Redbubble meets IPO forecast ahead of international expansion
Global marketplace Redbubble has posted a full year gross transaction value of $142.9 million for FY2016, in line with its forecast of $143.5 million at the time of its IPO in May of this year.
Revenues for the company were $114.6 million, a 61.2 per cent increase from the previous corresponding year, thanks to new language versions of the website, investment in the mobile user experience, including additional payment options and improved checkout flow, and the introduction of 12 new products.
EBITDA loss was $8.7 million, excluding the one-time cost of IPO. This was $1.5 million better than forecast, Redbubble CEO Martin Hosking said.
“The strong result reflects the solid dynamics of the Redbubble business. 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,” Hosking said.
Based on the results and the company’s upcoming pipeline of initiatives, Hosking reaffirmed Redbubble’s 2017 forecast provided at the time of the IPO. Earlier this month, Redbubble announced plans to open its first European office in Berlin in early 2017. Europe is the company’s fastest growing market and currently accounts for 27 per cent of its sales.
“Our future growth is not limited by the domestic market with over 90 per cent of our revenue from offshore. We participate in enormous consumer categories – online accessories, apparel and homewares – where our ability to grow is only limited by our execution capabilities,” Hosking said.
“We have proven we can do this in a scaleable 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.”