Redbubble’s first half financial report shows an improved position for the company, with revenue up, losses down, increased site visits, more customers, and a higher conversion rate, despite what the company says have been significant headwinds.
Revenue has grown 26 per cent to $78.7m, gross profit has grown to $28.3m, an improvement of 38 per cent.
Gross transaction value (GTV) has grown 22.8 per cent from the prior corresponding period, bringing it to $98.6m.
EBITDA losses from first half have been curbed 75 per cent to $1.1m, while net loss after tax is 73 per cent lower, at $2.8m
Once gain and loss are factored in for foreign currency translations, the total comprehensive loss for the half year is $2.5m, compared to the pcp of $11m. Operating expenditure has increased 9.3 per cent to $21.2m as the company scales up, with 34 per cent of cash spend in the half having been invested for future growth.
Redbubble says revenue growth remains significantly higher than the rate of global online retail sales, despite being impacted by a strong Australian dollar, the US political situation, and Brexit, alongside a significant and rapid shift to mobile traffic.
Planning ahead, Redbubble says it expects to benefit from the shift to mobile, as its year on year growth in GTV from mobiles is 52 per cent compared to 13.8 per cent for other devices.
Visits to the website have grown 21.9 per cent, with 91.6m visitors in this period compared to 75m in the pcp. From 1.25m customers in the pcp, to 1.68m in 1H FY 2017, is an improvement of 33.8 per cent.
Redbubble says, “The Group has seen strong and profitable growth from its paid marketing activity by proactively increasing paid marketing spend, benefiting from improved processes and in response to the shift to mobile where paid placements get a higher profile on the smaller mobile screens.”
The company’s European language sites have grown faster than its Australian arm; Spain up 80 per cent, Germany 61.8 per cent, and France by 33.7 per cent.
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