Online personalised print platform Redbubble half year revenue is up 26.3 per cent to $78.7m, its gross profit has grown 38.1 per cent, to $28.3m, and its EBITDA losses have been reduced by a massive 75 per cent to $1.1m.
Martin Hosking, CEO, 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 net loss after tax is at $2.8m, reduced by 73.4 per cent and gross profit after paid acquisitions is at $21.7m, up 33.7 per cent.
[Related: Redbubble predictions fall short]
Redbubble says it is continuing to scale and demonstrate emerging operating leverage, despite significant headwinds. Redbubble is essentially a provider of personalised print. Designers up load their designers to the site, the public picks those designs to go on a variety of products – caps, t-shirts, pillowcases and the like – with Redbubble organising print and delivery.
The company achieved strong growth in gross transaction value 22.8 per cent, 31.3 per cent on a constant currency basis. There was also strong growth from Redbubble’s European language sites, despite a 4.7 per cent average deterioration in the Euro relative to the previous year. There is also improved margins, both before and after paid marketing expenditure, resulting in, 36 per cent gross profit margin and 27.6 per cent gross profit after paid acquisition market.
There was modest growth in operating expenditure of 9.3 per cent, 12.4 per cent on a constant currency basis
[Related: Redbubble shares in slump]
Redbubble says the global opportunity before them remains large and the company continues to invest to seize that opportunity.
Martin Hosking CEO Redbubble says, “The group’s revenue growth remains significantly higher than the rate of global online retail sales, despite being impacted by a strong Australian dollar affecting approximately 93 per cent of revenue denominated in other countries. Negative macro-economic drivers, including the uncertainty, both economically and otherwise of the political situation in the US and the economic uncertainty caused by the UK decision to leave the EU.
“Lastly, a significant and rapid shift to mobile traffic, though the group expects benefits from this consumer behaviour change in the longer term as mobile becomes dominant, with group’s year on year growth in GTV from mobiles being 52.3 per cent compared to 13.8 per cent for other devices.”
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