Freelancer Ltd. · ASX:FLN
Freelancer — Citi ANZ Investment Conference 2018
81 slides from Freelancer's conference presentation, Oct 17, 2018
Slide 1: Citi Conference - 3Q18 Results Presentation
For personal use only 18 October 2018 Freelancer Limited Citi Conference - 3Q18 Results Presentation Matt Barrie Chief Executive Officer investor@freelancer.com 1
Slide 2: Powering the world's entrepreneurs
Freelancer.com Escrow.com For personal use only Powering the world’s entrepreneurs #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: Freelancer's Online Economy in 2018
Freelancer’s Online Economy in 2018 For personal use only USERS JOBS POSTED JOBS DONE 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 3 freelancers. Thicker lines ind
Slide 4: Freelancer's Online Economy in 2018 – USA
Freelancer’s Online Economy in 2018 – USA For personal use only USERS JOBS POSTED JOBS DONE 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 4 freelancers. Thicker lin
Slide 5: Freelancer's Online Economy in 2018 – Europe
Freelancer’s Online Economy in 2018 – Europe For personal use only USERS JOBS POSTED JOBS DONE 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 5 freelancers. Thicker
Slide 6: Freelancer's Online Economy in 2018 – Australia
Freelancer’s Online Economy in 2018 – Australia For personal use only USERS JOBS POSTED JOBS DONE 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 6 freelancers. Thick
Slide 7: Freelancer's Online Economy in 2018 – India
Freelancer’s Online Economy in 2018 – India For personal use only USERS JOBS POSTED JOBS DONE 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 7 freelancers. Thicker l
Slide 8: 3Q18 Freelancer Group Results
3Q18 Freelancer Group Results ● All-time record quarterly GPV $187.6m, up 23% on pcp For personal use only ○ Freelancer GMV $31.9m, up 12% on pcp (GPV all-time record US$43.7m) ○ Escrow.com GPV US$106.2m, up 18.4% on pcp ● All-time record year to date GPV $551.0m, up 25% on pcp ○ All-time record YTD
Slide 9: Escrow.com quarterly GPV (US$)
Escrow.com quarterly GPV (US$) YTD GPV (3Qs) US$322 million (up 30% on pcp), 3Q18 was second highest quarter ever ex-China For personal use only 9
Slide 10: Freelancer.com
Freelancer.com Freelancer Gross Marketplace Volume $31.9m, up 12% on pcp, in 3Q18 For personal use only Freelancer.com GMV Project Fees (US$) last 2 years Up 22% yoy in 3Q18, 29% yoy in Sept ‘18 * Gross Marketplace Volume (GMV is a measure of total payments out of the system, i.e. to freelancers) 10
Slide 11: Gross Payment Volume (GPV) 1H18
Gross Payment Volume (GPV) 1H18 All-time record YTD GPV $551m, up 25% on pcp For personal use only Group ● 3Q18 all-time record GPV $187.6m (up 23% on pcp) ● YTD (3Qs) all-time record GPV $551m (up 25% on pcp) ● 1H18 all-time record GPV $364m (up 20% on pcp) Freelancer ● 3Q18 all-time record GPV $42
Slide 12: Cash receipts 3Q18 / Net revenue 1H18
Cash receipts 3Q18 / Net revenue 1H18 3Q18 Cash Receipts $13m (up 4%) For personal use only ● 3Q18 Cash Receipts of $13m, up 4% ● 1H18 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) & l
Slide 13: Cash flow profile 3Q18 (AUD)
Cash flow profile 3Q18 (AUD) YTD (3Qs) break-even operating cash flow of $(0.4)m For personal use only 18 1H ● 1H18 operating cash flow positive $0.4m ● 1H18 upward revaluation in cash balances due to ~5% depreciation in AUD/USD ● 3Q18 cash & eq. at period end (30 Sep 2018) $33m substantially unchan
Slide 14: Summary profit & loss statement 3Q18/1H18
Summary profit & loss statement 3Q18/1H18 Freelancer Operating EBITDA positive, Escrow EBITDA positive in 3Q18 (A$m) 1H18 1H17 Change For personal use only 31 Dec y/e Actual Actual ● Freelancer was Operating EBITDA positive in 3Q18 Net Revenue 24.7 26.6 -7% ● Escrow was EBITDA positive in 3Q18 Gross
Slide 15: Summary balance sheet 3Q18/1H18
Summary balance sheet 3Q18/1H18 Cash & equivalents at AU$33m as at 30 Sep 2018 (substantially unchanged from 1H18) For personal use only (A$m) 1H18 1H17 Change ● Total cash & equivalents at end of 3Q18 $33m 31 Dec y/e Actual Actual (substantially unchanged from 1H18), no net debt Cash and cash equiv
Slide 16: Freelancer.com
For personal use only Freelancer Limited FREELANCER.COM 16
Slide 17: Freelancer.com
Freelancer.com Strong growth in volume across hourly and recruiter projects, membership count at all-time high For personal use only Recruiter Projects GMV Count of users on active, paid memberships Hourly and recruiter projects continue to grow strongly ● Hourly GMV - up 55% in 3Q18 on pcp ● Recrui
Slide 18: 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 19: 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 20: 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 21: 3D design for an office
21 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 22: 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 23: This Packaging Design cost €100
For personal use only This Packaging Design cost €100 23
Slide 24: Contests
For personal use only Contests Get the perfect design by crowdsourcing your ideas 98 entries per contest on average, contests start at $10 64% of contests get their first entry in an hour Contests now support multi-award 24
Slide 25: This Logo Design cost €10
For personal use only This Logo Design cost €10 25
Slide 26: This Book Cover cost $150
For personal use only This Book Cover cost $150 26
Slide 27: This Mobile App Design cost $100
For personal use only This Mobile App Design cost $100 27
Slide 28: This 3D Model cost $100
For personal use only This 3D Model cost $100 28
Slide 29: This Illustration cost $100
For personal use only This Illustration cost $100 29
Slide 30: This 3D Model cost £100
For personal use only This 3D Model cost £100 30
Slide 31: This Logo Design cost $15
For personal use only This Logo Design cost $15 31
Slide 32: This Architectural Design cost $1613
For personal use only This Architectural Design cost $1613 32
Slide 33: 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 34: NASA got this 3D CAD Model for $50
For personal use only NASA got this 3D CAD Model for $50 34
Slide 35: 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. http://www.freelancer.com/contest/nasa ENTRIES 4630 FR
Slide 36: U.S. Department of Energy and Freelancer.com
For personal use only The U.S. Department of Energy (DOE) and Freelancer.com have teamed up to help crowdsource solutions to increase manufacturing energy productivity in the U.S. http://www.freelancer.com/doe 36
Slide 37: 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 38: Freelancer Enterprise
Freelancer Enterprise Freelancer Enterprise made good progress in 3Q18 For personal use only ● Closed channel partnership with Manpower Group Solutions’ Managed Service Provider TAPFIN, which is the largest global temporary/contract managed service provider according to Staffing Industry Analysts (S
Slide 39: 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 40: 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 paying over $3,000 USD by 35% in the last 6 m
Slide 41: Payments
For personal use only $ Payments 11.40 AUD 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 41
Slide 42: 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 8.9 TrustPilot rating SOURCE: SITEJABBER 42
Slide 43: 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, Automate your workforce at A perfect companion to for developers. scale across the globe while Freelancer Enterprise customers. www.freelancer.com/api cutting costs. 4
Slide 44: Escrow.com
For personal use only Freelancer Limited ESCROW.COM 44
Slide 45: 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 45
Slide 46: Most 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 46
Slide 47: Escrow.com is used to secure a wide range of valuable 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 48: Escrow.com secures transactions from $100 to $100,000,000
Escrow.com secures transactions from $100 to $100,000,000 USD, EUR (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 secu
Slide 49: 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 49 TRANSACTIONS ARE BEING FULFILLED BY SELLERS. THICKER LINES INDICATE HIGHER VOLUME. WHITE DOTS INDICATE THE LOC
Slide 50: 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 51: 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 52: 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 53: Oldest, most trusted and licensed online escrow service
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 53
Slide 54: Cars, boats & airplanes are the perfect match for Escrow.com
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 55: 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 56: 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 57: 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 58: Service contracts including freelancing through Escrow.com
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 58
Slide 59: Escrow.com 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 60: 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 61: The Escrow.com Platform API is built by developers
The Escrow.com Platform API is built by developers, for developers For personal use only 61
Slide 62: Secure online payment processing in one line of code
Secure online payment processing for cars, boats, airplanes, domains For personal use only & anything of value, in one line of code. 62
Slide 63: Shopify Exchange
Shopify Exchange Escrow.com is the only payment method for Shopify’s marketplace of stores For personal use only 63
Slide 64: 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 64
Slide 65: Aurora Space Station uses Escrow.com
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 65
Slide 66: The #1 Internet Marketing Forum Since 1997
For personal use only The #1 Internet Marketing Forum Since 1997 1,383,035+ 10,423,063+ 1,061,132+ USERS POSTS DISCUSSIONS 66
Slide 67: Startcon Pitch for 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 68: 2018 Awards | Freelancer.com
2018 Awards | Freelancer.com For personal use only Gold Stevie Gold Stevie Silver Stevie Silver Stevie Bronze Stevie Bronze Stevie Winner Business Services Matt Barrie, Executive of Most Innovative Company Communications Most Innovative Tech Sebastián Siseles - Digital Technology the Year - Business
Slide 69: 2018 Awards | Escrow.com
2018 Awards | Escrow.com For personal use only Gold Stevie Bronze Stevie Company of the Year - Financial Services Financial Services - Small The International Business The International Business Awards 2018 Awards 2018 69
Slide 70: 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 71: Senior Management Team
Senior Management Team Specialists in growth, finance, operations, infrastructure, international execution, compliance and engineering For personal use only Neil Katz Jun Yao Amir Massoudi Greg Robinson Sarah Z. Tang Adam Byrnes Sebastián Siseles Chief Financial Vice President, Vice President, Vice
Slide 72: Outlook Statement 2018
Outlook Statement 2018 Freelancer has a firm foundation in FY18 and a clear path to profitability ● FY18 is an inflection point for the business. For personal use only – For Freelancer.com, marketplace health is improving and growth is returning to trend. We are excited in particular about the build
Slide 73: 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 74: How big is the market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET? 74
Slide 75: 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 76: 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 77: 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 78: 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 79: 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 80: 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 81: 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