Bigtincan Holdings Broker Ratings
18th June 2024
Freelancer Limited Analyst Review – Underrated By The Market
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Code: FLN | Market Cap: $105.5m | Current Price: $0.24
Sector: Industrials
Broker: Edison
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Freelancer Limited Overview
Freelancer Limited operates a freelancing and crowdsourcing marketplace in Australia. The company operates in two segments: Online Marketplace and Online Payment Services. (Escrow.com)
Freelancer provided a Q3 business update yesterday; despite reporting a 3% drop in Gross Merchandise value (GMV) to $222.3 million, the company achieved a positive operating cash flow for the quarter of $23.5 million.
Broker Highlights:
Despite the fall in GMV, the broker believes revenue likely grew, given the marketplace’s higher average take rate of GMV vs. Escrow.com. However, this was not provided by the company.
Freelancer achieved a key target by delivering positive operating EBITDA in each division, driving a positive operating cash flow of $1 million in the quarter.
Marketplace GMV growth was driven by a 1.6 million user increase and a 1.9% lift in average project size.
Recommendation
The broker believes Freelancer’s share price does not reflect its long-term potential, with multiple levers driving value. The company trades at an 81% discount to peers on EV/sales across FY1e and FY2e, narrowing to 44% compared to Upwork and Fiverr. Showing further growth potential in either division could be a catalyst.
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