Freelancer Limited (FLNCF) Q1 2025 Earnings Call Transcript

2025-04-14 20:26:41 ET

Freelancer Limited (FLNCF)

Q1 2025 Earnings Conference Call

April 13, 2025, 07:00 PM ET

Company Participants

Matt Barrie - CEO

August Piao - Senior Product Manager, Escrow.com

Conference Call Participants

Katherine Thompson - Edison Group

Presentation

Matt Barrie

Okay, we might as well get going. Hello and welcome to the Freelancer Limited First Quarter of 2025 Business Update. My name is Matt Barrie. I'm the Chief Executive of Freelancer Limited. Today with me on the call, we have Neil Katz, the Chief Financial Officer; Adam Byrnes, who is the VP of Product from Freelancer; Andrew Bateman, who is the Head of Enterprise Product from Freelancer; August Piao, who runs Escrow.com.

And as always, you may direct questions to either myself or any of the management team in the Q&A. Getting, going forward into the results. So in the first quarter of 2025, the group GMV was $231 million, which was up 1.7% on pcp. Freelancer was $33.4 million, up 6% on PCP. Escrow was $197.6 million, up 1% on pcp in GMV.

On the revenue front, we were at $14.1 million, which is up 11.7%. The Freelancer revenue was $10.7 million, up 8% on pcp. And the Escrow revenue was $2.9 million, up 34.5% on pcp. We achieved positive operating profit in the first quarter of 2025. And in fact, it's the ninth consecutive month of operating profit.

About a year ago, I said my objective was to put an underlying base operating profitability into the business. My target is about $0.5 million a month, every month consistently. Since July of last year, every single month, we've achieved positive operating profit. And we're about two-thirds the way to the progress of my target. So we're doing about $1 million of operating profit every quarter, so we've had our ninth consecutive month of operating profit, which is good to see.

And I think we'll provide it with a base under the financials of the company. We achieved operating cash flow of $3.5 million, up 1 million -- up from $1 million in the pcp. We also achieved overall cash flow of $2.2 million, up from breakeven in the pcp. And cash and cash equivalents grew again in the quarter, to $25.4 million, up 9.6% on December '24. So which -- in the first quarter of 2025 -- moving on to Freelancer.

We've continuous double-digit growth in customer acquisitions. So this is cash physically coming in from new customers in the first 28 days -- to 21% year-on-year, which is flowing through the funnel, as we're seeing, into positive GMV. And this will continue, I think, across the course of the rest of the year.

We've got a continued focus on -- strategic focus on AI, which is lifting liquidity and the quality of the marketplace; and driving some of those numbers; and also improving conversion in the user experience. And we're seeing some good lifts every time we integrate AI into the funnel and to the flow....

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