines indicate a higher vol
Slide 25: Freelancer's Online Economy in 2017 – Australia
Freelancer’s Online Economy in 2017 – Australia For personal use only Note: Sample of projects awarded in 2017. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 25 freelancers. Thicker lines indicate a higher
Slide 26: Freelancer's Online Economy in 2017 – India
Freelancer’s Online Economy in 2017 – India For personal use only Note: Sample of projects awarded in 2017. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 26 freelancers. Thicker lines indicate a higher volu
Slide 27: Regional Websites, Languages and Currencies Supported
53 34 39 For personal use only Regional Websites Supported Languages Supported Currencies North America Europe Asia Pacific Languages Currencies Afrikaans USD CNY 日本語 Bahasa Indonesia NZD DKK 한국어 AUD VND Bahasa Malaysia Norsk-Bokmål GBP AED Africa বাংলা Nederlands HKD ARS Català SGD BDT Polski Češti
Slide 28: Marketplace dynamics FY17
Marketplace dynamics FY17 “Every job, every country, every language, every currency, at any time” For personal use only ● Over 1,000 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, Manufacturing, Mechanical Engineering ● Complexity & sophistication growing each year ● Avera
Slide 29: Revenue Model
Revenue Model Freelancer’s revenue is driven by users posting jobs – as a project or a contest For personal use only ● For employers it’s free to post a project, free to review bids, free to talk and review samples – 3% project commissions paid by employers when a project is awarded and accepted ● F
Slide 30: 3D design for an office
30 3D design for an office Freelancer » Jobs » 3D Modelling » 3D design for an office AN 8x4 office , needs 3d design with rendering. Skills: 3 Modelling, 30 Rendering, Building Architecture, interior Design ‘See more: interior design 3 d rendering service company, d rendering interior design, d ren
Slide 31: Chocolate package design contest
Wireelancer Hire Freelancers ~ Work ~ MyProjects~ Help» Q Search $179.47AUD~ @ me (Cp) Home > My Projects [tose ] [1] Chocolate package (front) design €100 EUR Ss Description _ Entries Awinner has been chosen! With 54 entries from 26 freelancers, this employer had the work done for €100 in 5 days. L
Slide 32: Packaging Design
32 For personal use only Packaging Design
Slide 33: Logo Design
33 For personal use only Logo Design
Slide 34: Label Design
34 For personal use only Label Design
Slide 35: Mobile App Design
35 For personal use only Mobile App Design
Slide 36: Website Design
36 For personal use only Website Design
Slide 37: 3D Model
37 For personal use only 3D Model
Slide 38: 3D Model
38 For personal use only 3D Model
Slide 39: 3D Model
39 For personal use only 3D Model
Slide 40: Branding
40 For personal use only Branding
Slide 41: Poster Design
41 For personal use only Poster Design 41
Slide 42: Menu Poster
42 For personal use only Menu Poster 42
Slide 43: Packaging Design
43 For personal use only Packaging Design
Slide 44: Architectural Design
For personal use only Architectural Design 44
Slide 45: NASA Challenge: Develop 3D Models for Robonaut
freelancer ‘ire Freelancers ~ Work + My Projects Help ~ arch $17947AUD~ @ @ > My Projects NASA Challenge: Develop 3D Models for Robonaut S... $50 USD 121 tota Entries Vew:(121) | AllEntries $ | Sorby: | Default #59 by Miguel G #130 by Balazs § #63 by Nicoles G. #115 by Elena kek wKKKk wkkkk wen #77
Slide 46: NASA 3D CAD Model
46 For personal use only NASA 3D CAD Model
Slide 47: We push the boundaries of human innovation
We push the boundaries For personal use only of human innovation 4487 FREELANCERS PARTICIPATING 126 COUNTRIES PARTICIPATING 7666 ENTRIES TO DATE 47
Slide 48: Freelancer profile example
Wireelancer Login Sign Up Illustrator | 2D Animator | Concept Artist $25 usomr Passionate award winning Director and Animator, with strong ability to translate from written descriptions or early concepts into more refined illustrations, 2D Animations, ‘as well as App and Game Assets. 59 reviews 6.3
Slide 49: Contests
Contests For personal use only Get the perfect design by crowdsourcing your ideas 90 entries per contest on average 62% of contests receive an entry in Easily buy all your favorite entries an hour at once 49
Slide 50: Mobile
For personal use only Mobile Stay productive on the go with Freelancer in your pocket 119% growth YoY milestones posted from mobile Android application translated into Chinese and published in the Huawei app store 20% of good projects on average are now from mobile 50
Slide 51: Local Jobs
For personal use only Local Jobs Find people in your area to help you Find a freelancer with a skill and a location, anywhere in the world. Average time to first bid reduced to 15 minutes. Globally. Local jobs on average receive 5 bids. Globally. 51
Slide 52: Collaboration
Collaboration For personal use only Building better tools for employers and freelancers to work together We built a more intuitive hourly Hours paid through automatic 70% of hourly projects set up billing system billing grew 54% YoY automatic billing 52
Slide 53: Recruiter
For personal use only Recruiter Leave the hard work of finding the perfect freelancer to an expert Source the top 1% of Freelancers easily The fastest way to find top talent on Freelancer.com 71% 2H17 growth in Recruiter project volume 53
Slide 54: Messaging
Messaging For personal use only Connecting through the power of rich messaging New inbox interface makes 36% of freelancers respond to chat We process billions of messages messaging immersive and easy. within 5 minutes. 65% <1 hour. per annum between our users. Globally. 54
Slide 55: Community
Community For personal use only High quality technical content written by our talented community Articles continuously ranked on the High quality technical content Over 2,500 articles shared on the first page of Google, with most of across a range of areas, written by platform, with 800 articles the
Slide 56: Payments
Payments For personal use only Pay in, pay out within the Freelancer.com platform Increased direct bank payout from Now supports all major payment Local credit / debit card processing 7 countries to 20+ methods in China in Latin America 56
Slide 57: Memberships
For personal use only Memberships Designed to increase freelancer success and earnings Paytm support for Indian users purchasing memberships 100% YoY growth in Professional members earning Freelancers can now pay for memberships on a discounted lock in annual contract 57
Slide 58: Customer Experience
Customer Experience For personal use only Increasing user satisfaction on the Freelancer platform Optimization of the Help Center Improvements are validated by the NPS for support tickets at 63 allowed us to service 30% more 8.7 TrustPilot rating (“excellent”) users 58
Slide 59: Freelancer Enterprise
Freelancer Enterprise For personal use only Over 70% of Fortune 500 companies use Freelancer.com to get work done Fast track workforce automation Private Freelancer Cloud and No fees - employer commissions with a fully featured API Project Success Managers ensure are waived for volume clients qualit
Slide 60: Freelancer API
Freelancer API For personal use only Make an API call to the cloud workforce from your website, app or software Built by developers, for developers. Automate your workforce at scale A perfect companion to Freelancer freelancer.com/api across the globe while cutting Enterprise customers. costs. 60
Slide 61: Freelancer API use cases
For personal use only Charity done right Button for everything A perfect companion for Freelancer Using artificial intelligence, Enterprise customers, the Freelancer Freelancer’s reputation system API is perfect for large organisations automatically ranks the best doing big things. freelancers for t
Slide 62: Over $3.5 billion of transactions protected through Escrow.com
For personal use only Over $3.5 billion of transactions protected through Escrow.com The world’s most secure payment method from a counterparty risk perspective 62
Slide 63: Escrow.com transaction types
For personal use only Escrow.com is used to secure a wide range of transaction types 63
Slide 64: Announcing the Escrow.com API
Announcing the Escrow.com API For personal use only With no minimum fee and priced as low as 0.89%, the Escrow.com Platform API is cheaper than credit cards and other online payment methods. Beautiful Docs Real-time Insights Versioning Developers First Our step-by-step integration Stay up to date on
Slide 65: Superphonica Escrow.com API integration
Superphonica - example Escrow.com API integration Tight integration of Escrow.com is highly promoted as a key feature of Superphonica For personal use only 65
Slide 66: Escrow plugin for WooCommerce
Escrow plugin for WooCommerce WooCommerce has 39 million downloads and powers 28% of all online stores * For personal use only * According to www.woocommerce.com 66
Slide 67: Escrow.com highlights FY17
Escrow.com highlights FY17 Significant investments in new acquisition technologies and improvements to website pain points ● Launch of Escrow Platform API - Payments for your website, marketplace, classified site, shopping For personal use only cart or mobile app with no chargebacks, ever. ● Launch
Slide 68: The #1 Internet Marketing Forum Since 1997
For personal use only The #1 Internet Marketing Forum Since 1997 1,321,355+ 10,292,883+ 1,027,109+ USERS POSTS DISCUSSIONS 68
Slide 69: StartCon
69 a Joanna Lord CMO @ CLASSPASS Exclusive International Speaker Lineup 4000 + PAX 60+ Keynotes & Workshops iE STARTCON 120+ Technology Exhibitors
Slide 70: Awards in 2017
70 For personal use only Awards in 2017
Slide 71: Board of Directors
Board of Directors Technology focused entrepreneurial board with successful exits to major global corporations. For personal use only Chief Executive Officer & Chairman Non-Executive Director Non-Executive Director BE (Hons I) BSc (Hons I) GDipAppFin MAppFin MSEE BSc (Hons I) PhD (Computer Science)
Slide 72: Senior Management Team
Senior Management Team Specialists in growth, finance, operations, infrastructure, international execution, compliance and engineering For personal use only Neil Katz Peter Phillips Amir Massoudi Greg Robinson Sarah Tang Adam Byrnes Sebastián Siseles Chief Financial Vice President, Director, Growth
Slide 73: Outlook Statement 2018
Outlook Statement 2018 Freelancer has a firm foundation for revenue growth in FY18 and a clear path to profitability ● FY17 was a challenging year and already FY18 is looking brighter For personal use only – For Freelancer.com, marketplace health is improving and growth is returning to trend. We are
Slide 74: Unique Investment Thematics
Unique Investment Thematics Freelancer Limited (ASX:FLN) is a unique exposure to: For personal use only ● Massive market: $5 trillion TAM ● The on-demand and crowdsourced economy ● Increasing internet penetration of emerging markets ● Rising sophistication in emerging markets labour ● Software & mob
Slide 75: Industry Drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS 75
Slide 76: The other 50% of the world's population are about to join the Internet
The other For personal use only 50% of the world’s population are about to join the Internet. 76
Slide 77: It's 2018
It’s 2018 The other four billion are connecting to the Internet at a tremendous pace For personal use only ● World population1: 7,634,757,932 ● Number on the Internet: 4,050,247,583 (51.8%) North America Europe 346 million users 700 million users 95% penetration 85% penetration Asia 2.0 billion user
Slide 78: 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 79: 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 ● Five billion people live on $10 a day or less ● 86% of users of top 10 US sites are already foreign For personal use only ● The first thing they are looking to do online is raise their
Slide 80: The world is repeating itself years later
The world is repeating itself 20 years later For personal use only DEVELOPED DEVELOPING WORLD WORLD PRODUCTS SERVICES 80
Slide 81: How big is the market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET? 81
Slide 82: 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 83: Estimated demand for Web Design services
Estimated demand for Web Design services (mid-high OECD) 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
Slide 84: Estimated demand from mid-high income OECD SMEs
Estimated demand from mid-high income OECD SMEs Global small business revenue opportunity estimated as $38 billion per annum (602 million projects, $135 billion GPV) For personal use only ● There are about 28 million small businesses in the US ● Estimated global TAM from MSME market of c.$38 ○ 22 mi
Slide 85: Estimated demand from consumers
Estimated demand from consumers Product marketplaces as proxy of consumer demand indicates TAM of US$106 billion (2b projects, US$390b GPV) For personal use only ~400 million active consumers on 170 million active Taking 170m 5 projects / user GPV of US$390 billion consumer buyers as average across
Slide 86: 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 For personal use only ● 2010 global working age population: 3.7 billion, labour ● There are 220 million people wi
Slide 87: Estimated demand from Local Jobs in the US
Estimated demand from Local Jobs in the US 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 th
Slide 88: 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