Freelancer Ltd. · ASX:FLN
Freelancer — Non-Deal Roadshow (December 2015)
90 slides from Freelancer's roadshow presentation, Dec 3, 2015
Slide 1: UK Roadshow Presentation
For personal use only 2 December 2015! Freelancer Limited UK Roadshow Presentation Matt Barrie Chief Executive Officer
Slide 2: 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 (1 December 2015) A$1.73 Market capitalisation (1 December 2015) A$781 million Share Price Chart (2015 YTD) $1.70 $1.50 $1.30 $1.10 $0.90 $0.70 $0.50 Jan Feb Mar
Slide 3: Projects, registered users and posted value
For personal use only 9,016,279 17,369,201 $2,984,068,875 USD Projects & Contests Posted Registered Users All time Projects & Contests Posted Value 3 Source: Freelancer website as at 2 December 2015
Slide 4: Freelancer owns Escrow.com
Freelancer owns Escrow.com For personal use only The world’s #1 company for secure online payments Freelancer.com Escrow.com #1 Online Services Marketplace #1 for Secure Online Payments Over US$2.9 billion in projects posted Over US$2.7 billion in secured transactions 4
Slide 5: Company Overview
For personal use only Freelancer Limited COMPANY OVERVIEW
Slide 6: 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 6
Slide 7: 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 8: Changing lives in the developing world
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 9: We are changing lives in the developing world
For personal use only We are changing lives in the developing world by providing opportunity and income.
Slide 10: Continued exceptional marketplace growth (demand)
Continued exceptional marketplace growth (demand) Exceptional growth in registered users, and significant acceleration of growth in projects and contests posted For personal use only 14,000,000 Total registered users1 Total projects & contests posted1 13,000,000 6,000,000 12,000,000 As at 30 June 20
Slide 11: Outstanding growth in marketplace liquidity (supply)
Outstanding growth in marketplace liquidity (supply) Number of bids on projects Number of entries in contests For personal use only Actual completed projects Actual contest entries 11
Slide 12: Freelancer's Online Economy in 2013
Freelancer’s Online Economy in 2013 For personal use only Note: Sample of projects awarded. awarded in The 2013. pinkThe lines pink indicate lines indicate where projects where projects are beingare posted beingby posted employers, by employers, and the blue and the lines blue indicate lines indicat
Slide 13: Freelancer's Online Economy in 2014
Freelancer’s Online Economy in 2014 For personal use only Note: Sample of projects awarded. awarded in The 2013. pinkThe lines pink indicate lines indicate where projects where projects are beingare posted beingby posted employers, by employers, and the blue and the lines blue indicate lines indicat
Slide 14: Freelancer's Online Economy in 2015
Freelancer’s Online Economy in 2015 For personal use only Note: Sample of projects awarded. The pink lines indicate where projects are being posted by employers, and the blue lines indicate where the projects are being performed by freelancers. 14 Thicker lines indicate a higher volume of work. Whit
Slide 15: 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 1H151 ● c.850 job categories as diverse as Aerospace Engineering, Biotechnology, Sales, 29% Manufacturing, Mechanical Engineering, etc. Uni
Slide 16: Global, and growing
Global, and growing For personal use only 44 Regional Websites 34 Supported Languages 20 Supported Currencies Languages Currencies Afrikaans USD CLP NZD Bahasa Indonesia AUD JMD PHP Bahasa Malaysia Norsk-Bokmål CAD IDR PLN বাংলা Nederlands EUR MXN SGD Català Polskiа GBP SEK BRL Čeština Português HKD
Slide 17: Revenue model
Revenue model Freelancer’s revenue is generated from 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 – 0-3% project commissions paid by employers when
Slide 18: Industry Drivers
For personal use only Freelancer Limited INDUSTRY DRIVERS
Slide 19: The other 60% of the world's population are about to join the Internet
For personal use only The other 60% of the world’s population are about to join the Internet. 19
Slide 20: It's 2015: the other four billion are connecting
It’s 2015 The other four billion are connecting at a tremendous pace For personal use only ● World population1: 7,144,000,000 Internet Users by Development Level 2005-2014E Number on the Internet2: 3,035,749,340 (42.3%) Worldwide Internet Growth 2000-142 North America Oceania / Australia The other 4
Slide 21: 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 ● The other 4 billion people live on $10 a day or less ● The first thing they are looking to do online is raise
Slide 22: For personal use only
VO freelancer” © HireFreelancers Work — MyProjects Help Q usosoe F] CP @ gn for your log
Slide 23: 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 24: The world is repeating itself years later
The world is repeating itself 20 years later For personal use only 24
Slide 25: Beautiful Product
For personal use only Freelancer Limited BEAUTIFUL PRODUCT
Slide 26: Beautiful product
26 For personal use only Beautiful product
Slide 27: For personal use only
Yggdrasil full color tattoo Create Print and Packaging Designs for Hazelnut chocolate spreads Design a Logo for Safe Harbor Finance & Insurance Ineed some Graphic De chosing color for studio design Design me a Product for the Next Evolution in Smoke Alarm Design Design a Box for my Skin Care product
Slide 28: Sliding Puzzle App Design for $40
Sliding Puzzle App Design for $40 For personal use only 28
Slide 29: Website for Fresh Futures for $200
Website for Fresh Futures for $200 For personal use only 29
Slide 30: Design of a Travel Pouch for $166
Design of a Travel Pouch for $166 For personal use only 30 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/
Slide 31: Logo design for a consulting firm for $129
Logo design for a consulting firm for $129 For personal use only 31
Slide 32: Ambient 3D Modelling of a Wardrobe for $90
Ambient 3D Modelling of a Wardrobe for $90 For personal use only 32 Source: https://www.freelancer.com/contest/Ambient-in-d-modeling-with-our-product-wardrobe-122619.html
Slide 33: apricotseeds.co.nz website
apricotseeds.co.nz website For personal use only Source: https://www.freelancer.com/contest/Graphic-Design-Redesign-FRONT-PAGE-Only-apricotseedsconz-website-13937.html 33
Slide 34: Design a contemporary (Bauhaus style) home for $215
Design a contemporary (Bauhaus style) home for $215 For personal use only 34 Source: https://www.freelancer.com/contest/Design-a-contemporary-house-Bauhaus-style-223900.html
Slide 35: Floor plans & rendering for $215
Floor plans & rendering for $215 For personal use only 35
Slide 36: Industrial Design of a Water Kettle for $240
Industrial Design of a Water Kettle for $240 For personal use only 36
Slide 37: Industrial Design of a Water Kettle for $240
Industrial Design of a Water Kettle for $240 For personal use only 37
Slide 38: apricotseeds.co.nz website
apricotseeds.co.nz website For personal use only Source: https://www.freelancer.com/contest/Graphic-Design-Redesign-FRONT-PAGE-Only-apricotseedsconz-website-13937.html 38
Slide 39: NASA partners with Freelancer
NASA partners with Freelancer For personal use only Crowdsourcing solutions to complex problems faced by the astronauts on the International Space Station
Slide 40: 3D model of flashlight for NASA: $50
3D model of flashlight for NASA: $50 To be used by robotic astronaut on the NASA partners Space with Freelancer For personal use only International Station Crowdsourcing solutions to complex problems faced by the astronauts on the International Space Station
Slide 41: 3D Model of a Handrail for NASA for $50
3D Model of a Handrail for an EVA Spacewalk for NASA for $50 For personal use only 41
Slide 42: For personal use only
For personal use only
Slide 43: Robonaut delivered 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 44: For personal use only
For personal use only
Slide 45: NASA Challenge: Astronaut Smartwatch App Interface Design
NASA Challenge: Astronaut Smartwatch App Interface Design For personal use only 45
Slide 46: For personal use only
ana sz START// Architecture A simple, predictable information architecture —— ES EE osc” <Overview 1020 readability purpoces. 2 € ISS CDR (©) @DPC @CIRSession At any moment, @ crewmember can pinch the display FEA This common zoom gesture maps to a high-level me PeCH@OHOET CM Timelines Overview. From
Slide 47: NASA contest awards
For personal use only Trophy $200 Logo $200 Logo $150 Banner $100 3D Model $50 3D Model $50
Slide 48: Escrow.com
For personal use only Freelancer Limited ESCROW.COM
Slide 49: The opportunity in global non-cash payments is large
For personal use only The opportunity in global non-cash payments is large 49
Slide 50: 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 50 50 released September 2014; Bank for International Se
Slide 51: A large amount of innovation in payments
But while there is also a large amount For personal use only of innovation in payments... 51 51
Slide 52: Most of it revolves around buying a cup of coffee
For personal use only Most of it revolves around trying to buy a cup of coffee… 52
Slide 53: Rather than selling anything of real value, like a car
For personal use only Rather than selling anything of real value, like a car. 53
Slide 54: You wouldn't sell your car with PayPal
You wouldn’t sell your car with PayPal For personal use only 54
Slide 55: eBay: Only use Escrow.com
In fact, eBay doesn’t think so either: For personal use only “Important: Only use Escrow.com” 55
Slide 56: Escrow.com – the world's #1 provider of secure online payments
Escrow.com – the world’s #1 provider of secure online payments For personal use only New fancy escrow.com logo and SAFEGUARDING YOUR taglineONLINE slide TRANSACTIONS More than US$2,700,000,000 of 56 transactions protected
Slide 57: Escrow.com
Escrow.com The world’s #1 freelancing & crowdsourcing marketplace adds the world’s #1 provider of online secure payments For personal use only Financials • Licensed, bonded & certified, processed over US$2.7 billion in secured transactions to date • FY14 gross payment volume of US$320 million, net r
Slide 58: Escrow.com historical financial performance
Escrow.com historical financial performance Freelancer will be building on a sixteen year track record of growth in Gross Payment Volume and Revenue For personal use only Revenue (US$ ‘000) Gross Payment Volume (GPV) (US$) 6,000 5-year CAGR 350,000,000 5-year CAGR (2009-2014) (2009-2014) 5,048 5,000
Slide 59: 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 59
Slide 60: DRAFT
60 For personal use only DRAFT
Slide 61: Escrow.com is used to secure a wide range of transaction types
Escrow.com is used to secure a wide range of transaction types For personal use only 61
Slide 62: Escrow.com is easy to use
Escrow.com is easy to use For personal use only 62
Slide 63: Escrow.com secures transactions from $100 to $10,000,000+
For personal use only Escrow.com We are changing secures lives in the 1975 Piper PA-23-250 securely sold through Escrow.com transactions from developing $100 to world by $10,000,000+ providing opportunity and 2004 Fountain 38 LX securely sold through Escrow.com Transact in income. US Dollars or Euro
Slide 64: Escrow.com makes import / export simple
Escrow.com For personal use only makes import / export simple No more expensive & complicated letters of credit 64
Slide 65: Industrial & heavy equipment sold through Escrow.com
Industrial & heavy equipment sold through Escrow.com For personal use only 2014 FANUC 2006 Caterpillar 65 Industrial Robot D5N Dozer
Slide 66: Where the Internet is Bought and Sold
Where the Internet is Bought and Sold Some domain names and businesses sold through Escrow.com For personal use only 66
Slide 67: Escrow.com protects jewellery and fine art sales
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 68: Service contracts facilitated by Escrow.com
For personal use only Service contracts such as holiday rentals and repairing a roof are also facilitated by Escrow.com 68
Slide 69: Notable Partners
Notable Partners Escrow.com has become the recommended transaction settlement For personal use only service of many of the top names in eCommerce and many other high volume partners across a range of industries.. 69
Slide 70: Escrow.com protects domain names auctioned on GoDaddy
Escrow.com protects all domain names auctioned on GoDaddy worth over $5,000 For personal use only 70
Slide 71: Escrow.com protects automotive transactions on Motorcycle.com
Escrow.com protects automotive transactions on Motorcycle.com For personal use only 71
Slide 72: Strategic partner of U.S. Commercial Service and export.gov
Escrow.com is a strategic partner of U.S. Commercial Service and export.gov in For personal use only support of President Obama’s National Export Initiative, designed to significantly grow US export volume 72
Slide 73: All major global marketplaces have captive payments businesses
All major global marketplaces have captive payments businesses For personal use only A strong cornerstone for entering the payments space (formerly) 73
Slide 74: Financial Results
For personal use only Freelancer Limited FINANCIAL RESULTS
Slide 75: Financial highlights 1H15
Financial highlights 1H15 Freelancer delivers another record result with accelerating revenue growth, GPV and positive operating cashflow For personal use only ● Record Net Revenue of $16.8m in 1H15 (up 41% on pcp) – Acceleration from FY14 growth of 39% year on year ● Record Gross Payment Volume1 in
Slide 76: Q3 2015 another exceptional quarter with record cash receipts
Q3 2015 another exceptional quarter with record cash receipts Expects to deliver acceleration of revenue growth in FY15 over FY14 For personal use only Record cash receipts for the quarter of $9.7 million, up 42% • In Q3 2015, the Company booked record cash receipts of $9.7 million • Up 42% over the
Slide 77: Revenue growth
Revenue growth Record 1H15 net revenue of $16.8m, up 41% on prior corresponding period For personal use only 16.8 Net Revenue (A$m) and Gross Margin (%) ● Record 1H15 Net Revenue of $16.8m, up +41% +41% on 1H14 16.0 100% 87% 87% 88% 88% 88% 83% ● Acceleration from +39% FY14 year on year 14.0 11.9 80
Slide 78: Gross payment volume
Gross payment volume Record Gross Payment Volume1 (GPV) of $64.1m (up 30% on pcp) and continued improvement in take rate2 in 1H 2015 For personal use only 64.1 Gross Payment Volume1 (A$m) and Take Rate2 (%) +30% 30.0% ● Record GPV of $64.1m up 30% on 1H14 26.2% 60.0 24.0% – Acceleration from +23% FY
Slide 79: Marketplace highlights 1H15
Marketplace highlights 1H15 Freelancer continues to hit record milestones For personal use only ● Passed key milestones of 16 million users and 8 million projects posted – added 1.8 million users in 1H15 ● Passed US$2.5 billion of all time posted project value ● Significant acceleration in the growt
Slide 80: Operational highlights 1H15
Operational highlights 1H15 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 – 2014 gross payment volume of US$265 million, net reven
Slide 81: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) 1H 2014 1H 2015 Change Half-year to 30 Jun Actual Actual (%) ● Record 1H15 net revenue of $16.8m – up 41% on 1H14 Net Re
Slide 82: Summary balance sheet
Summary balance sheet Strong balance sheet and no net debt For personal use only (A$m) 1H 2014 1H 2015 Change ● Total cash at period end of $31.1m Half-year to 30 Jun Actual Actual (%) – no net debt Cash and cash equivalents 19.7 31.1 58.1 Trade and other receivables 2.5 3.8 50.8 ● $10 million of ca
Slide 83: Outlook statement
Outlook statement Exceptional growth is expected to continue. Escrow.com in 2H15 expected to be an inflection point for the business. For personal use only • Freelancer continues its exceptional growth, with record net revenue, registered users and posted projects • We expect that this exceptional g
Slide 84: How Big Is The Market?
For personal use only Freelancer Limited HOW BIG IS THE MARKET?
Slide 85: 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 86: 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 87: 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 88: 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 89: 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 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