The Redbubble Ltd (ASX: RBL) share price has jumped 3.85% today. With no specific company news, it looks to be trading higher because of its eCommerce platform, which provides independent artists a meaningful new way to sell their creations.
Bumper growth in June
In the June update, Redbubble reported significant growth in revenue and earnings because of the acceleration in online activity in Q4 2020. Pleasingly, the group’s supply chain has managed the growth, and orders have been fulfilled within expectations. However, its operating expenses for April and May were tracking 7.7% above the first two months of Q3 (January and February) with a variable portion related to incremental volume increases.
Redbubble is realigning its organisational structure by reducing headcount and related operating costs. Core initiatives include artist acquisition, activation and retention, user acquisition and transaction optimisation, and audience understanding and loyalty. As a result, $5.6 million in annualised savings is expected to be generated with a one-off cost of $2.1 million.
April update positive too
The June update followed a similar positive update in April. For the 9 months ended 31 March 2020, marketplace revenue was $246 million. In comparison, in the prior corresponding period (pcp) revenue was $197 million. Its operating earnings before interest, taxation, depreciation and amortisation (EBITDA) was $6.8 million up from $4.9 million in the pcp.
In March this year, Redbubble appointed independent director Anne Ward as chair, replacing retiring chair Richard Cawsey. This was a part of a planned board renewal.
Additionally, Martin Hosking was appointed interim CEO following Barry Newstead’s departure on 18 February 2020. He will serve until a permanent CEO is found.
Redbubble was founded in 2006. The group incorporates two global online market places, Redbubble.com and TeePublic.com. It sells products including apparel, stationery, housewares, bags, wall art and more.
The company helps artists profit from their creations. Artists can upload their designs to products, customers find and purchase, products are produced to order and shipped around the world. Ultimately, the customers get the product and the artist gets paid.
The Redbubble share price has benefited from COVID-19 with a growth of 87.05% in the past year. The price is currently trading at $2.70, up 3.85% in today’s trade.
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