Redbubble reports net loss, as sales slump
Online marketplace Redbubble has reported a net loss attributable to shareholders of $24.6 million in its latest results.
Founded in Melbourne in 2006, Redbubble creates print-on-demand products featuring artwork submitted by users. It has offices in San Francisco and Berlin as well as Melbourne.
In the year ended June 30, the company says its marketplace revenue fell by 13 per cent to $482.6 million, or by $70.7 million, year-on-year. Gross profit was down 18 per cent to $183.1 million.
A “positive trend” of repeat purchases from customers has driven Marketplace Revenue (MPR) by 46 per cent. Active Redbubble members are down to 14.4 million.
Michael Ilczynski, CEO of Redbubble, said the business’ operating momentum improved in the fourth quarter as it continued to focus on upgrading its technical foundation.
“Ongoing Covid impacts have resulted in talent pools being constrained in our four operating regions, and competition for individuals has been high,” he said. “The group has invested substantially in both the artist and customer experiences to improve loyalty and retention and to ensure long-term growth.”
In early May, the business implemented a free shipping trial in the UK which resulted in a higher gross profit compared to the prior month. Based on its success, a US trial commenced in July.
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