Redbubble records Q1 $42m gross profit, down 34% YoY

Redbubble Limited (ASX: RBL) – a global online marketplace for print-on-demand products using user-submitted artwork – has recorded a first quarter FY2002 gross profit of $42 million, down 34 per cent on the same time last year.

In the update to the Australian Securities Exchange, it said marketplace revenue was $106 million for the quarter, down 21 per cent since Q1 FY2021. EBITDA was $3.9 million, down 85 per cent YoY.

It added that excluding masks and on a paid basis, its underlying Q1 FY2022 marketplace revenue was down six per cent. The company says that as the quarter progressed, its underlying marketplace revenue growth improved from negative 11 per cent in July to negative two per cent in September.

The company also said the results are “in line with expectations”, with marketplace revenue in the first half of the financial year likely to be negative YoY.

It added that a steady return to YoY growth rates will return, consistent with meeting its medium-term aspirations.

“The business remains confident and excited about the medium- to longer-term opportunity to grow strongly its online marketplaces for consumers and extend Redbubble’s global market leadership as the largest printing platform for independent artists,” the company said.

“Taking a longer-term view, Q1 FY2022 marketplace revenue was 55 per cent higher than Q1 FY2020, representing a two-year CAGR of 24 per cent.”

The business also provided an operational update, saying that it continued to deliver initiatives and conduct experiments across four key strategic areas in the quarter:

  • Launched Afterpay for its customers in the US, Canada, UK and Australia
  • Completed 13 loyalty experiments, with seven showing early positive retention signals
  • Commenced search and recommendation experiment to improve discoverability of new artists and works
  • Launched 18 new products and line extensions including dad hats, baseball caps, desk mats, mouse pads and iPhone 13 cases
  • Increased localisation for five products at four fulfillers.

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