The Freelancer Ltd (ASX: FLN) share price has fallen 8% lower this morning, despite recording a 120% increase in its half-year net profit.
What were the highlights from Freelancer's result?
In its first-half 1H 2019 results, Freelancer reported further strong growth in both registered users and jobs posted on its platform.
Freelancer's total registered users rose to 3.3 million, while 0.9 million jobs were added to the group's platform during 1H 2019.
The company's results presentation also noted the Freightlancer segment, with major customers such as Newcrest Mining Ltd (ASX: NCM) among the 7,000+ operators using the service.
During the half-year period, Freelancer generated unaudited gross payment volume of $400 million which represents a 10% increase on 1H 2018 figures.
The company recorded revenues from ordinary activities of $28.67 million, up 16.1% on prior corresponding period (pcp), while net profit after tax (NPAT) climbed 120% to $157,000 for the group.
Gross profit came in at $24.3 million for the year, up 15% on pcp due to higher revenues, while the company's 85% grow margin was slightly down on pcp due to higher cost of sales coming from its enterprise services revenue
While admittedly off a low base, at the very least it shows that the company's profitability is moving in the right direction even as it continues to build out its operations.
The Aussie growth stock did not declare a dividend as it continues to reinvest in the company and focus on its medium to long-term growth prospects.
Freelancer reported record 1Q 2019 gross GPV from its Escrow.com platform of $158 million, up from 29.2% on pcp.
Freelancer remains free cash flow negative, with net cash used in operations of $987,000 for the half year, down from a net receipt of $1,038,000 in 1H 2018.
This was despite falls across all major cash expenses as the company's receipts from customers nearly halved compared to pcp.
On the balance sheet side, Freelancer reported a minor increase in cash and receivables as total assets climbed to $75.88 million during the year.