Freelancer Ltd. · ASX:FLN
Freelancer — Goldman Sachs 9th Annual Small and Mid-Cap Conference (April 2018)
73 slides from Freelancer's conference presentation, Apr 18, 2018
Slide 1: Goldman Sachs 9th Annual Small and Mid-Cap Conference: 1Q18 Financial Results Presentation
For personal use only 18 April 2018 Freelancer Limited Goldman Sachs 9th Annual Small and Mid-Cap Conference 1Q18 Financial Results Presentation Matt Barrie Chief Executive Officer investor@freelancer.com 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: Freelancer.com
For personal use only Freelancer Limited FREELANCER.COM 3
Slide 4: FY17 completed with million users and million jobs
FY17 completed with 27 million users and 13 million jobs 4.3 million registered users and 2.4 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 Freelancer
Slide 5: Freelancer's Online Economy in 2017
Freelancer’s Online Economy in 2017 For personal use only Note: Sample of projects awarded in 2017. 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 lines indicate a higher volume of wor
Slide 6: Freelancer's Online Economy in 2017 – USA
Freelancer’s Online Economy in 2017 – USA For personal use only Note: Sample of projects awarded in 2017. 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. Thicker lines indicate a higher volume
Slide 7: Freelancer's Online Economy in 2017 – Europe
Freelancer’s Online Economy in 2017 – Europe For personal use only Note: Sample of projects awarded in 2017. 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 lines indicate a higher volu
Slide 8: Freelancer's Online Economy in 2017 – Australia
Freelancer’s Online Economy in 2017 – Australia For personal use only Note: Sample of projects awarded in 2017. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 8 freelancers. Thicker lines indicate a higher v
Slide 9: Freelancer's Online Economy in 2017 – India
Freelancer’s Online Economy in 2017 – India For personal use only Note: Sample of projects awarded in 2017. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by 9 freelancers. Thicker lines indicate a higher volum
Slide 10: Regional Websites, Languages and Currencies
53 34 39 For personal use only Regional Websites Languages Currencies North America Europe Asia Pacific Languages Currencies Afrikaans USD CNY 日本語 Bahasa Indonesia NZD DKK 한국어 AUD VND Bahasa Malaysia Norsk-Bokmål GBP AED Africa বাংলা Nederlands HKD ARS Català SGD BDT Polski Čeština PHP COP Português
Slide 11: Marketplace dynamics FY17
Marketplace dynamics FY17 “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 12: 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 13: 3D design for an office
13 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 14: 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 15: This Packaging Design cost €100
For personal use only This Packaging Design cost €100 15
Slide 16: This Logo Design cost €10
For personal use only This Logo Design cost €10 16
Slide 17: This Package Design cost £20
For personal use only This Package Design cost £20 17
Slide 18: This Mobile App Design cost $30
For personal use only This Mobile App Design cost $30 18
Slide 19: This Dashboard Design cost $348
For personal use only This Dashboard Design cost $348 19
Slide 20: This 3D Model cost $100
For personal use only This 3D Model cost $100 20
Slide 21: This Label Design cost €50
For personal use only This Label Design cost €50 21
Slide 22: This 3D Model cost £100
For personal use only This 3D Model cost £100 22
Slide 23: This Wedding Logo Design cost $20
For personal use only This Wedding Logo Design cost $20 23
Slide 24: This Architectural Design cost $1613
For personal use only This Architectural Design cost $1613 24
Slide 25: 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 26: NASA got this 3D CAD Model for $50
For personal use only NASA got this 3D CAD Model for $50 26
Slide 27: 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 4487 FREELANCERS PARTICIPATING 126 COUNTRIES P
Slide 28: Escrow.com
For personal use only Freelancer Limited ESCROW.COM 28
Slide 29: 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 29
Slide 30: 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 30
Slide 31: 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 32: Escrow.com secures transactions from $100 to $100,000,000
Escrow.com secures transactions from $100 to $100,000,000 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 securely sold 2012 Ferrari Scag
Slide 33: Escrow.com in 2017
Escrow.com in 2017 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 33 TRANSACTIONS ARE BEING FULFILLED BY SELLERS. THICKER LINES INDICATE HIGHER VOLUME. WHITE DOTS INDICATE THE LOC
Slide 34: 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 35: 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 36: 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 37: Oldest, most trusted and licensed online escrow service
For personal use only Escrow.com has 42 financial services licenses granted or in-application The oldest, most trusted and licensed online escrow service in the world 37
Slide 38: 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 39: 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 40: 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 41: 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 42: Service contracts including construction & freelancing
For personal use only Service contracts including construction & 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 (photo) securely sold through Escrow.com 42
Slide 43: 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 CALIFORNIA.COM OUTLOOK.COM FULLTILT.COM INTERNETBRANDS.COM CENTURION.COM HULU.
Slide 44: 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 45: The Escrow.com Platform API is built by developers, for developers
The Escrow.com Platform API is built by developers, for developers For personal use only 45
Slide 46: Simple Escrow.com API Integration
Simple Escrow.com API Integration For personal use only 46
Slide 47: Simple Escrow.com API Account Setup
Simple Escrow.com API Account Setup For personal use only 47
Slide 48: Superphonica - example Escrow.com API integration
Superphonica - example Escrow.com API integration Tight integration of Escrow.com is highly promoted as a key feature of Superphonica For personal use only 48
Slide 49: 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 49
Slide 50: The Aurora Space Station uses Escrow.com to take 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 50
Slide 51: Escrow plugin for WooCommerce
Escrow plugin for WooCommerce WooCommerce has 39 million downloads and powers 28% of all online stores * For personal use only * According to www.woocommerce.com 51
Slide 52: Freelancer 1Q18 Results
Freelancer 1Q18 Results For personal use only ● 1Q18 Cash receipts $12.1 million (down 3.7% on pcp) ● 1Q18 Freelancer GMV all-time high US$23.6m (up 9.5% on pcp) ● 1Q18 Escrow cash receipts up 18% on pcp ● 1Q18 Escrow GMV US$95.9 million (up 31% on pcp) ● FY17 Gross Payment Vol. AU$588m, FY17 Net Re
Slide 53: Net Revenue FY17
Net Revenue FY17 FY17 net revenue of $50.3m (down 5% on pcp) For personal use only ● Net revenue of $50.3m, down 4.7% on FY16 ○ Freelancer revenue $43.9m (pcp $45.2m) ○ Escrow revenue was $6.1m (pcp $7.6m) ○ Includes $0.3m of proceeds from working capital adjustment on acquisition of Escrow ● Revenu
Slide 54: Strong growth in volume across hourly, mobile and recruiter projects
Freelancer.com Strong growth in volume across hourly, mobile and recruiter projects For personal use only Recruiter Projects (count) Hourly, recruiter and mobile projects continue to grow strongly ● Hourly projects - up 53% in 1Q18 on pcp ● Recruiter GMV - up 55% in 1Q18 on pcp ● Mobile projects pai
Slide 55: Gross Payment Volume (GPV) FY17 / 1Q18
Gross Payment Volume (GPV) FY17 / 1Q18 1Q18 Freelancer GMV all-time high of US$23.6m (up 9.5% on pcp), 1Q18 Escrow GPV of US$95.9m (up 31% on pcp) For personal use only ● Freelancer 1Q18 GMV all-time high of US$23.6 million (up 9.5% on pcp) ● Escrow 1Q18 GPV US$95.9 million (up 31% on pcp) ○ ex-Chin
Slide 56: Freelancer Gross Marketplace Volume up 9.5% in 1Q18
Freelancer.com Freelancer Gross Marketplace Volume up 9.5% in 1Q18 on pcp* For personal use only Freelancer.com GMV Milestones released (US$) last 5 years * Gross Marketplace Volume (GMV is a measure of total payments out of the system, i.e. to freelancers) 56
Slide 57: Escrow.com quarterly GPV (US$)
Escrow.com quarterly GPV (US$) 1Q18 GPV $95.9 million (up 31% YoY), ex-China GPV second highest quarter ever at $81.1m (up 28% YoY) For personal use only 57
Slide 58: Escrow.com KYC approvals
Escrow.com >70% of Tier 2 KYC submissions approved in 15 minutes, 90% in 1 hour For personal use only 58
Slide 59: Cash flow profile FY17 / 1Q18
Cash flow profile FY17 / 1Q18 1Q18 Positive operating cash flow of $0.3m For personal use only 17 FY ● Total cash at period end FY17 $31.9m, at end of 1Q18 $32.8m (up 2.7% on pcp) ● FY17 operating cash flow includes $1.7m of legal & regulatory outgoings ($0.7m are one off) ● 1Q18 operating cash flow
Slide 60: Summary profit & loss statement FY17 / 1Q18
Summary profit & loss statement FY17 / 1Q18 Freelancer, Escrow and Group all EBITDA positive in March 2018 (unaudited) (A$m) FY17 FY16 Change For personal use only 31 Dec y/e Actual Actual ● Freelancer, Escrow and Group all positive EBITDA in March 2018 (unaudited) Net Revenue 50.3 52.7 -5% Gross Pr
Slide 61: Summary balance sheet FY17 / 1Q18
Summary balance sheet FY17 / 1Q18 Cash balances at AU$32.8m as at 31 March 2018 (up 2.7% on pcp) For personal use only (A$m) FY17 FY16 Change ● Total cash at end of 1Q18 $32.8m (up 2.7% on pcp), 31 Dec y/e Actual Actual no net debt Cash and cash equivalents 31.9 34.8 -8% Trade and other receivables
Slide 62: 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 63: 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 64: 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 1Q18 results For personal use only – For Freelancer.com, marketplace health is improving and growth is returni
Slide 65: 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 66: How big is the market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET? 66
Slide 67: 160 million jobs could in theory 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 68: 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 69: 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 70: 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 71: 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 72: 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 73: 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
Freelancer — Goldman Sachs 9th Annual Small and Mid-Cap Conference (April 2018) on 6ix