Articore Group Limited · ASX:ATG

Articore — Investor Presentation (February 2024)

23 slides from Articore's investor presentation, Feb 27, 2024

  1. Slide 1: 1HFY24 Results

    1HFY24 Results 27 February 2024

  2. Slide 2: 1HFY24 Group financial highlights

    1HFY24 Group financial highlights Drove 670 bps improvement Marketplace revenue $260.4m to GPAPA margin 1HFY23: $289.3 -10% Gross profit margin Maintained strong cost discipline Gross profit 41.6% 1HFY23: $108.4m with operating expenses 35.0% 1HFY23: $101.3m, +7% down 27% on pcp GPAPA GPAPA margin 24.6

  3. Slide 3: 1HFY24 marketplace highlights

    1HFY24 marketplace highlights Focus in 1HFY24 Able to maintain was GPAPA, rather $149.3m Marketplace $111.1m revenue while driving margin than volume 1HFY23: $181.1 -18% revenue 1HFY23: $108.2, +3% expansion Gross profit Gross Gross higher than pcp profit margin profit margin despite lower $61.2m 41.0

  4. Slide 4: Marketplace updates

    Marketplace updates

  5. Slide 5: Redbubble update

    1HFY24 1HFY24 Redbubble update operational metrics financial metrics Selling artists Artists ● Successfully controlled surge of low-value content 514k Artist earnings 57% being uploaded to marketplace 1HFY23: 472k $31.1m ● Launched duplicate work detection using AI to protect 1HFY23: $40.8m most valu

  6. Slide 6: Optimising the Redbubble flywheel to return to profitable revenue growth

    Optimising the Redbubble flywheel to return to profitable revenue growth Artists & Fulfilment & Content Discovery Customers Service Operations Surge in low-quality content Attracting new customers in Protecting margins in an Inhibitors being uploaded to marketplace highly-competitive market inflationa

  7. Slide 7: TeePublic update

    1HFY24 1HFY24 TeePublic update operational metrics financial metrics Selling artists Artists ● Embedded introduction of artisan and apprentice 117k Artist earnings 43% account categories and associated change in artist 1HFY23: 84k $11.3m earnings 1HFY23: $13.7m Buyers Marketplace revenue Customers co

  8. Slide 8: Recent site upgrades improving customer experience on TeePublic

    Recent site upgrades improving customer experience on TeePublic Launch of search categories in Oct-23 Launch of gifting module in Oct-23 Bounce rate for homepage more than halved Conversion 87% higher for gifting module in Nov-Dec 2023 compared to prior year users, Nov-Dec 2023 Driving significant h

  9. Slide 9: 1HFY24 financial overview

    1HFY24 financial overview

  10. Slide 10: 1HFY24 Group profit and loss statement

    1HFY24 Group profit and loss statement 1HFY23 1HFY24 % change Total revenue 343.8 302.7 (12%) Expected decrease as the Group focused on profitability, rather than volume, and softer MPR 289.3 260.4 (10%) trading conditions. Gross profit 101.3 108.4 7% Gross profit margin 35.0% 41.6% 6.6pp Improvement t

  11. Slide 11: Improvement to GPAPA margin coupled with significant cost savings driving increased profitability

    Improvement to GPAPA margin coupled with significant cost savings driving increased profitability Key drivers of GPAPA margin improvement Operating expenditure (1HFY23 to 1HFY24) (1HFY23 to 1HFY24) Redbubble 30% 7.6% 0.8% 27.1% $80 20% 18.7% 27% Decrease in decrease paid $60 10% marketing Uplift drive

  12. Slide 12: Necessary framework in place to deliver positive underlying cash flow for FY24

    Necessary framework in place to deliver positive underlying cash flow for FY24 Closing cash balance (millions, 1HFY20 - 1HFY24) ● Positive underlying cash flow $150 $143 delivered in 1HFY24 $130 ● Consistent with seasonal payments to marketplace participants, $97 $100 $87 31 January 2024 cash balance

  13. Slide 13: Summary and guidance

    Summary and guidance

  14. Slide 14: Near-term priorities to return the Group to profitable revenue growth

    Near-term priorities to return the Group to profitable revenue growth Supporting marketplaces Addressing identified Building on strong to leverage core issues which are performance by strengths and inhibiting the expanding into maintaining cost flywheel from new products and discipline operating opti

  15. Slide 15: 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 Stabilise GPAPA growth and positive foundation underlying cash flow in 1HFY24 Phase 2 Group has been restructured Deliver profitable revenue to enable addition of new growth from existing o

  16. Slide 16: FY24 guidance

    FY24 guidance In 1HFY24, the Group demonstrated its ability to drive absolute GPAPA growth by focusing on unit economics and optimising its paid marketing activities. While the Group expects trading conditions to remain soft in the near term, it is confident in the execution of its strategy and as a

  17. Slide 17: Supplementary information

    Supplementary information

  18. Slide 18: Two distinct marketplaces operating at a global scale

    Two distinct marketplaces operating at a global scale Geographic Diversity (% of gross transaction value) North America 71% 71% Europe and United Kingdom Gross transaction value 21% 49 third-party Australia and New Zealand 56% 53% North America Apparel fulfiler sites 7% 93% 93% North America Apparel

  19. Slide 19: 2QFY24 and 1HFY24 profit and loss statement

    2QFY24 and 1HFY24 profit and loss statement % % cc % % cc P&L 2QFY23 2QFY24 1HFY23 1HFY24 change change change change Total revenue 222.6 191.3 (14%) (16%) 343.8 302.7 (12%) (15%) Less: artist revenue (34.2) (25.6) (25%) (27%) (54.5) (42.4) (22%) (25%) MPR 188.5 165.8 (12%) (14%) 289.3 260.4 (10%) (1

  20. Slide 20: Reconciliation of segment results

    Reconciliation of segment results % 1HFY23 1HFY24 change Redbubble MPR $181.1m $149.3m (18%) TeePublic MPR $108.2m $111.1m 3% Articore MPR $289.3m $260.4m (10%) Redbubble gross profit $60.4m $61.2m 1% TeePublic gross profit $40.9m $47.2m 15% Articore gross profit $101.3m $108.4m 7% Redbubble GPAPA $

  21. Slide 21: 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 artists who sold a

  22. Slide 22: Important Notice and Disclaimer

    IMPORTANT NOTICE AND DISCLAIMER This presentation contains summary information about Articore RedbubbleGroup Limited Limited (ACN(ACN 119 200 119 200 592)592) and and its related its related bodies bodies corporate corporate (together, (together, the the ArticoreGroup Redbubble Groupororthe theGroup

  23. Slide 23: Contact us

    Contact us: Virginia Spring VP, Investor Relations +61 456 441 147 virginia.spring@articore.com

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