Freelancer Ltd. · ASX:FLN
Freelancer — UBS Australia Conference 2016
87 slides from Freelancer's conference presentation, Nov 7, 2016
Slide 1: Freelancer Limited UBS Australia Conference
For personal use only 7 November 2016 Freelancer Limited UBS Australia Conference Matt Barrie Chief Executive Officer
Slide 2: Freelancer.com and Escrow.com
Freelancer.com Escrow.com For personal use only Freelancer.com Escrow.com #1 Online Services Marketplace #1 for Secure Online Payments Over US$3.0 billion in Over US$3.0 billion in projects posted escrow transactions
Slide 3: 3Q16 continued strong growth in cash receipts
3Q16 continued strong growth in cash receipts Delivering on growth in cash receipts and record core volumes, continuing YTD cashflow positive For personal use only Cash receipts for Q3 of $12.7 million, up 31% over pcp • In Q3 2016, the Company booked cash receipts of $12.7 million, up 31% over the
Slide 4: Q3 performance detail
Q3 performance detail Record cash receipts for the third quarter of $12.7 million, up 31% YoY For personal use only • In Q3 2016, the Company booked Rolling 30-day revenue by group cash receipts of $12.7 million, up 31% over the prior corresponding period. • For the 9 months year to date, the Compan
Slide 5: Total Jobs Posted (Filtered)
Total Jobs Posted (Filtered)1 Record quarter for project and contest listings in Q3 2016 For personal use only 1. Total Projects and Contests Posted was redefined in January 2016 to Total Jobs Posted (filtered). Jobs Posted (Filtered) is defined as the sum of Total Posted Projects and Total Posted C
Slide 6: Operational highlights during Q3
Operational highlights during Q3 Key developments during the quarter For personal use only Escrow.com headquarters moves to San Francisco • A new escrow payments team was hired in San Francisco together with backend support in Sydney. • Payments are now being processed 30% faster. • The office in Ra
Slide 7: Operational highlights during Q3
Operational highlights during Q3 Key developments during the quarter For personal use only Local Jobs have now been posted in over 1,000 cities in over 100 countries • Local jobs can be posted by users anywhere, no matter where they are in the world, and from launch c.18 months ago liquidity continu
Slide 8: Startcon conference
iE STARTCON Sean Ellis _ Founder of GrowthHaGkers Australia’s Biggest Startup & Growth Conference
Slide 9: Full year outlook
Full year outlook FY16 will be an exceptional year for the Company For personal use only • FY16 will be an exceptional year for the Company, with its first full year contribution from Escrow.com. • Q3 represented a record quarter for the Company in terms of jobs posted. • Freelancer’s marketplace bu
Slide 10: Freelancer delivers another record result
Freelancer delivers yet another record result with strong positive For personal use only operating cash flow and positive operating EBITDA for 1H16 • Record 1H Net Revenue $26.2m (up 56% on pcp) • Five year revenue CAGR 52% (FY10-15) • Record 1H GPV $354.9m (up 453% on pcp) • Positive 1H Operating C
Slide 11: Financial highlights 1H16
Financial highlights 1H16 Freelancer delivers yet another record result with accelerating revenue and GPV growth, and positive operating EBITDA For personal use only ● Record Net Revenue of $26.2m in 1H16 (up 56% on pcp, above 5-year CAGR of 52%) – acceleration from 1H15 growth of 41% year on year,
Slide 12: Financial summary 1H16
Financial summary 1H16 Record net revenue $26.2m (+56%), record GPV $357.1m (+453%), operating cash flow positive $4.5m For personal use only A$m, 30 June half year end 1H16 1H15 Change Net Revenue1($m) 26.2 16.8 56% Gross Payment Volume1,2 ($m) 354.9 64.1 453% Take rate3 (%) 7.4 26.24 nm Gross marg
Slide 13: Continuation of outstanding marketplace growth
Continuation of outstanding marketplace growth (Freelancer.com) Continues to experience exceptional growth in users and total jobs posted For personal use only Total Registered Users1 8,000,000 Total Jobs Posted (Filtered) 1 18,000,000 7,000,000 16,000,000 As at 30 June 2016 As at 30 June 2016 ~20 m
Slide 14: Marketplace dynamics 1H16
Marketplace dynamics 1H16 Freelancer continues to break new records and accelerate its growth trajectory For personal use only ● Key milestones of ~20 million users and >9 million jobs posted. ● Passed US$3.0 billion of all time posted project and contest value in the core business and US$2.975 bill
Slide 15: Liquidity: 74% of projects get a bid within seconds
Liquidity: 74% of projects get a bid within 60 seconds (supply) Number of bids on projects Average number of bids in 1 hour Number of entries in contests For personal use only Actual completed projects Actual contest entries 3D Interior Design 3D Helmet Design 3D Growler Mobile App Mockup Music Albu
Slide 16: Freelancer.com highlights during 1H16
Freelancer.com highlights during 1H16 Over 1,460 material incremental changes were made to Freelancer.com and 380 for Escrow.com in 1H16 • For personal use only Payments – addition of Chinese Yuan, addition of key new gateways including AliPay and UnionPay (China), iDEAL (Netherlands), SOFORT Bankin
Slide 17: Escrow.com highlights during 1H16
Escrow.com highlights during 1H16 The Escrow.com team has made major progress in the re-architecture of the legacy Escrow.com platform for growth • For personal use only Record key metrics in 1H16: added 40,679 users (up 18.7% on pcp) and 30,372 transactions (up 20% on pcp). • Operations: secured le
Slide 18: Group highlights during 1H16
Group highlights during 1H16 Multiple award wins and research initiation by UBS For personal use only UBS Investment Bank initiates research coverage • Initiation report published in April 2016. Continues to dominate awards • Won 2 Webby Awards including Best Employment Website & People’s Voice, as
Slide 19: Revenue growth
Revenue growth Record 1H16 net revenue of $26.2m, up 56% on prior corresponding period For personal use only Net Revenue (A$m) and Revenue per User (A$) 26.2 ● Record 1H16 Net Revenue of $26.2m, up 56% on 1H15 2 5 .0 1.34 1 .4 0 – Freelancer core contribution: $21.8m, up 30% on 1H15 – Escrow.com con
Slide 20: Gross payment volume
Gross payment volume Record Gross Payment Volume1 (GPV) of $354.9m (up 453% on pcp) driven by Escrow.com contribution For personal use only 354.9 Gross Payment Volume1 (A$m) 3 5 0 .0 ● Record GPV of $354.9m up 453% on 1H15 +453% ● Freelancer core marketplace segment growth of 26% on pcp – contributi
Slide 21: Escrow.com financial performance
Escrow.com financial performance 1H16 & FY15 significant step up on historical financial performance For personal use only Revenue (US$ ‘000) Gross Payment Volume (GPV) (US$) 7,000 450,000,000 20% growth in 2015 34% growth in 2015 13% 5-year CAGR1 400,000,000 18% 5-year CAGR1 6,000 350,000,000 5,000
Slide 22: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) 1H 2015 1H 2016 Change ● Record 1H16 Net Revenue of $26.2m, up 56% on 1H15 Half-year to 30 June Actual Actual – Freelanc
Slide 23: Summary balance sheet
Summary balance sheet Strong balance sheet and no net debt For personal use only (A$m) 2H 2015 1H 2016 Change ● Total cash of $35.2m on balance sheet as at 30 June 2016 Actual Actual ● Additional $26.3m of cash held off balance sheet, in trust, as Cash and cash equivalents 32.2 35.2 9% part of Escro
Slide 24: Cash flow profile
0.2 Cash flow profile Re-investing for growth, with positive operating cashflow of $4.5 million in 1H16 For personal use only Cash Balance/Flows (A$m) ● 31 December 2015 cash balance of $32.2m 0.2 0.3 (1.3) ● Positive operating cashflow of $4.5m 4.3 0.6 ● Exchange rate impacts on cash 0 primarily re
Slide 25: Key operational highlights 1H16
Key operational highlights 1H16 Moved Escrow.com head office to San Francisco and continued investment in talent to drive growth in FY16 For personal use only Total staff of 469 FTE at 30 June 2016, up 7% from 440 as at 31 December 2015 25
Slide 26: Unique investment thematics
Unique investment thematics Freelancer Limited (ASX:FLN) is a unique exposure to: For personal use only ● The on-demand and crowdsourced economy ● Rapidly increasing internet penetration of emerging markets ● The rise of online education ● Rising sophistication in emerging markets labour ● Software
Slide 27: Freelancer Limited: Company
For personal use only Freelancer Limited COMPANY
Slide 28: Build that business you've always wanted
For personal use only LOGO DESIGNS FROM $30 Build that business you've always wanted. You bring the vision, we have the talent, tailored to your budget.
Slide 29: Job examples
For personal use only Freelancer Limited JOB EXAMPLES
Slide 30: Job examples
For personal use only Freelancer Limited JOB EXAMPLES
Slide 31: 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 31
Slide 32: 3D model design of a VR helmet for $500
3D MODEL DESIGN OF A VR HELMET FOR $500 We help entrepreneurs ~— build the future. We help small businesses, startups and entrepreneurs turn that spark of an idea into reality ‘W freelancer
Slide 33: Changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportu 3 income. 4 (4 After two years I've been doing really well on Freelancer.com. The earnings are very good and now I have a lot of respect among my friends and family members. Thanks Freelancer for everything! Sha
Slide 34: 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 35: Global, Multilingual, Multicurrency
Global, Multilingual, Multicurrency For personal use only 52 Regional Websites 34 Supported Languages 21 Supported Currencies Languages Currencies Afrikaans 日本語 USD CLP NZD Bahasa Indonesia 한국어 AUD JMD PHP Bahasa Malaysia Norsk-Bokmål CAD IDR PLN বাংলা Nederlands EUR MXN SGD Català Polski GBP SEK BR
Slide 36: Freelancer's Online Economy in 2014
Freelancer’s Online Economy in 2014 For personal use only Note: Sample of projects awarded in 2014. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 36 freelancers. Thicker lines indicate a higher volume of wo
Slide 37: Freelancer's Online Economy in 2015
Freelancer’s Online Economy in 2015 For personal use only Note: Sample of projects awarded in 2015. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 37 freelancers. Thicker lines indicate a higher volume of wo
Slide 38: 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 1H161 ● c.900 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, United States Manufacturing, Mechanical Engineering
Slide 39: Revenue Model
Revenue Model Freelancer’s revenue is driven by 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 – 3% project commissions paid by employers when a proje
Slide 40: Board of Directors
Board of Directors Technology focused entrepreneurial board with successful exits to major global corporations. For personal use only Matt Barrie Darren Williams Simon Clausen Chief Executive Officer & Chairman Non-Executive Director Non-Executive Director BE (Hons I) BSc (Hons I) GDipAppFin MAppFin
Slide 41: Senior management team
Senior management team Specialists in growth, finance, operations, infrastructure, international execution, compliance and engineering For personal use only Neil Katz Christopher Koch Peter Phillips Amir Massoudi Greg Robinson Nicholas de Jong Adam Byrnes Sebastián Siseles Chief Financial Deputy Chi
Slide 42: Job examples
For personal use only Freelancer Limited JOB EXAMPLES
Slide 43: For personal use only
43 For personal use only
Slide 44: 3D rendering of a villa from 2D floor plan for $100
3D rendering of a villa from 2D floor plan for $100 For personal use only 44
Slide 45: Website for Fresh Futures for $277
Website for Fresh Futures for $277 For personal use only 45
Slide 46: Paper towel design and render for CAD $55
Paper towel design and render for CAD $55 For personal use only 46 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/
Slide 47: Create a logo for Raidfox
47 ‘Vf freelancer Hire Freelancers Work © Manage Help = Q Fon ait Create a logo for Raidfox Entries 435 Total Entries View: (435) All Entries > Sort by:Relevance > | 4h | Hi | Raidfox” “gag {> — Sraidfox by paxslg by paxslg by Starwinner by taganherbord i Entry #304 Entry #76 RAIDF@X Raid by thefren
Slide 48: 3D Rendering contest entries
» freelancer Hire Freelancers Work Manage Help Q AUD $356 3D Rendering of my pent! Entries 30 Total entries View: (30) All Entries + Sort by: Relevance + by archmamun by SDBcindia by asviridenko92 by WaOne1987 Entr try #9 Entry #8 Entry #26 wk kkk v2 8 tok tok v2 kkk tok v1 m2 kkk kk vio mi by epina
Slide 49: For personal use only
49 For personal use only
Slide 50: Design Metallic Street Furniture
‘Vf freelancer Hire Freelancers | Work — Manage Help Q UD $356 G 1 @ & Design me Metallic Street Furniture €374 EUR Entries 50 total entries View: (50) All Entries + Sortby:Relevance> | 3 | Hi | BD <= i co * = by kvp77 by aniketSS by RajAsodia by BruteF tr Entry #2 Entry #1 by headplate by aniketSS
Slide 51: For personal use only
51 For personal use only
Slide 52: Handrail for an EVA spacewalk
¥ freelancer’ Hire Freelancers Work Manage Help Q AUD $356 3D Handrail for an EVA spacewalk Entries 121 total Entries View: (124) All Entries Sort by:Relevance > | ii Hi | &D by Miguel3D by BlackRiddles by Electrojesus by Jeffersonben ry #1 try #2 Entry #28 Entry #15 by speedmaster96 by gmidelhi by
Slide 53: For personal use only
For personal use only
Slide 54: Robonaut delivered to the ISS
For personal use only Robonaut 2 delivered February 2011 to the ISS. Pictured here with Zero-G leg upgrade which will allow EVA spacewalks via external handrails.
Slide 55: For personal use only
For personal use only
Slide 56: NASA challenges to push the boundaries of human innovation
wo 2016 TO PUSH THE BOUNDARIES OF HUMAN INNOVATION In the latest set of challenges, we will designing a robotic arm for the mC : Astrobee, the next generation of free flying robots 4 on the International Space Station. WS ais ) 88 CHALLENGES Ra _% freerancer. COUNTRIES PLANNED = NASA a PARTICIPATING
Slide 57: Product update
For personal use only Freelancer Limited PRODUCT UPDATE
Slide 58: Beautiful Products
For personal use only Beautiful Products
Slide 59: Mobile
Mobile For personal use only 82% of projects are now touched by mobile
Slide 60: Contests
Contests For personal use only by Pencey by Jhepordo Entry # 13 Entry # 21 13 15 32 10 66 entries per 50% of the contests Give feedback and get contest on average receive their first entry exactly what you need in the first hour with real time chat
Slide 61: Local Jobs
Local Jobs For personal use only 60% of local jobs get a quote in under an hour. Anywhere in the world.
Slide 62: Freelancer Tools
Freelancer Tools For personal use only Improved interface 48% increase in active Audio & video chat for project conversations on the now available management platform (YoY)
Slide 63: Users have transacted US$3 billion through Escrow.com
For personal use only 1 million users have transacted US$3 billion securely through Escrow.com
Slide 64: Internet marketing forum
S FORUM = i PO Redefined. - i) The Vault. =) = chee @ gas 2's im The #1 Internet Marketing Forum Since 1997 1,107,939+ 9,765,737+ 902,008+ USERS POSTS DISCUSSIONS
Slide 65: Industry drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS
Slide 66: The other 55% of the world's population are about to join the Internet
For personal use only The other 55% of the world’s population are about to join the Internet. 66
Slide 67: It's 2016: the other four billion are connecting
It’s 2016 The other four billion are connecting at a tremendous pace For personal use only ● World population1: 7,259,902,243 Internet Users by Development Level 2005-2015E2 Number on the Internet: 3,366,261,156 (46.4%) North America Europe 313 million users 604 million users 88% penetration 74% pen
Slide 68: 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 ● Five billion people live on $10 a day or less ● The first thing they are looking to do online is raise their s
Slide 69: Freelancer profile example
Work — MyProjects —Help n ‘AUD $184 pufutama Illustrator | 2D Animator | Concept Artist —_.&_ Passi from writ winning Director and Animator, with strong ability to tra ptions or early concepts into more refined Illustration: Animations, as well as App and Game Assets. nde EE kkk 35 Rev My specialiti
Slide 70: 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 71: The world is repeating itself years later
For personal use only The world is repeating itself 20 years later 71
Slide 72: Escrow.com
For personal use only Freelancer Limited ESCROW.COM
Slide 73: Payments you can trust
For personal use only Payments you can trust. The world’s #1 provider of secure online payments. US$3 billion of transactions protected.
Slide 74: Escrow.com's Online Economy in 2014
Escrow.com’s Online Economy in 2014 For personal use only 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. 74 Thicker lines indicate higher volume. White dots
Slide 75: Escrow.com's Online Economy in 2015
Escrow.com’s Online Economy in 2015 For personal use only 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. 75 Thicker lines indicate higher volume. White dots
Slide 76: You wouldn't sell your car with PayPal
You wouldn’t sell your car with PayPal For personal use only 76
Slide 77: eBay: Only use Escrow.com
In fact, eBay doesn’t think so either: For personal use only “Important: Only use Escrow.com” 77
Slide 78: Escrow.com secures a wide range of transaction types
Escrow.com is used to secure a wide range For personal use only of transaction types
Slide 79: Audited, licensed, bonded, 0% chargebacks
For personal use only Audited Licensed 0% chargebacks Bonded 79
Slide 80: Escrow.com 5-step trust process
Escrow.com is the only licensed, bonded & audited secure online solution that protects both the buyer and the seller with a simple, 5-step trust process For personal use only 1 2 3 4 5 Buyer & seller Buyer pays Seller ships Buyer accepts Escrow.com agree to terms Escrow.com merchandise the merchandi
Slide 81: Escrow.com secures transactions from $100 to $10,000,000+
Escrow.com For personal use only secures transactions from 1975 Piper PA-23-250 securely sold through Escrow.com $100 to $10,000,000+ Transact in 2004 Fountain 38 LX securely sold through Escrow.com US Dollars or Euros 2003 Ferrari Enzo securely sold through Escrow.com
Slide 82: Escrow.com makes import/export simple
Escrow.com For personal use only makes import / export simple No more expensive & complicated letters of credit
Slide 83: Industrial & heavy equipment sold through Escrow.com
Industrial & heavy equipment sold through Escrow.com For personal use only 2014 FANUC 2006 Caterpillar Industrial Robot D5N Dozer
Slide 84: Escrow.com protects sale of jewellery and fine art
For personal use only Escrow.com protects the sale of jewellery and fine art including the purchase of Andy Warhol’s “Queen Elizabeth Suite”
Slide 85: Escrow.com protects the supply of services
Escrow.com also For personal use only protects the supply of services such as as holiday rentals or designing a website
Slide 86: Where the Internet is bought and sold
Where the Internet is bought and sold For personal use only
Slide 87: 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