Personalised print portal Redbubble reduced its losses in the 2017 financial year, as the global online marketplace improves its operating leverage and continues to scale up in size.
With a net loss after tax of $7.6m, the company has significantly improved from the FY2016 loss of $19.8m. While it is not the $1.3m loss predicted at the IPO, it is in line with the company’s renewed forecast, made earlier this year.
EBITDA loss for Redbubble improved 24.8 per cent, or 45 per cent on a constant currency basis, to $8.1m from $10.7m in 2016, on revenue which increased 23 per cent from $114.6m, to $141m.
Gross transaction value, the company’s sales minus fraud, refunds, and chargebacks, grew by 22.8 per cent up to $175.4m. Most of the growth came from sales on mobile devices, increasing 47.2 per cent from the 2016 result of $38.8m, to account for $57.2m in revenue.
Visits from mobile now exceed desktops, even when tablets are counted towards the desktop count, 95.8 million compared to 80.5 million on desktops.
Visitors to the site grew by 27.4 per cent, reaching 188.4 million in 2017. Redbubble has also increased its conversion rate by 4.6 per cent, with 2.9 million customers in 2017, a 32 per cent increase from the 2016 result of 2.2 million.
Fouinded by three friends in Melbourne in 2006 the company is growing worldwide, with 93 per cent of its sales taking place outside of Australia. It essentially provides a p[lace for artists and consumers to meet, with consumers able to order personalised products such as T-Shirts and pillow cases printed with a design from the site.
There are now 233,000 selling artists on the platform, a 51 per cent increase from 2016.
Redbubble says its key financial measures; GTV, revenue, and gross profit are growing at above 30 per cent on a constant currency basis. It points to improved pricing strategies, continuing economies of scale at fulfilment level, and the ongoing localisation of fulfillment reducing shipping costs.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter