Freelancer (FLN) H2 2024 earnings summary

Executive summary

• FY24 revenue was $53.1M, with GMV at $948.6M, both declining year-over-year, but the second half saw a return to profitability and improved cash flow, driven by AI initiatives and cost discipline.

• Net profit after tax was -$0.8M, reversing a prior year profit, but 2H24 turned positive, reflecting a significant turnaround.

• Operating cash flow rose to $5.8M, up over 200% year-over-year, with cash and equivalents at $23.2M and no net debt.

• Strong improvements in client acquisition, retention, and project size, with AI driving marketplace enhancements and platform upgrades.

• Cost discipline and AI-driven initiatives set the stage for targeted double-digit revenue growth and sustainable profitability in FY25.

Financial highlights

• Gross margin for FY24 was 81.9%, improving to 83.9% in the second half after one-off 2FA costs subsided.

• Operating profit (adjusted) rose 19% to $0.8M; employee expenses fell 8% and total costs dropped 5.8%.

• No net debt at year-end; cash and equivalents up 9.5% year-over-year.

• Trade and other receivables fell 46% due to improved collections and shorter settlement times.

• Earnings per share was -0.18 cents, compared to 0.04 cents in FY23.

Outlook and guidance

• Targeting double-digit revenue and GMV growth in FY25, leveraging AI leadership, enterprise expansion, and a strong cash position.

• Focus on scaling Escrow.com in e-commerce and automotive, enhancing Loadshift, and launching next-gen AI tools.

• Continued cost discipline and platform upgrades across all segments.