FREELANCER LIMITED — Interim / Quarterly Report 2016

Apr 17, 2016

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ASX Announcement | 18 April 2016

Freelancer delivers another record quarter with record cash receipts in Q1 2016 of $12.8 million, up 60% year on year, and positive operating cashflow of $1.9 million for the quarter and FY16 to date

Monday, 18th April 2016 - Freelancer Limited (ASX: FLN), the world’s largest freelancing and crowdsourcing marketplace by total number of users and projects posted, today released its Quarterly Cash Flow Statement (Appendix 4C) for the quarter ending 31 March 2016 ( Q1 2016 ).

Record cash receipts for the fourth quarter of $12.8 million, up 60% YoY

In Q1 2016, the Company booked record cash receipts of $12.8 million, up 60% over the prior corresponding period. This quarter was the first to have a full quarter contribution from the Escrow.com acquisition, which was acquired effective 1 November 2015. Escrow.com grew 18% in constant currency (USD) terms over the prior corresponding period.

Easter fell during Q1 2016, compared to Q2 in 2015, meaning this quarterly result was achieved from materially fewer business days in the quarter, compared to the prior corresponding period.

This exceptional result was also achieved against the background of a significant appreciation in the Australian Dollar from approximately 0.69 to 0.77 AUD/USD.

Strong balance sheet with $33.1 million cash & equivalents

As at 31 March 2016, the Company held cash and equivalents of A$33.1 million. Escrow.com also holds approximately A$28.6 million in cash, in trust, off balance sheet.

Positive operating cashflow for Q1

In Q1 2016, the Company had positive operating cashflow of $1.9 million. In the full financial year for 2015, positive operating cashflow was $1.5 million.

Highlights of product development during the quarter

• Escrow.com released a new mobile responsive and multilingual front end, added new payment methods for international users, and added chat technical support with an average response time of 20 seconds for support queries.

• In contests, instant chat was released within contest entries, confidentiality agreements were added into contests as an option, and NASA completed several contests related to component, logo and engineering design.

• In mobile, payments were added into the apps, and a separate Local Jobs app was released across both iOS and Android.

• The memberships system was completely overhauled and re-deployed, together with other refinements including the launch of Professional and Premier memberships.

• Payment methods and support was added for more markets, including Chinese Yuan as a supported currency, as well as Chinese payment gateways Alipay and UnionPay, and a range of new gateways across Europe and Canada.

• StartCon was inaugurated with a new brand and website, announcing world-class speakers (with more to be revealed) for the 2016 conference.

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ASX Announcement | 18 April 2016

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Escrow.com appoints Danny Raja as Vice President of Sales

Escrow.com, the worldwide leader in providing safe and secure online transactions, announced in April 2016 the appointment of Danny Raja as Vice President of Sales. Danny brings 15+ years experience selling into Fortune 1000 and large companies globally.

To be based in California, Danny will drive Escrow.com’s partnerships with leading online marketplaces and eCommerce sites. This will allow partners globally to leverage the secure payments platform of the world’s leading online escrow provider to protect the transactions of their users and prevent fraud on their marketplaces.

Before joining Escrow.com, Danny was Regional Sales Director for Box and early employee and sales executive responsible for key strategic accounts at a number of leading Enterprise SaaS companies, including Yammer and Lithium Technologies. Prior to that, he was at Dow Jones.

Annual General Meeting

The Company has given notice that the Annual General Meeting of members of Freelancer Limited for 2016 will be held at Level 20, 680 George Street, Sydney NSW 2000, on Tuesday, 17 May 2016 at 10am (Sydney time). Any enquiries with respect to eligibility of voting or direction of a proxy may be made to Boardroom Pty Limited on 1300 737 760 or +61 2 9290 9600.

Conclusion

Matt Barrie, Chief Executive of Freelancer Limited, commented on the results, “Freelancer.com once again achieved brilliant results in Q1 with record receipts from customers. This was achieved against the background of an appreciating Australian Dollar and with Easter falling in Q1 this calendar year. 2016 will also be an exceptional year for Freelancer, with a full year contribution from Escrow.com and accelerating growth across our businesses.”

About Freelancer

Eight-time Webby award-winning Freelancer.com is the world’s largest freelancing and crowdsourcing marketplace by total number of users and projects posted. More than 18.5 million registered users have posted over 8.5 million jobs (projects and contests) to date in over 900 areas as diverse as website development, logo design, marketing, copywriting, astrophysics, aerospace engineering and manufacturing. Freelancer Limited is listed on the Australian Securities Exchange under the ticker ASX:FLN.

About Escrow.com

Escrow.com is the leading provider of secure online payments and online transaction management for consumers and businesses on the Internet, having safely processed over US$2.7 billion in transactions. Escrow.com reduces the risk of fraud by acting as a trusted third party that collects, holds and disburses funds according to buyer and seller instructions.

Forward looking statements

This document contains certain "forward-looking statements". The words "anticipate", "believe", "expect", "project", "forecast", "estimate", “outlook”, “upside”, "likely", "intend", "should", "could", "may", "target", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance, including Freelancer’s FY16 outlook, are also forward-looking statements, as are statements regarding

ASX Announcement | 18 April 2016

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Freelancer’s plans and strategies and the development of the market. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Freelancer, which may cause actual results to differ materially from those expressed or implied in such statements. Freelancer cannot give any assurance or guarantee that the assumptions upon which management based its forward-looking statements will prove to be correct or exhaustive beyond the date of its making, or that Freelancer's business and operations will not be affected by other factors not currently foreseeable by management or beyond its control. Such forward-looking statements only speak as at the date of this announcement and Freelancer assumes no obligation to update such information. The release, publication or distribution of this document in jurisdictions outside Australia may be restricted by law. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

For more information please contact:

Christopher Koch Investor Relations, Deputy Chief Financial Officer Tel +61 2 8599 2715 Email investor@freelancer.com

http://www.freelancer.com

FREELANCER LIMITED | ACN 141 959 042 | Registered Office: Level 20, 680 George Street, Sydney NSW 2000 Australia T +61 2 8599 2700 | E investor@freelancer.com | www.freelancer.com