Internet garment printer Redbubble has released its first ever full year financial results statement, revealing all figures are in line or better than the forecast provided at the time of IPO.
The ecommerce company – founded ten years ago by three friends in Melbourne – commenced trading on the Australian Securities Exchange (ASX) three months ago. It enables designers to upload designs for consumers to purchase, printed on garments such as T-shirts, caps and pillowcases.
Redbubble logged full year of revenue of $114.6m for FY2016, surging 61.2 per cent, and gross profit soared 61.8 per cent from $24.1m in 2015 to $39m for this year.
The company recorded an EBITDA loss of $8.7m, however this was $1.5m better than forecast.
However, the market was not so impressed with the figures, its shares dropping by 5 per cent on the release of the results.
Commenting on the results, founder and CEO Martin Hosking says Redbubble stands out in the marketplace for three reasons: it collects 100 per cent of value from all sales, uploaded designs remain on the site which creates a backlog of material, and third party print outsourcing means no capital investment is required.
None of Redbubble’s printing is done on-site at its Melbourne premises; instead Redbubble has 12 printing partners in 18 locations around the world.
Hosking says, “Third party fulfilment means Redbubble does not need to invest in manufacturing or capability and gives us a higher ability to scale.
“Print on demand is opening huge vistas, we are expecting to accelerate the pace at which we get new products out.”
Over the past year Redbubble has added twelve new products using advanced technology printing before laser cutting it and sewing it.
Total sales processed through Redbubble’s website increased by $54.5m or 61.7 per cent, while average order value climbed $3.00 to $52.60 per order.
Visits to the site increased by 44.7m or 43.4 per cent, led by a growth in mobile visits which surged by 70 per cent, compared to desktop growth at 28.5 per cent.
Looking forward to 2017, Hosking says the company will be focused on improving mobile user experience, geographic expansion, improving artist experience, and adding more products.
Hosking concludes, “Redbubble is an unusual Australian listed company, a global technology consumer business.
“We participate in enormous consumer categories – online accessories, apparel and homewares – where our ability to grow is only limited by our execution capabilities.
“We have proven we can do this in a scalable way given our strong cash flow model. As we move through FY2017 we expect to be realising the benefits of earlier investments in the business and moving to profitability.”
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