Freelancer (FLN) H2 2024 earnings summary

Executive summary

• FY24 GMV was $948.6M, down 7.1% year-over-year, and revenue was $53.1M, down 4.2%, with a net loss after tax of $0.8M; 2H24 saw a return to profitability with NPAT of $0.2M.

• Operating profit (excluding unrealized FX losses) was $0.8M, up 19% year-over-year; operating cash flow rose to $5.8M, up over 200% year-over-year.

• Cash and equivalents increased to $23.2M, up 9.5% from 1H24, with no net debt.

• Significant improvements in client acquisition, retention, and project size, driven by AI integration and operational efficiency.

• 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%, rising to 83.9% in 2H24 after one-off costs subsided.

• Operating costs decreased by 5.8%, and payroll was down 8%, supporting a leaner cost base.

• Operating profit (adjusted) rose 19% to $0.8M.

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

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

Outlook and guidance

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

• Focus on new AI training programs, expanded tech partnerships, and intensified client acquisition and retention.

• Escrow.com and Loadshift to expand into new verticals and enhance product offerings.