The Redbubble (ASX: RBL) share price climbed 14% to $1.01 in trade today after the online retailer reported a positive operating cash flow of $26.7 million for the quarter ending December 31 2018.
Over the six-month period ending December 31 2018 it delivered operating EBITDA of $5.6 million and free cash flow of $25.6 million, with $58.6 million cash on hand as at year end.
Over the quarter the group also completed the acquisition of TeePublic for $57.7 million and the numbers reported today include an approximate two-month contribution from the TeePublic business.
Redbubble had previously warned in October 2018 that changes to Google's algorithms had slowed organic traffic to its website via organic search, which means it's now reliant on a higher percentage of traffic coming from paid search sources.
Moreover, less traffic equals less revenue and the news sent the stock nearly 50% lower over the quarter, although today's update including news of a strong 1.9% rise in gross profit margins appears to have reassured investors.
Redbubble did not provide any specific guidance for the half-year ahead, other than that it expects to achieve a positive operating EBITDA and cash flow result over fiscal 2019.
