Insights

Freelancer (ASX:FLN) share price dives 16% after first-half results

Shares in Freelancer are sinking today following the release of the company’s 1H21 results. Here are the details
The post Freelancer (ASX:FLN) share price dives 16% after first-half results appeared first on The Motley Fool Australia. –

The Freelancer Ltd (ASX: FLN) share price woke up to a rude awakening today, following the release of the company’s half-year results.

At the time of writing, shares in the global freelancing and outsourcing marketplace have tumbled 15.93% to 95 cents.

Why is the Freelancer share price down double digits?

Freelancer revealed 1H21 group net revenue had tipped 5.7% lower on the prior corresponding period (pcp) to $27.8 million.

The slight decline in revenue was underpinned by weak currency movements. This drove a negative impact of 17.4% in the first half.

This trickled down to both negative operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) and operating net profit after tax of -$2 million and -$1.6 million respectively.

The company’s net operating cash flow also declined from $6.2 million in 1H20 to $2.7 million in 1H21.

The weaker financial performance could be a reason why the Freelancer share price is experiencing such a heavy sell-off this morning.

Despite a slight decline in revenue, the company experienced a record in gross payment volumes (GPV), the total payments to Freelancer for products and services transacted. 1H21 GPV came in at a record $566 million, up 35.9% on the pcp.

Pleasingly, the company believes it is on track to achieve its milestone of $1 billion in GPV (through bank accounts).

In addition, Freelancer maintained a solid cash and cash equivalent position of $31.8 million. This was down $2.5 million or 7.4% on 31 December 2020.

The decrease includes the $4 million used to acquire Australia’s largest online heavy haulage freight marketplace, Loadshift.

A closer look at today’s sell-off

The sharp sell-off in the Freelancer share price comes off the back of significant trading volume.

Approximately 540,000 shares changed hands in the first 30 minutes of trade. To add some perspective, the company’s 10-day average volume is only 139,500.

The post Freelancer (ASX:FLN) share price dives 16% after first-half results appeared first on The Motley Fool Australia.

Should you invest $1,000 in Freelancer right now?

Before you consider Freelancer, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Freelancer wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Here’s why the Freelancer (ASX:FLN) share price is surging 7% today

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freelancer Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!