Redbubble sees strong growth in Q1

Internet garment printer Redbubble is on track for a growing financial year with results for Q1 2017 showing a revenue boost of 25.6 per cent versus the same quarter last year.

The company reports it ended the first quarter with a strong balance sheet of $36m cash and zero debt.

Gross profit surged by 35.8 per cent compared to the same quarter last year to $10.5m, while EDITDA loss slowed to $2.3m compared to a $3.3m loss last year.

The ecommerce company – founded ten years ago by three friends in Melbourne – commenced trading on the Australian Securities Exchange (ASX) five months ago.

Redbubble describes itself as a global marketplace for independent designers, allowing them to upload designs for consumers to purchase, printed on garments such as T-shirts, caps and pillowcases. It outsources the printing to partner companies around the world.

CEO Martin Hosking says, “Our marketplace continues to attract more artists and customers globally with solid margins and low customer acquisition costs. As forecast, the business is moving towards profitability as it scales and gets the benefits of operational leverage.

“The scaling of the business, that is revenue growing faster than expenses, is evidenced by the financial results for the quarter, which are in line with our FY17 Prospectus forecast, despite the impact of a stronger Australian dollar.

Hosking continues, “Our first quarter also delivered strong growth in the top line of 14.2 per cent on a constant currency basis versus the last quarter of FY16, with improved margins relative to forecast and lower than forecast operating expenses.”

The company also reports the Redbubble website has experienced a 15 per cent visitor boost quarter on quarter, its customer base has surged 21 per cent and selling artists with the company have grown 12 per cent.

 

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