Slide 1: Investor Presentation FY22 Results Update
Investor Presentation FY22 Results Update 17 August 2022 Redbubble Group owns and operates the leading global online marketplaces, Redbubble.com and TeePublic.com, bringing more creativity into the world. The financial results have been audited and are on a delivered basis (unless otherwise noted).
Slide 2: FY22 Financial Summary
FY22 Financial Summary Gross Transaction Value Marketplace Revenue Underlying Marketplace Revenue $630m $483m $472m ↓ 10% floating ↑33% 2-yr floating ↓ 13% floating ↑38% 2-yr floating ↓ 2.6% floating ↑33% 2-yr floating ↓ 12% cc1 ↓ 14% cc1 ↑47% 2-yr cc1 ↓ 4.3% cc1 Artist Revenue Gross Profit EBITDA $
Slide 3: Business overview – FY22 progress of strategic priorities
1. Business overview – FY22 progress of strategic priorities Fjärrhandske Designed and sold by Simon Stalenhag 3
Slide 4: RB Group continues to execute against four strategic themes and two enablers
RB Group continues to execute against four strategic themes and two enablers 1 Artist activation and Acquisition and engagement of artists to support growth and improvement of the library of engagement unique content User acquisition and Ongoing optimisation of user acquisition and transaction flows
Slide 5: Ongoing sales from the existing content library creates recurring value
1 Artist activation and engagement Ongoing sales from the existing content library creates recurring value for artists and the platforms Marketplace Revenue by artist cohort1 (A$m, FY18 - FY22) Onboarding cohort FY22 Himanshi Shah Sanogawa Fifikoussout FY21 Recurring sales from existing artists ~68%
Slide 6: Continuing investments across RB Group to promote ongoing artist engagement
1 Artist activation and engagement Continuing investments across RB Group to promote ongoing artist engagement Expanded range offering Encouraging new content Exposure to new customers 6
Slide 7: Scaling content operations to ensure high-quality content is hosted
1 Artist activation and engagement Scaling content operations to ensure high-quality content is hosted on our marketplace Investments into content New content uploaded to the Redbubble Marketplace operations (m, FY18 - FY22) 11x 1 +58% CAGR Increase in related headcount since FY18 Launched image det
Slide 8: Organic (unpaid) channels continue to drive the majority of revenue
2 User acquisition and transaction optimisation Organic (unpaid) channels continue to drive the majority of revenue Unique customers As an aggregator of demand, (m, FY18 - FY22) RB Group connects artists to +20% CAGR millions of customers FY22 Marketplace Revenue Long tail listings are a competitive
Slide 9: Making investments and continuing to experiment across the funnel
2 User acquisition and transaction optimisation Making investments and continuing to experiment across the funnel Transaction funnel Experiments / initiatives in FY22 Example results Leveraging customer data platform +60% to drive improvements increase in users to RB to audience targeting through pa
Slide 10: Investments in internal capability are leading to improvements in customer experience
2 User acquisition and transaction optimisation Investments in internal capability are leading to improvements in customer experience Branded Dynamic Improved In-App Buy Now Pay Later Product Ads Promotional Experience Options at Checkout 10
Slide 11: 60% of MPR comes from mobile with the Apps driving engagement
3 Customer understanding, loyalty and brand building 60% of MPR comes from mobile with the Apps driving engagement Marketplace Revenue from Mobile (A$m, FY18 - FY22) TeePublic mobile web Redbubble 15% apps Redbubble Marketplace Redbubble Revenue from apps in FY22 mobile web (MPR up 51% v FY20) Sourc
Slide 12: Large Redbubble membership base continues to exhibit favourable purchasing behaviours
3 Customer understanding, loyalty and brand building Large Redbubble membership base continues to exhibit favourable purchasing behaviours Active Members on Active Members who made a Redbubble1 in FY22 purchase on Redbubble1 in FY22 14.4m 12% (down 7% vs FY21 and up 32% vs FY20) Of those members who
Slide 13: A growing proportion of Group Marketplace Revenue from repeat purchases
3 Customer understanding, loyalty and brand building A growing proportion of Group Marketplace Revenue from repeat purchases Marketplace Revenue by customer segment and proportion from repeat purchases1 (A$m, %, FY18 – FY22) FY22 Marketplace Revenue from repeat purchases1 46% (up from 42% in FY21) R
Slide 14: Global 3P fulfillment network improving customer experience
4 Product Range and 3rd Party fulfilment network Global 3P fulfillment network improving customer experience - with reduced cost and waste Days to ship decreased during 2H22 28% During 2H22, RB Group focused on Delivery time and achieved an estimates reduced by improvement in 1-5 days for delivery e
Slide 15: Delivered new product launches and line extensions in FY22
4 Product Range and 3rd Party fulfilment network Delivered new product launches and line extensions in FY22 Launched new products and extended In FY22 launched a new product category Optimising the product offer to align with existing product lines to gain market share to gain market share and drive
Slide 16: Pets category launched in June
4 Product Range and 3rd Party fulfilment network Pets category launched in June Capture new global market share Increase share of wallet Align Artist product portfolio to consumer demand Designed and sold by Kierkegaard, Feroniea, RichSkipwrith and Chobopop 16
Slide 17: Unit economics & Redbubble brand positioning
2. Unit economics & Redbubble brand positioning Happy Crystal Doggo Space, man! Designed and sold by kattvalk Designed and sold by heavyhand 17
Slide 18: Redbubble Unit Economics Remain Strong
Redbubble Unit Economics Remain Strong Proactive actions taken in 2HFY22 to further improve Redbubble unit economics Average base price rise Improved shipping ~6% agreements From early May 22 USA, Canada & UK Q4FY22 GP Margin Q4FY22 GPAPA Margin 39.7% 23% +220 bps vs Q3FY22 +160 bps vs Q3FY22 Assume
Slide 19: Strong Redbubble unit economics supported by ~6% average base price rise
Strong Redbubble unit economics supported by ~6% average base price rise Inflows Outflows (average timing) $130 GTV $19 Artists (~4 weeks) ~6% average price rise from: $11 Tax (~3 months) 2 May 22 $100 MPR $61 COGS (~4 weeks) $39 Gross Profit $14 Paid Marketing (~4 weeks) Supply chain operational an
Slide 20: Brand investments will focus on building awareness in our value proposition
Brand investments will focus on building awareness in our value proposition and core platform offering Redbubble is Creatively Inspired Commerce Self Expression Economic Empowerment Confident for Customers for Artists Commerce Breadth and depth powered by the Independent artists turning their A trus
Slide 21: Strength in Gen Z – with plenty of scope to further increase awareness
Strength in Gen Z – with plenty of scope to further increase awareness Scope to further increase brand Creating connections through Self Expression awareness in Gen Z cohort Awareness Survey, Q3 ‘23 21
Slide 22: Redbubble Brand Investment – Execution Plan
Example image provided by designer which we can Redbubble Brand Investment – Execution Plan use - happy for Rebecca to replace Approach Testing media via brand campaigns in key markets to lift brand awareness Audience GenZ in key strategic markets Geography US Only – Key Cities Media Foundational Mi
Slide 23: Supporting Ukraine – The power of the Redbubble platform
Supporting Ukraine – The power of the Redbubble platform enabling a meaningful community response $1M $150K Artist Earnings for over 16K Gross Processed Sales artists $170K Donated to charities directly supporting humanitarian efforts Source: RB Group internal data. 23
Slide 24: FY22 financial performance
3. FY22 financial All graphics still to be updated performance Dune, Arrakis Poster Designed and sold by RIccardo Ferllen 24 24
Slide 25: Income Statement – 4Q22 and FY22
Income Statement – 4Q22 and FY22 ● Q4FY22 Marketplace Revenue versus 4Q YOY FY YOY pcp up 1% to $98.2m and gross profit P&L (A$M) flat at $39m. FY21 FY22 Growth FY21 FY22 Growth ● Q4FY22 mask sales down $2.5m versus pcp to $0.5m Marketplace (MP) Revenue 97.0 98.2 1% 553.3 482.6 (13%) ● Q4FY22 gross
Slide 26: Bridge between Reported and Underlying Marketplace Revenue
Bridge between Reported and Underlying Marketplace Revenue Marketplace Revenue (A$m, FY20 - FY22) $553 ● Reported FY22 Marketplace Revenue down 13% or $70.7m YoY to $483m ● FY22 Underlying Marketplace Revenue of $472m, down 2.6% or $13m YoY (4.3% cc) ● Taking a longer term view, FY22 Marketplace Rev
Slide 27: Delivering long term growth since FY18
Delivering long term growth since FY18 Marketplace Revenue GP GPAPA (A$m, FY18 - FY22) (A$m, FY18 - FY22) (A$m, FY18 - FY22) +27% +30% +23% RB Group has a reliable record of CAGR CAGR CAGR delivering long term growth ● MPR grew at CAGR of 27% & GP of 30% since FY18 ● Increasing scale will help to dr
Slide 28: Consolidating global footprint with all regions growing strongly
Consolidating global footprint with all regions growing strongly over the last 2 years Gross Transaction Value by Region (A$m, FY18 - FY22) % total FY22 v FY22 v Region business FY21 FY20 ROW 1% (12%) 18% AU/NZ 7% 4% 63% UK 10% (21%) 25% EU 13% (17%) 27% North America 69% (8%) 33% Source: RB Group i
Slide 29: Diversified product mix enabled RB Group to maximise opportunities
Diversified product mix enabled RB Group to maximise opportunities in a changing environment Gross Transaction Value by Product Category (A$m, FY18 - FY22) % Total FY21-22 4QFY22 Category business YoY YoY Artwork 10% (18%) (21%) Homewares 9% (24%) (24%) Stationery and Stickers 13% (9%) 2% Accessorie
Slide 30: Strong balance sheet continues to provide operating & strategic flexibility
Strong balance sheet continues to provide operating & strategic flexibility Strong $89m cash at bank position with nil debt provides ample flexibility Closing cash balance to: (A$m, FY18 - FY22) ● Fund mid-term growth Cash Balance through investments across $89m four key strategic themes ● Prudently
Slide 31: Opex walk FY21 – FY22 and 'delta' forecast spend for FY23
Opex walk FY21 – FY22 and ‘delta’ forecast spend for FY23 447 ‘target’ FTEs 429 ‘proforma’ 18 approved FTEs @ June 22 roles for FY23 ← 383 FTEs with +4% vs FY22 Top of $145M 46 vacancies proforma FTEs range ● FY21 Opex: $89m, includes 330 ‘proforma’ Approved roles salary and wages of $57.8m FTEs @ J
Slide 32: Medium Term Aspirations & Outlook
4. Medium Term Aspirations & Outlook You Loved me a Thousand Summers ago Designed and sold by Frank Moth 32
Slide 33: RB Group operates large 3-sided marketplaces that are difficult to replicate
RB Group operates large 3-sided marketplaces… Uniquely serves the creator economy Global 3rd party fulfilment network is capital by offering a simple, no upfront cost light, highly scalable and enables RB Group global selling model to carry no inventory costs Large scale, highly dynamic RB Group agg
Slide 34: Clear strategic plan based upon high potential levers over medium & long term
Clear strategic plan based upon high potential levers over the medium & long term FY25+ FY23-FY25 Amplified growth, FY22-23 Earn growth in core markets leveraging scale to drive Foundations laid through disciplined margin uplift for next phase of growth investment Artist Group-level artist recruitme
Slide 35: RB Group is committed to medium term aspirations that will deliver a step change
RB Group is committed to medium term aspirations that will deliver a step change in the scale of the business Medium Term Aspiration: FY26-FY27 $1.25b $1.5b+ in Marketplace Revenue in Gross Transaction Value $250m in Artist Revenue We believe this is achievable through organic investment and growth.
Slide 36: The enhanced scale will expand margins and increase profitability
The enhanced scale will expand margins and increase profitability over the medium term FY22 FY26-FY27 Implications for next 4-5 years Artist Revenue 90.8 $250m+ Step change in value for Artists Marketplace Revenue 482.6 $1.25b+ Grow MPR at historical CAGR of 20-30% Improving margin structure through
Slide 37: FY23 Outlook
FY23 Outlook ● Revenue growth is expected in FY23, with the benefit of one-off mask sales in FY21 of ~$55 million now largely fully cycled. ● Redbubble unit economics to remain compelling, supported by the ~6% average base price rise from early May 22, and with 60% of marketplace revenue from unpaid
Slide 38: Q&A
Q&A Designed and sold by Johanna, Walters, wolfandbird, Ana-rot-bre 38
Slide 39: Appendix
Appendix Sprinkles Designed and sold by wackadesigns 39
Slide 40: 4Q22 and FY22 Income Statement Summary – RB Group
4Q22 and FY22 Income Statement Summary – RB Group YOY YOY 2-year 4Q 4Q FY22 v FY P&L (A$M) 4Q FY21 FY22 v FY21 FY22 v FY20 FY21 FY22 Growth FY21 FY22 Growth Growth Total Revenue 115.8 116.9 1% 657.3 573.4 (13%) 38% Less: Artist Revenue (18.7) (18.8) 0% (104.0) (90.8) (13%) 38% Marketplace (MP) Reven
Slide 41: Glossary
Glossary ● Marketplace Revenue (MPR): Total Revenue less Artist Revenue (i.e. margin). ● Gross Transaction Value (GTV): Gross Transaction Value less Taxes and Artist Revenue is equal to Marketplace Revenue. ● Constant currency: reflects the underlying growth before translation to Australian dollars
Slide 42: About Redbubble Group
About Redbubble Group Founded in 2006, the Redbubble Group incorporates Redbubble Limited and its subsidiaries, including TP Apparel LLC (TeePublic). The Redbubble Group owns and operates the leading global online marketplaces hosted at Redbubble.com and TeePublic.com, powered by over one million in