Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Freelancer Ltd (FLNCF) reported a significant turnaround in operating cash flow, which increased by 205% to $5.8 million.
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The company achieved a positive operating profit of $0.8 million, marking a 19% increase from the previous year.
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Freelancer Ltd (FLNCF) has no net debt and a cash balance of $23.2 million, up 9.5% from the first half of the year.
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The company saw a substantial increase in customer acquisition, with cash deposits from new customers up 18.6% year-on-year in the fourth quarter.
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AI integration has enhanced the skills of freelancers, improving the quality and speed of services, and contributing to customer satisfaction.
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Freelancer Ltd (FLNCF) experienced a decline in gross marketplace value by 7.1% and revenue by 4.2% compared to the previous year.
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The company’s revenue from the freelancer segment was down 8.2%, primarily due to the roll-off of non-core legacy consulting services.
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There was a 1.7 million unrealized FX loss due to currency fluctuations, impacting financial results.
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The escrow segment’s GMV decreased slightly, although revenue increased by 14.5%.
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Freelancer Ltd (FLNCF) faces challenges in automating processes for large-scale AI model training, which currently involves manual operations.
Q: Freelancer revenue drops primarily due to non-core legacy engineering consumer services revenue. What specifically was this work and is there any other non-core items that are planned to be dropped or sold? A: It was engineering services work for Deloitte. We built a marketplace for them from 2018 to 2024, and then that rolled off. We were generating revenue from building that marketplace, which is now live and active. The total payment was a little less than $5 million AUD. There are no other non-core items planned to be dropped or sold.
Q: Is the remuneration policy being updated to include share price and profitability incentives? A: We have incorporated updates from the ASX guidelines. Historically, we haven’t had a big stock grant program. In FY24, there was no stock issuance. This will be a topic for the REM committee to discuss, especially with new non-executive directors joining.
Q: How much revenue does Load Shift make? A: We don’t break it out as a segment yet, but it has the potential to contribute significantly to the business’s revenue. It started at a low base of $1 million and has grown substantially since then. We will eventually break it out, but currently, we do not.
Source: Freelancer Ltd (FLNCF) (Q4 2024) Earnings Call Highlights: A Turnaround in Cash Flow Amid
