Freelancer Limited

who's the Vice President of Product and Growth, Brock Adesnijad, who's running the escrow division, and Habib Ullah, who is running the load shift division. You may address any question in the Q&A to any of us in the room at the end of the financial results presentation. So in the first half, France Limited delivered gross payment volume of $576.9 million, which is down 0.6%. Freelancer GMB was up 0.8% to $65.2 million. Escrow GPV was $489.4 million, down 13.2%. Group net revenue was 27.1%, down 7.3% on PCP, with freelance revenue of $22.3 million, down 4.8%. Escrow revenue is $4.8 million, down 17.2% on PCP. The escrow division was profitable for the first half, and the core marketplace and load shift are now effectively at a breakeven position. They're in operating profitability and breakeven overall. We had a significant turnaround in profitability with NPAT at negative $300K versus $3.1 million in the PCP, and FX at a tailwind of 6.5%. The group had positive net operating cash flow of $1.3 million for the first half, ended with cash and cash equivalents of $23.1 million, up 1.8% on the first quarter. Moving in by segment, so the freelancer revenue was $22.3 million, down 4.8%. Freelancer GMV was $65.2 million, up 0.8% on PCP. The segment, excluding load shift, was operating either positive and break-even for EBITDA in the quarter, the difference being the unrealised FX translation. This is with a decrease of $1.7 million in marketing costs year-on-year, as the marketing has got quite profitable in the last 12 months. In the second quarter, we added 1.8 million new users and 280,000 new projects in the marketplace. The average product size lifted to $275, up 4.1% on PCP in the quarter. Note in the calculation average project size, we're including everything in the freelancer segment and the logistics segment, given that the financial metrics are all put together. The average project size includes all enterprise customers and the logistics division. In the enterprise customer segment, there's actually quite a significant lift in the volume of low-value projects from the live computer and printer company that we have, that we've talked about for a few quarters. That is counterbalanced to some extent by the load shift division where the average project size is close to $4,000. So we've put it all in together because the financial metrics are all being reported together in terms of revenue and GMV in this segment at the moment. On the contest side, the average entries for contests was very strong, and liquidity in the marketplace is extremely strong. I would challenge anyone to find a marketplace that was stronger for labour in terms of liquidity anywhere. There's about 300 entries per contest. In contest scale, anywhere from $10 up to $10 million. So for $10, you can get a logo done or some simple graphic design done or photoshopping or what have you as an example, or you could do it in $2,700. Of the categories we have at the high end, the largest contest we have acted right now is for $6 million US, roughly $10 million Australian, which is for NASA and the National Institute of Health in gene editing in the central nervous system of humans. It's a pretty exciting contest. shows that the high end and the sophistication of the work we can do compared to any competitive peers is pretty unrivaled, as well as the quality of the freelancers entering, which in this case will be very high end research institutes and sciences and so forth. The focus for 2023 for Freelancer, we've talked about this several times before in the quarterlies and so forth, is four major points. The first is really personalization to drive the core marketplace conversion. So what we're doing here with personalization is really telling the experience taking advantage of some of the advances in things like AI, which can really look at user-generated content and really provide a highly tailored experience. It's pretty amazing, our A-B testing in various parts of the funnel, all the way from traffic, to posted projects, to awarded, to ultimately paid and completed, showing quite dramatic lifts, actually, when we apply very high levels of personalisation. So that's very encouraging. And as a result of this, actually, we've bucked seasonality quite well over the last couple of months. So we're currently heading into the northern – we're in the middle of the northern hemisphere summer – Usually that's a bit of a downtrend in the metrics, and we've bucked that with the improvements we've made with personalization. So that's doing quite well. So that's really driving sort of conversion of the funnel. We've also made improvements in the way we do recommendations to clients. Again, we can do that in a very highly personalized way. We've got a lot more coming here. We can actually go further. quite a long way with how we do personalizations, recommendations, given the fact that a lot of the interactivity of the website is text-based and then following that sort of chat and video. And these are all areas in which you can apply things like AI very, very, very well and very strongly. We also have a very large showing in some of the open corpuses for training of the AIs, given the fact that we have a lot of data on our website and we have more users than any of our competitors. We also optimise how we provide notifications and so forth. This has led to a statistically significant increase in GPD and GMV, and we intend on driving that further. We're also really on a roll at the moment in delivering product features for many quarters. I apologise. I'm sorry, I'm not sharing your screen.

Oh, sorry about that. Where are we? Sorry, I'm just trying to find the screen sharing here. Alex, do you know where it is? Usually it's Hangouts. It's at the bottom. Can you stop video security in this chat? There we go. Apologies to this. There we go. Okay, is this coming through now? Yep.

Okay, so we're really deploying a lot of product quite quickly. We've, you know, for many quarters we talked about, you know, improving the front end infrastructure, the back end infrastructure and so forth, and we've got through that now. So we're really panning through the release of features. The project clarification board is a way in which you can post a project and Francis can ask clarifying questions, which improves the conversion of projects. We also have got a feature we pushed a little while ago with quotations that we continue to iterate on, which allows freelancers to issue quotations naturally like they would in the real world, where someone can ask them for some work and they can send them a quotation. This now supports fixed price and hourly projects, and shortly it will also support many other ways in which you can pay for work. We've had a lot of success with the collaborative features. We talked about this last quarter, but we've got a number of things which allow sort of interactivity between the clients and the freelancers. One is with groups, which is simply very similar to sort of what you expect with sort of a Facebook group cell interface. This is growing very, very strongly. It grew about average of 6% month-on-month through the first half of 2020. 2023 and will continue to grow. Our audio and video calling is growing very strongly. It grew about 300% in terms of call count in the first half. All this interactivity is designed to increase the average project size. At $275, that is still a relatively small amount of work. If you are in the Western world and you hire one full-time staff member in the US, UK, Canada, Australia, and so forth, you're probably paying $40,000, $45,000 minimum wage, no matter where you are in the world, for an annual wage. So $275 is a relatively small amount of work compared to what businesses will pay to employ even one person. And even if you're a freelancer in India and you're a software developer, you probably earn $1,500, $2,000 US a month. Really, this is the lever I think we can pull to really drive the growth of the business. If you go up and down funnel conversion, and we've had some pretty tremendous lifts, actually, with the personalization results where you've seen double-digit increases in up-funnel metrics for conversion, and then filtering down to the down-funnel metrics, that's great. But you can get a big lift, I think, pulling the average project size netting of zero to the end of it. So you can see that's the lift in the call-connected count, and that will, I believe, continue as we continue to really hone and push out collaborative features like this. We also have improved our acquisition funnel. I think if you remember, the second half of last year, we pushed out a new predictive long-term value model for paid acquisition of customers through the paid search engine marketing channels and so forth. And that requires a bit of time to train and calibrate and so forth. That's fully live and active now. And we've actually delivered now five-year highs in terms of sessions and marketing profitability, which is up 81% on PCP. And this is all in the face of cutting back about $1.7 million of spend on the marketing side as well. So the paid acquisition channels are doing pretty well. We also have got some personalisation that we've deployed in all the funnels for paid acquisition, and that's showing some strong uplifts. In particular, a series of A-B tests we had showed a 20% increase in new paying clients And also one test showed post-project conversion about 14% of mobile apps, another showed new paying clients and Five Eyes up about 16.5%. So we continue to deploy that across the website and hone that and improve that. So that's good. And I think we have got a very clear pathway, at least for the rest of the year and probably into next year, in terms of what we can do with personalization and what we can do in terms of funnel optimization in terms of what we can do with driving that average project size. The second major thing that we're focusing on product is really getting the design from consistent to delight. So the course of the last year, you know, we had to deploy a new front-end interface that really basically involved rebuilding the entire website while a public company, which is obviously a very challenging thing to do. That interface is now fairly consistent. We've got our own design system called Bits, and now we're taking that from consistency to delight. So where I want to get to at the end of the year is to be able to hold up the app and hold up the website and be on par with sort of, you know, the world-leading product examples of great UX and great design. So, you know, examples like, you know, GitHub or Discord or the like, and that's really what the goal is of design and UX to get to by the end of the year. So we're powering through that, and I think anyone that uses the website will see the changes. We've got a lot of positive feedback from the freelancers on this. We actually had a whole bunch of quotes from the freelancers in this report, but the ASX for some reason doesn't like that, so we had to pull it out. But But anyone who uses the website will see that the interface is improving in sort of leaps and bounds. Now, the enterprise division in the first half, the GMV was up 37% on PCP. In the second quarter, the growth was a bit slower than past quarters. That almost entirely was attributed to timing with sort of NASA payments. If you actually had the NASA payments we had in the first quarter and you added them again to the second quarter, you would be on par with Q2, with Q1. We did have a couple of other things that kind of contributed to the second quarter being a little bit soft. One was that we had a very, very, very large enterprise client that we really dedicated a lot of work and energy into. And we talked about in previous quarters, this is one of the – it's a trillion-dollar tech company that we were working for, you know, very hard for a very long time to activate for a very large engagement. Now, what actually happened was they had a couple of other vendors in the program and they shut the whole program down – the day after we passed vendor onboarding. Now, they have told us that there is an actual engagement for us, and post-summer here in the Northern Hemisphere, we've got a kick-off meeting to kind of figure out what that engagement might exactly be in August. So I'm pretty hopeful and pretty positive we'll get something. They told us that uniquely... We have the broadest offering and we actually have the best pricing by far. So we'll see what it is, but big companies sometimes make some decisions to cut whole divisions and that. That was before that we actually generated a dollar of GMV and three other vendors have been totally cut from that program. But we do put a bit of effort into that, but I think that will turn around because I think it's quite promising the number of meetings we've had since then and it also pays a little bit of money for something else. So I think we'll kind of get there on that. And the other two things are... One is that in India, we've got quite a number of BPOs. In fact, the who's who of BPOs and back office sort of style organisations in the signed MSAs that we're supplying labour to. Somewhat a victim of our own success, that volume has been ramping quite well. And we had to change the operating model because when we first went into India, what we did was we were running the payments directly out of India to our Australian entity. And as that became bigger and bigger and along with computer and printer company, that's also ramping volume quite significantly. We basically were accruing quite a large withholding tax issue because that model. So what we've done now is we've fully committed to India. We have an incorporated entity in India and we've got a new model where we get paid directly in rupees with a pure agent model. And so we had to have a little bit of disruption going through client by client or enterprise customer by customer model. moving across to that new model. We haven't fully completed that yet, but there was a bit of disruption, obviously, getting them across to a new model. Now, ultimately, I think that our Indian clients will be much more happy to be paying in rupees than paying FX and paying an Australian entity. There's a number of other advantages because there's quite a complex tax situation in India with tax collected at source, tax deducted at source, and equalization levied on top of that. So we've got to, you know, the good news is we've got, I think it's significantly better for India. It's been paid in rupees. It's much better for both the enterprise customer and ourselves. But there was a little disruption in the quarter, kind of moving everyone across, and we've got to go to kind of get more fully, all the accounts fully there. The other thing is that we did have a change in the leadership of the enterprise division. Sean McMicken, unfortunately, left us. And we're already well into a process with a number of candidates. We, in fact, finished our final presentation and the final four in the last couple of days. And we aim to make an offer in the next 24, 48 hours to a candidate. And I think we'll get a very, very solid step-up of candidates. So there's a few things, but some highlights in terms of the quarter where basically we executed MSA with a Fortune 1000 IT consulting firm with 50,000 employees, kicked off the first project, which is the third one. We continued our relationship with a consulting giant with over 200,000 employees globally. They've been running several location-specific research projects for hundreds of freelancers on the platform on behalf of Fortune 50. We've got 123% quarterly growth from a Fortune 500 technology client and strong and forward bookings. They're running several large-scale projects to expand their central workforce program. We've finalized an engagement model with a statewide government organization and APAC. This is actually quite interesting. We're actually bringing them together with another enterprise client to do something Pretty interesting. This is a very, very well-funded government organisation that's looking to provide employment in their particular area to about 6 million people who are unemployed. We obviously weren't going to do a full 6 million, but the point is they're very well resourced and they've actually done a fair bit of work on their particular platform, which is quite interesting, and we're going to dovetail into that. We also added to our government team with a new hire to lead the growth of our NASA noise engagements. Tricia is quite a solid performer, masters from Caltech and geophysics. So that's a great compliment in terms of the science base for NASA. We in fact have won three task orders in the last week for NASA. So some pretty interesting stuff up and coming, including one of them actually for the detection of micro debris in orbit. This is one millimetre, 10 millimetre particles in orbit. figure out a way to detect and remediate that is a pretty interesting challenge as a space program. And we're pretty excited to be supporting that. We've got another one with one, which is improving the GCC compiler, which is being used by the Orion Space Mission. And there's another one on comfort in air taxis. So visual comfort in air taxis. So when you're flying around in an air taxi in the future, how can you make sure that people are kind of and so forth. So they're pretty interesting projects. And TaskForward has continued to come out and ramp. Obviously, the program has expanded from $25 million to $175 million. There's talk about expanding it further. So we'll see where that goes ultimately. But the engagement still is going very, very strong and continues to get bigger and better. And we're seeing the size of these TaskForwards grow quite significantly. Obviously, with the NIH one that's live now on the website for June, I think that's one of the biggest ones to date, which is $6.7 million US dollars. We also added to our enterprise sales team with a new senior hire with a nine-year sales and marketing experience. Deloitte is now up to 8,000 consultants in the platform. We're powering through a whole bunch of product improvements that they want to put in the platform. You know, my gigs is, you know, it is quite a revolutionary platform. I think quite well-leading platform for augmenting a physical workforce with a cloud workforce. You can post a project as a Deloitte consultant and have it go to 48,000 other Deloitte consultants or go to the world. A couple of quarters ago, they doubled the engineering services component for us on that, and that will continue through the rest of the year, so that's quite strong. So we're really just heads down building product for them. The big focus is on the internal side of the MyGigs marketplace rather than the external. Obviously, you've got to go slowly, slowly in the consulting world and make sure everything is well-ordered and well-managed. You've got to love compliance and risk and other participants, making sure that everything is done properly. in a great, well-ordered fashion. So that just means things go slowly. On the other hand, we've built a really robust enterprise-grade product offering we can take to others. One advantage, however, of building the internal marketplace is that 60% of the internal projects are eligible for external, even if they're not being allowed by the compliance team to go external. So as we build that internal marketplace, it's also building potential external volume. So we're We're still plugging away at that at scale, and that's growing, that engagement, and there's a lot of participants on the Deloitte side. We're working on that, and it's powering along. So that's going well. Global Fleet is going very well as well. We're now operative in five countries. We're in 28 cities, 25 of them we've integrated directly into this customer's back-end support system. We've done 22,000 jobs now. So this is 22,000 jobs for repairing computers and printers in five countries. That's going to go pretty quickly to that sort of order of magnitude per month now, because we're in the ramp-up phase. We've got some pretty interesting results. We've got a lot of parts usage per repair in the Department of Labor. I don't know if that's the case. We're just not sure, but that's an interesting statistic. We've got a service law agreement on par with the other partners, and we've got custom satisfaction for up to 22,000 jobs, which is a pretty solid achievement for our global fleet offering. So basically what's happening here is if you break the computer in these particular regions of the chance, I don't know if our friends are out there going to remember carrying it. We're also going live and rolling out in other cities in these five regions. So a couple of the cities in India. In Australia, we're going to Wollongong and Alice Springs and so forth. So you can see that we're quite good, not just in city metro, but also regional. We actually thrive where it's very hard to get service coverage from either full-time staff or traditional providers. We're also being told the volume's going to wrap significantly in Malaysia. We're going to Singapore. And we're about to turn on overflow operations in the US, which is really the main game. This is really... you know, this is really where we want to go ultimately is with the big volume, the high value projects. And we had a couple months ago, we had a uh big kickoff meeting i was in that call and uh it was quite interesting uh uh going through all the various regions in the us and so forth and and you know where we will start is the same as in all the other countries we'll be in wichita and arkansas and all these weird places and we'll start with only overflow but as we kind of prove ourselves we'll get more and more and close to the metros and so on and but the last regions we'll probably get to ultimately will probably be new york and san francisco and LA and so forth, and that we'll have to prove ourselves just like we've proved everywhere else. But we've done quite well so far, and 22,000 jobs have been done to date, so that's pretty significant. In terms of NASA, this completed a million-dollar task order with the National Institute of Science and Technology. That was for building up the next heads-up display for first responders going into emergency situations. So, you know, this is, for example, going to an earthquake or a bombing, and the ARVR system allows you to tap into the CCTV streaming camera, vital signs of the first responders and so forth. And that was very successful. The four finalists, I believe, are all successful. a commercial product we're about to have it produce a commercial product so there's commercial outcomes in these innovation contests. Not only do the organisations that launch them get to solve very innovative moonshot sort of problems at the high end, there's also commercial outcomes that come from that, as well as a talent pool they can tap into to do further work. So there's a lot of advantages, and contests generally give you a 40x bang for buck in terms of spent results, and that's out of Peter Diamandis' XPRIZE Foundation book, Bold. um we also i've talked about this 10 million dollar um task order and gene editing i went back we also um completed um a uh innovation contest for the u.s bureau of reclamation in um modeling of um sedimentation and rivers and this require is speeding up a optimization like the solver And we actually got very dramatic improvements in that. I can't remember what the original target was they wanted to get in speed up. I think the solver can take up to a month to run. And I believe they're looking for a speed up around 30%, 40% from memory. And we ended up getting it 80 times faster. So they were pretty blown away with the results for that. So that was quite a good achievement. And then we also built a next-generation precipitation measurement device. So this was for water measurement in environments that could be extreme, so from negative 40 to plus 50 degrees. UV exposure, high wind loads, extreme precession events and so forth. Probably something that could be quite useful for Australia as a product if it was productised. We also want to fill the small projects. As I mentioned in the last week, we won three, either by ourselves or in partnership. Now, in terms of escrow, the GPP in the second quarter, now, this is quite interesting. It was $220.6 million down 21.7% or $147 million down 27% on PCP. Now, You can see the long-term uptrend. I mean, you know, we're still in the uptrend, and, in fact, this is a top-ten result. But up until the last four weeks of the second quarter, we were actually very strong. On a rolling three-month basis, up until the end of May, the chief year was actually at $193 million, which is actually above... the first quarter numbers. So it was really just in the last four weeks that it came off. And again, the volatility that you see in these numbers here comes from domain name transactions, in particular mega transactions. There's about $45 million of mega transactions that kind of rolled off in those last four weeks that weren't replaced by new transactions. I did actually expect that to continue. We had just come out of the NamesCon conference, which is the big domain conference of the year, which ends on the 3rd of June. And what we're told is that after the 3rd of June and the conference and the traveling, that a lot of the participants who are involved in these big transactions actually just took leave rather than got into business. So I was a bit surprised by that. That was really just in the last four weeks. I do expect this to bounce back quite strongly for the rest of the year. There is a bit of a boom happening in venture funding in certain segments such as AI. And I do think we'll see a bunch of mega transactions go through in the second half of this year. We already sold chat.com and prompt.com for quite significant numbers. I do expect a lot more of that to continue. And I do think that the, the funding for venture-backed startups is shrinking a little bit after that valley of death in the second half of last year. So I was a little bit taken aback by that last four weeks. I do think that's going to come back in the second half and so on. You can see that, you know, if you kind of go into July, you know, this is, again, very short-term data here. So this is only a couple of weeks into July. You can see the counts have bounced up a bit in July. So I'm confident that this is going to come back and we actually will finish up the year actually pretty strongly and continue that trend. In terms of the product, we did do a major overhaul in the second quarter. We have really ripped out the product and it's a lot more modern. It was quite dated, so that was quite a bit of technical debt we paid down, and that will continue into the third quarter a little bit, but we'll finish that off. I think quite a number of... Obviously customers always come first. Second is to improve the KYC to be best in class. The next is to improve the friction of the transaction flow, basically get it super slick. And then really provide a great 95% of the volume that goes through escrow right now are results of eBay motors and eBay watches and quite a common and so on so that's a really long-term plan with escrow is to get that checkout experience super slick and then you know kind of do you know try and do what after they did which is that great sales team going up the merchants and platforms and the second is having a partner activation team that when you do these platforms you activate them really strongly you really build that ecosystem and you get the volume the bits around partners so we're really dedicating a lot of resources in the third quarter on that so i'll talk about that later but it's early days that we're one of the alternate payment Good shift segment. This is going extremely well. In the second quarter, we saw significant uplifts in the first quarter. We're not really reporting year-on-year because the merger of the bulletin board model and the marketplace really only happened in August of last year. So we'll soon be able to talk about year-on-year numbers that make sense. Otherwise, you're kind of mostly talking about different business models. The GMV was up 53.7% quarter. We had an all-time record for the most quotes per day, which is up 53% quarter-on-quarter. We had an all-time record of about 35% on the quarter. Conversion rate jobs up some chips on the quarter. Use and completed loads up 39%. Average converted load size is about 3,600, which is flat average freight charge up on the quarter. That's something that's on PCP, that one. We've also got the break here. So it's positive in May and slightly negative in June. So we're basically... which, you know, all three businesses, which is great. And I think we've really got a big turn into the whole group and engineering businesses is on its way. So the goal is to keep that going. In the second half, we'll be able to start publishing year-on-year because we'll lap the August. In terms of total loads posted, I do put these numbers out there, but they don't really – a bit of apples and oranges here. So when we compared the bulletin board model before, where it was free to post a project and for $79 the drivers to get the phone numbers, compared to now we've got to put the money through the site, pay to the site, et cetera, and so on, and it's – removed a lot of the fluff and the other activity that was happening on the site. The loads posted to the second board were about 13,000 and the comments were about almost 18 million. These numbers are down a fair bit from the actual bulletin board model, but they're not realistic because in the bulletin board model, the loads came off within 72 hours automatically. In the marketplace model, that's about 30 days. So there's a lot of reposting in the original numbers, but I'm still reporting them for consistency's sake. um it'll make more sense when we allow year-on-year you'll be able to see a real understanding of kind of what's going on here there's about 300 million of notional load volume program being posted under the site and the goal really is now to to basically um but as much of that as possible to gmb and revenue the composition of different machinery um stays strong it's about 29 percent of the week uh general for those are at 65 you can see here there's lots of stuff we do if you've got ...freight that moves from a strand location to a strand location anywhere in the country, Australia only. The goal is to basically convert as much of that freight as possible. Currently, it's come from the merger of the two... ...the marketplace model and after that, we have a couple of avenues

quite strongly in Australia, right?

And I let that go internationally. Product-wise, we did a few things, you know, improving the flow and so forth. Through Button, which is a listed company, got payment terms, which is something that comes to me in order to manage the cash flow. We've got better ways to run the trucks on the website, and so forth. You can see a quite strong conversion to this quoting model. In the old days, you know, a year ago, the fund was just handed out, and it was the Wild West, and no one quoted at all through the websites. The quotes were zero. We've done quite a decent amount of work getting that model going from one where it was literally, here's a number, off you go, to going through a website, quoting through the platform, paying for the platform, putting reviews to the platform and so on. So I can successfully say that the model has worked. It's well and truly away. It's ramping very strongly. And there's a huge number of benefits now. being part of the marketplace model. So shippers now can look at reviews of truck drivers. In the past, they couldn't do that because the reviews were not weighted by dollars, right? If you're not taking the payment, you don't know if the review is real or not. So that's happening now. So there's a lot of trust and safety that's been built in the marketplace. We've got rid of a lot of the bad actors that happened under the old bulletin board Wild West model. These are drivers that would take a deposit and then not show up. And also, if you have poor performance, you get a bad review and so on. So This is growing quite strongly. There's a lot of growth to come in terms of the revenue of the GPV here. And you can see the award rate is climbing very, very strongly. And the question is really how far can we push this? I believe that we should get probably about 60% for load shift. If you're getting a quotation on an excavator meeting from one side of the country to the other, it's a little bit different from, you know, do I want to be an entrepreneur and get a website built and so forth. So I think the award rate here will be significantly higher than on general freelance marketplaces. And we've got a segmentation here in terms of the freight that's very consistent with previous quarters. So overall... The operating costs are about 90% lower on PCP than cost efficiencies across all expense categories. Second quarter, we were pretty flat on the first quarter. We're effectively breaking the top on operating EBITDA basis, and we've reached the cost base, and we're, I think, in a good place for the whole group now. Now operating cash flow of $1.3 million for the first half, and cash and cash equivalents of 1.8% on the first quarter. So what I might do now is I'll open to Q&A. You may ask a question to myself or a question to any of the executives in the room. I might remind you I've got Neil Katz, the Chief Financial Officer, in the room. I've got Adam Burns, the VP of Product and Growth. I've got Barak, who's running escrow, and Javier on the load shift side, who can address questions to myself or anyone else in the room. So I'll open up for Q&A. And just to put your question in the chat and...

and we'll address it.

And Alex, I might get you to read them out because I can't actually see with this view where I'm sharing my screen what the chats are.

So if a question comes into the chat, please read it out and I'll address it. Any questions coming in? Okay, there's a quick question from Emma Hayes.

In escrow, where do you see the most potential growth outside domain names? Well, there's what, yes, and do you see that, Michelle? The answer is yes. I kind of think I alluded to the account I'm most excited about actually at the very end of the commentary. We have one, a shopping cart, where one of the payment methods going, visible in that shopping cart. There are quite a number of payment methods in that shopping cart, but We are a unique differentiator and it's got a lot of volume. It's many, many, many billions of dollars per annum. We believe – we offer a very differentiated payment system. So for payments from $0 to, say, $10,000, they are very well served by existing payment methods. So, for example, you've got credit cards and you've got your PayPals for the world. You've got your AfterBase. You've got Zelle and so on. The issue is that all those payment systems that exist, all those digital payment systems you hear about every day, they're all built on top of debit and credit cards. So, for example, Apple Pay, you put your debit or credit card onto your phone and that wallet is just built on that. PayPal is the same. You put a debit or credit card in and it's built on top of that. Afterpay is effectively built on top of debit and credit card and all the like. Now, all those payment methods, those electronic wallets, the entire volume of digital payments from those wallets that are built on cards are only 3% of U.S. domestic payment by value, not by count, but by value, because they're all low-value payments. So Apple Pay, the average payment size is $23. PayPal is about $60. MasterCard and Visa was about $64 and so forth, right? And then you take all the card volume in the U.S. and you look at that by value in domestic payments, that's only 8% of domestic card volume, domestic payment volume, sorry, in the U.S. by value. So all those digital wallets are 3% of 8% of U.S. payment volume. And the reason why is because large value payments are not served by any of those payment methods. We, fairly uniquely, and I say uniquely because there's a very intensive regulatory environment around large value payments or escrow payments, we have a complete licensing footprint in the U.S. except the territories. So there's 50 states in the U.S., four don't require licensing, and there's six territories. We're licensed across all the U.S. states to provide escrow. And escrow allows you to take a payment from, say, $1,000 to $100 million, potentially more. And so by going into things like shopping carts and payment aggregators, we think we can unlock transactions that otherwise couldn't occur. So, for example, you go into a shopping cart at the moment, they can very much sell things below $10,000 very well with a whole range of different payment methods. You might get 30 or 40 different payment methods you can select from. But if you want to sell something like a yacht or you want to sell fine art or jewelry or song royalties or businesses or high-end websites or whatever it may be, you can't do that because above $10,000, these payment systems will break down. So I think we add a unique differentiator to shopping carts, and I think we add a unique differentiator to the payment aggregators. And I think that's where you – I think – Once we go into this particular shopping cart, I think we'll be able to tip a lot of the industry and I think we'll be able to tip a lot of the payment aggregators because we're offering a unique differentiator to a really tier one mucky part. And so I think the volumes we could see there could be quite significant. I mean, when I say significant, I mean, you know, it could be a multiple of our entire volume for the company. And, you know, I'm writing that number off, just averaging the number of the total volume that they put through their alternative payment methods and the just looking at that but not taking into account the fact that we do the high-value payments where you expect you have a larger share than average. So I think that those sort of businesses will have quite a large materiality in terms of the effect from going into them. I also think we can get a fair – fairly large volume from the automotive space. As you know, we're in eBay Motors. We power eBay Motors. That's a relatively smaller player, but we have demonstrated we can do those payments very, very well. And I think that there's a whole bunch of automotive and Well, ancillary marketplaces that we're in various levels of engagement with or in some circumstances, you know, they're in development in some circumstances, they've just signed an agreement and they kind of haven't started development or are prospecting. There is a challenge in automotive that you have to have to unlock a lot of volume. You've got to override the financing part. Now, we built a financing marketplace with Blinker for AutoTrader. Unfortunately, that particular engagement was not successful, but we are working with Blinkit to go into other marketplaces. So I think, you know, we'll ultimately crack automotive because I believe the time is right that people do want to pay for a car over the internet. We've shown that with eBay Motors. And I think we'll get into the other automotive marketplaces, but we have to just keep plucking our way at it. And I think we've got to have a strong financing solution, which I think we've kind of Yeah, at least mostly there with Blinkr. I also think the M&A as well will be a fairly material segment. We're in acquire.com. It used to be called MicroAcquire. So you can buy businesses and startups from a bunch of other similar competitors, but there's a lot of volume in that particular space. I think that will be fairly material. And then, in fact, in the slide deck, which is attached to the releases that went up today on the ASX, there are quite a number of segments we've identified that I think we'll be fairly successful in, simply because at the moment they're not well served by payments. And, in fact, the payments are very much offline or they're done through asset purchase agreements or they're done through wire transfers to effectively an intermediary in a very clunky way. And I think we can I think basically those segments are going to be quite strong. So in summary, shopping carts, payment aggregators, automotive, and M&A are really my focus sectors. And ultimately, you want to get your real estate. We won't go to real estate directly. We can do half the states. It's not a very extensive... work on what we can do and what we can't do at this point in time, given the state-based regulation around title transfer and so on. But I do think areas like construction and taking deposits to purchase a house, I think that would be our initial inroads there. And how we build operating leverage, well, I mean, simply you get the cost down. I mean, these businesses are all marketplace models. There's a fairly high gross margins, about 84%, across the businesses, plus or minus a couple of percent across all the businesses. And so you get costs down in terms of the expense side, and then you get operating leverage as you grow the revenue, right? And I believe that we'll get a lot of leverage out of the improvements we're making in the core marketplace. I think we'll get it out of... you know, any one of these enterprise customers on the freelancer side really could really take off. And we're starting to see signs of that in a couple of accounts. And on the escrow side, again, it's just, you know, one customer could do significant amount of volume. And on the load shift side, we've got just eating and fat, the bulletin board we acquired, and that's going extremely well. And we're demonstrating that with the results from load shift. Ray asked a question, can you comment on the implications of recent AI development? I've actually written Ray, if you want a full detailed thing about this, I'm going to be publishing an essay on this in about a week, week to two weeks. I've written quite an extensive essay on this particular topic. And I've actually been interviewed by Macro Voices, which is a prominent macroeconomics podcast in the world. They're going to do a two-part special in August, late August for the summer holidays on this. But effectively, in the short term, AI is turbocharging the freelancers because now you can be moderately skilled or relatively unskilled as a freelancer. And you're now using these tools, whether it's ChatGPT or MidJourney for design, you can now design at the elite level. And so I believe, and we're seeing it now, the adoption of the AI tools by the freelancers is pretty quick. Like as soon as the tools came out, the freelancers were on them. I think we've done a couple of media hits around a couple of contests we ran. One was a Harry Potter, you know, reimagined Harry Potter in a different scene. And if you just click through the entries in that particular contest, you'll see that the freelancers, all of the AI tools, all the entries were incorporating AI and fairly advanced uses of that. So I think what it does is it lifts the skilled labour in our marketplace. So, you know, the winners here, I think, with AI, in particular in the short term, are, you know, the relatively new workers, the relatively unskilled workers who are now, their skills are lifted very, very significantly in terms of their abilities and talent. The elite freelancers at the very top, they're fine because they'll figure out how to incorporate into their business model and they've got relationships and they've got a track record. I think the Western style traditional service provider will be challenged because, for example, if you're an illustrator and you're in the Western world and you're charging 20 to 40 hours worth of work to design something, I think that the appetite in the future from companies to want to pay for 20 to 40 hours of work with something you can tap out in 10 seconds from the beginning is going to be challenged. So I think that, you know, I did an article actually, it came out last night in India. I did an article, an interview with the Indian Express, where I think I said India is going to be a big winner of AI because they've got a once-in-a-lifetime net influx of about 14 million people into the workplace. And those graduates are relatively unskilled and now using AI tools and whether it's, you know, in copywriting or designed shortly to be software development, they're going to be now superpowered, which is great. And, you know, I think it's fantastic for us. I think it's the skilled labor. It lets the freelancers deliver at a lower unit cost and quicker. It lets businesses get things done cheaper and to a higher level of quality. And I think for some time, I mean, you're going to need freelancers driving the tools. I mean, you know, my mother is not going to interface with, you know, any of the AI tools anytime soon to completely grow her business. She might better get little bits and pieces done, but you're going to need someone to run the tooling for now. Now, where it's going to end up in five, 10 years, I don't know, right? I mean, things are advancing pretty quickly. But at least for now and for the foreseeable future, I think it's fantastic for us having the largest low-cost workforce in the world. They're all now super-powered. Being that France's platform operates globally, this is from Brad, what is required to grow revenue? Is it enterprise, SMB, consumer, startups, customers? I think it's all of the above, right? We're executing in all those segments. You know, right now, the biggest contributor of revenue by value is the core marketplace. And so it's really moving the needle in the consumer core marketplace. You can do that in really three ways. One is you can acquire more customers, either organically or paid. Paid is obviously quite expensive to do so. The second is you can convert the funnel better. So as traffic comes into projects to awarded, to accepted, to completed, to paid and full, you can convert that better. The third way is you can retain your customers or grow your average project size or grow the amount of work that they do on your platform. And I think that's the strongest. So we're attacking all parts of that with the exception of we're not growing the paid marketing. We're just making it more efficient. But on the consumer side, we're attacking basically the challenge of how do you bring in more customers organically, whether it's by referral because someone's had a happy experience, whether it's built into the platform because you want to work on a project with a coworker or a colleague. or your mom or your friend or your startup co-founders. It's chipping away at that funnel in terms of conversion, and we're getting a lot of improvements with AI, as I said before, and personalization, or whether it's retention, which is a combination of things like collaborative tools to really make it easy for people to work together in teams online and really have it free to be an adjunct part of your business. On the enterprise side, the way I characterize this is this is something new. So there's no solution out there for enterprise right now that is at scale anywhere in the world for consuming talent. Universally, however, the chief HR officers and procurement heads and so forth and chief digital officers of all these enterprises, they have universally decided, and this is independent of anything we've done, that at some point in the future, some percentage of the workforce will come from the cloud, whether it's 5%, 10%, 15%, 25%, whether it's one year, three years, five years, 10 years away. They've all universally decided that, and COVID has just accelerated their plans. We, I think, have a solution with a number of other companies looking at that solution and adopting it. And this is quite, you know, it does require some integration. You have to integrate with their vendor management so that the payments flow nicely. You've got to integrate with a single selling system so that, you know, the users at a large enterprise can look. You've got to have the look and feel of the large enterprise because you can't just have the CEO of Coca-Cola say, go and use Freelancer and have it work. It's got to look at Coca-Cola jobs and look at the branding and look into the same password and integrate into the systems. And there's other things that you might need to integrate with, such as time tracking systems and directories to slope in the profiles of the users and so on. So there is some level of customization. As a result of that, It is, you know, it is a longer sales cycle than the consumer side, but I think the payoff is huge because the latent demand in some of these large enterprises, if you can unlock, you know, 10% or 5% even of the labour force budget of a Fortune 500 and get that really working at scale, it's very significant. So we're plugging it away and I think, you know, we've really kind of shown a pretty world-leading product and we're taking that to everywhere else. And, you know, we're doing... very similar to this computer and printer company. It's not exactly the same solution, but has many of the characteristics of that solution for solving a certain point problem. which I need one thing done, but I need it scaled down millions of times all around the world. And, you know, we've shown that quite a few, 22,000 projects have been completed through that. And that's going to ramp to about that number per month very quickly. So, you know, those, what we've got there is quite a number of moonshots and a lot of irons in the fire. We've probably signed, I think, 60 or 70 MSAs at Enterprise. And we're really trying to figure out how do we effectively service and activate those customers. If you leave them alone, like most of our customers who have signed MSAs, we kind of help them with the managed service team. But for the most part, they're not integrated into our systems from a technology perspective. And they grow strongly, but we want that big step lead part where you kind of deploy across the enterprise. And so we're trying to build as a repeatable solution as possible while still working having that sort of lock-in bit that you get from kind of integrating. So that's on the France side. So, Ray, thanks, Matt. Can you comment on the Amazon services thing, please? It's not a reframed company. I mean, we have three businesses in the group, right? So we're in labour, payments, freight, All those three services are things that businesses need, consumers need. And so effectively, we're trying to build a mini Amazon of services. I mean, some of the largest companies in the world buy market capitalization and global marketplaces of products. So you've got your Amazons and your Alibabas and to a lesser extent your Ebays and your Etsys and even Shopify and so forth. These are all product services. you know, marketplace platforms in various form factors and what we're doing in services, right? So that's what we're doing. So we're small and we're relatively early stage in the space. No one has cracked the Amazon services nut You know, if you add up into the freelancing space, the total number of users on all platforms, you'll probably be under 100 million total. Across the space, we've got about 67 million on our platform. So there's 5 billion people. So the whole space is very day-to-day and it's slow moving because it's very complex services over the internet and most other things. Okay, do we have any other questions from anyone? I think we kind of tapped out the questions that were in the chat. So at least if you want to ask a question, put it in the chat.

Okay.

Brandon asked, on logistry, if you mentioned a great 20% increase in the award rate given we can't clearly see growth as what you said with apples and oranges based on what you've seen so far in logistry model awards. Okay. So let me explain clearly what's happening here. So we had a platform which was called Freight Answer, which was basically taking the Freight Answer code base for enterprise. and customising it for freight. So we customised it for Deloitte, for that particular case, and we took that code base and customised it for freight. So we had effectively a marketplace for freight. It had a small volume in it. There's a bit of a history here. We acquired a business called Channel 40 some years ago and then merged it into the code base and we ended up with Freight Lancer. So if you think about load shift and the freight model, and you think about the freelancing model, it's very similar. I mean, freight is really a number of categories out of the whole world of work, right? So you post a job on Freelancer, people bid on the job, you award a job, you set the milestone payment. The platform holds the payment while the job happens. You release the milestone payment. You leave reviews and feedback, and off you go. On the freight side, it's the same. You post a load. The driver's bid on the load. You go through the bid list. You talk to the drivers. You award a driver. You put a payment in. The platform holds the payment until the load goes through. You release the payment, and then you leave feedback reviews. It's exactly the same flow from a business perspective. So what we did was we – We effectively took the Freelancer code and we merged in a business years ago to build Freelancer. And we had effectively two platforms, a Freelancer platform and a Freelancer platform, operated very simply. Every time you make an update, the Freelancer code gets it as a free, and there's a little bit of customization. So there's a small thing that's doing some customizations for Freelancer. What we did then is we pulled... So load shift was... ..about $3,600 average load size. In the past, it was the Wild West. So basically, choose a site for free and post their load, and then drivers, if they pay $79 a month, will get the phone. That was the complete involvement that load shift had. If the load moved, they didn't know if it had arrived, they didn't know if there was a problem, they didn't know if... you know, if the driver was legitimate or the ship was legitimate, it was just a bit wild west. So we came in and we moved that to a marketplace model. So we bought that. We merged it into the Freightline's code base. And it was the last year complete. And then we rebranded everything. The problem we have at that point is we have that roughly notionally, about $300 million of the freight being posted on that platform, which we started converting to a marketplace model. And what I mean by that is getting the drivers to change from just calling to calling and quoting to then basically having the shippers award through the site, then having the drivers accept payments through the website, a bunch of features to assist with making sure that all happened really nicely and smoothly. ultimately releasing money and then leaving feedback for both parties, for both the shipper and the driver on the platform. Now, that was a big change in the space, right? It was a very, very big change in terms of how things worked. It's ultimately better for the shippers because the shippers now know which private is reputable or not. They don't get smacked with 50 phone calls all of a sudden. They can do something very orderly with the whole operations team that is really a managed service team that overlays and ensures that the load goes through reliably and can offer a whole bunch of other services such as arranging pilots or permits or road closures and a range of other things depending on what's required. And that's also better as well, because so that the ship is now, if they want to pay, you know, live company movements in the Arcadia Gold Line for Newcrest, right? So they can pay in 30 days today, 120 days. All the drivers hang around and check homes and everything. Also, the drivers now can stand out in the platform with reviews. So if you're a great driver and you deliver a great service and you want to charge more for your services, you can do so now because you've got reviews that make sense and are credible versus maybe a couple that's trying to just do the work and it isn't properly done. you know, it hasn't got proper certifications, all this, that, the other. Also, we've got drives in the final submission, make sure you've got the right certifications. So before in the leadership model, anyone could call up. So the thing we've got to do now is we've got to see how much of that freight we can actually convert. What is the practical maximum, sorry, of freight we can convert? And we've been very successful in getting that number up and awarded, and then you've got accepted and funded, what have you. Those numbers are growing very, very, very, very strongly. And the question is just how can we put that? And what happens is just heads down, working at operational support and we've got the control.

So we will see very, very strong growth over the next 12 months in this business, very, very strong growth in financial metrics. Okay. Any other questions? Thank you. So it's kind of funny.

Two research groups initiated coverage on us today. We were actually unable... The ASX has changed the rules now, so you're unable to... tell your investors that a research group has initiated coverage of individuals in this range. I would have thought they'd want to go to Bowton, which is one of the biggest independent sort of research firm out there, initiated coverage this morning, as did Pitt Street Research. So reports are available, I think, on our website in the investor section, or you can go just search online, go to Edison's website and download them, and Pitt Street Research. They've both initiated coverage and will cover us from here on. I think it's something that investors have asked for, some feedback I've had, that, you know, we used to have, you'd get some chemical coverage, consistently doing fundraising all the time, then there's no interest for these. So we have two funds, we actually have an investment bank to cover us, but that hasn't started yet.

But I think that will obviously provide value, I think, for investors to get a bit of an overview of the business and ask questions and so on. I'll give it a few more seconds. If you have any questions, I'll have you answer it.

Otherwise, if you want to do a one-on-one with the team, you can email me at matt.matt.france.com or indesta.france.com. And one-on-one with myself or any of our executives. Okay. I'll end the hour. Thanks for attending today. And I'll see you in the next quarter. The results of that talk are one-on-one in between.