Slide 1: Half Year Results Presentation 2014
For personal use only Freelancer Limited Half Year Results Presentation 2014 11 August 2014 Matt Barrie Chief Executive
Slide 2: 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
Slide 3: Key financial highlights 1H FY14
Key financial highlights 1H FY14 Freelancer continues to deliver strong revenue growth For personal use only ● Net Revenue of $11.9m for 1H FY14 (up 41% on pcp) ● Gross Payment Volume (GPV)1 of $49.5m (up 30% on pcp) ● Continued improvement in gross margin to 88.3% (up from 87.6% in FY13) ● Continue
Slide 4: Key marketplace highlights 1H FY14
Key marketplace highlights 1H FY14 Freelancer continues to position itself as the Amazon.com of the industry For personal use only ● Widest range at the lowest cost – 2H‘13 lowered minimum project size to $10 as continuous commitment to strategy – Average project size down A$194 FY’13 to ~A$167 1H’1
Slide 5: Key operational highlights 1H FY14
Key operational highlights 1H FY14 Freelancer expands global footprint to position for continued growth For personal use only ● Expanded Sydney HQ (733m2 to 1,800m2) (Aug ‘14) ● Expanded Manila Support Office (760m2 to 2,500m2) ● Expansion of international footprint – Opened Vancouver & London offic
Slide 6: Acquisitions 1H FY14
Acquisitions 1H FY14 Freelancer continues to consolidate the industry For personal use only ● Acquired leading pure play marketplace in Poland, zlecenia.przez.net ● Acquired virtual content marketplace, fantero.com ● Acquired Warrior Forum, the world’s largest Internet marketing marketplace & commun
Slide 7: Product Improvements 1H FY14
Product Improvements 1H FY14 Continuous delivery from the Freelancer product group For personal use only ● Launched Freelancer Messenger App for Android & Android Wear – Employers and freelancers can stay in touch away from their desk – Speeding up communications by allowing employers and freelancer
Slide 8: Marketplace growth
Marketplace growth Exponential growth in registered users, projects and contests posted For personal use only Total registered users1 5,000,000 Total projects & contests posted 1 9,000,000 (excludes Warrior Forum & Fantero) 8,000,000 4,000,000 7,000,000 As at 30 June 2014 As at 30 June 2014 6,000,00
Slide 9: Revenue growth
Revenue growth 1H FY14 net revenues of $11.9m, up +41% on prior corresponding period For personal use only Net Revenue (A$m) and Gross Margin (%) 1 60 .0 % 11.9 1 2.0 ● Continued strong growth in revenue to Net Revenue 1 40 .0 % $11.9m for first half of FY14, up +41% Full year gross margin +41% ● Co
Slide 10: Gross payment volume
Gross payment volume Gross Payment Volume1 (GPV) growth of +30% on pcp and continued improvement in take rate 2 in 1H FY14 For personal use only Gross Payment Volume1 (A$m) and Take Rate2 (%) 3 5.0% 5 0.0 49.5 ● GPV of $49.5m for first half of FY14, up 3 0.0% +30% on pcp GPV +30% Take rate 4 0.0 38.
Slide 11: Summary profit & loss statement
Summary profit & loss statement Continued focus on re-investment in product development, user experience, user/project acquisition and customer service For personal use only (A$m) 1H FY13 1H FY14 Change Half-year to 30 Jun Actual Actual (%) Net Revenue 8.5 11.9 41% ● Continued strong revenue and gro
Slide 12: Cash flow profile
Cash flow profile Re-investing for growth For personal use only Cash Balance/Flows (A$m) 1.4 24.4 ● Positive operating cash flow of $1.4m 1.7 3.8 1.0 ● Acquisitions included Warrior Forum, 0.6 0.6 19.7 Fantero, zlecenia.przez.net and other intangible assets 1.9 10.2 ● FX movements relate to strength
Slide 13: Summary balance sheet
Summary balance sheet Strong balance sheet For personal use only (A$m) FY13 1H FY14 Change 31 Dec FYE Actual Actual (%) Cash and cash equivalents 24.4 19.7 (19%) ● Total cash at period end of $19.7m, no net debt Trade and other receivables 2.3 2.5 9% Other current assets 0.4 1.2 189% ● Trade and oth
Slide 14: FY14 outlook
FY14 outlook “Every job, every country, every language, every currency, at any time” For personal use only ● Operational and product development outlook for FY14 – Execution is key “160 million jobs, – Continued focus on platform scalability or about 11% of the – Product & user experience to drive e
Slide 15: How big is the market?
For personal use only HOW BIG IS THE MARKET? 15
Slide 16: Estimated demand for Web Design services
Estimated demand for Web Design services Freelancer’s global web design revenue opportunity estimated as $1.8 billion per annum ($8.2b GPV) For personal use only ● Web design in the US alone is US$20 billion industry (2013) 1 ● Wages constitutes US$11.6 billion of this ● >50% of software engineering
Slide 17: Estimated demand from Small Businesses
Estimated demand from Small Businesses Global small business revenue opportunity estimated as $16.7 billion per annum (388 million projects, $75.3b 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-employers MSME
Slide 18: 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 $17.3b (400m projects, $77.7b GPV) For personal use only Taking GPV of ~200 million active ~128 mill
Slide 19: 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 20: Total Available Market
Total Available Market For personal use only $16b+ TAM 370,000,000 workers 20
Slide 21: Freelancer's $16b+ opportunity is driven by
For personal use only Freelancer’s $16b+ opportunity is driven by: • the significant wage differential between the developed & developing world; • opening up of new demand as labour services pricing drops; and • increasing labour supply driven by Internet penetration & education 21