Freelancer Limited (FLNCF) Q4 2024 Earnings Call Transcript

2025-02-26 08:45:46 ET

Freelancer Limited (FLNCF)

Q4 2024 Earnings Call

February 25, 2025 19:00 ET

Company Participants

Matt Barrie - Chief Executive Officer and Chairman

Neil Katz - Chief Financial Officer

Adam Byrnes - Vice President, Product

Presentation

Matt Barrie

Hello, and welcome to the Freelancer Limited 2024 Full Year Financial Results. My name is Matt Barrie. I’m the Chief Executive and Chairman of Freelancer Limited. Today with me in the room, I have Neil Katz, the Chief Financial Officer of the business; Adam Byrnes, who is the VP of Product; Andrew Bateman, who’s second in charge of Product and also in charge of Enterprise; and August Piao, who runs Escrow. As usual, in the Q&A, you may direct your questions to anyone in the room when the Q&A starts.

So I’ll get into it straight away. What we’re trying to do at Freelancer Limited is we’re trying to build a mini Amazon of services. We’re in the fields of labor, payments and freight, which are all very, very broad, large industries that all businesses need, large and small.

In the full year of 2024, I think we had fairly strong foundations for a great year coming up in FY ‘25, as you’ll see in a second. The gross marketplace value was $948 6 million, quite an amount of cash goes to the bank accounts. It’s down 7.1% on FY ‘23. The revenue was $53.1 million, which was slightly down at 4.2% on FY ‘23. The NPAT was flat at $800,000 negative. But in the second half, it turned positive for the year. So there’s actually a fair bit of a turnaround, which you’ll see in the rest of the narrative here on the full year results.

The operating profit, excluding unrealized FX losses was positive $0.8 million, which is up 19% on last year’s results. The operating cash flow was $5.8 million, up 205% on last year’s results. Cash flow was positive at $0.8 million, which is a fairly big turnaround on a negative number of last year, and the cash balance is $23.2 million, up 9.5% from the first half with no net debt. So we’re in a position, where we’re a leaner business, and we’ve got some good numbers starting to flow through in the second half in terms of the core financials.

Getting through and looking at the business by segment. The Freelancer GMV in the year was flat effectively at $130.5 million, and the revenue was down slightly at 8.2% to $40.6 million. That’s primarily due to non-core legacy consulting – engineering consulting services, where we’re doing a build-out last year of a marketplace for a customer, and that basically has rolled off.

We did have a number of wins, however, in the marketplace, and that’s really shining through in the second half of the year. We had a huge turnaround in client acquisition. So cash coming in from new customers within the first 30 days, so deposits within the first 30 days was up substantially. We ended with the fourth quarter up 18.6% year-on-year in terms of that cash coming in from new customers....

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