Slide 1: FY15 Full Year Results Presentation
For personal use only 23 February 2016 Freelancer Limited FY15 Full Year Results Presentation Matt Barrie Chief Executive Officer
Slide 2: Freelancer delivers yet another record full year result
Freelancer delivers yet For personal use only another record full year result • Record Net Revenue $38.6m (up 48% on pcp) • Record GPV $229.3m (up 120% on pcp) • Positive Operating Cashflow $1.5m • Cash & equiv. (31 Dec) $32.2 million (up 59% on pcp) • Contribution from Escrow.com from 1 November 20
Slide 3: Freelancer & NASA team up to push the boundaries of human innovation
a, we ( 2016 FREELANCER & NASA TEAM UP : TO PUSH THE BOUNDARIES : OF HUMAN INNOVATION In the latest set of challenges, we will designing a robotic arm for the Astrobee, the next generation of free flying robots on the International Space Station. 50+ = CHALLENGES wo) ari COUNTRIES PLANNED PNAS! PART
Slide 4: Key market statistics
Freelancer Limited (ASX: FLN) For personal use only Key market statistics ASX code FLN Listing price (15 November 2013) A$0.50 Share price (22 February 2016) A$1.36 Market capitalisation (22 February 2016) A$630 million Share Price Chart $2.10 $1.90 $1.70 $1.50 $1.30 $1.10 $0.90 $0.70 $0.50 4 1. Sou
Slide 5: Key financial highlights FY15
Key financial highlights FY15 Record Net Revenue $38.6m (+48%), Record GPV $229.3m (+120%), Operating cashflow positive $1.5m For personal use only A$m, 31 December year end FY15 FY14 Change Net Revenue1 $38.6m $26.1m 48% Gross Payment Volume1,2 $229.3m $103.7m 120% Take rate3 (%) 26.6% 25.1% 6% Gro
Slide 6: Key financial highlights FY15
Key financial highlights FY15 Freelancer delivers yet another record full year result, with debut contribution from Escrow.com For personal use only ● Record Net Revenue and GPV, operating cashflow positive, contribution from Escrow.com ● Net Revenue of $38.6m for FY15 (up 48% on pcp)1 ● Gross Payme
Slide 7: Continuation of outstanding marketplace growth
Continuation of outstanding marketplace growth 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 14,000,000 6,000,000 12,000,000 5,000,000 10,000,000 4,000,0
Slide 8: Key marketplace highlights FY15
Key marketplace highlights FY15 Freelancer delivers yet another record full year result For personal use only 31 December year end FY15 FY14 Change % New Registered Users 4.4m3 4.6m Total Registered Users 18.7m3 14.3m 30% New Jobs in year1 1.7m 1.4m Total Jobs Posted (Filtered)1 8.0m 6.3m 27% Averag
Slide 9: Net Revenue
Net Revenue Record FY15 net revenue of $38.6m, up +48% on prior corresponding period Net Revenue (A$m) and Gross Margin (%) 38.6 For personal use only 4 0 .0 1 6 0 .0 % ● Record net revenue of $38.6m in FY15, 3 5 .0 +48% 1 4 0 .0 % up +48% on FY14 Net Revenue Gross margin ● Consistently high gross m
Slide 10: Gross Payment Volume (GPV)
Gross Payment Volume (GPV) Gross Payment Volume1 (GPV) of $229.3m (+120% on pcp), pro-forma full year of $709.7m Gross Payment Volume1 (A$m) and Marketplace Take Rate2 (%) For personal use only 229.3 3 5 .0 % ● GPV of $229.3m in FY15, up +120% on pcp – $138.2m from core Freelancer marketplace +120%
Slide 11: Cash flow profile
Cash flow profile Re-investing for growth, with positive operating cashflow of $1.5 million For personal use only Cash Balance/Flows (A$m) ● 31 December 2014 cash balance of $20m ● $20m of capital raised in two placements, each of $10m 2.2 (10.3) 1.5 ● Positive operating cashflow of $1.5m 20.0 ● Exc
Slide 12: Key operational highlights FY15
Key operational highlights FY15 Developed international footprint and continued investment in talent to accelerate growth in FY16 For personal use only ● Total staff of 440 at 31 December 2015, up 13% from 390 as at 31 December 2014 12
Slide 13: Summary profit & loss statement
Summary profit & loss statement Continued re-investment in product development, user experience, user and project acquisition and customer service For personal use only (A$m) FY15 FY14 Change ● Continued strong revenue and gross profit growth, 31 Dec y/e Actual Actual up 48% on pcp Net Revenue 38.6
Slide 14: Summary balance sheet
Summary balance sheet Very strong balance sheet, no debt For personal use only (A$m) FY15 FY14 Change ● Total cash at period end of $32.2m, no debt 31 Dec y/e Actual Actual Cash and cash equivalents 32.2 20.2 60% ● Escrow.com also holds approximately $27 million in cash, in trust, off balance sheet
Slide 15: Marketplace highlights FY15
Marketplace highlights FY15 Freelancer continues to break new records and accelerate its growth trajectory For personal use only ● Key milestones of c.18 million users and 8 million jobs posted – added 4.4 million users in FY15 including 870k unique (from 961k) Escrow.com users ● Passed US$3.0 billi
Slide 16: Operational highlights FY15
Operational highlights FY15 Acquisition of a strong cornerstone for entering the payments space, and development of key products For personal use only ● Acquisition of Escrow.com – the leading provider of secure online payments on the Internet – 2015 gross payment volume of US$430 million, and over
Slide 17: Operational highlights FY15
Operational highlights FY15 Significant improvements to Freelancer products in FY15 For personal use only ● Significant product improvements in matchmaking – Major improvements shipped in project management, messaging, video chat, time tracking and invoice generation ● Strong growth in contests – 51
Slide 18: Outlook statement FY16
Outlook statement FY16 FY16 will be an exceptional year for the Company with the addition of Escrow.com to the group For personal use only • Freelancer is continuing its exceptional growth, with record net revenue, registered users and posted projects in FY15 • Freelancer’s growth is accelerating •
Slide 19: Company Overview
For personal use only Freelancer Limited COMPANY OVERVIEW
Slide 20: 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 20
Slide 21: 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 22: We help small businesses, startups and entrepreneurs
For personal use only We Weare changing help small lives in the businesses, developing startups and world by entrepreneurs providing turn that opportunity and spark of an idea income. into reality. Design of a digital counting wristband for $220
Slide 23: Changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportunity and income.
Slide 24: Freelancer's Online Economy in 2012
Freelancer’s Online Economy in 2012 For personal use only Note: Sample of projects awarded in 2012. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 24 freelancers. Thicker lines indicate a higher volume of wo
Slide 25: 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 25 freelancers. Thicker lines indicate a higher volume of wo
Slide 26: 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 26 freelancers. Thicker lines indicate a higher volume of wo
Slide 27: 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 27 freelancers. Thicker lines indicate a higher volume of wo
Slide 28: 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 20151 ● c.900 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, 28% United States Manufacturing, Mechanical Enginee
Slide 29: Liquidity: 65% of projects get a bid within seconds
Liquidity: 65% of projects get a bid within 60 seconds (supply) Number of bids on projects Number of entries in contests For personal use only Actual completed projects Actual contest entries 29
Slide 30: Global, Multilingual, Multicurrency
Global, Multilingual, Multicurrency For personal use only 44 Regional Websites 34 Supported Languages 20 Supported Currencies Languages Currencies Afrikaans USD CLP NZD Bahasa Indonesia 한국어 AUD JMD PHP Bahasa Malaysia Norsk-Bokmål CAD IDR PLN !"#quot; Nederlands EUR MXN SGD Català Polskiа GBP SEK BRL Č
Slide 31: 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 32: Product Updates
For personal use only Freelancer Limited PRODUCT UPDATES
Slide 33: Beautiful Products
For personal use only Beautiful Products
Slide 34: 26% of engaged users touch Freelancer Mobile products
For personal use only 26% of engaged users touch Freelancer Mobile products (up 114% YoY Dec-Dec)
Slide 35: Freelancer Contests
Freelancer For personal use only Contests Freelancer's crowdsourcing platform introduced several significant product improvements resulting in growth of 51% year on year • Contests is now available on mobile devices, access your contest anywhere • Employers can get deliverables as graphics, videos a
Slide 36: Over 700,000 freelancers ready to work on local projects
For personal use only Over 700,000 freelancers ready to work on local projects in over 100 new location specific skills
Slide 37: Major Improvements in Project Management, Communication and Collaboration
Major Improvements in Project Management, For personal use only Communication and Collaboration Video chat Time tracking Our messaging service now supports Video Chat for everyone Offline time tracking, easier invoicing and payments New project management page Real time surfacing and ranking of bids
Slide 38: Escrow.com is now mobile responsive & available in Chinese
For personal use only Escrow.com is now mobile responsive & available in Chinese Your Escrow.com payment has been received Escrow.com/514661 The seller has agreed to your transaction
Slide 39: The World's Largest Internet Marketing Forum & Marketplace
The World’s Largest Internet Marketing Forum & Marketplace Since 1997 For personal use only USERS POSTS DISCUSSIONS 1,000,000+ 9,500,000+ 850,000+
Slide 40: Industry Drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS
Slide 41: 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. 41
Slide 42: It's 2016
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 43: 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 44: For personal use only
freelancer Hire Freelancers Work | MyProjects Help Q uso © CL? @ NEED AN AWESOME DESIGN? Crame Velasquez
Slide 45: 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 46: The world is repeating itself years later
The world is repeating itself 20 years later For personal use only 46
Slide 47: Job Examples
For personal use only Freelancer Limited JOB EXAMPLES
Slide 48: Yegdrasil full color tattoo
Yegdrasil full color tattoo Ineed some Graphic Design for chosing color for studio design of Hotels and Shopping Center ‘Create Print and Packaging Designs for Hazelnut chocolate spreads Design me a Product for the Next Evolution in Smoke Alarm Design Design a Logo for a Nightclub Event Design a Log
Slide 49: 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 49
Slide 50: Website for startup conference for €350
Website for startup conference for €350 For personal use only 50
Slide 51: Paper towel design and render for CAD $55
Paper towel design and render for CAD $55 For personal use only 51 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/
Slide 52: Logo design for a consulting firm for $129
Logo design for a consulting firm for $129 For personal use only 52
Slide 53: Ambient 3D modelling of a wardrobe for $90
Ambient 3D modelling of a wardrobe for $90 For personal use only 53 Source: https://www.freelancer.com/contest/Ambient-in-d-modeling-with-our-product-wardrobe-122619.html
Slide 54: apricotseeds.co.nz website
apricotseeds.co.nz website For personal use only Source: https://www.freelancer.com/contest/Graphic-Design-Redesign-FRONT-PAGE-Only-apricotseedsc onz-website-13937.html 54
Slide 55: Design a contemporary (Bauhaus style) home for $215
Design a contemporary (Bauhaus style) home for $215 For personal use only 55 Source: https://www.freelancer.com/contest/D esign- a-contemporary-hous e-Bauhaus-styl e-223900.html
Slide 56: Floor plans & rendering for $215
Floor plans & rendering for $215 For personal use only 56
Slide 57: Industrial design of a vinyl cutter for €500
Industrial design of a vinyl cutter for €500 For personal use only 57
Slide 58: For personal use only
58 For personal use only
Slide 59: 3D Model of a Handrail for an EVA Spacewalk for NASA for $50
3D Model of a Handrail for an EVA Spacewalk for NASA for $50 For personal use only 59
Slide 60: For personal use only
For personal use only
Slide 61: Robonaut delivered February 2011 to ISS
For personal use only Robonaut 2 delivered February 2011 to ISS. Pictured here with Zero-G leg upgrade which will climb using external handrails.
Slide 62: For personal use only
For personal use only
Slide 63: Escrow.com
For personal use only Freelancer Limited ESCROW.COM
Slide 64: Freelancer.com acquired Escrow.com November 1st 2015
Freelancer.com acquired Escrow.com November 1st 2015 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$2.7 billion in secured projects posted transactions
Slide 65: Escrow.com: safeguarding your online transactions
Escrow.com For personal use only SAFEGUARDING YOUR The world’s #1 ONLINE TRANSACTIONS provider of secure online payments More than US$2,700,000,000 of transactions protected
Slide 66: Escrow.com
Escrow.com The world’s #1 freelancing & crowdsourcing marketplace adds the world’s #1 provider of online secure payments Financials For personal use only • Licensed, bonded & certified, processed over US$2.7 billion in secured transactions to date • FY15 gross payment volume of US$430 million (up 34
Slide 67: Escrow.com historical financial performance
Escrow.com historical financial performance FY15 growth rates significantly beat 5-year CAGRs (2009-2014) for both revenue and GPV For personal use only Revenue (US$ ‘000) Gross Payment Volume (GPV) (US$) 7,000 450,000,000 20% growth in 2015 34% growth in 2015 6,073 6,000 13% 5-year CAGR1 400,000,00
Slide 68: Escrow.com historical user growth
Escrow.com historical user growth Almost 1 million users with solid demographics from mostly high income OECD nations For personal use only Total number of users Users by country • An exceptionally high quality user base of ~1 million users with high transaction value 68
Slide 69: Escrow.com's Online Economy in 2013
Escrow.com’s Online Economy in 2013 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. 69 Thicker lines indicate higher volume. White dots
Slide 70: 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. 70 Thicker lines indicate higher volume. White dots
Slide 71: 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. 71 Thicker lines indicate higher volume. White dots
Slide 72: You wouldn't sell your car with PayPal
You wouldn’t sell your car with PayPal For personal use only 72
Slide 73: eBay: Only use Escrow.com
In fact, eBay doesn’t think so either: For personal use only “Important: Only use Escrow.com” 73
Slide 74: Escrow.com is used to secure a wide range of transaction types
Escrow.com is used to secure a wide range For personal use only of transaction types
Slide 75: Licensed, bonded, audited, 0% chargebacks
For personal use only Audited Licensed 0% chargebacks Bonded 75
Slide 76: 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 77: Escrow.com secures transactions from $100 to $10,000,000+
For personal use only Escrow.com secures 1975 Piper PA-23-250 securely sold through Escrow.com transactions from $100 to $10,000,000+ 2004 Fountain 38 LX securely sold through Escrow.com Transact in US Dollars or Euros 2003 Ferrari Enzo securely sold through Escrow.com
Slide 78: Escrow.com makes import / export simple
Escrow.com For personal use only makes import / export simple No more expensive & complicated letters of credit
Slide 79: 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 80: Escrow.com protects the 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 81: Escrow.com also 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 82: Where the Internet is bought and sold
Where the Internet is bought and sold For personal use only
Slide 83: How Big is the Market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET?
Slide 84: Estimated demand for Web Design services alone
Estimated demand for Web Design services alone 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 of existin
Slide 85: Estimated demand from Small Businesses
Estimated demand from Small Businesses Global small business revenue opportunity estimated as $31.9 billion per annum (571 million projects, $122 billion GPV) For personal use only ● There are about 28 million small businesses in the US 420-510 million – 22 million of these are informal non-employer
Slide 86: Estimated demand from Consumers
Estimated demand from Consumers Engaged active users on major product marketplaces are low hanging fruit for online services. Major product marketplaces as a proxy of consumer demand indicates TAM of c.$40 billion (700 million projects, $155 billion GPV) For personal use only GPV of Taking c.$155 bi
Slide 87: 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 force: 2.9 billion1 Educational a
Slide 88: Estimated demand from Local Jobs
Estimated demand from Local Jobs 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 that “160 mi
Slide 89: 357.9 billion non-cash payment transactions in 2013
357.9 billion non-cash payment transactions in 2013 (+7.6%) For personal use only Source: World Payments Report 2015 (Capgemini, Royal Bank of Scotland - Capgemini Financial Services Analysis, 2015; ECB Statistical Data Warehouse, 2013 figures 89 89 released September 2014; Bank for International Se
Slide 90: 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