DOCSLIB.ORG

Redbubble Limited 1Q19 Beat (>10%), Capital Raise And

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Redbubble Limited 1Q19 Beat (>10%), Capital Raise And This report is intended for [email protected]. Unauthorized publication, disclosure or other distribution is strictly prohibited. Redbubble Limited Software and Services Owen Humphries | Analyst | Canaccord Genuity (Australia) Ltd. | [email protected] | Australian Equity Research +61.2.9263.2702 21 November 2018 BUY Raising Target Price unchanged PRICE TARGET A$2.25↑ from A$2.20 1Q19 beat (>10%), capital raise and Price (21-Nov) A$1.30 Ticker RBL-ASX transformational acquisition of Teepublic Redbubble (RBL) reported a positive 1Q19a result (GPAPA +11% beat) and completed 52-Week Range (A$): 0.61 - 2.07 Market Cap (A$M): 329 a A$60.6m institutional placement at A$1.50ps to fund the horizontal acquisition of Dividend /Shr (AUc): 0.0 TeePublic (www.teepublic.com) for US$41m (A$57.7m, $49.3m upfront, $8.4m deferred Dividend Yield (%) : 0.0 until FY21). We reiterate our BUY rating and increase our DCF-based TP to A$2.25 (from Enterprise Value (A$M): 283 A$2.20). Cash (A$M): 46.3 Long-Term Debt (A$M): 0.0 We consider the transaction transformational as it a) scales RBL to being the global leader serving independent artists (FY20 GTV >$450m, gross profit >$130m); b) FYE Jun 2018A 2019E 2020E 2021E spring loads the business into profitability (EBITDA FY19: $6m, FY20: $17m); and c) Sales (A$M) 182.8 274.8↑ 364.9↑ 451.9 bolsters the balance sheet into a strong net cash position (FY19 $32m, FY20 $41m). Previous - 237.6 296.9 - The company reaffirmed its FY19e guidance of constant currency revenue/GPAPA Gross Profit (A$M) 63.9 98.9 130.6 161.9 growth of >30% and opex growth of +19%. Operating EBITDA (excluding TeePublic) is EBITDA (A$M) (3.8) 5.8↑ 16.5↑ 31.6 expected to be in the range of $2m-$4m with FCF <-$2m. Previous - 3.3 10.7 - Earnings revisions: Our FY19, FY20 and FY21 gross profit increases +19%, +26% and Net Income Adj (1.3)↑ 6.3↑ +27%, primarily driven by the integration of Teepublic into our earnings forecasts. (A$M) (6.5) 17.7 Previous - (3.1) 2.4 - • Teepublic is currently the fastest growing on-demand ecommerce marketplace for independent artists and generated FY18 revenue, gross profit and EBITDA of A$35.9m EPS Adj&Dil (3.13) (0.46)↑ 2.3↑ 6.4 (AUc) (FY17 A$26.9m, +33% growth), $14.1m (FY17 $10.5m, +34%) and $4.6m (FY17 Previous - (1.38) 1.1 - $4.0m) respectively. TeePublic's revenue is predominately sourced in the US (85% rev.) Net Debt (Cash) (31)↓ (41)↓ (A$M) (21) (51) with T-shirts (71% rev) the major contributor. TeePublic has experienced stellar revenue Previous - (21) (25) - CAGR since inception in 2013 with growth accelerating in 1Q19 as pro-forma revenue EV/EBITDA (x) (81.1) 51.5 17.5 8.8 and gross profit increased +57% and +65% respectively. 2.2 • The acquisition of Teepublic builds scale across artists, content, products, fulfilment 2 and technology, however we identify a number of synergy benefits through various P&L line items. These include: revenue (expand TeePublic brand into new geographies 1.8 and languages [French, Spanish, German], launch Teepublic app, expand product 1.6 offering to 66 [currently 45], artist content [31k artwork]); COGS (volume discounts from fulfillers as acq. doubles the size of RBL's T-shirt business in the US, fulfiller 1.4 consolidation), marketing (optimised paid search, own category key words) and opex 1.2 (streamlined operations, legal, tech, finance etc.). We expect these to be additive to 1 revenue/earnings in the medium term, however our forecasts do not incorporate any synergy benefits at this stage. 0.8 • RBL released a positive 1Q19a quarterly report (+11% GPAPA beat) which Jul-18 Jan-18 Jun-18 Oct-18 Apr-18 demonstrated continued acceleration in GTV (+41%, constant currency [cc] +31%), Feb-18 Sep-18 Mar-18 Dec-17 Nov-18 Aug-18 May-18 RBL gross profit (+43%, cc +34%) and GPAPA (+42%, cc +33%). Growth was aided Source: FactSet by a) successful back to school campaigns in the Northern Hemisphere (wall art, homewares, stickers); b) continued elevated growth in its European markets Priced as of close of business 21 November 2018 (Germany/Spain >+66%, France +96%); and c) an uplift in key categories such as Canaccord Genuity (Australia) Limited has received a fee stickers (+71% growth) and t-shirts (+34% growth, 42% of GTV). Key marketplace as a Joint Lead Manager and Underwriter to the Redbubble metrics remained buoyant with customers (+32% vs. pcp), selling artists (+33%) and Limited capital raising announced on 24 October 2018. website traffic (+29%) all improving during the quarter. Continued on next page... Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX) The recommendations and opinions expressed in this research report accurately reflect the research analyst's personal, independent and objective views about any and all the companies and securities that are the subject of this report discussed herein. For important information, please see the Important Disclosures beginning on page 7 of this document. This report is intended for [email protected]. Unauthorized publication, disclosure or other distribution is strictly prohibited. Redbubble Limited Raising Target Price Importantly Mobile is rapidly becoming a larger proportion of group GTV (Mobile cont.: 36%, Desktop 64%) and increased +61% in 1Q19 (Desktop +29%). Importantly, mobile conversion rates improved +13% during the period. The growth in RBL’s mobile channel should aid an acceleration in overall group GTV as it becomes a larger source of website traffic. On the conference call the company highlighted that it has experienced some softness in organic search traffic due to Google changing its algorithms. While expected to be short lived, it may have an impact on organic/unpaid growth (~55% of group GTV) into the seasonal peak retailing period (Oct/Nov). We have factored this into our forecasts with FY19 GTV growth of +31% versus 1Q19 of +42% and paid marketing growth exceeding GTV growth. Operating leverage is a clear focus for investors given the growth in GPAPA (1Q19 +42%). RBL guided to opex growth materially below revenue growth for the remainder of FY19 (2Q-4Q revenue growth +30%, opex growth +15%). We note RBL’s opex has been relatively stable since 2Q18 (2Q18: $13m, 3Q18: $13m, 4Q18: $15m, 1Q19: $14m). In our view, the acquisition and associated capital injection shifts the mindset of RBL from managing the business to breakeven to managing it for long term growth. We expect RBL to invest in expanding languages, geographies, products and marketing while also investing in its tech stack to deepen its moat and barriers to new entrants. While we forecast profitable growth over the medium term, we foresee RBL accelerating its growth investment to take advantage of the large and disruptive globally opportunity. RBL trades at a material discount to its global high growth marketplace peers (EV/GPAPA -80% discount to Etsy [17.5x, RBL 3.5x]) and we expect a multiple re- rating as the company scales into profitability during FY19-FY20. Despite some potential softness following the Google algorithm change, we expect investor sentiment to improve as conviction increases in RBL’s/our FY20 estimates (GTV: >A$450m, gross profit: >$130m, EBITDA ~$17m, [>50% growth], cash balance: >$40m). After incorporating the accretive acquisition and dilution from the equity raise (-19%) into our forecasts, our price target increases to A$2.25ps (previously $2.20ps). Figure 1: Pro-forma Revenue and group EBITDA (fully consolidated for FY17-FY19) A$m Pro-forma Revenue ($Am) Group EBITDA ($Am) 600 551 CGAu est. 50 CGAu est. Redbubble 43.6 500 111 TeePublic 452 40 31.6 85 400 365 30 440 66 20 16.5 300 290 51 367 219 10 5.8 200 36 299 168 0.3 2.0 27 239 0 115 183 100 71 -3.8 49 141 -10 -6.0 -4.8 28 -8.2 0 -20 FY13A FY14A FY15A FY16A FY17A FY18A FY19E FY20E FY21E FY22E FY13A FY14A FY15A FY16A FY17A FY18A FY19E FY20E FY21E FY22E Source: Company Reports, Canaccord Genuity estimates 2 Buy unchanged Target Price A$2.25 from A$2.20 | 21 November 2018 Software and Services 2 This report is intended for [email protected]. Unauthorized publication, disclosure or other distribution is strictly prohibited. Redbubble Limited Raising Target Price Figure 2: Financial forecasts for RBL RedBubble Limited $ 1.30 Profit & Loss ($m) - Jun YE 2017A 2018A 2019F 2020F 2021F Valuation ratios 2017A 2018A 2019F 2020F 2021F Gross Transaction Value 175.4 231.3 343.8 454.5 562.4 EPS (cps) -2.0 -3.1 -0.5 2.3 6.4 Sales Revenue 141.0 182.8 274.8 364.9 451.9 EPS Growth (%) nmf nmf nmf nmf nmf Gross Profit 50.1 63.9 98.9 130.6 161.9 Enterprise Value ($m) - pro-forma301.4 308.2 297.8 288.3 278.2 Paid marketing -12.2 -16.8 -25.5 -35.1 -42.6 EV/Revenue 2.1 1.7 1.1 0.8 0.6 GPAPA (GP post mkting) 37.9 47.1 73.5 95.5 119.3 EV/Gross Profit 6.0 4.8 3.0 2.2 1.7 Opex -42.7 -50.9 -67.7 -79.1 -87.7 EV/GPAPA 8.0 6.5 4.1 3.0 2.3 EBITDA -4.8 -3.8 5.8 16.5 31.6 EV / EBITDA (x) -62.8 -81.1 51.5 17.5 8.8 D & A -6.5 -7.8 -8.7 -9.3 -9.5 EV / EBIT (x) -26.6 -26.6 -122.7 40.2 12.6 EBIT -11.3 -11.6 -2.4 7.2 22.1 FCF yield (%) -1.9% 0.4% 3.8% 5.7% 9.0% Net Interest Expense 0.5 0.4 0.6 0.8 1.0 DPS (cps) 0.0 0.0 0.0 0.0 0.0 NPBT -10.8 -11.2 -1.8 8.0 23.1 Tax expense 6.7 4.7 0.6 -1.7 -5.4 Balance Sheet ratios 2017A 2018A 2019F 2020F 2021F NPAT (Normalised) -4.2 -6.5 -1.3 6.3 17.7 Net Debt (cash) -27.8 -21.1 -31.5 -40.9 -51.1 Non-recurring -3.6 -3.6 0.0 0.0 0.0 NTA per share ($) 0.12 0.08 0.08 0.11 0.14 NPAT (Reported) -7.8 -10.1 -1.3 6.3 17.7 Price / NTA (x) 10.9 16.7 15.6 12.1 9.4 Shares on issue 208.4 208.4 253.3 253.3 253.3 Gross Profit Margin (%) 35.5% 35.0% 36.0% 35.8% 35.8% EFPOWA (m) 203.7 208.9 275.0 275.0 275.0 GPAPA margin 26.9% 25.8% 26.7% 26.2% 26.4% EBITDA Margin (%) -3.4% -2.1% 2.1% 4.5% 7.0% Interim Analysis 2H16A 1H17A 2H17A 1H18A 2H18A EBIT Margin (%) -8.0% -6.3% -0.9% 2.0% 4.9% GTV 62.6 98.6 76.8 129.8 101.5 NPAT Margin (%) -2.9% -3.6% -0.5% 1.7% 3.9% Revenues 52.3 78.7 62.3 102.3 80.5 Gross Profit 18.5 28.3 21.8 35.3 28.6 Cash Flow ($m) - Jun YE 2017A 2018A 2019F 2020F 2021F EBIT -6.7 -4.1 -7.2 -1.3 -10.3 Operating EBITDA -4.8 -3.8 5.8 16.5 31.6 EBIT margin (%) -12.7% -5.3% -11.5% -1.2% -12.8% - Interest & Tax Paid 0.6 0.9 1.2 -0.9 -4.3 +/- change in Work.
Load more

Recommended publications
  • Redbubble Annual Report 2019 Year in Highlights & Review Commentary
    annual report 2019 Annual Report 2019 Contents Page Contents 4 Year in Review 5 Highlights and Commentary 7 Chair’s Letter 8 CEO’s Review 10 Directors’ Report 25 Auditor’s Independence Declaration 26 Remuneration Report 46 Consolidated Financial Statements 85 Directors’ Declaration 86 Independent Auditors’ Report 91 Shareholder and other ASX Required Information 93 Corporate Information Founded in 2006, the Redbubble Group incorporates Redbubble Limited and its subsidiaries, including TP Apparel LLC (TeePublic). The Redbubble Group owns and operates the leading global online marketplaces hosted at Redbubble.com and TeePublic.com, powered by over one million independent artists. The Redbubble Group’s community of passionate creatives sell uncommon designs on high-quality, everyday products such as apparel, stationery, housewares, bags, wall art and so on. Through the Redbubble and TeePublic marketplaces, independent artists are able to profit from their creativity and reach a new universe of adoring fans. For customers, it’s the ultimate in self-expression. A simple but meaningful way to show the world who they are and what they care about. This report covers Redbubble Limited as a consolidated entity consisting of Redbubble Limited (referred to in this report as Redbubble or the Company) and its controlled entities. Redbubble is a company limited by shares, incorporated and domiciled in Australia (ACN 119200592). Its registered office is at Level 3, 271 Collins Street, Melbourne VIC 3000. Redbubble is listed on the Australian Securities
    [Show full text]
  • Is Redbubble a Safe Site to Order From
    Is Redbubble A Safe Site To Order From If vicissitudinous or cestoid Schuyler usually entomologizes his tyre excruciated snottily or leapfrog super and rubrically, how year-round is Henrie? Contraband Tedmund stets her scaphocephaly so didactically that Mikhail cannonade very carnally. If octennially or ear-piercing Bjorn usually protect his koppie henna undeservedly or sprays bucolically and pronely, how close-hauled is Kenyon? These tips for amazing art to order and then encased in berlin and. We been no idea for the other t shirts help me no pretence that keeps my order is responding to let people can look no longer. Is the service but if so i was reassuring, you from redbubble a site is to order number for pet blankets and labels and stretched canvases, this company will be. It's impossible not the soft place to go anytime you want brutally honest criticism which goes something artists need mother hear from time to abate in order or grow. My money making it is taken all of dealing with few sales do not hear that have an account information about their is redbubble a safe to site order from amazon. There are in case for ecommerce entrepreneurs who use appropriate, from redbubble a safe to site is a place where to create entire store can create designs can sit back tracking codes or sellers that. You is a super professional both redbubble stickers i was rather than just south africa and. Demand and is redbubble a safe site to order from, the but in a high ranking so.
    [Show full text]
  • Redbubble Group (ASX:RBL)
    Redbubble Group (ASX:RBL) Directors’ Report Remuneration Report Financial Report Financial Year 2020 Level 3, 271 Collins Street, Melbourne VIC 3000 PO Box 274, Flinders Lane VIC 8009 Redbubble Limited ABN 11 119 200 592 1 Contents Page number Directors’ Report 3 Auditor’s Independence Declaration 23 Remuneration Report 24 Consolidated Financial Statements 50 Notes to the Consolidated Financial Statements 55 Director’s Declaration 95 Independent Auditor’s Report 96 Corporate information 101 2 Directors’ Report Your Directors present their report on the consolidated entity, consisting of Redbubble Limited (the Company or Redbubble) and the entities it controlled during the financial year ended 30 June 2020 (referred to hereafter as the RB Group or Group). Directors The following persons were Directors of the Company during the 2020 financial year and to the date of this Report: Anne Ward Chair, Non-executive Director Martin Hosking CEO and Managing Director (reappointed effective 18 February 2020 following earlier appointments as Non-executive Director, Executive Director and first appointment as CEO and Managing Director) Jennifer (Jenny) Non-executive Director Macdonald Greg Lockwood Non-executive Director Ben Heap Non-executive Director (appointed effective 20 April 2020) Richard Cawsey Former Chair, Non-executive Director (resigned effective 30 March 2020) Barry Newstead Former CEO and Managing Director (ended effective 18 February 2020) Grant Murdoch Non-executive Director (resigned effective 23 October 2019) Principal activities RB Group, through its websites at Redbubble.com and TeePublic.com, owns and operates the Redbubble and TeePublic online marketplaces. These marketplaces facilitate the sale and purchase of art and designs on a range of products sold by independent creatives to consumers.
    [Show full text]
  • Annual Report 2020 Redbubble
    Annual Report 2020 Redbubble Contents 04 Year in Review 06 Highlights and Commentary 08 Chair’s Letter 09 CEO’s Review 14 Director’s Report 34 Auditor’s Independence Declaration 35 Remuneration Report 63 Consolidated Financial Statements 109 Directors’ Declaration 110 Independent Auditor’s Report 116 Shareholder and other ASX Required Information 119 Corporate Information Redbubble Limited ABN: 11 119 200 592 Year ended 30 June 2020 Redbubble Annual Report 2020 Founded in 2006, the Redbubble Group (RB Group) incorporates Redbubble Limited and its subsidiaries including TP Apparel LLC (TeePublic). RB Group owns and operates the leading global online marketplaces Redbubble.com and TeePublic.com. RB Group’s community of passionate creatives sell uncommon designs on high-quality, everyday products such as apparel, stationery, housewares, bags, wall art and so on. Through the Redbubble and TeePublic marketplaces, independent artists are able to profit from their creativity and reach a new universe of adoring fans. For customers, it’s the ultimate in self expression. A simple but meaningful way to show the world who they are and what they care about. This Report covers Redbubble Limited as a consolidated entity consisting of Redbubble Limited (referred to in this report as Redbubble or the Company) and its controlled entities. Redbubble is a company limited by shares, incorporated and domiciled in Australia (ACN 1192002592). Its registered office is at Level 3, 271 Collins Street, Melbourne VIC 3000. Redbubble is listed on the Australian Securities Exchange (ASX:RBL). Through the use of the internet, the Company ensures that our corporate reporting is timely, complete and available globally.
    [Show full text]
  • Bankrolling Bigotry: an Overview of the Online Funding Strategies Of
    Bankrolling Bigotry: An Overview of the Online Funding Strategies of American Hate Groups Beirut Berlin London Paris Washington DC The Global Disinformation Index is a UK-based not-for-profit that operates on the three principles of neutrality, independence and Copyright © Institute for Strategic Dialogue (2020). Institute transparency. Our vision is a world in which we can trust what we for Strategic Dialogue (ISD) is a company limited by guarantee, see in the media. Our mission is to restore trust in the media by registered office address PO Box 75769, London, SW1P 9ER. providing real-time automated risk ratings of the world’s media ISD is registered in England with company registration sites through a Global Disinformation Index (GDI). The GDI is number 06581421 and registered charity number 1141069. non-political. Our Advisory Panel consists of international experts All Rights Reserved. in disinformation, indices and technology. www.isdglobal.org For more information, visit www.disinformationindex.org The Global Disinformation Index and the Institute for Strategic Dialogue gratefully acknowledge the support of The John S. and James L. Knight Foundation. Bankrolling Bigotry: An Overview of the Online Funding Strategies of American Hate Groups 3 Contents Executive Summary 4 Project Overview 4 Key Findings 5 Recommendations 6 Project Overview and Approach 7 Definitional Framework 7 Understanding Hate 7 Identifying Hate Groups for Analysis 7 Sub-categorising Hate Groups 7 Understanding Funding Mechanisms 10 Methodology 12 Findings 13 Prioritisation
    [Show full text]
  • Directors' Report, Remuneration Report and Financial
    Redbubble Group (ASX:RBL) Directors' Report Remuneration Report Financial Report Financial Year 2019 Level 3, 271 Collins Street, Melbourne VIC 3000 PO Box 274, Flinders Lane VIC 8009 Redbubble Limited ABN 11 119 200 592 Contents Page number Directors’ Report 1 Consolidated Financial Statements 44 Notes to the Consolidated Financial Statements 49 Directors’ Declaration 86 Independent Auditors’ Report 87 Corporate information 92 Directors’ Report Your Directors present their report on the consolidated entity, consisting of Redbubble Limited (the Company or Redbubble) and the entities it controlled during the financial year ended 30 June 2019 (referred to hereafter as the RB Group or Group). Directors The following persons were Directors of the Company during the 2019 financial year and to the date of this Report: Richard Cawsey Chair, Non-executive Director Barry Newstead CEO and Managing Director (appointed effective 1 August 2018) Martin Hosking Non-executive Director (effective 1 October 2018) - previously CEO and Managing Director (up to 1 August 2018) and Executive Director (from 1 August 2018 to 30 September 2018) Jennifer (Jenny) Macdonald Non-executive Director Anne Ward Non-executive Director Greg Lockwood Non-executive Director Grant Murdoch Non-executive Director (resigning at the end of the October 2019 AGM) Hugh Williams Non-executive Director (resigned effective 29 May 2019) Principal activities RB Group, through its websites at Redbubble.com, TeePublic.com and three foreign language Redbubble.com websites, owns and operates the Redbubble and TeePublic online marketplaces. These marketplaces facilitate the sale and purchase of art and designs on a range of products between independent creatives and consumers.
    [Show full text]
  • Cafepress Inc
    CAFEPRESS INC. FORM 10-K (Annual Report) Filed 03/30/16 for the Period Ending 12/31/15 Address 1850 GATEWAY DRIVE SUITE 300 SAN MATEO, CA 94404 Telephone 650.655.3000 CIK 0001117733 Symbol PRSS SIC Code 5900 - Retail-Miscellaneous Retail Industry Retail (Catalog & Mail Order) Sector Services Fiscal Year 12/31 http://www.edgar-online.com © Copyright 2016, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2015 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35468 CafePress Inc. (Exact name of registrant as specified in its charter) Delaware 94-3342816 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 6901 Riverport Drive, Louisville, KY 40258 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (502)-995-2258 Securities registered pursuant to Section 12(b) of the Act: Title of each class : Name of each exchange on which registered : Common Stock, par value $.0001 per share NASDAQ Global Select Market Securities registered pursuant to Section 12(g) of the Act: None (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
    [Show full text]
  • Cafepress Inc. 2016 Annual Report
    Table of Contents Index to Financial Statements We generate a portion of our revenue from the fees we collect from shipping our products. We frequently offer discounted or free shipping, with minimum purchase requirements during promotional periods, to attract and retain customers. We also frequently offer coupons, promotional marketing giveaways and free or discounted products and services as a method to attract and retain customers, and such instances are generally unable to recoup shipping costs in such programs. In the future, if we continue to increase these coupon practices and discounted shipping offers to attract and retain customers and/or in response to actions taken by our competitors, our results of operations may be harmed. We face intense competition and if we do not compete successfully against existing and new competitors, we may lose market share and customers. The market for customized products and services is large, fragmented and intensely competitive and we expect competition to continue to increase in the future. Demand for customized products has increased, but so have competitive offerings in all of our product categories. We face competition from a wide range of companies, including the following: • Small traditional offline printing businesses; • E-commerce companies, including large online retailers such as Amazon.com, Inc., Walmart.com, Target and eBay Inc. (who may also serve as our distribution partners); • Online providers of customized products such as Custom Ink LLC, RedBubble, Inc., Spreadshirt, Inc., Teespring, Threadless.com, or Zazzle Inc. and online providers of distinctive goods like Etsy, Inc. or Uncommon Goods; • Online providers allowing users to customize goods in specific vertical markets, such as Vistaprint N.V.
    [Show full text]
  • FY 2016 Full Year Results Presentation Presented By
    FY 2016 Full Year Results Presentation Presented by: Martin Hosking – CEO Chris Nunn - CFO Disclaimer The material herein is a presentation of non-specific background information about the Company’s current activities. It is information given in summary form and does not purport to be complete. Investors or potential investors should seek their own independent advice. This material is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of a particular investor. These should be considered when deciding if a particular investment is appropriate. 2 Year in review Martin Hosking- CEO 3 Executive Summary Company listed on the ASX on 16 May 2016 as ticker code “RBL” Redbubble had a strong year and finished FY2016 above expectations, meeting or exceeding all reported financial IPO forecast numbers: • Revenue of $114.6m vs $114.5m forecast – Up 61.2% on FY2015 • Gross profit of $39.0m vs $38.5m forecast – Up 62.0% on FY2015 • EBITDA loss1 $8.7m vs $10.6m forecast – Up 33.8% on FY2015 • Net loss after tax1 $17.8m vs $19.7m forecast (before IPO costs) GTV2, representing the value of marketplace transactions, came in at $142.9m vs forecast of $143.5m - Up 61.7% on FY2015 The Company continues to scale, meeting revenue targets with less cost than forecast, and to profitably acquire customers. Growth initiatives have been delivered against plan • 12 new physical products launched for the year • German and French websites launched ahead of plan • Significant website and mobile experience improvement • Improved checkout flow • Shopping cart upgrade and improved mobile functionality • New homepage with first personalisation capability • Mobile strategy on track 1.
    [Show full text]
  • Redbubble (ASX: RBL)
    Written by Farrer Wealth Private Limited. Not to be construed as investment advice, not for distribution. Redbubble (ASX: RBL) Intro RBL was a stock that we uncovered over the holiday season while looking for unique gifts for family and friends. However this was a few years ago, and it didn’t occur to us that this was an investable business until we read Bonsai Partners’ write-up on it. What began as a money-spending exercise eventually turned into a subsequent research and deep dive into an interesting POD (Print on Demand) marketplace business that should compound for years to come. Credit: Co-Written by our friend Gerard Chua History RBL (redbubble.com) is a three-sided online global marketplace connecting independent artists and a network of third party fulfillers to whoever uses their service. The company was founded in Australia by Martin Hosking, Peter Styles and Paul Vanzella in 2006 as a platform to serve artists, providing them an avenue to showcase their creative work and get paid for it. The first products featured were wall art, greeting cards and T-shirts but RBL gradually expanded beyond this to 117 product categories available today1. Hosking was driven by a passion to help artists bring their artwork to market given the struggle that they face. Producing artwork while finding customers who are willing to pay for their designs is a lot of work for any aspiring artist. In doing so, RBL rode the wave of a growing number of customers who prefer products that reflect their own identity and values, rather off-the-shelf merchandise they do not identify with.
    [Show full text]
  • Cafepress Inc. 2016 Annual Report
    CAFEPRESS INC. FORM 10-K (Annual Report) Filed 03/10/17 for the Period Ending 12/31/16 Address 11909 SHELBYVILLE ROAD LOUISVILLE, KY 40243 Telephone 502-995-2258 CIK 0001117733 Symbol PRSS SIC Code 5900 - Retail-Miscellaneous Retail Industry Internet Services Sector Technology Fiscal Year 12/31 http://www.edgar-online.com © Copyright 2017, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2016 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35468 CafePress Inc. (Exact name of registrant as specified in its charter) Delaware 94-3342816 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 11909 Shelbyville Road, Louisville, KY 40243 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (502)995-2229 Securities registered pursuant to Section 12(b) of the Act: Title of each class : Name of each exchange on which registered : Common Stock, par value $.0001 per share NASDAQ Global Select Market Securities registered pursuant to Section 12(g) of the Act: None (Title of class) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
    [Show full text]
  • Appendix 4E, Directors' Report & Financial Report
    APPENDIX 4E REPORT AND FULL YEAR UPDATE • RB Group confirms key information provided with its Appendix 4C announcement on 30 July 2019 • FY2019 RB Group delivered Operating EBITDA of $3.8 million, the first since IPO, demonstrating operating leverage • FY2019 RB Group Marketplace Revenue grew by 41% year-on-year (“YoY”) • Strategic investments delivering results and propelling marketplace fundamentals • Driving towards a long term milestone of $1 billion in sales Melbourne, Australia; 28 August 2019: Redbubble Limited (ASX: RBL), which owns and operates Redbubble and TeePublic, the leading global marketplace for independent artists, today lodged its Full Year Report (Appendix 4E) for the year ended 30 June 2019. In conjunction with the Appendix 4E lodgment, the Redbubble Group (RB Group) is providing a summary of its Income Statement down to net loss after tax as well as a review of the full year including a strategic initiative update (supplementing the Investor Presentation released 30 July 2019). FY2019 Financial Performance RB Group reported its full year results (pre-auditor review) with its Appendix 4C on 30 July 2019. Following audit review, Redbubble has reported the same key results however there has been one change to the other operating expenses, which is detailed below. This change does not impact cash, gross profit or operating EBITDA figures previously reported. These are shown below, with the addition of the net loss after tax line: Key financial measures for FY2019 (with year on year (“YoY”) growth rates, where applicable) are: • Marketplace Revenue of $257 million, up 41% (up 34% on a constant currency basis). • Gross profit of $95 million, up 48% (up 41% on a constant currency basis).
    [Show full text]