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Freelancer Limited

Company Presentation
November 2014
Matt Barrie
Chief Executive

The world is repeating itself 20 years later

Developi
ng
World

oped

Produ
cts
2

Servic
es

Marketplace growth
Exponential growth in registered users, projects and contests posted

9,000,000

8,000,000

Total registered users1


(excludes Warrior Forum & Fantero)

Total projects & contests posted 1

Freelancer.com
population overtakes Sweden

4,000,000

7,000,000

6,000,000

5,000,000

As at 17 November 2014
13.7 million
(incl. Warrior Forum & Fantero)

As at 17 November 2014
6.7 million
3,000,000

5,000,000

4,000,000
2,000,000
3,000,000

2,000,000

1,000,000

1,000,000

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

1. Number of user accounts, and projects/contests posted in the Freelancer marketplace as at 31 December 2013. User, project and contest data includes all users and projects from acquired marketplaces
including, but not limited to GetAFreelancer, EUFreelance, Scriptlance, LimeExchange, vWorker/RentACoder and zlecenia.przez.net. Prior to FY09, all data is from acquired marketplaces.
3

Consistent yoy revenue growth


Net revenue accelerated +77% in FY13, high gross margins
Net Revenue (A$m) and Gross Margin (%)1
20

18.8
1 0 0 .0 %

Year on year revenue growth FY10-13

18

82.6%

Year on year improvement in gross margin FY1013

87.6%

87.4%

86.7%

16

8 0 .0 %

+77%

14

FY13 Revenue of $18.8m, +77% Y/Y

12

10.6

6 0 .0 %

Net Revenue
Gross margin
10

6.5

+64%
4 0 .0 %

4.7
+37%

FY13 Revenue growth drivers


GPV growth user, project & contest
acquisition and conversion rate improvements
Product development & increased take up of
value-added services

2 0 .0 %

Revenue (A$m)
Y/Y growth
Gross margin

0 .0 %

FY10

FY11

FY12

FY13

4.7

6.5

10.6

18.8

37%

64%

77%

82.6%

86.7%

87.4%

87.6%

1. Based on Freelancers pro-forma historical financial results for the years ended 31 December 2010 and 2011, its historical financial results
for the year ended 31 December 2012, and its audited consolidated financial results for the year ended 31 December 2013.
4

1H FY14 results update


Continued focus on re-investment in product development, user experience, user/project acquisition and customer
service
(A$m)
Half-year to 30 Jun

1H FY13
Actual

1H FY14
Actual

Change
(%)

Net Revenue

8.5

11.9

41%

Gross Profit

7.5

10.5

41%

88.5%1

88.3%

n/m1

Employee expenses

(4.2)

(6.7)

58%

Administrative expenses

(1.8)

(3.7)

102%

Occupancy costs

(0.3)

(0.8)

150%

FX gains / (losses)

(0.5)

(0.1)

(74%)

(0.1)

n/m

EBITDA

0.6

(0.9)

n/m

EBIT

0.5

(1.1)

n/m

NPAT

0.5

(0.7)

n/m

margin (%)

Share based payments expense

Continued gross margin improvement


(up from 87.6% in FY13)1
Continued investment in talent: product
development, engineering & customer service
Approx. 350 FTEs at period end
(up ~18% on Dec 13)
Increase in occupancy costs relate to expanded
premises in Manila and new Vancouver and
London offices
FX gains/(losses) relate to unrealised changes in
AUD value of cash and user obligations

Excluding share based payments expenses 2

Continued strong revenue and gross profit growth,


up 41% on pcp

EBITDA

0.6

(0.8)

n/m

EBIT

0.5

(0.9)

n/m

NPAT

0.5

(0.6)

n/m

1. Note that the Company implemented more conservative provisioning policies for accruals
recognised in cost of sales from 2H FY13. As such the Companys gross margin for FY13 is
more comparable to 1H FY14 gross margin.
2. Exclusive of non-cash share based payments expense of $125k in 1H FY14.