Freelancer Ltd (ASX:FLN), the world’s largest freelancing and crowdsourcing marketplace, released its December quarter cash flow statement.
Strong Cash-Flow Statement
The crowdsourcing provider achieved record cash receipts for the quarter ending 31st December 2015. Booking $11.9 million, up 62% to the PCP.
For the FY15, the company had positive operating cash-flow of $1.43 million. Moreover, the trend continued, with Freelancer having a positive cash-flow of $360k for the quarter ending December 31st 2015.
However, Freelancer’s held cash and cash equivalents were $32.2million. This was a 24% reduction, when compared to the end of Q32015. Freelancer attributes this decrease to the payment of consideration for the Escrow.com acquisition ($7.5 million).
Throughout FY15, the company incurred one-off legal and other acquisition related expenses, along with staffing costs for Escrow.com. Occurring between April-November 2015.
Freelancer CEO Matt Barrie commented positively on the quarterly results: “Freelancer once again achieved absolutely outstanding results in Q4 with record receipts with customers. Our FY15 results will be released on the 23rd February 2016. 2016 will also be an outstanding year for Freelancer, with a full year contribution from Escrow.com and accelerating growth across our business.”
The acquisition of Escrow.com was announced in April 2015, and was completed on the 1st of November 2015. Escrow.com contributed to the company’s financial results for two months.
Gross Payment Volume for Escrow.com in FY15 was announced in early January. Up 34% (YoY), to $430 million. According to Freelancer, the business represents an outstanding source of future growth for the company, and will be a significant contributor to FY16 financial results.
Escrow.com acts as a third party to an online transaction. Collecting, holding and disbursing funds, according to buyer and seller instructions. Escrow services provided by the company are licensed and regulated. The service provider is headquartered in California, USA.
NASA and Freelancer Partnership
Freelancer has partnered up with NASA, through the CoECI (NASA’s Center of Excellence for Collaborative Information). With the objective of the partnership being to design concepts for a robotic arm for the Astrobee free-flying arm for the International Space Station (ISS). In order to complete the objective, Freelancer has been crowdsourcing parts from over 17 million freelancers around the world.
This builds on a previous partnership with NASA, where NASA crowdsourced the design and implementation of a smartphone app, to be used by ISS astronauts. Providing 3D models for training the image recognition system, on the Robonaut R2 Robotic Astronaut.
The systems design will be will be crowdsourced on Freelancer.com throughout 2016.
Investors have reacted sharply to the announcement, with FLN surging almost 10% upon open (As at 10.09am AEDT), to $1.81. Over the last year, FLN has provided investors with an over 200% return.
Freelancer will lodge its full year FY15 results on the 23rd February 2016.
Author: Imran Valibhoy
Jan 29, 2016
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.