Slide 1: 1HFY25 Results
1HFY25 Results 27 February 2025
Slide 2: Solid progress against FY25 priorities
Solid progress against FY25 priorities Key priority Progress Extract maximum value from both Redbubble gross profit margin TeePublic gross profit margin marketplaces by optimising COGS up 80 bps on 1HFY24 and paid marketing activities up 330 bps on 1HFY24 Restructure expected to deliver Maintain cost
Slide 3: 1HFY25 financial overview
1HFY25 financial overview 1HFY25 Marketplace $230.4m MPR decline driven by Redbubble, partially offset by TeePublic’s performance, which was in line with the pcp Revenue 1HFY24: $260.4m, -12% Gross Gross profit profit margin 43.8% $100.9m Delivered highest first half gross profit margin to date, up 220 b
Slide 4: 1HFY25 marketplace highlights
1HFY25 marketplace highlights MPR decline driven Marketplace primarily by deterioration in contribution from $119.3m revenue $111.1m Maintained MPR despite softer trading environment organic sources 1HFY24: $149.3m, -20% 1HFY24: $111.1m Gross Gross Gross $52.8m $48.0m Gross profit margin profit margin
Slide 5: Business updates
Business updates
Slide 6: Vivek Kumar, CEO, Marketplaces
Vivek Kumar CEO, Marketplaces 6
Slide 7: Transforming marketplace operations to drive synergies and return to growth
Transforming marketplace operations to drive synergies and return to growth Combined marketplace Return to operations under single leader Cost optimisation MPR growth Restructure expected to deliver Prioritise highest-value $12 million to $14 million initiatives across in annualised savings marketpl
Slide 8: TeePublic update
1HFY25 1HFY25 TeePublic update operational metrics financial metrics ● To drive engagement, improved the search Selling artists and discovery algorithm for core search, 138k Artist earnings 48% ‘People Also Search For’ and similar design 1HFY24: 117k $10.9m recommendations 1HFY24: $11.3m ● Released a
Slide 9: Recent upgrades to TeePublic's navigation driving higher conversion
Recent upgrades to TeePublic’s navigation Site conversion rate driving higher conversion Dec-23 to Dec-24 +23% Launched new navigation Continually updating topic based navigation experience in Mar-24 to create engaging customer journeys Added ‘Politics’ Aug-24, immediately ~10% of topic clicks Durin
Slide 10: Redbubble update
1HFY25 1HFY25 Redbubble update operational metrics financial metrics Selling artists ● Enhanced data tracking and analytics to provide real time margin visibility at the 472k Artist earnings 52% 1HFY24: 453k $25.3m order level to enable us to spend more 1HFY24: $31.1m profitably on marketing ● Enhance
Slide 11: New growth areas will build on the Group vision and leverage core strategic assets
New growth areas will build on the Group vision and leverage core strategic assets Group vision Strategic assets How strategic assets will be Leading network of digital leveraged Global leader creators with commercial content for connecting Provide additional revenue streams from digital creators Sc
Slide 12: Launched Dashery, an additional revenue stream for the Group
Launched Dashery, an additional revenue stream for the Group, targeting new creator segments www.dashery.teepublic.com ● Launched MVP in Jan-25 ● Leveraging group assets to drive success ○ Footprint with creators and established accounts team to attract early adopters ○ Group’s POD network to offer
Slide 13: 1HFY25 financial overview
1HFY25 financial overview
Slide 14: 2QFY25 and 1HFY25 Group profit and loss statement
2QFY25 and 1HFY25 Group profit and loss statement P&L (A$M) 2QFY24 2QFY25 % change 1HFY24 1HFY25 % change Total revenue 191.3 163.9 (14%) 302.7 266.6 (12%) MPR 165.8 142.7 (14%) 260.4 230.4 (12%) Solid TeePublic performance offset by a decline in Redbubble MPR Gross profit 66.2 61.8 (7%) 108.4 100.9 (
Slide 15: Improvement in gross profit margins, coupled with reduced cost base
Improvement in gross profit margins, coupled with reduced cost base provides foundation for sustainable profit Gross profit and GPAPA margins Operating expenditure (FY21 to FY25) (millions, FY21 to FY26) 50% $130 $12m - $14m of savings 40% $105 30% $80 $129 $109 20% $98 $55 $89 10% $30 1 FY21 FY22 FY23
Slide 16: On track to deliver positive underlying cash flow in FY25
On track to deliver positive underlying cash flow in FY25, subject to any incremental investment in Dashery Closing cash balance (millions, 1HFY21 - 1HFY25) $150 Consistent with seasonal payments to marketplace participants, $143 31 January 2024 cash balance of $130 $36 million (31 January 2023: $41
Slide 17: Strategy and outlook
Strategy and outlook
Slide 18: After stabilising our foundation, we are now focused on reinstating growth
After stabilising our foundation, we are now focused on reinstating growth Phase 1 Both marketplaces delivered GPAPA Stabilise growth and positive underlying cash foundation flow in FY24 Phase 2 Group has been restructured Deliver profitable revenue to enable addition of new operating growth from exis
Slide 19: 2HFY25 priorities
2HFY25 priorities Stabilise Redbubble’s revenue decline Creating a foundation to Drive deliver further improvements in unit economics sustainable profit and revenue Continue growth in FY26 executing cost-reduction plan 19
Slide 20: FY25 guidance
FY25 guidance1 Positive GPAPA margin Operating expenditure underlying cash flow $89 million - 25%-27% $92 million subject to any incremental investment in Dashery in 2HFY25 1. Our ability to achieve this aim is highly dependent on various factors including consumer demand, foreign exchange rates, geo
Slide 21: Supplementary information
Supplementary information
Slide 22: Two distinct marketplaces operating at a global scale
Two distinct marketplaces operating at a global scale Geographic Diversity (% of gross transaction value) North America North America 71% 71% Europe and United Kingdom Gross transaction value 20% 46 third-party Australia and New Zealand 54% 51% North America Apparel fulfiller sites 8% 93% 95% North A
Slide 23: 2QFY25 and 1HFY25 profit and loss statement
2QFY25 and 1HFY25 profit and loss statement % % P&L(A$M) 2QFY24 2QFY25 % cc change 1HFY24 1HFY25 % cc change change change Total revenue 191.3 163.9 (14%) (15%) 302.7 266.6 (12%) (12%) Less: artist revenue (25.6) (21.1) (17%) (18%) (42.4) (36.2) (15%) (14%) MPR 165.8 142.7 (14%) (15%) 260.4 230.4 (12
Slide 24: Reconciliation of segment results
Reconciliation of segment results (A$M) % 1HFY24 1HFY25 change Redbubble MPR $149.3m $119.3m (20%) TeePublic MPR $111.1m $111.1m 0% Articore MPR $260.4m $230.4m (12%) Redbubble gross profit $61.2m $52.8m (14%) TeePublic gross profit $47.2m $48.0m 2% Articore gross profit $108.4m $100.9m (7%) Redbubble
Slide 25: Glossary
Glossary Term Definition $ All references to dollar amounts or figures are in AUD unless stated otherwise 1H/2H First or second half of the financial year 1Q/2Q/3Q/4Q First, second, third or fourth quarter of the financial year AI Artificial intelligence Selling artists Number of active artists who sold
Slide 26: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Articore Group Limited (ACN 119 200 592) and its related bodies corporate (together, the Articore Group or the Group) and the Group’s activities as at the date of this presentation. It is information given in summar
Slide 27: Contact us
Contact us: Virginia Spring VP, Investor Relations investor.relations@articore.com