Temple & Webster Group (TPW) H2 2024 earnings summary

Executive summary

• FY24 revenue reached AUD 498 million (or $498m), up 26% year-over-year, driven by growth in both repeat and first-time customers, outperforming a market that declined by ~4%.

• Market share increased 31% to 2.3% of the total furniture and home goods market.

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

• Closing cash balance stood at AUD 116 million, with no debt, fully funding growth plans.

• FY25 trading has started strongly, with revenue up 26% year-over-year to date.

Financial highlights

• Gross margin improved to 33.4% from 32.6% in FY23.

• Contribution margin was 13.9%, with fixed costs reduced to 11.3% of revenue from 12% in FY23.

• Free cash flow exceeded AUD 25 million, supported by an asset-light, negative working capital model.

• 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.

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

Outlook and guidance

• FY25 will focus on high growth, market disruption, and continued investment in marketing (2%-3% of revenue).

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

• CapEx expected between AUD 500,000 and AUD 1 million; depreciation and amortization in line with FY24 (~AUD 5.8 million).

• Strategic focus on leveraging scale, AI, and exclusive products to entrench market leadership.

• Mid-term target set for AUD 1 billion+ in annual sales within 3-5 years from FY23.