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View All NewsFreelancer Q4 revenue trends down 3.5%
Freelancer (FLN:ASX) reported yesterday net revenue decreased by 3.5% in the fourth quarter of 2023 when compared to Q4 2022.
Net revenue Q4
| (AUD millions) | Q4 2023 | Q4 2022 | Change | Q4 2023 (USD millions) |
| Freelancer.com | 10.6 | 11.1 | -4.4% | 6.9 |
| Escrow.com | 2.1 | 2.1 | 1.5% | 1.3 |
| Total Revenue | 12.7 | 13.2 | -3.5% | 8.2 |
Freelancer.com Gross Marketplace Volume stood at AUD 32.8 million (USD 21.3 million), up 1.6% when compared to the prior year period.
Escrow.com Gross Marketplace Volume stood at AUD 215.8 million (USD 140.6 million) in Q4 2023, up 15.2%.
Full year net revenue
For the full year net revenue decreased by 4.1% to AUD 53.3 million (USD 34.7 million).
| (AUD millions) | FY 2023 | FY 2022 | Change | FY 2023 (USD millions) |
| Net Revenue | 53.3 | 55.7 | -4.1% | 34.7 |
| Gross Profit | 44.2 | 46.9 | -5.7% | 28.8 |
| Gross Margin | 83.0% | 84.3% | - | - |
| EBITDA | 0.5 | -6.7 | - | 0.3 |
| Net Profit before Tax | 0.2 | -7.0 | - | 0.1 |
| Net Profit after Tax | 0.2 | -5.4 | - | 0.1 |
Net revenue in the Freelancer segment stood at AUD 44.2 million (USD 28.8 million) for FY 2023, down 2.8% for the year ending 31 December 2023. The Freelancer Enterprise division deepened a number of strategic engagements with Enterprise partners and delivered 55% revenue growth
Escrow net revenue totalled AUD 9.1 million (USD 5.9 million) down 9.9% on the prior year.
Freelancer Gross Marketplace Volume stood at AUD 132.1 million (USD 86.0 million), up 2.9% over the prior year period. Escrow.com Gross Marketplace Volume stood at AUD 888.6 million (USD 579.0 million), down 5.8% over the prior year.
In its Loadshift business (heavy haulage and transport), the group said full year comparisons with FY22 were difficult due to a transition to marketplace from bulletin board. However, for the full year Gross Marketplace Volume was up 238.4% over the prior year.
Overall group Gross Marketplace Volume totalled AUD 1.02 billion (USD 664.6 million), down 4.8% compared to 2022.
The lower gross margin was primarily driven by increased costs associated with fraud prevention tooling, however the gross margin remains within a consistent range since 2011.
The company reported a Net Profit before Tax of AUD 0.2 million (USD 130,327) in FY 2023. This represents a major turnaround in profitability compared to the previous corresponding period. The company said it made significant progress on extracting cost efficiencies across all functions of the business and continues its focus to optimise costs wherever possible, without compromising revenue growth.
Overall costs were 18% lower than FY22 and as a result the group was EBITDA positive for FY23. The group now has a structurally lower cost base, which has it well placed to achieve sustainable profitability in FY24 and beyond, it added.
Freelancer shares closed yesterday at AUD 0.185 (USD 0.12), no change on the day and 2.78% above its 52-week low of AUD 0.18 (USD 0.12), set on 11 December 2023. The company has a market cap of AUD 83.42 million (USD 54.3 million).