Australia-based Freelancer (FLN: ASX) reported net revenue for the six months ending 30 June 2023 of AUD 27.1 million (USD 18.3 million), down 7.3% compared to last year.

Revenue in the Freelancer (online marketplace segment) and Escrow (online payment services segment) operations declined.

The group also announced that it delivered Gross Payment Volume (GPV) in H1 2023 of AUD 576.9 million (USD 390.3 million), down 11.6% over the previous corresponding period.

The Freelancer segment's Gross Marketplace Value (GMV) stood at AUD 65.2 million (USD 44.1 million), up 0.8% over the previous year. Freelancer GPV was also flat at AUD 87.6 million (USD 59.2 million).

Escrow GPV stood at AUD 489.4 million (USD 330.9 million), down 13.2%.

Gross Payment Volume is calculated as the total payments to Freelancer or Escrow users for products and services transacted through the Freelancer or Escrow websites (GMV) plus net revenue.

Gross profit was down due to the revenue decline and the reduced gross margin.

Total operating expenses were AUD 24.3 million (USD 16.4 million), down 19.6% on the prior corresponding period. These significantly lower costs were mainly attributable to reduced payroll-related costs of 22.8% and lower marketing-related costs of 40.2% over the previous corresponding period.

The group's loss after tax turnaround was primarily due to significant cost efficiencies extracted across the business. 

Within Escrow, the group said the Loadshift business performance improved further this quarter as the unit continues the transition of the Loadshift business to a marketplace model.

Freelancer shares closed today at AUD 0.270 (USD 0.18), down 1.82% on the day and 45.95% above the 52-week low of AUD 0.185 (USD 0.13) set on 26 June 2023. The company has a market cap of AUD 124.0 million (USD 83.89 million).