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Freelancer delivers bumper Q3 2015 financial results

Particularly impressive, Freelancer added over 850,000 users to 16.8 million and 450,000 projects & contests to 8.6 million in Q3 2015 as the world’s largest freelancing and crowdsourcing marketplace hits its stride.
Freelancer delivers bumper Q3 2015 financial results

Freelancer Limited (ASX Code:FLN), the world’s largest freelancing and crowdsourcing marketplace, has cemented its place as one of the fastest growing companies listed on the ASX, with strong metrics recorded for Q3, 2015.

Reflecting this the share price has rocketed 163% to $1.63 since the start of 2015 as today's results tease just how strong full year 2015 results will likely be for Freelancer.

Record cash receipts booked for the third quarter were $9.7 million, up 42% over previous corresponding period. This took year to date receipts to $26.4 million.

Operating cashflow was positive for the year to date at $1.1 million.

Particularly impressive, Freelancer added over 850,000 users to 16.8 million and 450,000 projects & contests to 8.6 million in Q3 2015. This represented a 39% YoY increase in users who post projects or contests with a 9% QoQ increase (41% annualised).

All time posted project values soared to US$2.8 billion.

The balance sheet continues to be strong with $42.6 million cash & equivalents, providing a platform for further growth.

As Matt Barrie, chief executive of Freelancer said: “Freelancer once again achieved exceptional results in Q3 with record receipts from customers and record projects & contests posted with an acceleration on the first half results. FY15 will be an outstanding year”.


NASA partnership

During the quarter, NASA partnered with Freelancer.com to crowdsource software and design solutions. To date, this has resulted in a total of 23 NASA contests including a smartwatch application used by astronauts aboard the International Space Station for scheduling, space station systems updates.

The high profile partnership with NASA has booked over 1,500 entries from 81 participating countries and 100+ hits in media including Techcrunch, Forbes, CNN, NBC and Time Magazine.


Escrow.com

In 1H 2015, Freelancer signed an agreement to acquire Escrow.com - the leading provider of secure online payments for consumers and businesses on the Internet. 

In 2014, Escrow.com had gross payment volume of US$265 million (all-time US$2.2 billion), net revenue of US$5 million and EBITDA of US$1.2 million. 

Final regulatory approval for the transaction is expected in Q4 2015.


Warrior Forum

The first phase of network infrastructure improvements for Warrior Forum has now completed and with more emphasis on product, revenue was up 21% on Q2 (107% annualised basis).


Analysis

Today's third quarter financial results are barnstorming and herald further growth ahead for FY 2015 and FY 2016.

Befitting its status as one of the fastest growing technology companies listed on the ASX, the institutions that participated in the recent $10 million placement of shares at $1.40 are already sitting on sizeable gains.

The increase in the company's free float to 23% will materially assist trading liquidity for institutional as well as for larger investors.

Proactive Investors said in April 2015, "...at a $1.08 share price Freelancer was one of our top stock picks for 2015/16 and expected further significant growth in share price."

Further that, "Freelancer continues to be one of our top stock picks for 2015/16."

The Q3 2015 results provides further momentum for this opinion and we expect growth to accelerate in 2016 based on the foundations built as the world’s largest freelancing and crowdsourcing marketplace scales further.



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