- Redbubble witnessed a drop in shares following the release of September 2021 quarterly results.
- The company launched over 18 new products and line extensions.
- The e-commerce business is anticipated to exceed pre-pandemic levels in 2022.
Redbubble Limited’s (ASX: RBL) shares witnessed a drop following the release of its September quarterly results. At AEDT 2:59 PM, RBL shares are trading at AU$3.960, down 13.158% from the previous close.
Redbubble Group incorporates Redbubble Limited and its affiliates, such as Apparel LLC (TeePublic). The Group owns and operates Redbubble.com and TeePublic.com. Here are the highlights of the Q1 results for FY2021 -
- Redbubble’s GTV dipped to AU$142 million.
- Marketplace revenue declined by ~28% to AU$106 million compared to the previous corresponding period.
- Gross profit slipped over 34% to AU$42 million, while EBITDA decreased by AU$3.9 million, down 85%.
- At the end of Q1 FY2022, the company’s net cash position stood at AU$109 million.
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The company remains optimistic about its plans to conduct experiments around the four key strategic themes. It had launched Afterpay for clients in the US, Canada, UK and Australia. The company also started the search and recommendation experiment to improve the discoverability of new artists & works.
The quarter also saw 18 new products and line extensions launching dad hats, baseball caps, desk mats, mouse pads, and iPhone 13 cases. The company is confident and is excited about the medium to long-term prospects of its growing online marketplace.
Image Source: © Rudzhannagiev | Megapixl.com
Amid the global pandemic environment, retail businesses offering online services witnessed significant growth in their top-line numbers. Redbubble also delivered record results in FY2021 with 58% growth in Marketplace revenue and an EBITDA growth of 48%.
Experts believe that in 2022, online retail sales will be more than pre-COVID levels. The e-commerce business is expected to swell further. By the end of 2022, the sector would increase till ~AU$22 billion.