Slide 1: Freelancer Limited Q3 2015 Update
For personal use only 15 October 2015 Freelancer Limited Q3 2015 Update 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 (14 October 2015) A$1.58 Market capitalisation (14 October 2015) A$691 million Share Price Chart (2015 YTD) $1.70 $1.50 $1.30 $1.10 $0.90 $0.70 $0.50 Jan Feb Mar
Slide 3: Projects, registered users and posted value
For personal use only 8,679,783 16,911,880 $3,968,420,687 AUD Projects & Contests Posted Registered Users All time Projects & Contests Posted Value 3
Slide 4: Q3 2015 another exceptional quarter with record cash receipts
Q3 2015 another exceptional quarter with record cash receipts Expects to deliver acceleration of revenue growth in FY15 over FY14 For personal use only Record cash receipts for the quarter of $9.7 million, up 42% • In Q3 2015, the Company booked record cash receipts of $9.7 million • Up 42% over the
Slide 5: Company Overview
For personal use only Freelancer Limited COMPANY OVERVIEW
Slide 6: 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 6
Slide 7: 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 8: Helping small businesses, startups and entrepreneurs
For personal use only We Weare changing help small lives in the businesses, developing startups and world by entrepreneurs providing turn that opportunity and spark of an idea income. into reality. Design of a digital counting wristband for $220
Slide 9: Changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportunity and income.
Slide 10: 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 11: 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 11
Slide 12: 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 13: 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 14: 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. 14 Thicker lines indicate a higher volume of work. Whit
Slide 15: 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 16: Global, and growing
Global, and growing For personal use only 44 Regional Websites 34 Supported Languages 20 Supported Currencies Languages Currencies Afrikaans 日本語 USD CLP MYR Bahasa Indonesia 한국어 AUD JMD NZD Bahasa Malaysia Norsk-Bokmål CAD IDR PHP বাাংলা Nederlands EUR IDR PLN Català Polskiа GBP MXN SGD Čeština Port
Slide 17: 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 18: Industry Drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS
Slide 19: 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. 19
Slide 20: It's 2015: 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 21: 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 22: For personal use only
Wa. ' ¥) freelancer” tire Freelancers Work — MyProjects. Help Q usosor El CP @ —__j_ on, a husband, a father, and a graphic site, mobile and web app. I'm more than happy to work with 22
Slide 23: 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 24: The world is repeating itself years later
The world is repeating itself 20 years later For personal use only 24
Slide 25: Beautiful Product
For personal use only Freelancer Limited BEAUTIFUL PRODUCT
Slide 26: Beautiful product
26 For personal use only Beautiful product
Slide 27: For personal use only
wr Yggdrasil full color tattoo be Fe ee 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 nad 120 stylish bespoke fashion brand Architectural design and 3d renders vei $500 of Hotels and Shopping Center D
Slide 28: Sliding Puzzle App Design for $40
Sliding Puzzle App Design for $40 For personal use only 28
Slide 29: Website for Fresh Futures for $200
Website for Fresh Futures for $200 For personal use only 29
Slide 30: Design of a Travel Pouch for $166
Design of a Travel Pouch for $166 For personal use only 30 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/
Slide 31: Logo design for a consulting firm for $129
Logo design for a consulting firm for $129 For personal use only 31
Slide 32: Ambient 3D Modelling of a Wardrobe for $90
Ambient 3D Modelling of a Wardrobe for $90 For personal use only 32 Source: https://www.freelancer.com/contest/Ambient-in-d-modeling-with-our-product-wardrobe-122619.html
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 a contemporary (Bauhaus style) home for $215
Design a contemporary (Bauhaus style) home for $215 For personal use only 34 Source: https://www.freelancer.com/contest/Design-a-contemporary-house-Bauhaus-style-223900.html
Slide 35: Floor plans & rendering for $215
Floor plans & rendering for $215 For personal use only 35
Slide 36: Industrial Design of a Water Kettle for $240
Industrial Design of a Water Kettle for $240 For personal use only 36
Slide 37: 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 37
Slide 38: 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 39: 3D model of flashlight for NASA: $50
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 40: 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 40
Slide 41: For personal use only
For personal use only
Slide 42: 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 43: For personal use only
For personal use only
Slide 44: NASA Challenge: Astronaut Smartwatch App Interface Design
NASA Challenge: Astronaut Smartwatch App Interface Design For personal use only 44
Slide 45: Smartwatch app architecture design
ana sz START// Architecture A simple, predictable information architecture Se eer <Overview 10:20 eo eere ea @DPC @CIR-Session onal use only At any moment, a crewmember can pinch th y FEA This comr m gesture maps to a high- @°c @oHoCT cM ’ ecome aps ; Timelines Overview. From there, they can FE-2 7.
Slide 46: For personal use only
For personal use only Trophy $200 Logo $200 Logo $150 Banner $100 3D Model $50 3D Model $50
Slide 47: Local Jobs
Local Jobs Local Jobs expands the total addressable market to several billion dollars per For personal use only annum by making freelancers available in every neighbourhood We are seeing the platform being used for jobs as diverse as cleaning gutters to hiring a photographer to capture marriage prop
Slide 48: Mobile
Mobile For personal use only Beautiful apps across Android and iOS Freelancer & Showcase apps Over 500,000 downloads and growing 48
Slide 49: Acquisition of Escrow.com
For personal use only Freelancer Limited ACQUISITION OF ESCROW.COM
Slide 50: 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 51: Escrow.com revenue growth and diversified revenue base
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 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 <> Domains 63 Consultants (a) Websites gb Legal Services Uv Antiques A Boats Heavy Equipment ) Rv's LJ Computer Equipment & Classic Cars 6d It Services eS] Wholesale Goods Contractors Copyrights Musical Instrume
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 Inc. FedEx.com © Flippa UShiip Flippa UShip.com Conlidence Comes Stondand” Cars.com AMERICAN TRUCK n Trucker.com GoDaddy Reverb Reverb.com and over 60+ High Volume Part
Slide 55: Important: Only use Escrow.com
“Important: Only use Escrow.com” Shop by | . aaa b. NY BB ~ search. A Catgorea va Home > Help Topics > Payment & shipping > Paying foritems > Using escrow services > - (©) a) ) =) = = (©) Gp) Help Browse help Search the Help pages , (Does not search for items or products) | Search > Searching & rese
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: 1H15 Financial Results
For personal use only Freelancer Limited 1H15 FINANCIAL RESULTS
Slide 58: 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 59: Revenue growth
Revenue growth Record 1H15 net revenue of $16.8m, up 41% on prior corresponding period For personal use only Net Revenue (A$m) and Gross Margin (%) 16.8 ● 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 60: 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% – Acceleration from +23% FY14 year on
Slide 61: 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 62: Operational highlights 1H15
Operational highlights 1H15 Acquisition of a strong cornerstone for entering the payments space, and development of key products For personal use only ● Acquisition of Escrow.com – the leading provider of secure online payments on the Internet – 2014 gross payment volume of US$265 million, net reven
Slide 63: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) 1H 2014 1H 2015 Change Half-year to 30 Jun Actual Actual (%) ● Record 1H15 net revenue of $16.8m – up 41% on 1H14 Net Re
Slide 64: Summary balance sheet
Summary balance sheet Strong balance sheet and no net debt For personal use only (A$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 65: 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 66: 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