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Highlights
- Revenue Surge: 23.6% increase to $313.7 million, driven by higher customer engagement.
- Profit Boom: Net profit after tax soared 118% to $9 million.
- AI Efficiency Gains: Over 60% of customer interactions now handled by AI, cutting support costs by 50%.
Temple & Webster Group Ltd (ASX:TPW) saw its share price surge 13.37% to $16.19 on Thursday following the release of a stellar half-year financial report. Investors reacted positively to the company’s impressive revenue growth, profitability, and continued market share expansion.
For the six months ending 31 December 2024, the online furniture and homewares retailer recorded a 23.6% revenue increase to $313.7 million, supported by both new and repeat customers. Active customers grew by 22% to approximately 1.2 million, with revenue per active customer rising 2% to $470.
Temple & Webster now holds a record 2.9% market share in the Australian furniture and homewares sector, reinforcing its dominance in the e-commerce space.
The company's EBITDA jumped 76.3% to $13.2 million, with EBITDA margin improving 126 basis points to 4.2%, exceeding its FY 2025 guidance of 1% to 3%. Additionally, free cash flow surged 61.4% to $32.5 million, while net profit after tax soared 118% to $9 million.
Management credited artificial intelligence for significantly improving operational efficiency, revealing that AI now manages over 60% of customer interactions, leading to a 50% reduction in customer care costs compared to the first half of FY 2023.
Temple & Webster’s cash balance rose to $139 million, up from $107.2 million in June 2024, with zero debt, positioning the company for further growth and acquisitions.
Optimistic Outlook for Continued Growth
Temple & Webster’s momentum has extended into the second half, with revenue up 16% year-on-year between 1 January and 10 February 2025. Management highlighted an accelerated growth rate in February and expects this trend to continue as the company benefits from improved margin flexibility.
The company reaffirmed its EBITDA margin guidance of 1% to 3% for FY 2025 and remains on track to achieve its ambitious mid-term goal of $1 billion+ in annual revenue.
