Redbubble Ltd. engages in the development and provision of online marketplace, where artists upload their designs and creative works. It offers apparel, accessories, house ware, calendars, canvas prints, drawstring bags, duvet covers, framed prints, greeting cards, hardcover journals, laptop sleeves, photographic prints, posters, studio pouches, scarves, spiral notebooks, stickers, throw pillows, and bags designed by artists.
Redbubble shares have endured a torrid time since Feb 2021 when the correction started. RBL shares dipped from the highs of over $7 a share to trading just above $3. However, today’s spectacular earnings announcement from the company has caused RBL share price to surge over 18% and begin an upward momentum.
Redbubble delivered record financial results and operational achievements during FY21, providing strong foundations from which to drive future growth. The business is well capitalised to pursue its medium term aspirations with confidence and conviction. Some of the highlights were:
- GTV of $701 million, up 48% (60% on a constant currency basis)
- Marketplace Revenue of $553 million, up 58% (71% on a constant currency basis)
- Gross profit of $223 million, up 66% (79% on a constant currency basis)
- EBITDA of $53 million, up 930% (695% on a constant currency basis)
- EBIT of $39 million, compared to a loss of $9 million in FY20
- NPAT of $31 million, compared to a loss of $9 million in FY20
- Operating cash inflow of $55 million, compared to $47 million in FY20
- Closing cash balance at 30 June 2021 of $99 million
FY21 Marketplace Revenue grew at a CAGR of 47% since FY19 (49% on a constant currency basis) and a CAGR of 41% since FY17. 4Q FY21 Marketplace Revenue grew at a CAGR of 27% since 4Q FY19 (32% on a constant currency basis).
Redbubble CEO, Michael Ilczynski, said: “The Redbubble marketplaces are flywheel businesses, where improving one side creates positive, reinforcing impacts on the other sides of the marketplace. We have witnessed this powerful flywheel effect throughout FY21. I am proud of the record financial results and operational achievements that the team has delivered during that time.”
During the period, operational metrics for Redbubble have been flying high and these numbers should remove doubts over the capacity of the firm to keep its growth going. The ecommerce sector is undergoing a transformation globally and Redbubble looks to be taking centre stage as far as product placement and their marketplace is concerned. During FY21, key marketplace metrics showed strong growth:
- 728,000 selling artists, up 54%
- 9.5 million unique customers, up 40%
- 67% growth in purchases from repeat customers, contributing 42% of Marketplace Revenue
- 55% of sales from mobile platforms, with 14% of Redbubble Marketplace Revenue from apps
- 44 fulfiller locations across the network, up from 41 at FY20
- 11.6 million packages shipped, up 47%
In the near term, Redbubble will cycle strong prior period comparatives, particularly as mask sales contributed $57 million to FY21 Marketplace Revenue, resulting in FY21 underlying Marketplace Revenue of $497 million. Redbubble expects FY22 Marketplace Revenue to be slightly above FY21 underlying Marketplace Revenue. RBL shares are thus flying high today – up 18% and closed at $3.64 a share.
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