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- Redbubble (RBL) shares are on the rise after reporting a 930 per cent increase in EBITDA and record marketplace revenue
- The company reported a $223 million gross profit for the financial year marking a 66 per cent year on year increase
- Marketplace revenues grew 58 per cent to clock in at $553 million
- Redubble flagged a potential decline in marketplace growth for H1 FY22 due to a particularly strong performance over the period
- Redbubble shares were up 7.84 per cent at 12:54 am AEST to trade at $3.30
Redbubble (RBL) shares are on the rise after reporting a 930 per cent increase in EBITDA and record marketplace revenue.
Redbubble’s online clothing marketplace allows users to submit their own designs or artworks, which the company then reproduces onto various clothing and accessories.
The company reported a $223 million gross profit for the financial year marking a 66 per cent year on year increase.
Earnings before interest, taxes, depreciation and amortization were up 930 per year on year to total $53 million.
Profits were underpinned by a 58 per cent year on year increase in marketplace revenue, which clocked in at $553 million.
In a statement to the ASX, Redubble Chief Executive Officer Michael Ilczynski tabled aspirations to grow the company’s gross transition value to more than $1.5 billion and produce marketplace revenue of $1.25 billion.
“The Redbubble marketplaces are flywheel businesses, where improving one side creates positive, reinforcing impacts on the other sides of the marketplace,” he said.
“We have witnessed this powerful flywheel effect throughout FY21.”
While it was an encouraging period for the company, Redbubble flagged an incoming potential drop in marketplace revenue growth for the first half of the financial year.
The company said COVID-19 and mask sales had made for a particularly strong business period and it expected to return to steadier return to year on year growth rates from the second half of FY22.
Redbubble shares were up 6.21 per cent at 11:54 am AEST to trade at $3.25.
