Online art marketplace Redbubble has posted strong full year results after going public earlier this year.
Online art marketplace Redbubble has revealed its first full year results since going public in May.
Redbubble reported full year revenue of $114.6 million, up 61.2 percent on last year, with gross profit of $39 million, up 61.8 percent. The company posted an EBITDA loss of $8.7 million (before IPO costs), compared with a forecast loss of $10.6 million.
“The strong result reflects the solid dynamics of the Redbubble business,” said CEO Martin Hosking. “Strong revenue growth, improved margins and lower operating expenditure growth resulted in an EBITDA loss $1.5M better than forecast. Overall the business is scaling well with revenue growth ahead of operating expenditure growth and with stable margins and low customer acquisition costs.”
Gross transaction value (GTV) across the marketplace came in at $142.9 million, largely in line with forecast GTV of $143.5 million, but up 61.7 percent on FY2015.
“FY2016 results met or exceeded IPO forecasts at all levels,” said CFO, Chris Nunn.
“[Redbubble] continues to scale, meeting revenue targets with less cost than forecast, and to profitably acquire customers,” the company said.
The past year has seen 12 new physical product rollouts, a push into Europe including the launch of German and French websites, and a number of website and mobile developments.
It also posted year-on-year growth in a range of key metrics including visits (43 percent), conversion rate (7 percent), AOV (6 percent), customers (53 percent) and selling artists (62 percent).
“Based on the results and the upcoming pipeline of initiatives, we are affirming our 2017 forecast provided at the time of the IPO.”
Over FY2017, the company will focus on improving search relevancy on site and with Google; improving website speeds; launching six new products; and growing its European markets and localising fulfilment operations.
“Our future growth is not limited by the domestic market with over 90 percent of our revenue from offshore,” said Hosking. “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 scaleable way given our strong cash flow model.”
The company has reaffirmed its FY2017 guidance, forecasting revenue of $172.2 million, with an EBITDA loss of $1.3 million down from $8.7 million.
“Redbubble expects to see continued strong top-line growth and increasing scaling through FY2017,” said Hosking.