Slide 1: 1H18 Half Year Results Presentation
For personal use only 31 July 2018 Freelancer Limited 1H18 Half Year Results Presentation Video presentation of these results available at http://frln.cr/DbDzke Matt Barrie Chief Executive Officer 1
Slide 2: Freelancer.com and Escrow.com
FREELANCER.COM ESCROW.COM For personal use only #1 Online Services Marketplace #1 for Secure Online Payments Over US$3 billion in jobs posted Over US$3.5 billion in transactions 2
Slide 3: 1H18 Freelancer Group Results
1H18 Freelancer Group Results For personal use only ● All-time record half year GPV AU$364m, up 25% on pcp ○ Freelancer GMV US$48m, up 8% on pcp in USD c/c ○ Escrow.com GPV US$215, up 37% on pcp (2Q18/1Q18 US$120m up 25%) ● Net Revenue AU$24.7m, down 6% ○ Freelancer: $21.2m, down 8% (cash receipts $
Slide 4: Freelancer.com Highlights
Freelancer.com Highlights For personal use only ● 1H18 all-time record GMV of $62m (up 6% on pcp) ● Enterprise closing first two customers by end August ● Acquired freelancers.net (70k users in UK, 20 year history) ● GDPR took engineering time, compliance achieved by go-live date ● Memberships conti
Slide 5: Escrow.com Highlights
Escrow.com Highlights For personal use only ● AU$281 million half for GPV up 34% on pcp (37% USD c/c) ● AU$158 million 2Q18 GPV up 41% on pcp (42% USD c/c) ● Record US$182 million half for GPV ex-China (up 37% USD c/c) ● Record US$100,000,000 quarter ex-China ($101m vs 4Q15 $89m) ● First US$10,000,0
Slide 6: Escrow.com quarterly GPV (US$)
Escrow.com quarterly GPV (US$) 1H18 GPV AU$281 million (up 34% YoY, 37% USD c/c), record half and quarter ex-China For personal use only 6
Slide 7: Net Revenue 1H18
Net Revenue 1H18 1H18 net revenue of $24.7m (down 6% on pcp) For personal use only ● Net revenue of $24.7m, down 6% on pcp ○ Freelancer revenue $21.2m (down 8%) ○ Escrow revenue $3.5m (up 11%) ■ Difference with cash receipts is DNH (lease to buy) & large xacts that didn’t close before June 30, will
Slide 8: Gross Payment Volume (GPV) 1H18
Gross Payment Volume (GPV) 1H18 All-time record half year GPV $364m, up 25% on pcp, 1H18 all-time record Freelancer GMV, 2Q18 Escrow GPV ex-China For personal use only Group ● 1H18 all-time record GPV $364m (up 25% on pcp) Freelancer ● 1H18 all-time record GMV of $62m (up 6% on pcp) ● 2Q18 all-time
Slide 9: Cash flow profile 1H18 (AUD)
Cash flow profile 1H18 (AUD) 1H18 positive operating cash flow of $0.4m For personal use only 18 1H ● Cash & eq. at period end (30 June 2018) $33.3m, up 4.4% on FY17 (31 Dec 17) ● 1H18 operating cash flow positive $0.4m ● 1H18 upward revaluation in cash balances due to ~5% depreciation in AUD/USD 9
Slide 10: Freelancer.com Gross Marketplace Volume
Freelancer.com Freelancer Gross Marketplace Volume up 8% in 1H18 on pcp in USD constant currency* For personal use only Freelancer.com GMV Milestones released (US$) last 5 years Ramadan, northern summer (seasonal) Christmas, New Year * Gross Marketplace Volume (GMV is a measure of total payments out
Slide 11: Strong growth in hourly, mobile and recruiter projects
Freelancer.com Strong growth in volume across hourly, mobile and recruiter projects For personal use only Recruiter Projects GMV Hourly, recruiter and mobile projects continue to grow strongly ● Hourly GMV - up 53% in 2Q18 on pcp ● Recruiter GMV - up 54% in 2Q18 on pcp ● Mobile GMV - up 32% in 2Q18
Slide 12: Summary profit & loss statement 1H18
Summary profit & loss statement 1H18 Freelancer, Escrow EBITDA positive last 3 of 4 months (A$m) 1H18 1H17 Change For personal use only 31 Dec y/e Actual Actual ● Freelancer, Escrow EBITDA positive last 3 of 4 months Net Revenue 24.7 26.6 -7% Gross Profit 21.1 22.8 -7% ● Consistent gross margins in
Slide 13: Summary balance sheet 1H18
Summary balance sheet 1H18 Cash balances at AU$33.3m as at 30 Jun 2018 (up 4% from Dec 17) For personal use only (A$m) 1H18 1H17 Change 31 Dec y/e Actual Actual ● Total cash at end of 1H18 $33.3m (up 4% from Dec 17), no net debt Cash and cash equivalents 33.3 31.9 +4% Trade and other receivables 4.3
Slide 14: Freelancer.com
For personal use only Freelancer Limited FREELANCER.COM 14
Slide 15: Total registered users and jobs posted
1H18 completed with 29 million users and 14.2 million jobs 4.3 million registered users and 1.1 million jobs were added to the marketplace in 2017 For personal use only Total Registered Users Total Jobs Posted (Filtered) 1.Number of user accounts, and jobs (projects/contests posted) in the Freelance
Slide 16: Freelancer's Online Economy in 2018
Freelancer’s Online Economy in 2018 For personal use only Note: Sample of projects awarded in 2018. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 16 freelancers. Thicker lines indicate a higher volume of wo
Slide 17: Online Economy – USA
Freelancer’s Online Economy in 2018 – USA For personal use only Note: Sample of projects awarded in 2018. 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
Slide 18: Online Economy – Europe
Freelancer’s Online Economy in 2018 – Europe For personal use only Note: Sample of projects awarded in 2018. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 18 freelancers. Thicker lines indicate a higher vol
Slide 19: Online Economy – Australia
Freelancer’s Online Economy in 2018 – Australia For personal use only Note: Sample of projects awarded in 2018. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 19 freelancers. Thicker lines indicate a higher
Slide 20: Online Economy – India
Freelancer’s Online Economy in 2018 – India For personal use only Note: Sample of projects awarded in 2018. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 20 freelancers. Thicker lines indicate a higher volu
Slide 21: Regional Websites, Languages, Currencies
53 34 39 For personal use only Regional Websites Languages Currencies North America Europe Asia Pacific Languages Currencies Afrikaans 日本語 USD CNY Bahasa Indonesia 한국어 NZD DKK Bahasa Malaysia Norsk-Bokmål AUD VND GBP AED Africa বাংলা Nederlands HKD ARS Català Polski SGD BDT Čeština Português PHP COP
Slide 22: Marketplace dynamics 1H18
Marketplace dynamics 1H18 “Every job, every country, every language, every currency, at any time” For personal use only ● Over 1,000 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, Manufacturing, Mechanical Engineering ● Complexity & sophistication growing each year ● Avera
Slide 23: Revenue Model
Revenue Model Freelancer’s revenue is driven by users posting jobs – as a project or a contest 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 project is awarded and accepted ● F
Slide 24: 3D design for an office
24 3D design for an office Freelancer » Jobs » 3D Modelling » 3D design for an office AN 8x4 office , needs 3d design with rendering, Skills: 3D Modelling, 30 Rendeting, Building Architecture, Interior Design ‘See more: interior design 3 d rendering service company, d rendering interior design, d re
Slide 25: Chocolate package design contest
‘W freelancer Hire Freelancers ~ Work ~ MyProjects~ Help» Q Search $179.47AUD~ @ (py Home » My Projects ctosep | [1] Chocolate package (front) design €100 EUR Description Entries COcGNUT Awinner has been chosen! With 54 entries from 26 freelancers, this employer had the work done for €100 in 5 days.
Slide 26: This Packaging Design cost €100
For personal use only This Packaging Design cost €100 26
Slide 27: This Logo Design cost €10
For personal use only This Logo Design cost €10 27
Slide 28: This Logo Design cost €50
For personal use only This Logo Design cost €50 28
Slide 29: This Book Cover cost $150
For personal use only This Book Cover cost $150 29
Slide 30: This Mobile App Design cost $100
For personal use only This Mobile App Design cost $100 30
Slide 31: This 3D Model cost $100
For personal use only This 3D Model cost $100 31
Slide 32: This Cover Art cost £25
For personal use only This Cover Art cost £25 32
Slide 33: This Illustration cost $100
For personal use only This Illustration cost $100 33
Slide 34: This 3D Model cost £100
For personal use only This 3D Model cost £100 34
Slide 35: This Wedding Logo Design cost $20
For personal use only This Wedding Logo Design cost $20 35
Slide 36: This Logo Design cost $15
For personal use only This Logo Design cost $15 36
Slide 37: This Logo Design cost SEK800
For personal use only This Logo Design cost SEK800 37
Slide 38: This Architectural Design cost $1613
For personal use only This Architectural Design cost $1613 38
Slide 39: NASA Challenge: Develop 3D Models for Robonaut
freelancer Hire Freelancers ~ Work ~ My Projects ~ Help ~ Search $17947AUD~ @ B° WD > My Projects NASA Challenge: Develop 3D Models for Robonaut S... Description Entries. 121 Tota Entries View:(121) AllEntries $/ Sort by: Default #59 by Miguel G. #130 by Balazs S. #63 by Nicoles G #115 by Elena wok
Slide 40: NASA got this 3D CAD Model for $50
For personal use only NASA got this 3D CAD Model for $50 40
Slide 41: We push the boundaries of human innovation
We push the boundaries For personal use only of human innovation The NASA Tournament Lab and Freelancer have teamed up to help crowdsource solutions to the most complex problems being faced by astronauts on the cutting edge of space exploration. ENTRIES 4581 FREELANCERS PARTICIPATING 126 COUNTRIES P
Slide 42: Contests
For personal use only Contests Get the perfect design by crowdsourcing your ideas 98 entries per contest on average 64% of contests get their first entry in an hour Contests now support multi-award 42
Slide 43: Introducing Location Tracking
Introducing For personal use only Location Tracking Keep track of a freelancer’s location whilst work is in progress Watch on as your freelancer completes the work. Record the steps involved and time spent in progress. Automatically submit and pay for completed work. The convenience of knowing Local
Slide 44: Collaboration
Collaboration For personal use only Improving and building tools for employers and freelancers to work together Employers can now manage Hourly Fees from Hourly Projects with The average employer is now Projects on mobile Automatic Billing have increased by paying over $3,000 USD 35% in the last 6 m
Slide 45: Recruiter
For personal use only Recruiter Leave the hard work of finding the perfect freelancer to an expert 43% year on year increase in Q2 Recruiter projects 53% year on year increase in Q2 Recruiter GMV 45
Slide 46: Payments
For personal use only Payments Pay in, pay out within the Freelancer.com platform Increased direct bank payout from 20 countries to 47 Google Pay added as a payment method Streamlined experience depositing funds 46
Slide 47: Customer Experience
For personal use only Customer Experience Increasing user satisfaction on the Freelancer platform Improved Chat experience and design on the Help Center Improvements are validated by SOURCE: TRUSTPILOT the 8.8 TrustPilot rating and the increase in SiteJabber rating from 3.9 to 4.3 out of 5. SOURCE:
Slide 48: Freelancer Enterprise
Freelancer Enterprise For personal use only Over 70% of Fortune 500 companies use Freelancer.com to get work done Fast track workforce automation Private Freelancer Cloud and No fees - employer commissions with our fully featured API Project Success Managers ensure are waived for volume clients qual
Slide 49: Freelancer API
Freelancer API For personal use only Make an API call to the cloud workforce from your website, app or software Built by developers, for developers. Automate your workforce at scale A perfect companion to Freelancer www.freelancer.com/api across the globe while cutting costs. Enterprise customers. 4
Slide 50: Escrow.com
For personal use only Freelancer Limited ESCROW.COM 50
Slide 51: Inspect goods & services before releasing funds
For personal use only Inspect goods & services before releasing funds. No chargebacks, ever. OVER $3,500,000,000 IN TRANSACTIONS SECURED SINCE 1999 51
Slide 52: Payments innovation revolves around buying a cup of coffee
Most payments innovation revolves around trying to buy a cup of coffee For personal use only rather than selling anything of real value, like a car 52
Slide 53: Escrow.com is used to secure a wide range of transactions
CARS BOATS AIRPLANES MOTORCYCLES DOMAINS For personal use only COLLECTIBLES COMPUTERS, TV & HIFI MACHINERY & ROBOTICS ANTIQUES NETWORK EQUIPMENT GEMSTONES & JEWELRY GENERAL MERCHANDISE HEAVY EQUIPMENT INTELLECTUAL PROPERTY IMPORT/EXPORT SPACE STATION DEPOSITS BUSINESS ASSETS SERVICES & CONTRACTORS W
Slide 54: Escrow.com secures transactions from $100 to $100,000,000
Escrow.com secures transactions from $100 to $100,000,000 USD, EUR and AUD coming soon For personal use only 2007 Robinson R44 securely sold Aerocruiser 1100 hovercraft securely sold through Don Pedro houseboat securely sold through Escrow.com Escrow.com through Escrow.com Piper PA-23-250 Aztec F se
Slide 55: Escrow.com Economy
Escrow.com Economy 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 55 TRANSACTIONS ARE BEING FULFILLED BY SELLERS. THICKER LINES INDICATE HIGHER VOLUME. WHITE DOTS INDICATE THE LOC
Slide 56: Escrow.com 5-step trust process
1. Buyer and seller agree to terms For personal use only 2. Buyer pays Escrow.com 3. Seller ships merchandise Escrow.com 4. Buyer accepts the merchandise The only licensed, bonded & audited secure online solution that protects both the buyer and the seller with a simple 5. Escrow.com pays the seller
Slide 57: Benefits of using Escrow.com
Benefits of using Escrow.com For personal use only Increase Trust Increase Liquidity Allow your customers to transact on e-commerce, Physical inspection & acceptance happen on marketplaces & classifieds sites with higher trust & delivery, meaning valuable items can ship across safety greatly reducin
Slide 58: Benefits of using Escrow.com
Benefits of using Escrow.com For personal use only Increase Compliance Increase Insights Escrow.com provides “compliance as a service” Escrow.com “closes the loop” providing insight into performing know your customer & anti-money what happens to your customers after they match laundering verificatio
Slide 59: AFS Licence granted May 2018
For personal use only AFS Licence #501215 granted 15 May 2018 Escrow.com has 46 financial services licenses granted or in-application (Hawaii, Nevada and the territories are the only US licenses remaining to file). The oldest, most trusted and licensed online escrow service in the world 59
Slide 60: Cars, boats & airplanes are the perfect match
For personal use only 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 has to risk charge backs ● Buyer using cash or wire has to risk delivering cash safely and trust the seller
Slide 61: High Value Goods
High Value Goods For personal use only Escrow.com protects fine art, antiques, collectibles, watches, jewelry, gemstones from forgeries and fakes Whether it’s by Warhol, Picasso or Hirst, we’ve sold it securely through Escrow.com Shipping documentation is tracked and buyers receive & inspect the goo
Slide 62: Industrial, network, construction & heavy equipment
For personal use only Industrial, network, construction & heavy equipment sold through Escrow.com Transact beyond the local area to a global market Sellers access more buyers, buyers access more sellers Escrow.com makes it easier to agree to larger contracts FANUC M710iC Industrial Robots securely s
Slide 63: Escrow.com makes import / export simple
For personal use only Escrow.com makes import / export simple No expensive & complicated letters of credit Removes need to perform customer credit checks Automates payments to international suppliers Increases competitiveness of exporters through facilitating supplier & customer diversity Shipment o
Slide 64: Service contracts including freelancing
For personal use only Service contracts including freelancing through Escrow.com We support milestone payments against a time or deliverables schedule Ensure your last invoice gets paid Medical solar system installation in Yuba City, CA securely sold through Escrow.com 64
Slide 65: Where the Internet is bought and sold
UBER.COM SNAPCHAT.COM SPACEX.COM TWITTER.COM INSTAGRAM.COM FREELANCER.COM For personal use only GMAIL.COM FOURSQUARE.COM WECHAT.COM SLACK.COM CHROME.COM WARRIORFORUM.COM WORDPRESS.COM MEDICARE.COM LOTTOLAND.COM DATING.COM PRIME.COM OUTLOOK.COM FULLTILT.COM INTERNETBRANDS.COM CENTURION.COM HULU.COM O
Slide 66: The Escrow.com Platform API
The Escrow.com Platform API For personal use only With no minimum fee and priced as low as 0.89%, integrate Escrow.com into your website, mobile app, classified site or marketplace. Beautiful Docs Real-time Insights Versioning Developers First Our step-by-step integration Stay up to date on the prog
Slide 67: Platform API built by developers, for developers
The Escrow.com Platform API is built by developers, for developers For personal use only 67
Slide 68: Simple Escrow.com API Integration
Simple Escrow.com API Integration For personal use only 68
Slide 69: Shopify Exchange
Shopify Exchange Escrow.com is the only payment method for Shopify’s marketplace of stores For personal use only 69
Slide 70: Wingform uses Escrow.com
Wingform uses Escrow.com to deliver a turnkey solution Thanks to Escrow.com, if you find an aircraft on Wingform, you know the seller is serious about selling his aircraft For personal use only 70
Slide 71: Aurora Space Station uses Escrow.com for deposits
The Aurora Space Station uses Escrow.com to take deposits Deposits are already flowing for the $10 million luxury Space Hotel by Orion Span (www.orionspan.com) For personal use only 71
Slide 72: The #1 Internet Marketing Forum Since 1997
For personal use only The #1 Internet Marketing Forum Since 1997 1,360,659+ 10,384,650+ 1,051,763+ USERS POSTS DISCUSSIONS 72
Slide 73: Startcon Pitch for a Million
[G| startcon PITCH for ] MILLION STATE THEATRE 20 SEPT 2018 - MELBOURNE TOWN HALL 24 SEPT 2018 Australia's Largest Startup Asia Pacific’s Largest Startup & Growth Conference Pitch Competition 6 Jack Stevens @) CEO @ @EEdstart ) =) <¢ Pesce BY FOUNDING CEO MARC RANDOLPH o 6 lle Sarah Bird _N CEO @ Mo
Slide 74: 2017 Awards | Freelancer.com
2017 Awards | Freelancer.com For personal use only Gold Stevie Gold Stevie Silver Stevie Silver Stevie Silver Stevie Silver Stevie Silver Stevie Communications Freelancer.com IOS and Most Innovative Tech Matt Barrie, Executive of Sebastian Siseles, PR Business Services Best User Experience Departmen
Slide 75: 2017 Awards | Escrow.com
2017 Awards | Escrow.com For personal use only Gold Stevie Silver Stevie BBB Torch Award Financial Services Financial Services Ethics Company of The Year Company Better Business Bureau The International The International Torch Awards Business Awards 2017 Business Awards 2017 75
Slide 76: 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 77: Senior Management Team
Senior Management Team Specialists in growth, finance, operations, infrastructure, international execution, compliance and engineering For personal use only Neil Katz Peter Phillips Amir Massoudi Greg Robinson Sarah Tang Adam Byrnes Sebastián Siseles Chief Financial Vice President, Director, Growth
Slide 78: Outlook Statement 2018
Outlook Statement 2018 Freelancer has a firm foundation for revenue growth in FY18 and a clear path to profitability ● FY17 was a challenging year and already FY18 is looking brighter after 1H18 results For personal use only – For Freelancer.com, marketplace health is improving and growth is returni
Slide 79: Unique Investment Thematics
Unique Investment Thematics Freelancer Limited (ASX:FLN) is a unique exposure to: For personal use only ● Massive market: $5 trillion TAM ● The on-demand and crowdsourced economy ● Increasing internet penetration of emerging markets ● Rising sophistication in emerging markets labour ● Software & mob
Slide 80: How big is the market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET? 80
Slide 81: 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 82: Estimated demand for Web Design services
Estimated demand for Web Design services (mid-high OECD) Freelancer’s global web design revenue opportunity estimated as $2.7 billion per annum ($10.5b GPV) For personal use only ● Freelancer’s estimated global web design revenue opportunity at c.$2.7 billion ($10.5b GPV). ● This is as a replacement
Slide 83: Estimated demand from mid-high income OECD SMEs
Estimated demand from mid-high income OECD SMEs Global small business revenue opportunity estimated as $38 billion per annum (602 million projects, $135 billion GPV) For personal use only ● There are about 28 million small businesses in the US ● Estimated global TAM from MSME market of c.$38 ○ 22 mi
Slide 84: Estimated demand from consumers
Estimated demand from consumers Product marketplaces as proxy of consumer demand indicates TAM of US$106 billion (2b projects, US$390b GPV) For personal use only ~400 million active consumers on 170 million active Taking 170m 5 projects / user GPV of US$390 billion consumer buyers as average across
Slide 85: Estimated supply of professional labour in the developing world
Estimated supply of professional labour in the developing world 370 million people, or 10% of the 3.7 billion working age population in the developing world have a tertiary qualification For personal use only ● 2010 global working age population: 3.7 billion, labour ● There are 220 million people wi
Slide 86: Estimated demand from Local Jobs in the US
Estimated demand from Local Jobs in the US Freelancer’s expansion into 100 categories of Local Jobs expands the total addressable market by up to $800 billion For personal use only ● Online services is already a huge market, with enormous future potential ○ McKinsey Global Institute has estimated th
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