We caught up with Freelancer (FLN) CEO and founder Matt Barrie on Wednesday

Morgans Financial Limited

Morgans Financial Limited

We caught up with Freelancer (FLN) CEO and founder Matt Barrie on Wednesday. It's great to see an Australian technology story winning on the world stage. The key issue from an investment perspective is profitability which still seems a few years away. The market cap is $310m, there is $20m of net cash and FLN just delivered CY14 revenue of $26m (up 39% on the pcp) and an operating loss of $1.5m. FLN is growing fast, but needs a step change in revenue of at least $10m to $15m at 88% margins to get the stock to a more sensible PER of less than 50x. Value delivered to both the project poster and the freelancer is enormous and projects posted is on a strong growth trajectory (see chart). The game plan to date was to win the space through attracting the most number of projects. This box is now ticked and if FLN can get a greater share of the value here, profitability could see a big improvement. One to follow but still early days.


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Morgans Financial Limited
Stockbroker
Morgans Financial Limited

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with over 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices in all states and territories.

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