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REDBUBBLE'S (ASX:RBL) post IPO scale-up is progressing strongly, says CEO Martin Hoskings, as the company recorded 35.8 per cent growth in gross profit to $10.5 million in the first quarter of FY17.
In results released to the ASX today, the Melbourne-based online marketplace recorded revenue of $28.9 million, up 25.6 per cent on the previous corresponding period.
"Our marketplace continues to attract more artists and customers globally with solid margins and low customer acquisition costs. As forecast, the business is moving towards profitability as it scales and gets the benefits of operational leverage," says Hoskings.
"The scaling of the business - that is revenue growing faster than expenses - is evidenced by the [unaudited] financial results for the quarter, which are in line with our FY17 Prospectus forecast, despite the impact of a stronger Australian dollar.
Redbubble, which listed in May, saw gross profit grow 35.8 per cent to $10.5 million, but the company still reported an EBITDA loss of $2.3 million, better than the $3.3 million loss in the same quarter last year.
Net operating cash outflow was $2.7 million for Q1 FY17, and the closing cash balance of $36.0 million at 30 September 2016.
"Our first quarter also delivered strong growth in the top line of 14.2% on a constant currency basis versus the last quarter of FY16, with improved margins relative to forecast and lower than forecast operating expenses."
Highlights for the quarter were the launch of Redbubble's Spanish language website and the addition of four new fulfiller locations in Colorado, Florida, Nevada and Brisbane.
The company also improved its search algorithms, launched three new products, improved its search results pages and made new homepage collections of curated content.
Redbubble is trading steady at $0.955 per share in early trade this morning.
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