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Here’s why Freelancer Limited climbed 14% today

Online contracting job marketplace, Freelancer Limited (ASX: FLN) saw its shares jump 14% higher today to 68.5 cents.

Earlier today the company announced that it had seen record cash receipts in the last quarter of 2014, and expects strong growth to continue in 2015. Freelancer’s customers paid it $7.4 million in the fourth quarter of 2014, up 7.6% over the previous quarter and 42% over the prior year period.

The company says that it now has a cash balance of $20.2 million at the end of December, up $0.5 million from the end of September.

CEO Matt Barrie noted, “Freelancer continues to demonstrate exceptional growth, with record receipts from customers, registered users and posted projects,” and added, “We expect that exceptional growth will continue in 2015 as it has each year in the last five years since the company was founded.”

The company had 14.3 million users at the end of 2014, up 4.6 million over the previous year, and 6.9 million projects and contests posted, a rise of 31% over 2013. Freelancer should be on its way to smashing the 2013 financial year profit of $1.1 million when it reports later in February.

Often labelled one of the best floats of 2014, Freelancer saw its shares soar from the 50 cent issue price to more than three times that on the first day, before sliding all the way back down to 51.5 cents recently. Here’s the share price chart since

Here’s the share price chart since listing date.

Freelancer chart

Source: Yahoo Finance

Now the company may finally be proving its worth and could be worthwhile adding to your watchlist.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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