Freelancer Limited has released its financial results for fiscal year 2024, revealing a nuanced performance landscape marked by strategic transformation and operational efficiency. Despite experiencing a 7.1% decline in Gross Marketplace Value (GMV) to $948.6 million and a 4.2% revenue reduction to $53.1 million, the company demonstrated significant operational improvements and strategic positioning.
The most notable achievement was the company's dramatic turnaround in customer acquisition and profitability. In the fourth quarter of 2024, new client deposits increased by 18.6% year-on-year, indicating potential future growth momentum. The strategic integration of artificial intelligence played a crucial role in this performance, enhancing marketplace skills, liquidity, and overall platform value.
Financial highlights underscore the company's operational resilience. Operating costs were reduced by 5.8% compared to the previous fiscal year, reflecting a disciplined approach to expense management. The second half of fiscal year 2024 saw a significant profitability improvement, with net profit after tax turning positive at $0.2 million, compared to previous periods of financial strain.
Cash flow management emerged as another strength, with the company generating positive cash flow of $0.8 million, a substantial improvement from the $2.4 million deficit in the previous fiscal year. Cash reserves increased by 9.5% to $23.2 million, providing a strong financial foundation for potential expansion in fiscal year 2025.
The company's AI integration strategy yielded tangible benefits beyond financial metrics. By enhancing platform features, Freelancer achieved a 5% improvement in user retention and increased conversion rates. The company positioned AI development as the next significant project wave, following web and mobile technology trends.
Segment performance varied, with the Freelancer platform experiencing a 1.3% GMV decline to $130.5 million and an 8.2% revenue reduction. Conversely, Escrow.com showed resilience, with revenue growing 14.5% to $10.4 million and maintaining a substantial GMV of $818.2 million.
As a global platform connecting over 79 million registered users, Freelancer Limited continues to provide comprehensive services across labor, payments, and freight solutions. The company's diverse ecosystem, encompassing Freelancer, Escrow.com, and Loadshift, positions it uniquely in the digital marketplace landscape.
The financial results suggest Freelancer Limited is navigating technological and market challenges with strategic adaptability. By focusing on cost efficiency, AI integration, and maintaining a robust cash position, the company appears prepared to leverage emerging opportunities in the digital services marketplace.
