Freelancer shares hit highest levels since 2022 as platform gains from challenging job markets

Shares in online workplace company Freelancer (ASX: FLN) surged to almost three-year highs today after reporting its largest half-yearly profit on record, with economic uncertainty driving more users to its namesake platform and record-high bidding activity per project.

The founder-led group reported an 8 per cent increase in revenue for the half at $28 million, coupled with a bottom line turnaround that flipped a previous $1 million loss to a record $1.9 net profit after tax (NPAT) for the recent period.

However, this drastic turnaround included the impact of a $1.1 million unrealised foreign exchange gain

In the June quarter alone Freelancer onboarded more than two million new users, up 17.5 per cent year-on-year, and 171,000 new projects were posted on the marketplace.

The average project size continued on its upward trajectory to reach US$365, representing a 36.2 per cent lift on the same period last year, with the average project receiving a record 56 bids.

Freelancer also won a place on NASA’s US$475 million NOIS?3 open innovation program that crowdsources work aimed at solving complex challenges, while also continuing to benefit from AI?related project demand.

"AI continues to fuel robust demand growth on Freelancer as businesses embrace transformative solutions to streamline processes, enhance productivity, and reduce operating costs," the company said in market commentary around the results today.

"Marketplace activity in AI-related projects continues to surge, and we firmly believe AI will, over time, represent a marketplace segment equal to or greater than web development, traditionally our largest vertical.

"We are tremendously bullish on the long-term potential unlocked by continued advancements in AI, as these dramatically elevate the calibre of Freelancer’s global talent pool."

The company claims the macroeconomic backdrop in FY25 continues to favor Freelancer, particularly given global uncertainty around potential tariffs from the Trump administration in the US.

"Freelancer has historically capitalised on such environments, thriving as businesses shift from permanent employment toward flexible talent solutions," the company said.

"Simultaneously, challenging job markets traditionally stimulate increased startup activity and freelance participation, further strengthening Freelancer’s marketplace dynamics."

Since 2015 Freelancer group also owned leading online escrow company Escrow.com, which notched a 32.3 per cent increase in revenue to $6.1 million despite a slight decline in gross merchandise volume (GMV).

The lift in revenue was aided by one new shopping?cart integration and entry into ag?e?commerce and heavy?machinery verticals.

The group also owns 60 per cent of Freightlancer, which acquired heavy freight marketplace Loadshift in 2021 - a business that achieved all-time revenue records in the June half with peaks in March and May up 12 per cent and 8 per cent from the previous highest month.

FLN shares reached a high of 32 cents per share (cps) earlier today and closed trading at 31cps - a daily increase of 14.81 per cent and a level not seen since August 2022.