Freelancer posts a drop in net revenue, its shares are sliding

Freelancer CEO Matt Barrie. Image: Supplied.

Net revenue at entrepreneur Matt Barrie’s Freelancer fell 7% to $24.7 million in the half year to June as revenue per users shrinks.

Most of the dip was in the online marketplace, the main labour market business, which generated net revenue of $21.2 million, down 8%.

A short time ago, Freelancer shares were down 11.7% to $0.525.

“Memberships unfortunately continues to be a drag on revenue,” says Barrie, the CEO and Chairman.

“However it is important to note that the numbers of users on membership plan are in terms of count at an all time high. However, they are on a lower value plan than previously.”

Net revenue for online payment services, the company’s Escrow.com, was up 11% to $3.5 million.

The statutory loss after tax was $769,000, down 8.2%.

However, gross payment volume was a record $364 million for the six months, up 25%. And operating cash flow was positive at $400,000.

Freelancer, billed as the world’s largest online freelancing and crowdsourcing platform, has 29 million users.

The numbers for the first half of 2018:

Source: Freelancer

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