Mobile helps boost Redbubble’s first-half revenue
The company reported a 113 per cent increase in marketplace revenue from members, which now makes up 25 per cent of group marketplace revenue. Member marketplace revenue per active member grew 33 per cent.
Active members grew 61 per cent to 3.1 million in the half.
After seeing such positive results, the company said it will continue to prioritise its mobile experience in FY19 and beyond.
Redbubble achieved operating EBITDA of $5.6 million and free cash flow of $25.6 million in the half. It said it’s on track to post a positive result on both measures for the full year.
Redbubble improved gross margins in the half, thanks to strategic pricing and supply chain gains, and maintaining paid marketing efficiency and operating expense discipline.
The online marketplace said the first-half results were achieved as it continues to improve its net promoter score and reduce shipping times for customers.
The first quarter of FY19 was stronger than the second, when Google’s algorithm change impacted organic search sales. Revenue growth was supported by strong revenue from paid channels as well as the acquisition of TeePublic, which contributed revenue in November and December 2018.
The cost of paid revenue remains efficient and is immediately profitable, the company said.
The financial results are from internal management reports and have not been subject to audit review.