Redbubble Ltd (ASX:RBL) has achieved revenue growth of 30.4% to $182.8 million for FY2018 on a constant currency basis.
The gross transaction value (GTV) for the online marketplace for FY18 was $231.3 million, up 32.2% on a constant currency basis, which was in line with guidance.
Gross profit was also up 27.5% to $63.9 million while cash EBITDA improved to a loss of $3.7 million.
Online marketplace for artists and designers
Redbubble is a global online marketplace for print on demand products based on user-submitted artwork.
The company was founded in 2006 in Melbourne, Australia, and also maintains offices in San Francisco and Berlin.
It connects over 400,000 artists and designers across the planet with millions of passionate fans.
Redbubble’s CEO Martin Hosking said: “The success is reflected in other numbers. The number of artists is up to 700,000 from 148,000 in 2010, the gross transaction value last year was $232 million, versus $4.2 million in 2010.
“This year, mobile represented 55% of all visits and 39% of revenue. Both were negligible in 2010.
“Delivery time is now down to 3.2 business days, versus seven plus days, if you were lucky, in 2010. We now have 225 staff with offices in Berlin and San Francisco, as well as Melbourne, up from over 12 in 2010.
“There are 66 products available, versus 17 in 2010 and the net promoter score is now best in class. The share value is up well over 10 times.”
Result in line or slightly better than April guidance
Redbubble’s CFO Chris Nunn added: “Most pleasingly, Redbubble's financial performance for the full year to 30 June delivered results in line with or slightly better than our April guidance across all key levels of the income statement.
“Redbubble continues to achieve sustained and high levels of top line growth, i.e. GTV and revenue, at rates about 30% on a constant currency basis.
“We are seeing improving unit economics, with fourth quarter 2018 gross profit margin of 36.9% and fourth quarter 2018 gross profit after paid acquisition (GPAPA) growth of 36.1%.
Improving free cash flow in FY18
“Our improved FY18 free cash flow outcome versus FY17 demonstrates the increasing sustainability of the business model.
“Fourth quarter gross transaction value was $52.6 million, up 36.1% against prior corresponding period, that is 34.1% on a constant currency basis.”
FY2019 guidance suggests EBITDA profitability
Redbubble has revealed it is on track to deliver FY19 operating EBITDA profitability in the range of $2 million to $4 million and near free cash flow outflows not exceeding $2 million.