Freelancer Ltd. · ASX:FLN
Freelancer — Shareholder Meeting (May 2015)
45 slides from Freelancer's shareholder meeting presentation, May 7, 2015
Slide 1: Freelancer Limited Annual General Meeting
For personal use only 7 May 2015 Freelancer Limited Annual General Meeting Matt Barrie Executive Chairman, Chief Executive Officer
Slide 2: Projects posted, registered users, total value of projects
For personal use only 7,617,448 15,398,270 $2,712,502,704 PROJECTS & CONTESTS POSTED REGISTERED USERS TOTAL VALUE OF PROJECTS POSTED* * As of 15th February 2015. Data aggregated for all acquired marketplaces since 2001. AUD.
Slide 3: We help small businesses and startups turn ideas into reality
For personal use only We help small businesses, startups and entrepreneurs turn that spark of an idea into reality. Industrial design of a 3 water kettle for $240
Slide 4: Changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportunity and income. 4
Slide 5: Board of Directors & Company Secretary
Board of Directors & Company Secretary For personal use only ● Matt Barrie, Executive Chairman ● Darren Williams, Executive Director ● Simon Clausen, Non-Executive Director ● Neil Katz, Chief Financial Officer & Company Secretary 5
Slide 6: Agenda
Agenda For personal use only ● Executive Chairman’s Address ● Formal Business ● Q&A ● Close of Business 6
Slide 7: Executive Chairman's Address
For personal use only EXECUTIVE CHAIRMAN’S ADDRESS 7
Slide 8: Key financial highlights FY14
Key financial highlights FY14 Freelancer delivers another record full year result For personal use only ● Record Net Revenue of $26.1m for FY14 (up 39% on pcp) ● Gross Payment Volume (GPV)1 grew strongly to $103.7m (up 23% on pcp) ● Gross margins of 87.1% in line with prior year (FY13: 87.6%) ● Cont
Slide 9: Key financial highlights FY14
Key financial highlights FY14 Freelancer delivers another record full year result For personal use only A$m, 31 Dec FYE FY13 FY14 Change % Net Revenue $18.8m $26.1m 39% Gross Payment Volume1 $84.4m $103.7m 23% Take rate4 (%) 22.2% 25.1% 13% Gross margin (%) 87.6% 87.1% ~ Operating EBITDA2 $1.2m $(2.
Slide 10: Marketplace growth
Marketplace growth Exceptional growth in registered users, 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 Freelancer.com population overtakes Belgium 11,000,000 5,000,000 10,000,000 As at 31 Dece
Slide 11: Key marketplace highlights FY14
Key marketplace highlights FY14 Freelancer delivers another record full year result For personal use only 31 Dec FYE FY13 FY14 Change % New registered users in year 2.9m 4.6m 60% Total registered users 9.7m 14.3m 47% New projects & contests in year 1.2m 1.6m 31% Total projects & contests 5.3m 6.9m 3
Slide 12: Freelancer's Online Economy in 2013
Freelancer’s Online Economy in 2013 For personal use only Note: Sample of projects awarded in 2013. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 12 freelancers. Thicker lines indicate a higher volume of wo
Slide 13: 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 13 freelancers. Thicker lines indicate a higher volume of wo
Slide 14: Revenue growth
Revenue growth Record FY14 net revenue of $26.1m, up +39% on prior corresponding period For personal use only Net Revenue (A$m) and Gross Margin (%) 160.0% 26.1 25.0 ● Record net revenue of $26.1m in FY14, Net Revenue 140.0% up +39% on FY13 +39% Gross margin 120.0% ● Consistently high gross margins,
Slide 15: Gross payment volume
Gross payment volume Annual Gross Payment Volume1 (GPV) exceeding $100 million with continued improvement in take rate2 in FY14 For personal use only Gross Payment Volume1 (A$m) and Take Rate2 (%) 103.7 35.0% 100.0 ● GPV of $103.7m in FY14, up +23% on pcp +23% ● Continued take rate improvement to 25
Slide 16: Key operational highlights FY14
Key operational highlights FY14 Expanded international footprint and increased its investment in talent to position for growth in FY14 For personal use only FTEs 31 Dec 2013 31 Dec 2014 Change % Sydney 80 100 25% Manila 217 280 29% London 0 3 - Vancouver 0 7 - Total 297 390 31% ● Sydney headquarters
Slide 17: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) FY13 FY14 Change 31 Dec y/e Actual Actual (%) Net Revenue 18.8 26.1 39% ● Continued strong revenue and gross profit grow
Slide 18: Summary balance sheet
Summary balance sheet Strong balance sheet For personal use only (A$m) FY13 FY14 Change 31 Dec y/e Actual Actual (%) Cash and cash equivalents 24.4 20.2 (17%) ● Total cash at period end of $20.2m, no net debt Trade and other receivables 2.3 2.9 26% Other current assets 0.4 1.1 187% ● Trade and other
Slide 19: Delivered another exceptional quarter in Q1 2015
Delivered another exceptional quarter in Q1 2015 Cash flow statement for quarter ending March 31 2014 For personal use only ● Record cash receipts of $8.0 million – Up 8% on Q4 2014 and up 42% on prior corresponding period ● Positive operating cash flow of $1 million ● Cash balance of $22.1 million
Slide 20: FY15 outlook
FY15 outlook Exceptional growth is expected to continue For personal use only • Freelancer continues to demonstrate exceptional growth, with record net revenue, registered users and posted “160 million jobs, projects for the 2014 full financial year. or about 11% of the projected 1.46 • We expect th
Slide 21: Freelancer.com and Escrow.com
21 your ideas into 15,298,859 Freelancer.com #1 in Online Services Marketplaces Over USS$2.2 Billion in projects posted Escrow.com #1 in Secure Online Payments Over USS2.2 Billion in secured transactions
Slide 22: Transaction highlights
Transaction highlights An attractive strategic acquisition consistent with Freelancer’s growth strategy For personal use only Transaction • Freelancer has executed a definitive agreement to acquire Escrow.com from a private vendor Details • US$7.5 million cash acquisition price • Funded by a capital
Slide 23: Completed capital raising
Completed capital raising Freelancer has raised A$10 million from a placement of new ordinary shares For personal use only Equity raising • Placement of 10 million new ordinary Key market statistics1 shares ASX code FLN • Priced at $1.00, representing a premium to Listing price (15 November 2013) A$
Slide 24: Overview of Escrow.com
Overview of Escrow.com A business with 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 Rev
Slide 25: Draft
25 For personal use only DRAFT
Slide 26: Escrow.com is used to secure a wide range of transaction types
For personal use only 26 Escrow.com is used to secure a wide range of transactions types Trt = U LJ P OM Domains Antiques Computer Equipment Jewelry Motorcycles a 6 A ch Consultants Boats Classic Cars Contractors Refurbished Equipment (al &d (A [6] Websites Heavy Equipment IT Services Copyrights Ele
Slide 27: Notable Partners
27 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 28: For personal use only
28 ef AY pele He Search... All Categories Home > Help Topics > Payment & shipping > Paying foritems > Using escrow services Help Browse help Search the Help pages (Does not search for items or products) _EX2™Pple: ‘payment methods Searching & researching Bidding & buying Using escrow services for eB
Slide 29: 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 30: All major global marketplaces have captive payments businesses
30 All major global marketplaces have captive payments businesses A strong cornerstone for entering the payments space amazon.com ebay ED dlibaba com amazonpayments P PayPal Ose SHE YY freelancer + (© Escrow.com
Slide 31: Beautiful product
31 For personal use only Beautiful product
Slide 32: Good help is just around the corner
FOr personal use only g freelancer Good help is just around the corner The world's best marketplace for online jobs is now the world’s best marketplace for local jobs.
Slide 33: From carpentry to collecting your laundry
‘W freelancer From carpentry to collecting your laundry. No job is too big or too small. eco Micha 2 on ( Natalie B Diegom . J thhhe $50 nee? @) dames w - —=X<__E______=r esse 1. Post a job 2. Get offers 3. Pick the best Tell us what you need done and Award the job to your favourite bidder, Review t
Slide 34: Hire plumbers, cleaners and other local workers on demand
FOr personal use only freelancer You can now hire plumbers, cleaners and other local workers on demand. Collect my laundry from the laundromat
Slide 35: Introducing Freelancer Showcase
FOimpersonal-use only Introducing Freelancer Showcase Inspiration to turn your dreams into reality W treelancer
Slide 36: Freelancer Showcase
FOmpersonal-use only Freelancer Showcase is an exciting new place for anyone to exhibit their work and get hired. Wireelancer
Slide 37: Now available on desktop and Android
For personal use only Now available on desktop and Android, with an iOS version coming very soon. Wireelancer
Slide 38: Winner of Four Webby Awards for 2015
For personal use only si Winner of Four Webby Awards for 2015 Best Employment Website People’s Voice Award - Employment Best Professional Services Website People’s Voice Award - Professional Services
Slide 39: Business of the Meeting
For personal use only BUSINESS OF THE MEETING 39
Slide 40: Item 1: Financial Statements and Reports
Item 1: Financial Statements and Reports For personal use only ● To receive and consider the Annual Financial Report of Freelancer Limited and the Directors’ Report, Remuneration Report and Independent Auditor’s Report for the year ended 31 December 2014. 40
Slide 41: Item 2: Adoption of Remuneration Report
Item 2: Adoption of Remuneration Report For personal use only ● To adopt the Remuneration Report for the year ended 31 December 2014. 41
Slide 42: Item 3: Re-election of Director
Item 3: Re-election of Director For personal use only ● Mr Simon Clausen retires by rotation in accordance with rule 6.7 of the Company’s Constitution and, being eligible, offers himself for re-election. 42
Slide 43: Q&A
43 For personal use only Q&A
Slide 44: Close of Business
44 For personal use only CLOSE OF BUSINESS
Slide 45: 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