French talent platform Freelance.com (EPA: ALFRE) reported its full year 2022 results yesterday after markets closed. The audited results showed revenue stood at €857.7 million in FY 2023 against €800.2 million in FY 2022, an increase of 7%. Organic growth stood at 4%.

In February, Freelance.com published its Q4 results which also included FY 2023 revenue. The latest results published this week include EBITDA and further profit information.

International economic uncertainty and the slowdown in hiring momentum have decelerated the group’s customers' use of freelancers in 2023. When accounting for 12-month business volumes for OpenWork, pro-forma 2023 revenue came to €902.6 million.

In France, Freelance.com grew 15%, reaching €583.7 million, buoyed by strong organic growth in the first half of the year and the integration of OpenWork on 1 September 2023. International activities decreased by 6%, reaching €274.0 million.

Freelance.com generated €29.4 million EBITDA in 2023, up 9% year-on-year, from €27.0 million in 2022. The slightly higher growth than that of sales is due to a steady gross margin over the year, while benefiting from economies of scale. The use of bought-back shares under the employee bonus share plan had a negative impact of €1.2 million on operating expenses.

Operating income rose by 5% to €26.0 million, impacted by significant ongoing IT investments which increased amortization.

Net income (group share) amounted to €14.5 million, compared to €18.1 million in 2022 on the back of several non-recurring elements. Expenses relating to exceptional items, the impairment charge for the planned discontinuation of TMC's historical training activities, and negative foreign exchange losses lowered net income by €3.7 million.

In the fourth quarter, the group announced plans to acquire STA Groupe, a specialist in salarial portage (umbrella company) for independent contractors and which connects highly qualified consultants with companies.

In the context of a persistently uncertain labour market, the group remains cautious regarding both its French and international outlooks and is targeting slightly positive organic growth for the year.

However, the integrations of OpenWork on 1 September 2023, and STA on 11 January 2024, raise Freelance.com's combined sales above the billion-euro mark.

“These two acquisitions will strengthen our position in the external talent management market and allow the group to recover a growth momentum in line with our objectives,” Freelance.com stated.

Freelance.com shares last traded today at €3.46, down 9.66% on the day and 19.31% above the 52- week low of €2.90 set on 24 November 2023. The company has a market cap of €216.53 million.