Freelancer Ltd (ASX:FLN) has delivered yet another record result with strong positive operating cash flow and positive operating EBITDA for 1H16.
The company continues to break new records and accelerate its growth trajectory.
Freelancer is the world’s largest freelancing and crowdsourcing marketplace by total number of users and posted jobs.
The global financial crisis led to the original emergence of the online crowdsourcing and freelancing industries, as employers looked online to hire freelancers rather than fulltime staff.
At the same time - workers looked to the internet to find new sources of employment.
Freelancer embraced this opportunity, and as the market leader in the sector, a successful business model continues to deliver year-on-year revenue growth.
Key metrics include:
- Record 1H Net Revenue $26.2m (up 56% on pcp);
- Five year revenue CAGR 52% (FY10-15);
- Record 1H GPV $354.9m (up 453% on pcp);
- Positive 1H Operating Cashflow $4.5 million;
- Positive 1H Operating EBITDA $0.1million;
- Cash & eq. (30 June) $35.2 million (up 9% on 31 Dec); and
- First half year contribution from Escrow.com.
Matt Barrie, CEO and chairman, commented:
“Freelancer is continuing its exceptional growth, with record net revenue, gross volumes, registered users and posted projects in 1H16.
"Freelancer’s growth is accelerating and it is at an inflection point in terms of profitability.
“Freelancer is strongly operating cash flow positive and also operating EBITDA positive, reducing operating risk while maintaining a unique exposure to a deflationary environment.”
Outlook for the full year
Freelancer is continuing its strong growth, with record net revenue, gross volumes, registered users and posted projects in 1H16.
The company's growth is accelerating and it is at an inflection point in terms of profitability.
Add to this, Freelancer is strongly operating cash flow positive and also operating EBITDA positive, which reduces operating risk while maintaining a unique exposure to a deflationary environment.
Freelancer continues to deliver impressive growth metrics, and the greatest advantage for the company is that the online freelancing sector is growing at a rapid pace.
To highlight this, 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.
UBS Investment Bank has aligned itself to this opportunity, and has recently initiated coverage on the stock.
Canaccord Genuity and Foster Stockbroking also have a buy recommendation on Freelancer.
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