Freelancing and crowdsourcing provider Freelancer Limited (ASX:FLN) delivered a strong quarter with record cash receipts of $9.7m, up 42% over pcp.
More importantly Freelancer is on track to deliver positive operating cashflow for FY15 with positive cashflow of $1.1m year to date following the Q3 results. The company also expects accelerating revenue growth for FY15 and has currently cash and cash equivalents of $42.6m.
As of October 2015 Freelancer hat $16.8m users after adding 850,000 new users in Q3. Total projects and contents increased to 8.6m, a 39% increase year-on-year of users who posts projects.
The strong results highlight Freelancer’s ability to capitalise on its ongoing growth momentum. Chief Executive Officer Matt Barrie said: “Freelancer once again achieved exceptional results in Q3 with record receipt from customers and record projects & contest posted with an acceleration on the first half results.”
During Q3 Freelancers entered into a partnership agreement with the National Aeronautics and Space Administration (NASA) to crowdsource software and design solutions. Whilst the scope of projects and entries is relatively small compared to the overall transaction volume of Freelancer.com, the partnership has resulted in broad media coverage including Forbes, CNN or Time magazine. The partnership is set to enhance Freelancers image and global standing.
How does Freelancer make money?
Freelancer’s revenue is generated from users posting jobs as a project or contest. While it is free to post and review these projects, Freelancer receives a commission when a project is awarded and accepted. The commission ranges from 0-3% for employers and 3-10% for freelancers. The company also offers paid membershiop options that offer additional features and benefits. These memberships range from US$0.99 to $US199.95. As Freelancer generates most of its revenue offshore, it is set to benefit from positive currency exchange fluctuations throughout 2015 and beyond.
Wise-owl subscribers have been advised to buy Freelancer several months ago and continue to enjoy healthy growth from this investment. We will update all of our premium subscribers about any updates in relation to this recommendation.
Author: Simon Herrmann
Oct 15, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.