Slide 1: Freelancer Limited 1H24 Financial Results Presentation
30 July 2024 Freelancer Limited 1H24 Financial Results Presentation Matt Barrie ASX: FLN investor@freelancer.com Chief Executive Officer OTCQX: FLNCF
Slide 2: Powering the world's entrepreneurs & commerce
Powering the world’s entrepreneurs & commerce #1 for Secure Online Payments #1 Online Services Marketplace #1 Online Freight Marketplace over US$7 billion in transactions over US$5 billion in jobs awarded in Australia, over 800 million km secured in freight posted Freelancer Limited 2 ASX: FLN, OTCQ
Slide 3: 1H24 Results
Freelancer Limited 1H24 Results 3
Slide 4: Freelancer Group Results for 1H24
Freelancer Group Results for 1H24 ● Freelancer Limited delivers Gross Marketplace Volume (GMV) in 1H24 of $449.8 million (down 18.2% on pcp): ○ Freelancer GMV $64.7m down 0.8% on pcp ○ Escrow GMV of $385.1m, down 20.5% on pcp ● Revenue $25.0m (down 8.0% on pcp): ○ Freelancer revenue $20.4m down 9.0%
Slide 5: Gross Marketplace Volume (GMV) 1H24
Gross Marketplace Volume (GMV) 1H24 Group GMV of $449.8m (down 18.2% on pcp) Freelancer GMV $64.7m down 0.8% on pcp Escrow GMV $385.1m, down 20.5% on pcp ~71% of group revenue is USD, 10% AUD * Represents the underlying transaction value between third parties which is the basis for Freelancer's reve
Slide 6: Net revenue 1H24
Net revenue 1H24 Group Revenue $25.0m (down 8.0% on pcp) Group ● Group revenue ~71% USD, 10% AUD Freelancer ● Freelancer revenue $20.4m, down 9.0% ● Commissions 13% since FY10 Escrow ● Revenue $4.6m, down 3.2% on pcp ● Escrow blended take rate ~1.00% 6 6
Slide 7: Cash flow profile 1H24
Cash flow profile 1H24 Cash & cash equivalents at $21.2 million at 30 June 2024 7 7
Slide 8: Summary profit & loss statement 1H24
Summary profit & loss statement 1H24 (A$m) 1H24 1H23 Change ● Group 1H24 NPAT $(1.0)m vs $(0.3m) in pcp, 1 Jan - 30 Jun Actual Actual primarily due to: Net Revenue 25.0 27.1 -8.0% ○ Lower net revenue of 8% Gross Profit 19.9 22.8 -13% ○ lower gross margin due to increases in Gross margin (%) 79.9% 84.0
Slide 9: Summary balance sheet 1H24
Summary balance sheet 1H24 (A$m) 1H24 FY23 Change 30 June 2024 Actual Actual Cash and cash equivalents 21.2 21.2 - ● Cash & equivalents at end of 1H24 $21.2m (unchanged on FY23), no net debt. Trade and other receivables 4.9 4.7 +6% Other assets 3.4 3.5 -5% ● Trade and other receivables includes rece
Slide 10: Your partner in the new world of work
Your partner in the new world of work. 10
Slide 11: Solving a trillion dollar problem
Solving a trillion dollar problem. 11
Slide 12: Make it real
Make it real. We help entrepreneurs, small businesses, startups, and large enterprises turn that spark of an idea into reality. This concept design cost $290 USD 12 and took 6 days to make
Slide 13: Change lives
Change lives. “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.” Sulayman Sanyang Video & Motion Graphics Banjul, G
Slide 14: Create the Future
Create the Future We help entrepreneurs & organizations create products & services of the future. This Apple VR headset concept cost $500 AUD and had 56 entries in 14 days 14
Slide 15: Unlock AI Potential
Unlock AI Potential Every business in the world will want to transform themselves by taking advantage of AI technology. Where will these businesses go to find experts that can assist in that transformation? Freelancer. 15 15
Slide 16: AI Action Plan consultation services
Slide 17: Freelancer's Online Economy
Freelancer’s Online Economy USERS JOBS POSTED JOBS DONE Note: Sample of projects awarded in 2020. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 17 freelancers. Thicker lines indicate a higher volume of work
Slide 18: Freelancer's Online Economy – United States
Freelancer’s Online Economy – United States 18 18
Slide 19: Freelancer's Online Economy – Europe
Freelancer’s Online Economy – Europe 19
Slide 20: Freelancer's Online Economy – Australia
Freelancer’s Online Economy – Australia 20
Slide 21: Freelancer's Online Economy – India
Freelancer’s Online Economy– India 21
Slide 22: Regional Websites, Languages, Currencies
52 33 38 Regional Websites Languages Currencies North America Europe Asia Pacific Languages Currencies US (International) United Kingdom Australia Afrikaans 日本語 USD BRL Canada European Union New Zealand Bahasa Indonesia 한국어 NZD CNY AUD DKK Jamaica France Hong Kong Bahasa Malaysia Norsk-Bokmål GBP VND
Slide 23: Freelancer is changing lives around the world
Freelancer is changing lives around the world, whether it be for entrepreneurs, small businesses or large organizations. We provide easy access to talented freelancers from all around the world, who offer a wide range of services at competitive prices. 75M+ 23M+ TOTAL REGISTERED TOTAL JOBS USERS POS
Slide 24: Marketplace dynamics 1H24
Marketplace dynamics 1H24 “Every job, every country, every language, every currency, at any time” ● Over 3,000 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, Manufacturing, Mechanical Engineering ● Complexity & sophistication growing over time ● Average completed project s
Slide 25: Largest & lowest cost elastic cloud workforce
Freelancer is the largest & lowest cost elastic cloud workforce ● The world’s largest on-demand cloud workforce of over 75m users – 247 countries, regions & territories with over 3000+ skills, speaking 33 languages and transacting in 38 currencies. ● No crowdsourcing platform globally has the liquid
Slide 26: Projects
Projects Post a project and receive competitive bids from freelancers within minutes. Choose from expert freelancers in over 3,000 skill sets from all around the globe. Pay your freelancers a fixed price or by the hour, all secured by the Milestone Payments system. 67% of projects receive bids within
Slide 27: Contests
Contests Get the perfect design by crowdsourcing your ideas to millions of freelancers. The larger the prize, the better the entries, and freelancers adapt their style to suit your feedback. Unmatched liquidity: 1,100,000+ entries per month ~13,000,000 entries per year 92% of contests receive 340 av
Slide 28: Contests
Contests Revenue per contest Average prize money per contest (USD) Average number of entries per contest % of contests with first entry in time segment 28 28
Slide 29: $100 EUR brand design
This brand design cost $100 EUR 29 and took 2 weeks to make 29
Slide 30: $1500 USD website illustrations
These website illustrations cost $1500 USD 30 and took 10 days to make 30
Slide 31: $435 USD 3D product visualisation
This 3D product visualisation cost $435 USD 31 and took 3 weeks to make
Slide 32: $150 USD 3D modeling
This 3D modeling cost $150 USD 32 and took 5 days to make
Slide 33: Quality Product, UX & Design
Quality Product, UX & Design 33
Slide 34: Built-in Collaboration Tools
Built-in Collaboration Tools A suite of tools purposely designed to manage an on-demand cloud workforce An integrated set of collaborative tools to build and manage a distributed team: ● Messaging ● File sharing ● Audio and video calling ● Screen sharing ● Task management ● Workspaces ● AI Assistant
Slide 35: Freelancer Enterprise
= reelancer Enterprise
Slide 36: 67,568 Consultants Onboarded
67,568 CONSULTANTS ONBOARDED 36
Slide 37: Nishita Henry, Deloitte
"We accelerated the launch of the MyGigs Platform, a self-service short-term staffing app connecting our internal talent pool to open project opportunities, in an effort to create the #1 remote talent experience. Since March 2020, the number of gig workers has more than doubled to a total of 16,800 an
Slide 38: Deloitte relies more heavily on IT freelancers
“Deloitte relies more heavily on IT freelancers than it did before or during the pandemic. Like most companies, it enlists freelancers with specific skills across a range of capabilities, including AI and analytics” Balaji Bondili Managing Director, Deloitte 38
Slide 39: Success with NASA led to NASA Open Innovation Services 2
Success with NASA led to NASA Open Innovation Services 2. Funding has increased 600% to US$175 million Freelancer is working with U.S. Government in the fields of: ● Computational fluid dynamics ● Physics ● Network science ● Electrical engineering ● Mechanical engineering ● Advanced manufacturing ● Ph
Slide 40: Targeted Genome Editor Delivery Challenge
TARGETED GENOME EDITOR $6M USD DELIVERY CHALLENGE PRIZES National Institutes of Health Topic Biotechnology 5 Problem Genome editing to treat rare diseases which affect 10% of the YEARS population. -> programmable delivery systems -> crossing the blood-brain barrier Breakthrough innovation Self-Assem
Slide 41: NASA Tank Venting Challenge
NASA TANK VENTING CHALLENGE $80k USD Who let the gas out? PRIZES National Aeronautics Space Administration Topic Aerospace 10 Problem Venting gas from a partially full propellant tank in space, MONTHS with the aim of reducing propellant loss Breakthrough Acoustic excitation, ultrasonic sensing, semi
Slide 42: Field Services
Field Services ● ~71,000 jobs completed to date ● ~21% global cost savings ● Servicing 48 cities in 5 countries with 550 field services engineers ● Global Operation Centre in India ● Scales globally ● 6-month sNPS ○ Commercial 82% ○ Consumer 75% ○ Premium 78% ○ Print 91% Custom designed fully integra
Slide 43: Global Field Services Footprint
Global Field Services Footprint 43
Slide 44: Senior Management Team | Freelancer
Senior Management Team | Freelancer Specialists in growth, finance, operations, infrastructure, international execution, compliance and engineering Neil Katz Adam Byrnes Shaun McMeeken Laurent Goudet Andrew Bateman Sebastián Siseles Ayen Torcuator Chief Financial Vice President, Global Sales Chief Te
Slide 45: Board of Directors
Board of Directors Technology focused entrepreneurial board with successful exits to major global corporations Matt Barrie Chief Executive Officer & Darren Williams Simon Clausen Patrick Grove Chairman Non-Executive Director Non-Executive Director Non-Executive Director BE (Hons I) BSc (Hons I) Syd. B
Slide 46: Recent Awards | Freelancer.com
Recent Awards | Freelancer.com Sitejabber Award Gold Stevie Gold Stevie Official Webby HR Tech Award APAC Insider 96.2% positive customer Business or Professional Company of the Year - Honoree Talent Acquisition: Best Cloud-Based reviews in last 12 months Services - Freelancer.com Transportation - Bes
Slide 47: 160 million jobs could be carried out remotely
“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. 47
Slide 48: Securing the world's trade
Securing the world’s trade Inspect goods & services before releasing funds OVER US$7,000,000,000 IN TRANSACTIONS SECURED investor@escrow.com 48
Slide 49: Digital payments can only buy a coffee, not a car
The world’s trade is going online, but digital payments can only buy a coffee, not a car. 49
Slide 50: Most innovation in payments is in low-value
Most of the innovation in payments is in low-value $108 $60 $64 NEW TECH $154.18 $108.23 $23 $77.09 $63.55 $60 $44.80 $23 Zelle: https://www.businessinsider.com/zelle-and-venmo-end-2021-with-strong-volume-2022-2, https://www.businessofapps.com/data/mobile-payments-app-market/ Paypal: https://www.nas
Slide 51: The red ocean in small value payments
The red ocean in small value payments <3% of card volume $272 Digital wallet payments as a share of card payments, 2017-2020 $103 OLD TECH $154.18 $108.23 NEW TECH $77.09 $63.55 $60 $57 $44.80 $23 Includes all card transactions made via a digital wallet, including tokenized digital wallet. Include:
Slide 52: Card volume <8% of US domestic payments
Card volume <8% of US domestic payments Annual US e-commerce retail sales as percentage of total sales, seasonally adjusted Ecommerce cannot Count Value ATS dominate retail sales by Cards 74.3% 7.8% $57 value without handling Checks 6.5% 22.9% $364 larger value transactions Bank 19.2% 69.3% $2,495 T
Slide 53: Blue ocean in large value payments
$716,200 Blue ocean in large value payments Red ocean in small value payments $119,618 Zelle: https://www.businessinsider.com/zelle-and-venmo-end-2021-with-strong-volume-2022-2, https://www.businessofapps.com/data/mobile-payments-app-market/ Paypal: https://www.nasdaq.com/articles/paypal-stock-has-g
Slide 54: Online payments fail above a few thousand dollars
“According to the ICC, the world-wide documentary discrepancy rates against the DLC Online payments fail above a [letters of credit] are few thousand dollars between 60% to 70%” Secure business payments are bespoke, https://www.researchgate.net/publication/328420369_Mit igating_the_Risk_of_Documenta
Slide 55: Online payments fail with untrustworthy counterparties
Online payments fail with untrustworthy counterparties Buyer protection is a terrible experience for consumers. Card fraud over the next decade will cost $409 billion in losses globally * * https://www.paymentsdive.com/news/card-industry-faces-400b-in-fraud-losses-over-next-decade-nilson-says/611521
Slide 56: API
API Spend more time running your business and less time worrying about payments code and compliance overhead. Built for developers, by developers. The simplest way to add escrow payments to your website, mobile app, online store, classified site or marketplace. Escrow.com payments with one line of co
Slide 57: Escrow.com solves large value payments
Escrow.com solves large value payments in an untrustworthy world 1 2 3 4 5 Buyer and seller Buyer pays Seller delivers the Buyer conducts an Escrow.com agree to the Escrow.com goods or service inspection of the pays the seller transaction and its received goods or declared terms service Escrow.com h
Slide 58: Only online payment method for eBay Motors listings
+ Escrow.com is the only online payment method for eBay Motors listings in the United States 58 58
Slide 59: Only secure online payment method for high value items
CARS BOATS AIRPLANES MOTORCYCLES Escrow.com is the only secure online payment DOMAINS COLLECTIBLES COMPUTERS, TV & HIFI MACHINERY & ROBOTICS method for high value items. Supporting payments in GEMSTONES & JEWELRY GENERAL MERCHANDISE USD, EUR, CAD, AUD & GBP ANTIQUES NETWORK EQUIPMENT from 100 to 100
Slide 60: Gross Payment Volume (US$)
Gross Payment Volume (US$) 1H24GPV AU$389.7 million (US$256.4 million) All-time volume $6.8b Gross Payment Volume (USD) 60
Slide 61: Over 2 million customers
Over 2 million customers NOTE: SAMPLE OF TRANSACTIONS. THE PINK LINES INDICATE WHERE ESCROW TRANSACTIONS ARE BEING ORIGINATED BY BUYERS, AND THE BLUE LINES INDICATE WHERE TRANSACTIONS ARE BEING FULFILLED BY SELLERS. THICKER LINES INDICATE HIGHER VOLUME. WHITE DOTS INDICATE THE LOCATION OF ESCROW.COM
Slide 62: Market size (Billions)
Key verticals 0.9% 10,000 0.9% Industry take rates. 0.9% Escrow FY23 1.01% 2.3% 1.7% 1,000 Market size (Billions) 1.6% 1.3% 100 1.0% 1.5% 10 2.1% 1.1% 1 IPv4 Internet Domain Watches Fine Art Construction Business & Jewelry Used Vehicles M&A US Goods Real Estate Addresses Names Equipment Industrial I
Slide 63: Beach head customers in key verticals
Domain Names IP Addresses Cars Boats, Aircraft, Vehicles Beach head Fine Art customers in Luxury, Watches & Jewellery, Auctions key verticals Intellectual Property Business Sales, Mergers & Acquisitions Import / Export Agriculture Oil & Gas Services 63 63
Slide 64: The world's largest online escrow company
The world’s largest online escrow company. Escrow.com has 55 financial services licenses granted or in-application. Five U.S. states do not require Escrow.com to hold licenses (Hawaii, Indiana, Massachusetts, Tennessee, Wisconsin). Additionally Escrow.com holds an Australian Financial Services Licens
Slide 65: Only multi-jurisdiction licensed online escrow company
Escrow.com is the only multi-jurisdiction licensed online escrow company with 55 licenses granted or in-application Stopped escrow Not external Surrogacy escrow California escrow licenses 65
Slide 66: Benefits of using Escrow.com
Benefits of using Escrow.com Increase Trust Increase Liquidity Marketplaces are all about trust. Escrow Buyers can inspect the goods or services before dramatically lifts trust for platforms. releasing the funds, driving cross-border transactions. Increase Network Effects Increase Compliance Greater
Slide 67: Cars, boats & airplanes are the perfect match
Cars, boats & airplanes are the perfect match for Escrow.com Escrow.com solves trust problem ● Buyer & seller have to physically meet to transact ● Seller accepting cards risks chargebacks ● Buyer using cash or wire has to risk delivering cash safely and trusting the seller to deliver a vehicle in g
Slide 68: First transaction
& first transaction enabled the secure sale of a 1930 Ford Model A from Poway, California to Farmington, New York - 68 a distance that would normally be complicated to transact over. 68
Slide 69: Escrow.com ensures the safety of startup acquisitions
Escrow.com ensures the safety of startup acquisitions. As soon as a letter of intent or an asset purchase agreement is signed, Escrow.com ensures the acquisition deal proceeds safely and smoothly for both parties. 69 69
Slide 70: Trading of oil, gas and mineral rights online
Escrow.com enables trading of oil, gas and mineral rights online In a world first, Escrow.com enabled Energy Domain to complete sales of non-operated mineral rights online, transforming a centuries old business into an online marketplace. 52.5 mineral acres of oil rights securely sold through Escrow.
Slide 71: Where the metaverse is bought and sold
is where the metaverse is bought and sold META.COM DOMAIN & UBER.COM SNAPCHAT.COM TWITTER.COM INSTAGRAM.COM FREELANCER.COM TRADEMARK GMAIL.COM CRYPTO.COM WECHAT.COM SLACK.COM CHROME.COM SPACEX.COM JD.COM WORDPRESS.COM LIVE.COM NFT.COM SNOWFLAKE.COM AWS.COM, PRIME.COM #10 WEBSITE GLOBALLY TMALL.COM T
Slide 72: Management Team
Management Team Matt Barrie Neil Katz Michael Best August Piao Kristian Sisayan Sofia Canala Reagan Paul Aldover Chief Executive Chief Financial Officer Senior Director Senior Product Manager Associate Product Head of Account Global Support and BE (Hons I) BSc (Hons I) BCom (Hons) ACA Group Compliance
Slide 73: Recent Awards | Escrow.com
Recent Awards | Escrow.com Gold Stevie Silver Stevie Bronze Stevie Bronze Stevie Gold Stevie Gold Stevie Bronze Stevie Silver Stevie Bronze Stevie Financial Services Achievement Achievement in in Sales Growthor Achievement in Growth Company of the Year - Company Most of the Innovative Year - Company
Slide 74: Australia's largest freight marketplace
Australia’s largest freight marketplace OVER 800,000,000 KILOMETERS OF FREIGHT POSTED
Slide 75: Industrial and Retail freight categories
Industrial Retail – Mining – Food delivery – Infrastructure – Furniture delivery – Construction – Courier – Rail – General freight – Oil & Gas – Motorcycle courier – Manufacturing – Bike courier – Heavy haulage – Pickup & delivery – Bulk tipper transport – Removal services – Car, boat transport – Pa
Slide 76: Loadshift can manage it all for you
Loadshift can manage it all for you Permits Pilots Road closures Import / export taxes & duties Marine Insurance Customs clearance Quarantine Shipping documents Packing Washing / cleaning Cranage Container rental Vessel booking Multi-currency Escrow payments 76
Slide 77: Find loads fast on Loadshift
Find loads fast on Loadshift Discover the most efficient way to manage your freight across Australia. Loadshift connects you with a vast network of transport jobs. 77 77
Slide 78: Advantages
Advantages Real-time bidding, competitive quotes fast Upload a photo, dimensions, weight and delivery address & get quotes fast. Live tracking of cargo on the move Notification on collection and drop off, minimum, maximum and average speeds traveled. Vetted operators Choose from a range of vetted dri
Slide 79: Mining
Mining Ship anything, anywhere. Urgent or unique, Loadshift can handle it. Whether sending CAT loaders to Tanzania, a drill to South Korea or hotshotting a transmission to Papua New Guinea, we’ve done it. An ASX 50 listed mining company reported saving over 30% on heavy haulage and urgent freight mo
Slide 80: Infrastructure / Construction
Infrastructure / Construction Strict deadlines and challenging locations are a speciality. Project requirements can change quickly, Loadshift ensures that you are not held up by transport. Actual tunnelling drill transported from Tasmania to Sydney CBD for the Sydney Metro in a time critical, and hi
Slide 81: International Shipping
International Shipping Use Loadshift to handle all of your import / export or shipping needs. Direct rates with some of the biggest shipping lines. Extensive network of freight forwarders and customs brokers all over the world. Payment secured by Escrow.com. 54 tonne CAT Underground Loader delivered
Slide 82: Freight Customers
Freight Customers SS N¥Kine €€ Hapag-Lloyd §= ss PIMINSPARES @ CENTURION F?.) FREIGHTPLUS Ss | sarens Rod | Mee TUTT BRYANT B2vs10n PANORAMIC fruc «world.com.au PHIBION Ww POA ear #Mancala Fduaws — BRICKWORKS §=—SSCHDATD 82 2 ee Ty INDUSTRIAL il Monadelphous REDPATH SHAW SMR.) pa Some Sy “A ey BARRI
Slide 83: Loadshift Results for 1H24
Loadshift Results for 1H24 Loadshift had an impressive first half of 2024, with significant growth and increased engagement on the platform. Here are the key highlights: ● GMV Growth: substantial year-on-year increase of 43.6% in GMV (Gross Merchandise Value), reaching $12.8 million. Project fees also
Slide 84: 176,225 quotes submitted in 1H24
176,225 quotes submitted in 1H24 Weekly quotes placed 84 84
Slide 85: Freight Categories 1H24
Freight Categories 1H24 85 85
Slide 86: Conversion of Loads
Conversion of Loads Weekly award rate and delivered rate of loads 86 86
Slide 87: 111 loads, 247,221 km
111 loads 247,221 km Mounted Drill Adelaide to Regency Park SA One of 111 loads carried out in 1H24 for Boart Longyear. 87
Slide 88: Leadership Team
Leadership Team Matt Barrie Neil Katz Drew Davis Cohen Wisniewski Stanislav Markevic Simon Manton Executive Chairman Chief Financial Officer General Manager Product Manager Engineering Manager Operations Manager Matt Barrie is an award Neil Katz is the Chief Drew is one of a new Cohen is an experien
Slide 89: 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