The following is a summary of the Freelancer Limited (FLNCF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Freelancer Limited reported a 2.8% drop in revenue in Q4 2023 but managed to reduce operating costs by $8.8 million, improving profitability and margin.
Gross marketplace volume was at $1.02 billion, down 4.8% on the previous period. Freelancer's segment increased by 2.9% while the Escrow segment was down by 5.8%.
Group's net revenue was $53.3 million, reflecting a 4.1% decrease, with revenues from Freelancer down 2.8% and Escrow revenue reported at $9.1 million, down 9.9% on pcp.
Operating cash flows of $1.9 million for FY '23 were reported, a turnaround from negative $4.2 million the previous year.
Freelancer anticipates a structurally lower cost base and is in a good position to increase its net profit before tax in 2024.
The company brought the group to profitability last year through significant cost reductions and demonstrated a 55% increase in revenue growth for the fourth quarter.
Business Progress:
Freelancer added 1.4 million new users and 201,000 new projects, and it is also investing in AI for platform enhancements.
The company is expanding its footprint across India, Malaysia, Australia, New Zealand and the U.S.
Freelancer is working on a solution to help governments address unemployment benefits, and showed progress with NASA and the U.S. government – delivering complex and high-end projects which it plans to apply to other government and large enterprises globally.
There are plans to expand MyGigs into Europe and Australia, and begin payment solutions integration in major shopping platforms, including the addition of escrow payments.
Freelancer has built and launched a platform in collaboration with Deloitte, ready to scale services across the global organization.
Future initiatives include partnerships in oil and gas, FMCG space, global talent management agreements, client activation program and further engagements with Deloitte MyGigs.
The company aims to make its product more engaging for user retention and is integrating AI as a solution to complex issues, which forms the basis for confidence in potential revenue growth for FY '24.
More details: FREELANCER LTD IR
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