Earnings Call: Q1 2021

Apr 20, 2021

Hello, welcome to the Friants Unlimited First Quarter of twenty twenty one Financial Results Presentation. My name is Matt Barry. I'm the Chief Executive of the group. With me today is the Chief Financial Officer, Neil Katz the VP of Product, Adam Burns and VP of Enterprise, Sarah Tang. And after the commentary, you may address, questions to any or all of us, in the q and a pursuant. So thank you for joining us today. We just finished up the first quarter of twenty twenty one. This we operate in the calendar year, so that's from January to March of this year is our first quarter. And, we delivered gross payment volume in the first quarter with an all time record of 192,900,000.0 US dollars, which was actually up 39% on the previous year or Australian two hundred and forty nine point seven million, up 18.8%. So we're on track to do over a billion dollars in payment volume through the bank accounts this year. Our GMV for freelancer was up 23.6% to 25,900,000 or 33,600,000.0, up 5.1% on PCP. The escrow gross payment volume had a big lift, again, following the last quarter's results. An all time record of 158,200,000.0 US dollars, up 43.7 percent on PCP, or 204,800,000.0, up 23% on PCP. We possibly stand a chance of the escrow business itself doing over a billion dollars this year with growth that's happening at the moment. The GPVX China was an all time record of a hundred and 50 1 point 1 million US, up 48.7% on PCP. Group net cash receipts for first quarter was an all time record of 12,000,000 US, up 32.1% on PCP or 15,600,000, up 12.4% on PCP. The free asset cash receipts were an all time record of 10,100,000.0, up 31.4% on PCP or a hundred 13 point 1 million, up 11.8% on PCP. The escrow cash receipts were an all time record of £1,900,000 up 36% on PCP and US dollars or £2,400,000 up 15.8% on PCP. We obviously had a headwind in the Australian US dollar exchange rate in the quarter. Was negative 17.4. We still got, fairly decent results, even though we have that headwind. We think that would that's obviously gonna churn now because we, in the in the last year, you remember the Australian dollar dipped down to 55¢ and kind of bounced back up again. And it's been relatively steady in the last number of months. Approximately 72% of group revenues in US dollars and 4% in the Australian dollar is very much a global business and US dollars is main metric we look at. Positive net operating cash flow was 4,200,000. That's a big in the first quarter, versus 0.47 in the first quarter of twenty twenty. And we're breaking profitability. As I mentioned in the previous, quarterly report, escrow, freelancer and the group were both individually and, together profitable in the second half of twenty twenty. And escrow was profitable in the first half of twenty twenty one, and freelancer was just slightly under, but we've been kind of dipping it out of profitability over the last number of quarters. In fact, freelance was profitable in the q two of last year, q '3 of last year, and q four of last year as the the marketplace business. So the jaws of operating leverage are ready to open. We had a reasonable lift in cash and cash equivalents, up 8.2% to $37,800,000. If you look at, the France of gross marketplace volume, it's actually growing at the fastest. It's been growing since IPO. On a rolling twenty eight day basis as of a day or two ago, it was growing at 24.1%. You can see here, this is a multiyear GMV graph for the last three years. These plots are actually on a rolling three sixty five day basis, but you can see the growth has had a big uplift in the last number of months. As I've said before, we're kind of working through each of the different revenue lines to to get them, moving at speed and and really get the growth happening and, some of those, efforts are starting to pay off. We're ranked, globally, fairly high for web traffic. In the end of last quarter, we're about the twelve hundredth biggest website in the world. As of today, we're about 565, and continue to rise. We expect that to to continue to rise over the next quarter. So we actually get a quite a big deal of traffic. Web traffic, in the year, last year was up around 100% in terms of page views year on year. So and we we obviously see the continuation of this. So we we actually think that, this number actually get us into the into the low hundreds fairly soon. You can see here on the GPV charts for escrow, another big candle. This follows up on the last quarter's results. You had a big uplift of about 50,000,000 US dollars on a year on year basis. And escrows GPV actually continues to grow even better than that in as we move into April, but I won't preempt anything from that. So what I might do now is I might slip across to the commentary. So I'll just, stop by screen sharing and reshare, another page. So just give me one second. Here we go. Is that sharing? Let me look. I don't I don't think it's showing. It's showing now? Okay. Great. Okay. So, getting down to sort of the segments. So I mentioned before, France was growing at the fastest fastest pace since IPO. We actually have a I've charted that down here, where, you can see here the GMV growth year on year. You know, at the time of the IPO, we're a little bit over 20%. And then as we kind of put a lot of investment into really the paying down technical debt, GMV growth slowed a little bit because we basically had to redevelop resources from product development into actual you know, infrastructure work. And in 2019, I have said before, we did kick a few own goals. I'm showing the wrong screen? Sorry. One second. What screen am I showing? One second. Where's the bidding controls? Sorry. It's not. Sorry. Zoom is not showing me the meeting controls. Apologies for that. Here we go. I'll share my screen again. Chris, you give me access, please. Give me access to the admin so I can share my screen. Sorry. Still says disable screen sharing. Just to make me an admin. Okay. We'll keep talking until the screen sharing is actually enabled. But, at the time of the IPO, the GMV growth you're on here was a little over 20%, and at the moment, it's about 24 x percent. So the growth here we go. The screen sharing is enabled now. Yeah. Apologies for this. I think you see the screen now. So you can see here the GMV growth has is fast than it was at the beginning of the IPO. 2019, I said before, we did kick a few own goals in terms of pushing the new front end architecture a little bit too quickly. And that did shave off a bunch of GMV, but we've been working pretty pathologically on each of the bits and pieces where we had incompatibilities with previous version in terms of features, and, we are getting a bit of lift now. One example of this, which I've talked about, previously, but I I think it's a good example of this, is the hourly funnel. So the hourly tracked hours now growing about twice as fast as they did in first quarter of twenty nineteen and the first quarter of twenty eighteen, up 23% on PCP. You can see here in this figure four that know, during 2019, we pushed the front end, architecture. We had some, features that were missing really from the Ollie funnel. I mean, it really shouldn't have been pushed that quickly, but it's a very, very complicated piece, to actually, get out there because effectively, we're rebuilding the entire front end of the website. And you can see that in 2019, there was a slowdown. You can see now in twenty twenty twenty, '20 '20 '1, that it's growing faster than ever. And that's also replicated with the free graph. We can see there again, 2019, we had a bit of operational slowdown due to our own fault. And then 2020, you can see it's it's growing exponentially again. So, that's what we're doing in terms of, you know, working through each of the different, revenue lines and, GMV lines, and, we're getting some great results. In terms of supply, we are the largest marketplace in the world by a long way by number of users, 50,000,000 users, I think 51.4 as of a few weeks ago. You know, we talked about in the last, couple of quarters that, we did see a little bit of a drop in the, average project size from, 216 to a 61 in the middle of the COVID. That was due to an influx of a lot of new labor as well as a lot of rookie clients. I did say that it would increase. In the third quarter of last year, it rose to 172. And as of the end of the first quarter, it's now 187 US. So over time, the average completed project size does rise slowly, due to the complexity and sophistication of jobs that you can do on freelancer. When there are spikes of labor coming in, which only really happened once before, which is during the global financial crisis. You do see a temporary blip in these numbers, but I do expect them to continue to rise, which will be a contributor to GMV and to revenue. Mobile, I've talked about a number of times over the last number of quarters. I'm pleased to announce that not only have we ripped out the legacy mobile site and replaced it, which we did in the third quarter of last year, but we also have replaced now the iOS app. And in last year, in the second half, I reported that the mobile web fees grew 51.5% on PCP from the second half of twenty twenty on the second half of twenty nineteen. That's in the first quarter is now up to a 10.6%. So, this has paid off. We expect to see a strong rise in the iOS fees, similarly to how we did with mobile mobile legacy. It's simply because now we have one code base. So when we update the desktop website, the entire website is updated at the same the entire code base for the the mobile sites are updated at the same time. Android is imminent. It's a couple of weeks away. I know I've been saying this for some time, but these are complicated things. But now that iOS is fully out, we expect to happen really in the next four weeks. Right? So it it it really shouldn't get any longer than that, maybe even be sooner than that, but that's the approximate time frame. So, yeah, we look forward to seeing what will happen with the iOS revenue and see if it's on par with Mobile Legacy. But, you know, that's a it's a pretty strong strong lift, it's and it's, you know, it's been a it's been a great project. And then we've effectively reduced four code bases to one code base. So desktop, mobile web, iOS, and Android now, they're all the same code bases. You know, one area that we need to put a little bit of work into is contest. Now as a product, contest is working fantastically well. I mean, we're doing contests for NASA. We've got some big ones that have come out now in the 300 to 400,000 US dollar range, the biggest contest we've run before. We've run contests for the US Department of Energy, the US Bureau of Reclamation. This is one of the live ones now with a 300 and something, 3 hundred and 60 5 thousand US dollars. National Institute of Health is contest live for 475,000 US dollars. There'll be plenty more coming as part of that $25,000,000 joint tender that we won from NASA. IBM is doing a bunch of things. In fact, they're gonna be a great partner. We just added we were added actually last night to the IBM Cloud catalog. So internally at IBM now, you know, globally, people can can use Freelancer from IBM staff, Airbus, Novo Nordisk, etcetera. Now the platform is working fantastically well from a product perspective. 14,500,000 contest entries submitted every year. Know, contest entries in the first quarter were up 52% to 3,820,000 entries. There is no other platform in the world as liquid as we are for contests. It's actually amazing if you've haven't used it before. Just put $10 in and try and get business card redesigned and you'll get hundreds of entries. An average 220 entries gets get submitted average of 88 per contest. And 80% of contests get receive an entry in the first hour. Now while contest is working fantastically well from a product perspective, the fees are basically lagging a little bit. And we know why if there's a bunch of upgrades that are missing off the contest's platform when you post a contest, the upgrades are hidden away. Well, before that, just on the post contest page, this is just, again, from the port to the front end. We we just basically cut a few corners to get something out a bit live, but we will get this to lift up, strongly, in the next couple of months. Because you here the con in the green line, the number of contests in Figure 10 is higher than that as that has been before. We're just gonna get the fee revenue up, which is primarily due to upgrades. Number of contests being completed is way up. You can see there, you know, so the the the red line in figure 11. You know, we're getting, you know, more contests are being completed and handed over than ever before and so on. But we need to fix on fix the revenue one. Now over to enterprise, we've had a a decent quarter for enterprise. Maybe, Sarah, if you can take over for a few minutes. Sure. Can you hear me? Certainly can. Yes. Perfect. Hello, everyone. Enterprise had a great quarter. We've been growing about 83% year on year on QCP. This has been driven mainly by strong execution of key accounts. Average spend of our key accounts has actually increased by 2.5, about 2.3x versus the same period last year. More of the organizations that have come out of pilot last year have actually moved through the deployment stages, and the spend on the platform is increasing. A few clients whom we did not have last year have actually just recently spent about 6 figures on the platform in the last four months. So that's very exciting. We also closed some additional MSAs, including one with a $17,000,000,000 global business processes company, outsourcing company. And we, within the span of two weeks, have actually engaged 318 freelance hires. And, you know, the speed and ease at which we're able to do that beat their internal hiring benchmarks And that's actually opened up the doors for conversations to hire the same type of freelancers, you know, with commitment of of about 50,000. So that's that's looking to be deployed within the next year. Now we also signed a statement of work with a Porsche fifty technology business, where we'll be integrating some pre vetted branded communities into their cloud platform. So this is the one Matt mentioned earlier with IBM. We actually last night just integrated with their IBM Cloud Catalog, which means customers can actually go through the IBM Cloud catalog when they wanna deploy and migrate to the cloud to actually leverage our talents and our freelancers. And so this was a great way to start testing and improving network effects. Now we're also building a landing page, and they're spending additional 6 figures, and that's continuing to grow over the coming months. We also signed what we've managed during the last year has really shift from pilot to scaling for a lot of our customers, with many of them actually committing up to, you know, $400,000 at a minimum of G and B B spends. One of them is actually an IT company leveraging us to manage their contingent work workers. Now we realized we're actually the only solution that can actually help these organizations seamlessly build a blended workforce of their entire talent cloud, whether that's through internal, that's leveraging and commercializing the product that we built for Deloitte, MyGigs, to manage an internal workforce through their existing contingent labor spend. So throughout bring your own freelancers program, and a lot of customers are really liking this program where they can bring their existing freelancers onto our platform, and we charge less fees than many of our competitors. And finally, to them finding new freelancers on our platform. So, again, under the the joint $25,000,000 NASA joint tender that we won, you know, the US Bureau of Reclamation contest value at 365,000 USD that we partnered with and was able to to win due to our partnership with Air Electronics, as well as the US National Institute of Health won for $474,500 USD that we partnered with a local data science company, the logistics company, Adriana. They're going well, and they're they're being deployed onto our platform as we speak, and there's additional, you know, tenders that's coming up that we have a really good chance of of obtaining. Now what we've really invested this last year that enabled us to start achieving this level of scale is really improving the account representation within our key accounts and streamlining a lot of our internal systems and operating metrics. So this has really been, I think, our efforts within streamlining the operational aspects with these large scale customers has has really shown to been demonstrated by the growth in our enterprise GMV. And I think, yeah, those paying dividends and, actually, our GMV is projected to grow faster than than what we currently have within the next six to twelve months. I'm really excited to announce that we invested heavily in products and released a number of enhancements. One of them was project tracking, talent management, and shared payment options, which are super important for large scale customers. So once we actually get some of these products refined and features refined, I think really help us kinda scale these larger customers. Yeah. So I think in summary, we're in a really good state, and I'm really confident in the continuous GMV growth, and we've managed to come out of last year being successful at a majority of our pilots, and majority of the customers have actually now committed to a much larger spends on our platform. And I'm excited that we're working with Adam and the product team to really build up the scalability of the product so that these customers can manage, you a million dollars to spend out of time onto our platform. So back to you, Meharry. Great. Thanks, Sarah. Another exciting thing we did in the quarter was, we produced a proof of concept app, which is actually live now on the iOS and the Play stores, using the Francer API. So the API basically lets you access the full functionality of the Francer Marketplace from your own website app or, software. And so, really, this allows software really from the first times in history to control humans, you know, and and task them in with instructions. And we thought we'd build a demonstrator app. For some time, I've said that, if you look at Uber, the last time I checked, Uber had seven or 8,000,000 drivers. We've got 51,000,000 freelancers. We probably have more drivers than Uber. In theory, you could build an Uber on top of Freelancer, but the interface at the moment for the website has been built for the general case and not for the specific case of transportation. So in the case in the case of using freelancers, it's unlikely that you'd post a job to pick me up from a certain location and drive me to another location. However, if you if you actually build a a custom interface, is specialized for a particular application, we wanted to see, what the experience was like. So we we thought let's come up with an Uber for something, and we came up with an Uber for photography. So we've we've built this app. You can download it yourself from the iOS and the and the Play stores. They're available now. And effectively, it just behaves like Uber. You type in an address. You've got a map of the world. You place your order with a bit of some instructions. And anywhere in the world, photos will be sent back to you within twenty four to forty eight hours on In urban centers, it can be a lot quicker. You know, when I when I post a job in New York, if provided that the the sun is up or in Sydney, I've had photos returned as soon as one and a half hours. And it works anywhere in the world. So some of the locations where I've tried this, I tried it worked in Moscow, worked in Budapest, worked in India, worked in Bali, worked in Sydney, New York. I just worked in the remote countryside of Wyoming, the remote countryside of The United Kingdom. Even Chernobyl, we got results back within twenty four hours. Timbuktu in Mali, with train station in Uzbekistan and so forth. So really, it's a proof of concept app. We think there's a lot of applications for this. For example, you know, if you're Procter and Gamble, probably want to check to see your products on the shelves of Walmart and and and Coles, look great. You know, if you if you are in real estate, perhaps you want photos of a house in a certain location. You know, I've I've had seen the app being used by a fund manager to get caravan parks looked at. They invest in a bunch of properties around the world. In fact, some photos just got returned only a few minutes ago in New Zealand for a certain caravan park and so on. So it's it's pretty interesting proof of concept. And the step out from here to actually produce apps that do the equivalent of what multi billion dollar companies do is actually quite straightforward. So for example, many of you have probably heard of Gojek. That's a multi billion dollar company in I think four countries in Asia Asia where you type in an address of a shop and you tell someone to go to that shop and buy something for you and bring it to you. Right? That's in four countries, yet it's a multibillion dollar company. I mean, for us to modify this app to basically allow you to go buy something and bring it to you is only really a month or two's worth of work. So there's there's a bunch of crazy things we could do with this. It's an alternative way of expressing the marketplace as more of a a niche narrow app. This initially is a proof of concept. You could try it for yourself. In this particular case, it costs $35 US. What happened? And you get you get five photos. In fact, in some cases, they send you back dozens. The the amazing thing about this is it's just worked everywhere. And what happens happening behind the scenes is when you when you click place order, it posts a project onto freelancer with a milestone payment of $30. The app handles all the bidding. So when the freelancer bids on your project, etcetera, handles the backs and forwards communication. It'll automatically award a certain freelancer. And then the freelancer, is then tasked to to to take the photos. And when the photos arrive, you hit the button to review them and then you hit a button to accept them and then it pays them and releases the milestone. So all it's doing is just using the basic freelancer app, marketplace and the API at the back end. Nothing special there. It handles the smarts around, who to select and what happens if they if they don't respond back to you and select another freelancer and so forth. But ultimately, it's it's a great expression of the power of the platform. And I encourage you to all try it. Just download it. Try and get some photos taken. It's it's pretty amazing what you can get done. So that's it for freelancer. And now I'll probably talk about escrow for a little bit before I open up to q and a. So we had another fantastic quarter for escrow, a hundred and 58,000,000 at US, up 43.7% on PCP. That was after another big step up in the last quarter. You can see here in figure 13. These are sort of 50,000,000 GMV absolute number step ups in US dollars. So it's serious volume going through this business. Ex China was up 48.7%, so US151.1 million dollars And cash receipts were up 36% US dollars to 1,900,000.0 or 2,400,000.0 Aussie, 15 point 8 percent. So there's some pretty strong growth in the GPV, and that that growth is actually faster moving into April than it was in in the previous quarter. So it's it's really moving in a big way. We hit a milestone in, the first quarter of '5 billion US, all time in, transaction secured. That's actually cashed through the bank accounts. So there's some some some pretty good volume going through this platform. The growth came from, you know, strong sales in in digital asset sales, domain names and so forth. We sold domains such as NFT.com and NFTs.com in the quarter, crypto.org, and so on. Lots of physical merchandise, that was actually up 87% year on year. I p v four contributed 16,000,000 in the quarter. Last year, I think we did 70 something million US dollars in, I p v four sales. These are basically IP addresses. And so and this this only two years ago was was basically zero. So this is just an example of a of a segment where we have taken the segment from from zero to, you know, possibly this year, 70 to 100,000,000 in volume in that segment alone. Motor vehicles were up two thirty percent in PCP, contributed about 12,000,000 to GVV. So the number is still fairly low, but are growing fast. EBay Motors made a small contribution to this, but it was not the majority. So we are in a bunch of different car marketplaces in addition to consumers using website directly. We do, as I've said many times before, expect to tip the entire automotive industry. We are the payment system for automotive as our automotive classified sites move towards becoming marketplaces. It might surprise many of you, but the, the car, sites around the world, being classified sites, don't actually know very much about the seller or the buyer. They make an assumption that the car has sold when the listing stops getting renewed. But if you don't take the payment, you don't know if the buyer is reputable and you don't know if the seller is reputable because you don't really collect reputation. It's, you know, it's a it's a big problem for for the automotive classified sites globally. We are the solution to that. We're in eBay Motors. We're in Best Car Finder. We're in a bunch of other different car marketplaces out there. We in the quarter, we went live with Truck Trailer Tractor in more heavy machinery. We think we will tip the entire automotive marketplace. We think we are in a unique position to do that globally. And it's gonna take a couple of years, but, you know, I think we'll we'll get there in a big way. And there's lot of volume in cars. Escrow Pay is a streamlined version of the checkout experience. You can see a picture there in slide 14 for figure 14. We we we've really put a lot of work into making this really like a checkout. You know, the old way you integrated escrow, you had to log in, set a password, all this stuff, and it was a bit clunky. With a lot of feedback from eBay, we streamlined this. So it now looks like a PayPal checkout experience. We're pleased to announce also that as of last night, we've just put PayPal and there's also credit card in this checkout experience. So we're in the process of rolling out this new funnel in the next month or two to all our partners, as well as the main experience using escrow. So there's gonna be some upside from that as well in terms of product improvement. It's just it is really quite a slick experience. We also turned on ACH debit in the quarter. ACH debit is a bit like a wire transfer, but it's a more immediate. We obviously verify, you know, ID and get KYC information and so forth at the same time. We've launched it first with eBay, and that's in the process of being rolled out across all the funnels, for all our partners, as well as main consumer products. So that's gonna be happening over the next few months. We're in production with EMA Motors, and in beta with eBay watches, for a small number of sellers. In the last week, eBay has put a bunch of information up on their website about eBay watches. And we are imminently within days. I won't I won't mention which day because these things always take a bit longer. Sometimes even that's date or blows past the day. But it's it's it's it's within days to to maybe a week. We anticipate going in full production with watches. And if you go to eBay's website in The US, you browse around now. Escrow.com has mentioned on many different pages as to how it works and FAQs and and so forth. So that's that's that marketing materials only just started to go up online. Now note that s eBay, while has tremendous upside for us, not just in the categories we're in, but more categories over time. It is not the primary driver for the GPP growth in the last couple of quarters. We do expect that eBay contribution to grow over time. So so there's a lot of upside still to come with eBay, over on top of what we've done already. I've talked about domain name sales, etcetera. We we've gone to all sorts of marketplaces in the quarter. Just some we pulled out just for for interest sake. We added motorcycleshippers.com, truck trailer tractor, Topmark, which is luxury car marketplace, micro acquire for M and A. And in addition, we even went into an ostrich marketplace. We went into the United Ostrich Association, the largest association of ostrich breeders in The United States. So it gives you the spectrum of sort of things that you can sell, buy and sell with escrow. And, of course, the reason why you want to use escrow is you want make sure your structure arrives alive and there's lot of complication around shipping and so forth. So it's it's not something you'd use a PayPal to to check out with. The group had net operating cash flow of 4,200,000.0 for the quarter, which is up substantially on the last quarter at PCP, which is 0.4 seven. And we ended up with cash and cash equivalents, a big lift, 37,800,000.0, up 8.2%. Escrow, freelancer and the group were individually and collectively profitable in the fourth quarter and second half of last year. And escrow was profitable in the first quarter of this year. I mentioned there wasn't a headwind for the currency, but we anticipate that to fall back over the next couple of quarters. We also, in the quarter started trading on OTCQX, best markets under the ticker FLNCF. And, so that's in The US that will increase our ability to be able to have our shareholders, have our investors in The US, our customers all around the world, so forth, be able to buy our stock. You know, if you're somewhere like India, for example, you can't trade ASX shares very easily at all, but you can do OTCUS stocks. So so we think that's gonna open up, really the ability for, people to buy our shares more easily around the world. And, so that's that was good news. So what I might do now is I might just open it up to the, floor for question time. As I said before, you can address your questions to either myself, to Neil Cats, CFO, to Sarah Tang, VP Enterprise, or Adam Burns, who's the Vidyo product. So, Chris, if you'd like to have questions, please. I'm not seeing many questions in the chat at this point in time. So don't be shy. You can either put it to the chat. Just a last question a second. I'll note that's the OT CQX share price actually has been trading a little bit higher than the the Australian share price, and it closed last night about 83.64 Australian cents. Surely someone else wants to ask a question. Here we go. Mick Chin, Chan asks, why are you so confident your web rankings dropped to the hundreds? Well, the number that Alexa shows on the Alexa.com website is actually a blended average over the last ninety days. And in fact, if you download the top 1,000,000 websites list for Alexa, it'll tell you the daily ranking. And the daily ranking is substantially better than the the five sixty ranking that you see on the blended average. So that's why we're confident we'll continue to go into the low hundreds. Simon, I'd like to see the share price get over $1 What do you think needs to happen to achieve this? Well, I think the company is just substantially undervalued. I mean, if you look at if you look at the the globally, you look at peers, you know, you you you look you look at the recent IPO that happened in Australia. I mean, this year, we'll do about a billion dollars in GPV and the Australian local equivalent that's only in Australia and very spotted, exposure in in overseas. You know, it's doing 30,000,000 of GMV, and that 30,000,000 of GMV includes chargebacks, refunds, cancellations, sales tax. Right? And they've got a valuation higher than ours. So Mhmm. You know, I think the share price is gonna be substantially higher than this very soon. We've got the get getting the growth going. I think escrow in itself is probably worth more than the current market cap of the company. There's Bizpay. I just got an email this morning. Bizpay is listing in Australia. It's got a monthly payment volume of $7,000,000 and the value in the company on 1.5 to two x payment volume for 400,000,000 market cap. You know? And we're doing hundred and 80,000,000 US volume per quarter. Right? So, you know, we we completely blow the water. Just pay in terms of volume by far? And we've got phenomenal growth in that business. So I think the market cap of escrow alone is probably worth more than market cap of liquidity right now. So so I think I think, you know, it's continual execution, continue results in the numbers, And I think that there'll be a bit of, you know, wake up in the market. You know, we've been a little bit unloved for a little while, but I think, I think that's gonna change pretty rapidly. Mick Chan says, what's driving the improvement in the ranks? Simply web traffic. Web traffic relative to everyone else's web traffic. You know, with it, you know, everyone's working online. We have the new front end architecture is performing very well. It's a lot more responsive, a lot quicker. We've made a number of improvements to speed on the site and also just improving the product as as a whole. So, you know, it's it's I mean, look across all the metrics. Look at time spent on-site, page views, and bounce rate. All those metrics are going in the right direction. So people using the site more, there's more people going to the site, and they're and they're staying out for longer. Do you think eBay a question from Aaron. EBay integrate beyond watches and motors. The answer is yes. We're in discussions with a number of the categories right now. Nothing is committed as yet, but there's been at least three or four other categories that we are in discussions with. But we'll have to wait and see on that. I you can understand that eBay and other marketplaces have a big problem with fraud. Right? So if you thought traditionally, why would you buy a watch from eBay? You know? Well, yes, you get the the nose in your head. Okay. It's gonna be cheap, but are you worried about it being a stolen watch or fraudulent or or or a counterfeit watch or what have you? And, that's why there's been an emergence of a bunch of these different watch marketplaces like Chrono24, Watchpayer, Watchbuyer, etcetera, which have kind of picked the eyes out of eBay. EBay has decided to drop a hammer on that and to ensure there is no fraud. And to do that, there's a combination of the authenticity guarantee, which means that no longer will a seller be able to send a watch to the buyer. You'll have to go to a third party authenticity network or authenticator network where this is not us. This is just a network they've set up themselves with third party authenticators. They get the watch, they clean it, they open it, they check all the parts, they make sure it's all authentic. They then close it up, put a sticker on it, give you a certificate, and put it in a nice little box if it doesn't come with the original box. Right? Then the watch gets shipped to you, the buyer. And only then do you release the funds after you've seen it all and a third party authenticator is verified that everything is authentic and it's it's all great, and then you release the money. Right? So you can understand that that that kills fraud. I mean, that drops the hammer on fraud. And there's a bunch of sections where eBay has big problems with counterfeits and so forth. And so, you know, if we're in watches and we're in and we're in cars, you know, I think it's safe to assume we'll be in other areas. And we we've been we're in discussions and and something might be coming in the future, but there's nothing committed at this point. But I think it's a reasonable assumption that we will be into future areas of eBay as well as other similar marketplaces. Next question is, any comment on Shopify using escrow? Yes. They're using us for Shopify Exchange, which is the buying and selling of Shopify shops. I have told the sales team I would love to see soon, rolling out in Shopify more generally. We have got literally 50 to a hundred emails from people saying, can you please put escrow on in Shopify? There are a number of categories that Shopify has a problem, such as electronics and so forth, where a lot of fraud happens. I'm I'm confident at some point we will be turned on Shopify, but there's nothing happening at this point right now. But it is one of the the top missions I've told the sales team to try and, you know, expand that relationship. They've just been very, very busy with with some some bigger fry at the moment, and, we are expanding the sales team to get more bandwidth. Next question is, do you think France Enterprise can sell the same story as Infosys and TCS? Well, what I will say is one of those names is one of our customers in enterprise. So we are helping power one of those businesses at and and the the demand from them, they've told us, is well, they've got got some reasonable numbers in terms of what they want in terms of staffing. So we are actually helping one of those names actually, grow. And I'm not sure, Sarah, if the second one is actually there as well. It's one of the competitors, but I'm not sure which of it's I'm gonna make sure I talk about later on. Would a demerger of escrow be beneficial to realize value? Look, at some point in the future, and I've said this before, escrow should be its own independent public company. There's a reason why because it's financial services business, you need to be able to have a audited set of accounts that are publicly available that anyone can download because globally, as you go to banks and open bank accounts and so forth and, you know, you're dealing with so many regulators. I think they're regulated down 50 or so different jurisdictions. You just need to have it independently audited and run like a financial institution. At that point in time, we'd still retain management control and probably the majority of the shares in the company. But at some point, it will IPO. The question is when is the good timing? You know? When we IPO ed Freelancer, it was doing about 18,000,000 of forward revenue, etcetera. And, you know, you know, IPO had about 200,000,000 market cap. And it opened on the first day opposite, 1,100,000,000.0 US, etcetera. You know, the question is what size and shape should should escrow look like to IPO it? You know, at at the moment, it will look next year, if it continues to grow at the current rate, very similar to Freelancer in terms of both the size of revenue and the growth rate that they did when we IPO'd Freelancer. The question is, know, when would be a good time to do something like that? Or should we do a private raise first or or what have you? You know, there's a lot of optionality. Obviously, the market's a a hot at the moment. You're seeing companies IPO at substantially higher values with very little revenue to to no revenue. I think that it would attract a a very, strong valuation, at at this point in time. So it's something to consider. Certainly, the the optionality around the, the corporate activity with escrow is is is increasing. So, and we have we have had some some interest in that. So we'll kind of see where that goes. Now that you're onto o from Aaron, now you're onto OTC, is the goal to go onto Nasdaq Small Capital and Nasdaq Main Exchange? There's no plans to do that at this point. But, you know, it's obviously something I thought about from time. Would you partially fly escrow? I've just answered that. The answer is yes at the appropriate time. We're not sure when. James says, how do you, think about escrow's take rate over time, say, in five years? The take rate has been coming down a little bit. Two years ago, was about 1.45%. Now it's about 1.2%. Some of that's come down because we're doing some larger transactions now. So some of the larger transactions are obviously the skinnier, percentage. You know, really, the transactions range from about well, corp for corporate transactions, commercial transactions with escrow, it's about 89 basis points. That could go down to about thirty, thirty five basis points for something like an aircraft. If a consumer, the rack rate is 3.25%, going up to 6% if you use a reversal thing like a credit card. You know, there's two things that have kind of driven the the take rate down a little bit. One is, these large sized transactions that are going through in the tens of millions of dollar 10,000,000 plus. The other is, some of the partner transactions we're doing is we're doing a bit skinnier because it's, you know, the likes of eBay and so forth. So there are some ways we can we can we can we can lift this take rate. For example, if we start doing FX, you know, some some percentage of our volume, for example, you know, is a US dollar transaction where the seller gets paid out in euros. Right? And at the moment, we're kind of giving up those FX fees to some other, you know, financial institution. There are things like that where that would actually substantially lift the take rate. Also in some categories, we do offer value add services. So example, in cars, we do title collection. So in The US, when you sell a car, got to collect the titles and so forth. We do lienholder payoff. We do lease swap arrangements, etcetera. So there are some day owned services where we could lift that. We haven't really been focusing on that. But there has been some interest, for example, likes of eBay to to add to some of those day owned services that specialize into into those niches. So at the moment, it has been getting a little bit skinnier with the with the big lift in volume, but I think there is some possibility to lift it. We just have to get the bandwidth up to do that. Group GPV in first quarter of twenty one was 192.9, and fourth quarter was 101.8. So it's not, significant quarter on quarter. No. But Richard, if you go back to the fourth quarter, you'll see that there's a $50,000,000 lift in that GPV number. Right? So if you look at the the escrow numbers the fourth quarter, there was a massive lift in that fourth quarter. And and so, while quarter on quarter, the lift is small, year on year, the lift is massive. Right? So, you know, I I think that's probably the wrong way of looking at it. Emma said before, it's going a bit faster now anyway. So per escrow and also freelancers. So there is seasonality in quarter on quarter as you look at numbers, but the seasonality is messed up a little bit by COVID. Right? Because the seasonality you have typically is Easter is usually negative and August usually negative, which is the the summer summer holidays in The US, North America. And then you've got a bit around, New Year's Eve, etcetera, and a little bit of Diwali and, Ramadan and so forth. But a lot of these, seasonality numbers aren't behaving like that at all because people are in lockdown. They they kind of their habits have changed a little bit. Will we get a BNPL option in 2020 for freelancing? We have thought about it, actually. We've had numerous discussions with all the BNPL guys. It's on the list, of things to do. It's not on the immediate plans next month or two, but it is actually on the list, to potentially turn that on. Kevin Chang says, what's your view on the France and market growth during COVID and post COVID? I think we've got a permanent step change. You know, I think I don't think the world will go back to fully working back in an office. I think we're some years away from COVID, being solved. I don't think the vaccine, solution right now is going to be the be all and end all solution. You've got a number of strains now, like the b one dot one six seven, which has got antigen drift, which, means it's resistance to many of the vaccines. You've got those breakouts happening in India where it's the the cases are growing by ten percent per day. I think it was, like, two hundred and seventy five million two hundred and seventy five thousand cases yesterday, up from two hundred and thirty thousand two days ago. So I think we're some way away from solving the COVID problem. And I and I think even if COVID magically went away tomorrow, you're gonna have to run. Just go back to the office. I think people like having a hybrid. I don't think people will be fully remote, but I don't think people will be fully back in the So I think it's gonna be a mix. And certainly Pandora's box opens. Once you try using the our website and you discover how easy it is to find people, how easy it is to marshal resources, how inexpensive it is, it's you know, it I think, you know, there's no going back. So a question for Kevin Chang. What's your view on the France and market sorry. What from Ray. Sorry. Does the lack of share liquidity contribute to the undervalue of the company? I don't think so. Right? I think I think it contributes to volatility, certainly. You know? So the share price either goes up a lot or down a lot, depending on the the the buy, sell sort of activity. But, you know, it also could equally help us. Right? So, you know, when there's a bit of momentum, the the share price moves pretty quickly up, Yeah. So, you know, it is a volatile stock because it is, low in terms of liquidity, but I think ultimately, it's gonna be quite beneficial to us, as we continue to print great results. I've answered Simon's question previously. Mick Chan. Given the slow pace to correct the issues in 02/2019, do you need to spend more on engineering so future issues are corrected faster? What do you think your incremental crash flow issue, like, have the best returns? Good question. Look. We we went through a very complicated architectural change in 2019. We replaced mean, Adam, maybe you can talk about this in a second. We replaced the entire front end architecture. And we were page by page by page, effectively redoing the website. We did that because the previous architecture was based on four front end stacks. It was very slow to load. Google increasingly is penalizing slow loading websites. The user experience is not great when it's slow to load. And we got to a point, it's around 2017 where we said, yes, we need to do something radically here, to to to bring it up to Facebook level in terms of performance. You know, what do we do? And we we spent a long time architecting the solution, and then we we implemented it. Now the the issue is it's a very complicated site. Right? I mean, you might think it just a a site for posting jobs, but effectively, it's a it's a it's a country in software, and have intelligent participants on both sides. So it's not like selling books. You've got you know, it's a very, very complicated site to actually manage. And when we went out in 2019 and started pushing some of these pages, we started with the most important pages first. You know, the the those you know, really, the the problem was that we the the product managers didn't have a, you know, perfect understanding of all the edge cases on those pages. And we did push, for example, the project view page too early. And you can see that in the hourly graphs, how 2019 are kind of, you know, the growth is going to stop because a lot of the features, the edge case features around hourly about how how it works were not fully implemented. Now, we, you know, obviously, you know, as a result of that, that affected the share price. And, you know, we're acutely aware of this. You know, in hindsight, we probably should have spent some more time really on the CI and the test suites and QA. We put a lot of effort at the same we're putting a lot of effort at the same time into the QA. We hired literally a new person to run it who wrote the textbook on on the software quality assurance, speaks at conferences in the professor at university. He's at ex Dolby. So, we do we were putting a lot of effort in parallel. You know, you know, we being a business that's not massively cash burning, we are constrained by, our revenue in terms of the resources we we we allocate. I am not of the belief of going deeply cash flow negative in this business and losing, you know, tens of millions of dollars a year just to come and get growth for any for for for at all at all costs. I'm of of the belief that we should reinvest everything and, just try and break even, maybe marginally grow profit from here over time. I do think the jaws offering leverage are really poised to open now. You can see with the cash flow of last year, which is 7,800,000.0. The cash flow of first quarter of this year, '4 point '7 million. You know, the cash is coming in, right, in a big way. And and it it won't take much to get those jaws wide open. Now the second part of the question is a great question, where would incremental cash flow go? It primarily if you look at our our our our business, there's no CapEx. It's basically OpEx. It goes into headcount, rent, and and marketing. And marketing, we want to generate return quickly on the marketing. We're not a Silicon Valley company spending 200% of revenue on marketing. We are constantly trying new things and constantly inventing. We've actually made some big improvements to reduce our cost per acquisition per customer in terms of how we've targeted our paid advertising. Now you gotta remember, most of our traffic is not through paid advertising. Right? So 66% of all projects at any point in time are from repeat customers. Of the 33% roughly that come from new customers, the minimum marginal amount comes from paid. Right? Instead comes from things like SEO, that comes from just referrals, you know, inbuilt variety in the product, and so forth. There is some paid. There's some paid in the form of, you know, Google AdWords and so forth. There's also some paid in the form of, virality. You get you know, I get $20. You get $20 if you refer someone. You know, I think there will be a bit of step up in marketing, but not a lot, because we have the tight premise in terms of general return. The the rest will go into head count, but you can't hire. Yeah. It doesn't take much from here. I mean, you've got a 20% growth, you it's a pretty modest growth in revenue numbers of the business, you know, that's a that's a big step up in terms of numbers dropping the bottom line unless you put it into into hiring and and, you know, you really can't hire that fast. So, you know, you know, in terms of organic, it will be going to head count, but we're gonna have some cash left over, I think, pretty quickly. Zane had a question. Freightliner was not, really mentioned here. Anything happened here? The answer is yes. And, real soon, we'll be talking about something there. But, I don't wanna preempt that right now. But, yeah, stay tuned for something there, you know, of reasonable reasonable size. Next question from Adrian Lee. What is the position on moving marketing spend to online rather than physical marketing on buses? Seems like the poster hasn't changed in years. We we spend nothing offline, really. You've seen the I mean, you saw the buses in Australia. We got them. They have a distressed inventory because COVID wiped out, you know, what have you. I mean, Adrian, four percent of our revenue comes from Australia, Four. Right? The rest of it comes from The US. So the vast majority of our marketing spend, right, and seven digits a month is is global, and it's mainly in The US. Right? So, you you know, the stuff you saw in Australia was de minimis distressed inventory. Right? So so the bulk of the marketing is is I mean, yeah, physical marketing is less than one percent of our marketing spend. It's tiny. Right? It's on an ongoing basis, tiny. Shiba, any more acquisitions on Horizon? Look. We're always looking for things, but, nothing's happened in the last number of months. So, yeah, I won't I won't talk to that. Has escrow from Trevor approached Autotrader or, Carvana as clients? I don't know Carvana. Autotrader, the answer is yes. There are three Autotraders. There's The UK, US, and Canada. We are well advanced with one of them. And, we have the other one, the pipeline, in deep conversations. They are three separately run businesses, believe it or not, even at the same name. But, yeah, we're we're we are well, well, well down track with one. In fact, I I wish I could have been I said something about that six months ago. But, yeah, we will get Water Trader. Don't worry about that. Adrian Lee. What are the growth levers for escrow next few years? EBay is a major one that will grow, but just think about further growth. There's there's a number of key verticals we're basically attacking. There's about eight of them, which are which are key for us. There's domain names, and IP addresses. There are automotive cars, boats, airplanes. There is fine art sculptures and so forth, jewelry, gemstones, diamonds. There is import export, etcetera. So there are a number of these key verticals that we are, working on. And we're building out basically sales. We're building out account managers and ADRs, etcetera, to go pursue them. In addition, there's product improvements, you know, really making the product super slick. It's a unique experience. I mean, you gotta remember that if you look out there, there's not really many other escrow companies in the world. The ones that are operating have, like, one license, and they're operating illegally. You remember Airbnb got a letter from the California Department of Business Services site saying that you hold money for the provision of a service being staying in a in a vacation rental, and you need to get an escrow license. Now Airbnb could go and get an escrow license. They happened. But if they get a last escrow license in California, they need one in Texas, Arizona, North Carolina, Alabama, Hawaii, New York, etcetera. So the question will be, do they really wanna spend a decade chasing these licenses and all the compliance overhead that goes with that? Will they just pay us instead? Increasingly, the regulators are forming a view that marketplaces will no longer be able to take payments, you need to put them through an escrow provider. And we have the global online escrow provider. So I think it is extremely strategic asset for any marketplace business in the future, particularly services based marketplaces where you're holding a payment for provision of the service. We recognize the form we view that that is escrow. The question is, what are the margins of Photo Anywhere? They send us a it's actually higher. So it's 35 US dollars at the moment for the basic product to get five photos. Of that, $5 is taken as a Photo Anywhere fee. And that's posted in the marketplace with a $30 milestone where the normal fees apply, which is 3% plus 10%. So the the the margins are a bit higher for the Photo Anywhere. We are gonna put into the product, take a video, which would be a higher price. We'll add in there a checklist. So someone can go to a location, fill in a checklist, take photos, or a video, and there'll be other things later on going into that. Okay. That's been a good set of questions. Any other questions for anyone else? Adam, did you wanna say anything about, the product at this point while people think about questions? We've covered quite a lot. Like I I mean, the the big, I guess, headline release of the of the quarter was the iOS release, and Android will be following very very soon. I don't know any of what is another major release. But, look, like I said, I I think you've you've largely covered most of the the major product announcements. Okay. Great. So I'll open up for a few more minutes just to see if you want to ask your questions. We'll call to close. As as always, you're free to organize one on ones with us or you at the management team, or, do a call at any point in time. We can visit. Peter, question. The update in freight and to growth appears to have a lot of potential given the current delivery supply side disruptions. Well, there's a there's a bunch of stuff we're going to talk about, soon with this business. Probably in the next eight weeks, there'll be a big talk about this. I think there's a lot of potential. The, the average, project size in Freelancer is about $4,500. It's about 25 times larger than than Freelancing. It is primarily at the moment Australian business. We do potential undertaking at Global. So there's there's a lot lot lot to say, but not right now about this business. Any other questions? Okay. Well, I might call to a close then. Thank you very much for attending the first quarter of twenty one financial results presentation, and I look forward to speaking to you, if not, in between then, you know, in a one on one, at next quarter's results. So thank