Australia – Freelancer Ltd. reports gross payment volume up 39% in Q1
April 20, 2021
Freelancer Ltd. (ASX: FLN), which operates the online recruiting platform Freelancer.com, reported Monday that its gross payment volume rose 39.0% to $ 192.9 million in the first quarter, a record for the company.
The Group’s net income also hit a record high, increasing 32.1% year over year to $ 12.0 million.
Freelancer is based in Sydney and operates worldwide. US dollars and 4% Australian dollars represent approximately 72% of consolidated sales. The company trades on the ASX in Australia and also began trading in the US on the OTCQX Best Markets under the ticker symbol FLNCF in the first quarter. It also operates the Escrow.com platform which is designed to make it easier to buy and sell items online.
Looking only at Freelancer.com’s online personnel market, the gross market volume (payment to freelancers) rose the fastest since the company’s IPO in the first quarter. It rose 23.6% year over year to $ 25.9 million. The increase was due to Freelancer.com’s web traffic increasing 105.7% year over year to 16.4 million users.
The average size of the completed project on Freelancer.com had increased to $ 187. It had fallen from $ 216 in the first half of 2020 to $ 161 as new demand increased. The company had forecast that the average size of the completed project would rise again over time.
Freelancer.com also reported that more than 14.5 million contest entries are submitted each year. In the first quarter, competition entries rose by 52% year-on-year to 3.82 million. Users submitting entries increased 19%. However, competition fees were down 14.8% year over year in the first quarter. “This is primarily due to a number of items that have been moved to the new web stack interface (e.g., upgrades are hidden) and are currently being hired by the competitive product team to fix them,” the company said . “Much like we corrected hourly projects, we are confident that the team will implement this fee line much faster in the next quarter. Between these changes and a number of high profile engagements, we expect significant growth in the competitive platform. “
Company gross market volume on Freelancer.com increased 83.4% year over year in the first quarter in US dollars. The company found that two large customers who had spent six-digit amounts on the platform in the past four months weren’t customers as of September last year.
Share price and market capitalization
Freelancer.com shares hit a new 52-week high on the ASX on Monday when they hit AUD 0.77 (USD 0.60), the price at which they closed. Shares rose 15.79% that day, according to FT.com. The company had a market capitalization of A $ 300.5 million ($ 232.3 million).