FREELANCER LIMITED — Interim / Quarterly Report 2015

Jan 28, 2016

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ASX Announcement | 29 January 2016

Freelancer delivers another record quarter with record cash receipts in Q4 2015 of $11.9 million, up 62% year on year, and positive operating cashflow for both the quarter and FY15

Friday, 29th January 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 31st December 2015 ( Q4 2015 ).

Record cash receipts for the fourth quarter of $11.9 million, up 62% YoY

In Q4 2015, the Company booked record cash receipts of $11.9 million, up 62% over the prior corresponding period. This quarter was the first to have a contribution from the Escrow.com acquisition, which was acquired effective 1 November 2015 (two months of the quarter).

Strong balance sheet with $32.2 million cash & equivalents

As at 31 December 2015, the Company held cash and equivalents of AU$32.2 million. Cash in bank decreased from $42.6 million at the end of Q3 2015 due to the payment of consideration for the Escrow.com acquisition (US$7.5 million). Escrow.com also holds approximately US$20 million in cash, in trust, off balance sheet.

Positive operating cashflow for both Q4 and all of FY15

In Q4 2015, the Company had positive operating cashflow of $0.36 million. For FY15, the Company had positive operating cashflow of $1.43 million. Ahead of the completion of the Escrow.com acquisition, the Company incurred throughout FY15 one-off legal and other acquisition related expenses, along with staffing costs for Escrow.com ramping up from April 2015 prior to the completion of the acquisition in November 2015.

Escrow.com acquisition completed with Gross Payment Volume for FY15 of US$430 million (up 34% YoY)

The acquisition of Escrow.com was announced in April 2015 and was completed effective 1 November 2015. Escrow.com contributed for two months to the Company’s financial results. 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. Escrow services provided by the company are licensed and regulated. The business is headquartered in California.

Gross payment volume for Escrow.com in FY15 was announced in early January as US$430 million, up from US$320 million in FY14 (up 34% YoY). The business represents an outstanding source of future growth for the company and will be a significant contributor to FY16 financial results.

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

ASX Announcement | 29 January 2016

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Full year results announcement

Freelancer can confirm it plans to lodge its full year FY15 results on Tuesday 23 February 2016, with institutional engagement in Sydney and Melbourne during that week, and Asia, the United States and United Kingdom in the weeks following.

Greater transparency on project statistics and release of new metric

The Company also announces “Total Jobs Posted (filtered)” as a new, more transparent metric, to replace the “Total Projects Posted” metric that is available in real time on Freelancer.com.

The previously used “Total Projects Posted” was simply the maximum Project ID number of all projects in the database.

Jobs Posted (Filtered) is defined as the sum of Total Posted Projects and Total Posted Contests, filtered for spam, advertising, test projects, unawardable or otherwise projects that are deemed bad and unable to be fulfilled.

This will allow analysis of projects on a filtered basis and is consistent with the Company’s fully transparent policy in relation to operating metrics.

Restated historical metrics for analysis are available on request. The real time tickers on Freelancer.com reflect the new metric from today. See Appendix A for a breakdown of metrics.

In 2016 NASA and Freelancer partner to design an arm for a robotic astronaut on the International Space Station

NASA’s Center of Excellence for Collaborative Innovation (CoECI), through the NASA Tournament Lab (NTL), partners with Freelancer.com to design concepts for a robotic arm for the Astrobee freeflying robot that will succeed the SPHERES robot on the International Space Station (ISS) by crowdsourcing parts from over 17 million freelancers from around the world.

This builds on a previous collaboration in 2015 where NASA crowdsourced the design and implementation of a Smartwatch app to be used by ISS Astronauts, and provided 3D models for training the image recognition system on the Robonaut R2 Robotic Astronaut which is based on the ISS. The systems architecture will be decomposed and subsystems designed for the arm through dozens of crowdsourced contests on Freelancer.com throughout 2016.

Over a thousand UX, graphic, engineering and industrial designers from all over the world took part in those challenges and helped NASA push the boundaries of human imagination and innovation.

The latest contest can be viewed here. Previous successful partnerships between NASA and Freelancer.com can be viewed here. An overview of the NASA Tournament Lab can be viewed here.

Conclusion

Matt Barrie, Chief Executive of Freelancer, commented on the results, “Freelancer once again achieved absolutely outstanding results in Q4 with record receipts from customers. Our FY15 results will be released on 23 February 2015. 2016 will also be an outstanding year for Freelancer, with a full year contribution from Escrow.com and accelerating growth across our businesses.”

ENDS

ASX Announcement | 29 January 2016

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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. Nearly 18 million registered users have posted over 8 million jobs (projects and contests) to date in over 850 areas as diverse as website development, logo design, marketing, copywriting, astrophysics, aerospace engineering and manufacturing. Freelancer owns Escrow.com, the leading provider of secure online payments and online transaction management for consumers and businesses on the Internet. Freelancer Limited is listed on the Australian Securities Exchange under the ticker ASX:FLN.

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 FY15 outlook, are also forward-looking statements, as are statements regarding 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

ASX Announcement | 29 January 2016

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Appendix A

	New Metric	New Metric	New Metric	Old Metric	Old Metric	Old Metric	Delta
Year	Jobs Posted(filtered)	Growth %	Cumulative Total	Previously Reported	Growth	Cumulative Total
2000	1	nm	1	1	nm	1	nm
2001	4,787	nm	4,788	4,855	nm	4,856	nm
2002	22,630	373%	27,418	22,719	368%	27,575	5%
2003	48,923	116%	76,341	49,826	119%	77,401	(3%)
2004	93,746	92%	170,087	95,928	93%	173,329	(1%)
2005	136,192	45%	306,279	149,953	56%	323,282	(11%)
2006	261,298	92%	567,577	287,403	92%	610,685	0%
2007	325,029	24%	892,606	347,343	21%	958,028	3%
2008	400,766	23%	1,293,372	425,220	22%	1,383,248	1%
2009	491,794	23%	1,785,166	507,999	19%	1,891,247	4%
2010	588,235	20%	2,373,401	597,863	18%	2,489,110	2%
2011	713,875	21%	3,087,276	711,667	19%	3,200,777	2%
2012	853,160	20%	3,940,436	990,646	39%	4,191,423	(19%)
2013	1,050,462	23%	4,990,898	1,193,925	21%	5,385,348	2%
2014	1,354,216	29%	6,345,114	1,557,226	30%	6,942,574	(1%)
2015	1,690,659	25%	8,035,773	2,286,916	47%	9,229,490	(22%)