Temple & Webster Group (TPW) H2 2024 earnings summary

Executive summary

• FY24 revenue grew 26% to AUD 498 million, outperforming a declining market and increasing market share by 31% to 2.3% of the furniture and home goods sector.

• Growth was driven by both repeat and first-time customers, with active customers up 33% and repeat orders up 36%.

• EBITDA (excluding one-off costs) reached AUD 13.1 million, at the high end of guidance, with a margin of 2.6%.

• Strong cash position with AUD 116 million and no debt, fully funding growth plans.

• Strategic focus on brand building, exclusive product expansion, AI/data investment, and cost base scalability.

Financial highlights

• Revenue increased 26% year-over-year to AUD 498 million, with gross margin improving to 33.4% from 32.6% in FY23.

• Contribution margin was 13.9%, supported by better shipping recovery, lower refund/replacement costs, and supplier-funded promotions.

• Customer service and merchant fees fell to 2.1% of revenue due to AI-driven efficiencies.

• Fixed costs as a percentage of revenue reduced to 11% from 12% last year.

• NPAT was AUD 1.8 million, down from AUD 8.3 million in FY23, impacted by a AUD 4.7 million write-down of the Renovai investment.

Outlook and guidance

• FY25 has started strongly, with revenue up 26% year-over-year from July 1 to August 11.

• Ongoing investment of 2%-3% of revenue into marketing to drive brand awareness and market share.

• EBITDA margins expected to incrementally build from FY26 towards a long-term target of over 15%.

• CapEx for FY25 expected between AUD 500,000 and AUD 1 million; depreciation/amortization in line with FY24.

• Effective tax rate expected to normalize to around 30%.