Freelancer Limited

Hello and welcome to the Freelance Limited first quarter of 2025 business updates. My name is Matt Barry. I'm the Chief Executive of Freelance Limited. Today with me on the call, we have Neil Katz, the Chief Financial Officer, Adam Burns, who's the VP of Product from Freelancer, Andrew Bateman, who's the Head of Enterprise Product from Freelancer, August Piao, who runs escrow.com, and as always, you may direct questions to either myself or any of the management team in the Q&A. Going forward into the results, so in the first quarter of 2025, the group GMV was $231 million, which was up 1.7% on PCP. Freelancer was $33.4 million, up 6% on PCP. Escrow was $197.6 million, up 1% on PCP and GMV. On the revenue front, we were at $14.1 million, which is up 11.7%. The freelancer revenue was $10.7 million, up 8% on PCP. And the escrow revenue was $2.9 million, up 34.5% on PCP. We achieved positive operating profit in the first quarter of 2025. In fact, it's the ninth consecutive month of operating profit. About a year ago, I said my objective was to put an underlying base operating profitability into the business. My target is about half a million dollars a month, every month consistently. Since July of last year, every single month we've achieved positive operating profit, and we're about two-thirds of the way to the progress of my target. So we're doing about $1 million of operating profit every quarter. So we've had a nice consecutive month of operating profit, which is good to see, and I think we'll provide a bit of a base under the financials of the company. We achieved operating cash flow of $3.5 million, up from $1 million in the PCP. We also achieved overall cash flow of $2.2 million, up from breakeven in the PCP, and cash-in-cash equivalents grew again in the quarter to $25.4 million, up 9.6% on December 24. So, you know, in the first quarter of 2025, moving on to freelancer, we continue our double-digit growth in customer acquisition. So this is cash physically coming in from new customers in the first 28 days to 21% year-on-year, which is flowing through the funnel, as we're seeing, into positive GMV. And this will continue, I think, across the course of the rest of the year. We've got continued focus on strategic focus on AI, which is lifting the liquidity and the quality in the marketplace and driving some of those numbers and also improving conversion in the user experience. And we're seeing some good lists every time we integrate AI into the funnel, into the flow. We're also growing a brand-new vertical in AI, and I'll show you in a second that it's lifting quite strongly as we become basically the place to get AI development done in the third wave of business transformation thanks to web development, app development, AI development. And I think we're in a world position for the rest of the year with positive operating cash flow of $2.2 million and cash reserves of $25.4 million, which is also growing strongly again this quarter. So, Freemason Limited, we have three companies in the group for those potential new shareholders that are new to the call and new to the story. We're in the fields of labor payments and freight. We have over 80 million people now, which is the largest online crowdsourcing marketplace in the world by number of users by some way. in freelancer with escrow, we're the world's largest online escrow company, facilitating and securing large value payments. And LoadShift is an Australian-only business at this point in time, but we will be extending that globally in the field of heavy haulage freight. And so we meet the needs of everywhere from consumers, small businesses, mid-sized businesses, and large enterprises through those three businesses in labor, payments, and freight. Focusing on Freelancer, I mentioned before the GMB was up 6% in the quarter, up on year-on-year, fee $3.4 million, and the revenue was $10.7 million, up 8% on PCP. And the growth, as I mentioned in the last quarter, has been primarily due to improved customer acquisition performance over the past year, and I'll show you a graph in a second what that looks like. We added 1.72 million new users in the quarter, and 182,000 new projects in the marketplace. The average project size continues to grow. It's now at $343 US, up 35.9% on PCP, and it has been growing really for the last couple of years, as you can see in the graph below. Liquidity also continues to be very, very, very strong, and I would actually challenge anyone to find a labour marketplace on the internet that's actually got strong liquidity. We have now 50 bids on average on projects, which is up 28.2% on PCP, very, very strong on the supply side of labour. And the contest section continues to astound. We now have over 500 entries per contest, about 536 entries, which is up 68.6% on PCP. One of the drivers of this is due to the freelancers adopting AI tooling, which has not just enabled us to go from the widest range of talent at the lowest price because it's on demand and you only tap into the talent as you need it, and a lot of the talent comes from emerging markets. But thanks to AI, the value of the skills in the marketplace have lifted dramatically, which means we are the widest range lowest price, and in some circumstances now also the highest quality, which is pretty fantastic. And that's also translated to liquidity effects, as we've seen here in contests, with a very big jump in the number of contest entries that are coming in. And we're currently around, last time I checked, something around 68,000 entries per day into contests. So the product is very, very, very strong on the supply side. You can see here in figure one, the average project size, really since 2020, this number has been taking off in terms of the complexity and sophistication of the jobs that get done on the freelancer. It's a very deflationary marketplace in that you get a lot of value for money here. So typically you get about 10x what you spend equivalent in labour from freelancers. as opposed to what you would pay for a Western service provider in the Five Eyes markets like the US, UK, Canada, Australia, et cetera, and so on. You know, one of the standout things in the freelancer core marketplace is a big turnaround from where we were coming out of COVID in client acquisitions. So this is physical cash coming into the bank accounts from new clients in the first 28 days. We're currently at about 21% year-on-year on PCP in the quarter. off the back of a strong year last year. In fact, it's about 15 months now, track record of continuing on the client acquisition front. You can see there is a bit of oscillation due to holiday periods and so forth, but it's not one thing that has contributed to the success. It's a constant grind through the user experience, the core funnel, the product improvements, and a lot of the AI enhancements we put into the marketplace. These numbers, I think, will continue to grow over the course of the year, and it's flowing through now into actual numbers throughout the rest of the funnel. So this is on the input side of the freelancer core marketplace. So this is basically all users, new users coming into the marketplace, physical cash flow in 28 days. This is flying through to gross marketplace volume, which is the cash paid out to freelancers from that work. This top graph here is for new users, what we call rookie clients. And you can see there over the course of the last two years, We've gone from a contraction coming out of COVID now to quite solid and growing growth in terms of the physical cash that's being paid to freelancers from new clients. You can see there it's swung from about negative 10% to plus 20%. So it's a 30% absolute swing from end to end, and you can see the trend is continuing. So I think it's been one of the standout performances. Now, that's obviously changed. for new clients, for all clients in the marketplace, we're seeing the same thing flow through. We came out of a contraction coming out of COVID, where you had very pronounced effects as you had this macro withdrawal. Coming into COVID, new clients coming in and new friends coming into the marketplace. But when coming out of COVID, you know, everybody wanted to go see their friends and go travel and so forth. So you had very strong protection. We've turned that around. So you can see, you know, at its most negative, In late 2023, early 2024, it was about negative 17% year-on-year, and that's now swung through to a positive number here, which is that in the last 20 days, that's 3.2%, but in the last quarter, it was about 6% year-on-year. A new category that I think is going to be a very, very large category for the business that you can see here is growing strongly. We reported on this last quarter where the numbers had doubled and it continues to grow in terms of the volume is AI development. I think the third big transformation of businesses is happening now thanks to the Internet. For those of you who are old enough to remember 1994, 1995, that was the year the Internet went mainstream in Western economies, and businesses from all around the world wanted to reach clients through the Internet, and for that, they needed web development to be done. So they built websites to access customers through the Internet. The next big transformation was the smartphone revolution, and that led to app development. So you had web development and app development. Today, app development is about 16% of the work we do. Web development and software and industry is about 30% of the work we do. And this third new transformation is AI development. And so this is basically AI agents that will do things like answer the phones, take a credit card, process a sales order, or answer the phones, put a booking in a calendar, for example, for a hotel or a restaurant or a hairdresser or whatever it may be, or doing outbound lead generation and so forth. So these are basically fulfilling the roles that were traditionally done by all humans in AI agents. And I think in the next two years, you're going to see every single business in the world have their phone lines being picked up by AI, for example. and do the T1 support. And there's many advantages of doing so. The first is that you have 24 by 7 coverage. The second is you can do it in any language. And the third is that the AI has, you know, almost infinite patience and empathy. And we're seeing that as we deploy across a freelancer, AI agents to do support and sales-like functions, which are reported on in several quarters, the immediate thing that stands out is the quality and the empathy of the responses because when you have a human agent on KPIs in terms of number of tickets per day or call handling times and so forth, they don't have the time. In fact, it's actually impossible to do a completely thorough review in terms of the entire history of a particular customer, while AI can do that. So I think this is a very, very big transformation, and you go to get your AI agent built the same place you get your website built and your app built, which is freelancers. So I think you continue to watch this space. If you want a demo of how good these AI agents are, you can go to freelancer.com.ai, and there's a whole range of demos there in terms of what people are getting done on our platform, and I think it's pretty mind-blowing if you kind of peruse those demos, so I encourage you to do so. We're starting to get people also contact us about AI call centers, so actually replacing all call center functions. Another emerging use case for freelancers, which I thought was quite interesting, is now quite pertinent thanks to the tariffs. A trillion-dollar Chinese e-commerce company has been working now for about two years, and they probably knew this was coming. But they're using freelancers to localize and culturally adapt their marketing campaigns, content, products, information, and so forth to find new markets. And I think this will become incredibly pertinent now with the trade war with the US and China. There'll be not just Chinese companies, but also US dropshippers and all sorts of businesses that get products made through China or Asia and so forth now that will be searching for new markets. And to do that, you need to basically rebuild your websites to get them multilingual and so forth. You need to culture your marketing campaigns. You need... In the case of this particular e-commerce company, they're doing things like finding influencers in certain markets, for example, in Latin America and so forth. And so I think it's interesting to see how the nature of work adapts through our platform over time as things happen in the macroeconomic conditions. I talked before about AI. It's absolutely phenomenal for us. There's really three aspects to AI that I think a lot of companies talk about AI. I think we're really in the middle of it because we're in the field of work. The first is obviously, as I said before, the skills of all the freelancers have lifted dramatically. If you were an average copywriter before, you're now an exceptional copywriter with the use of GPT and Claude and so forth. If you were an average illustrator before, you're now an exceptional illustrator with the likes of GPT-4.0, Mid-Journey, Stample Diffusion, and so forth. If you were an average of VO production before, you've now got Quinn and a range of other tools. This is happening in research now with things like GPT-4.5 and deep research, and there's similar tooling from Gem9 with Google. and deep research coming out of China. So basically, the freelancers are now turbo-powered with the use of this tooling. And you need freelancers on the tools because you need people who are skilled in the art of effectively communicating in the field of the industry that you need work to be completed in to get the best outcome. And so, you know, we're really seeing now that, you know, a degree-educated freelancer and a very, very large fraction of our workforce is degree-educated freelancer from, you know, somewhere like Pakistan, under the laptop, internet connection, a freelancer accountant and the tooling can really give a run for the money of Western labor around the world. And I think it's a really, really powerful combination. NASA did a white paper some time ago in terms of the cost-effectiveness of using freelancers, showing that they got between an 80% and 99% cost reduction. As I mentioned before, it's a very deflationary business, but now empowered with AI, that takes it really to the next level in terms of what can get done with skills and the quality and so forth. So this is really... doing the sales so that's that's that's really the first big thing is is the thing with with ai is this the skills of the freelancers are lifted dramatically in terms of bang for buck The second big thing is the lift in AI agent work. And as I said before, France is the center of the universe for web development, app development, and now AI development. We've got a third thing I'll talk about in a second where we're really powering generative AI training at some of the largest foundational models in the world, and that will continue and expand over the course of this year. On the product side, our main focus in the first quarter was really continuing with the customer acquisition fronts and lifting the product quality across the board with a large number of improvements over the quarter. And we continue to integrate HNTK onto the platform. And as I mentioned previously, We have AR on the platform doing a wide range of roles in terms of T1 support and T1 sales functions. And I think that will only continue. And we've got some pretty exciting features coming out of the course this year. In fact, in the next couple of weeks, we've got some announcements in terms of some of the AR-powered functionality on the platform to really help you get projects done and rapidly. On the collaboration side, we've developed but basically integrated a Zoom backend with audio and video calling functionality, preparing for a full launch in the second quarter. And I think that's going to be really powerful, not just for the freelancer platform, but particularly for LoadShift, which obviously when people are driving trucks, they're not sitting on their phones in a text chat. They'll be doing it through a voice interface. And we've got some pretty crazy stuff. We've had demo even in the last week with a voice-powered freelancer and the ability to get projects done by just talking into it talking into the platform and so forth. So we look forward to be able to give you those demos very, very, very shortly. We continue to be the best rated platform out of all the major platforms. And on sites like Trustpilot and Sitejabber, we're at 4.5 with about 16,000 verified reviews, which is excellent. And it's number one in the world for crowdsourced marketplaces by far. And the same with Sitejabber, it has an even higher rating with even more reviews. So we're pleased to do that. And that comes from a consistent long-term track record. in customer excellence to achieve that. On the generative AI front, we're doing some pretty interesting things. We're working with a couple of the major vendors in the world for foundational models. There's a case study of one particular vendor. We now have 130,000 freelancers working across 60 language groups. The big thing for this year is that the major platforms want to get not just a language specialisation but also potentially in a geographic area and with now other skills such as a biology degree, physics degree, chemistry degree and so forth. And so we're getting deeper in terms of the skill sets that the generative AI needs in order to get their RLHF and other forms of training done. And we just completed, actually, I'm currently in London, but just completed with the team a whirlwind tour of India. We've got a bunch of clients there where we're potentially going to start on some new generative AI work, which we're pretty excited and we'll talk about in ensuring quality results. We're proceeding also with an integration with one of our partners working on one of the largest foundational models in the world. We got the go-ahead developer on that about a week ago, so you'll hear some news about that. So we'll be really lifting the game here in terms of what we do with JDR. And we've also been making quite a good showing at some of the conferences out there. In terms of our field services offering, I'm very excited about this. I've been obviously talking for some time about the capabilities we have there. For one particular client, we built an offering that spans five countries and I think about 48 cities. We've got a huge amount of demand coming out of India now for field services. I think we had 15 back-to-back meetings with potential partners who all are jumping up a bit to get access to our capability here. And I think one of the really important things to remember is we provide primarily a search and a white space capability. So many of these large G2000-style companies already have a patchwork of outsourced providers across the world providing things like repairs, installation, maintenance and so forth of equipment and fulfilled services. And what we do is we really augment that. So we're not trying to compete. and replace their existing capabilities with their outsourced providers. What we do is we provide an overlay to provide surge. So, for example, in India, during the monsoon season, there's a lot more water and a lot of equipment gets wet and damaged and has breakages and so forth. We can help their workforces surge during those times without having to take on extra fixed costs. And it also provides white space capabilities. So in areas where there's poor service coverage and SLAs are being missed because they've got to batch up work and get to get enough work to send a technician out to a certain area, we can avoid that because we have people everywhere. There's electricity and internet on our platform. So we're pretty excited about this offering. And we signed in the quarter a new printer partner. And in addition to doing the printer installations, we also have a component with LoadShift. We're actually doing... We will be doing the actual delivery of this equipment, because in that particular area of freight, it's called ugly freight, and it's not well serviced by existing freight providers. We continue to do all sorts of amazing things with NASA, and we're looking forward to this program actually expanding in a very short period of time, hopefully. We should have an announcement soon about that. We've got a pretty interesting challenge right now that's running globally, building a zero-gravity indicator for Artemis II, which is the manned mission to the Moon. In particular, we're very excited about this one because there's some categories for kids to participate in, in terms of getting educated about space and helping the astronauts have a visual indicator for when they're in zero-gravity environments. And we think that will have quite a broad appeal. And right now, we've got the astronauts promoting this. We've got some pretty nice videos on the platform about that. and we're moving into judging in the next month or two for that. But I think I'm pretty excited about this because it's just a fantastic use case of freelancer, but also it's getting kids interested in the space, which I think is quite exciting. We also announced the winners from another more serious challenge with NASA around lunar navigation. So how, you know, when the manned mission goes to the moon and lands in craters where part of the sky is included, how do you actually navigate in those environments because obviously you don't have GPS. In addition, we've done some pretty amazing things with the Orion Space Programme. with enhancements to basically the compiler technology for the software that powers the spaceflights. You know, the biggest challenge we've got with the platform right now in terms of job size is US$6 million, which is for the gene editing in the central nervous system of humans. We've awarded about half the money. So far, this is a five-year program. We're halfway through, and there's been approximately about 100 outcomes in terms of academic advances as a result of this particular program. So it just demonstrates that, you know, I think time and time again that some of this work with the US government you know, the sophistication, the complexity that you can achieve using Freelancer. It's not just your traditional, you know, web development and app development and so forth. We actually can solve some of the most complex problems out there in the fields of science and technology. One of the big things we're doing right now is we're opening up this entire program, and it's now going to be called the Moonshot Innovation Challenge Program, and to help large organizations that have inertia that prevents them from achieving technological breakthroughs to actually use our 80 million network as really as an innovation search engine to develop up alternative solutions to solving tough problems. And so that's really, you'll hear more about this over the course of the year, but we're really opening up this program now for corporates across the board. And we've continued to do other bits and pieces for government, the National Institute of Health, where we're developing a methodology for sharing data sets, just like you have citations of articles, you'll be able to cite data sets. and we're doing some work on environmental innovation and climate solutions, in addition to some work on detecting chemicals, harmful chemicals in water. So it really just does showcase that we can work on some of the toughest engineering problems, technical problems, scientific problems, and it's been a phenomenal success rate with that particular program. Another thing we're doing, which is interesting, which is ramping up a little bit, we've got a couple of governments now interested in this, is really solving the challenges of mass unemployment and large unemployment benefits lines in government budgets. And so, for example, with Bahrain, with Tamkeen, we have a program running right now, which is the Bahrain Freelancer Accelerator, which helps people who are on unemployment benefits go through and skill up in terms of working online and accessing a world of work and helping people stand on their own two feet to generate income independently and win themselves off unemployment benefits. I mean, governments have figured out almost universally that the bottom 20% of socioeconomically disadvantaged you know, it's very hard to move into full employment straightaway and get people off benefits for a range of reasons. There may be, you know, mothers looking after kids, and maybe in rural areas, remote areas, disabled, mental health issues, et cetera, and so forth. And so, the government's figured out that market organ in the cloud is the way to maximally motivate people into the world of work. We're running a more advanced program, however, now with Bahrain, where we take a certain subset of people who are on the unemployment benefits, we put them through what we call the International Freelancing Certificate, which is like a mini-CPA or a CFA-style qualification, intensive training over many months, and then we put them through paid internships, working with some of the top agencies in the platform. to basically get experience in how to bid on client work, you know, fulfil client work, project manage client work, et cetera, and so forth. And we've had some pretty rave reviews for that. So, you know, we will be expanding that program and we have some other governments as well that are interested in taking this on, so we're pretty excited about that. Moving on to escrow, the gross payment volume was $246 million in the quarter. The revenue was $2.9 million, up 34.5% on PCP. We had some margin improvements there. With escrow, you can see over the long term, we're on trend in terms of our GPV and the volume going through the business. In the first quarter of 2025, we continued our beta program with a major shopping cart provider. This is one of the largest shopping cart providers in the world. We're pretty excited about this. We're going slowly, slowly on the beta program because we want to make sure that we have a phenomenal experience here and that... with this is that you'll be able to do things like buy and sell houses jets jet parts boats etc through the shopping cart provider and it's got about 100 different payment methods already built into it um but none of them are for large values so this is this is really for the first time that you'll have a shopping cart a major shopping cart have to be able to do transactions up to you know 1 million 10 million 100 million dollars or more um so So we're pretty excited about that, and August, who's on the call, is leading that program. We've just hired another account manager to assist in the expansion, the activation of the merchants in that platform, and you'll hear more about that over the course of the year. We also have a second, we actually have a couple of e-commerce platforms backed up, shopping cart platforms backed up after we get that out and get that highly successful. But there's a second one working in parallel right now that's doing an integration. We also are signing up for a range of different other e-commerce platforms. We're doing quite well with machinery at the moment. We're doing well with agricultural products. We've got a carbon credit thing that's in the early stages. We've got a regulatory fuel credit marketplace we've signed up that is paying us to do an integration. And we're getting a bit of success also in M&A and business sales at the moment. So we're powering across a few of those industry verticals. At the same time, we're building a much slicker checkout experience. And this is the big thing we're doing for this major shopping cart provider is we're making sure this experience is as modern, as frictionless as possible. Now, inherently in escrow, because it is a high-value transaction payment platform, there is a higher level of friction than what you have with your credit card. Well, in a way it's the same, but a lot of people have already a priori gone down to the bank and done their KYC and so forth some time ago and probably have forgotten about it. We have to basically cow us at all the parties, do AML checks, put in the exposed person checks, negative news checks, et cetera, and so forth. So we've got to make sure that because it is such a secure platform and really is the gold standard for high-value transactions, that we try and make this experience as smooth as possible. So that's a big focus right now is just getting this checkout as slick as we possibly can. We also have a major equipment provider in Europe we're working with that we've fairly well advanced in the early stages of working to close that. That's one of the reasons why I'm over here right now in the UK. And we've also launched a new partnership with a major auction technology provider to allow secure payment services to auctions and consignment partners in North America and in Europe. Domain volume, which we dominate very strongly, is lifting slowly. I did expect to see, in the second half of last year, those numbers to lift a lot higher because I think particularly with the AI revolution that's going on and the large numbers that are being thrown at the AI space, I think we're going to see some really marquee valuations come through for some very, very high-quality domains. We have some requests for some very, very large transactions that may or may not happen. But if they do happen, we'll be like a world record for domain name sales. And we continue to be the place to go when you've got large value transactions at the high end. So two quarters ago, we did an IP address range block for a very large trillion dollar software slash cloud provider, buying from Telco, a very large block of IP addresses. And that was 50 million US dollars. And we've got people coming to quote for transactions that are larger than that now. So we'll see where that goes, but we could see some pretty big transactions over the course of this year. You know, we've got a 20% lift on PCP in terms of domain name volume. I do expect that number to lift actually substantially. I really do think that we're going to see some very, very big valuations and also valuation appreciation across the board in domains. And if you want to hear more of my thoughts on this in depth, I just recently did a domain Sherpa interview where there's a link in the quality results. You can have a listen to my thinking and kind of where this space is is evolving from here. We also have reinvested in the platform with service improvements. We're now running 24 hours a day, five days a week for the first time ever on the platform, and we will be able to continue to expand our services, of course, to use 24 by 7. So we're reinvesting for growth on the escrow side. Loadstrip delivered strong results in the first quarter as well. In fact, in March, we had an all-time record for revenue in the March quarter. Sorry, it's in the March month, up 27.3% year-on-year, and it's a very strong lift from where we started when we acquired the platform a couple of years ago. The award rate increased to 28.9%, which is up about 40% on PCP. Total awarded jobs are up 9% on PCP to about 3,000. Delivered jobs, 2,500 up to 7.8%. And carry engagement continues to grow with quotes per job going from 6.5% to 6.8%. We're going to get a big – I believe we're going to get a big leg up in these numbers starting in this quarter coming with audio and video calling being rolled out across the platform in a very robust and solid way. For those of you that are relatively new to the story, the free answer stack is being used. The Freelancer Enterprise Stack has been used to power LoadShift, so it's really the same software. It's just customized for freight. But there is a very big difference in terms of the use cases on the LoadShift platform versus Freelancer in that people on the road and they're out there driving, They're not typing on their phone. They're speaking into the handset, calling shippers and, you know, organizing the pickups and the drop-offs and so forth. So, you know, we had to get a very, very robust audio and video calling platform integrated. We've done that with the Zoom backend. It's not fully deployed yet. It will be fully deployed this quarter. It's live, but it's in somewhat semi-shadow. At the moment, we still hand out phone numbers on the LoadShift platform to minimise disruption as we moved from a bulletin board model to a marketplace model, which we've successfully done now. But the big thing now is just getting this coin fully live, and we do so. I think this award rate should lift from, you know, roughly, you know, 25% to 30%. That should lift up to 40-something-plus percent minimum as soon as we get it live. In fact, I think the numbers ultimately will get up to... probably around 80% for the whole platform once we've got that fully robust and out there and operationally flying. You can see here, we lifted the award rate from 0%. So when it was a bulletin board of a business, no money went through the site at all. It was just directly between the shippers and the carriers. We obviously changed the model in the industry. which, you know, is a very tough thing to do. But we've now got it up to about 30%. We continue to have that grow over the course of the year. I'm pretty excited where that's going to go. And then, you know, there's a bunch of tracking features we're building in. There's some emissions reporting features we're building in, some better carry-on boarding features, and so on. So I do think we're going to... We've already looked at numbers quite substantially from where we had it when we bought the business, and I think that this is going to start doing very, very well. And we made a reasonable profit in March as well. So, you know, we've passed through the threshold break even for that particular business. In terms of overall group profitability and cash flows, we now operate with a structurally lower cost base. In fact, there's actually still some savings to be made in various areas. And combined with the revenue growth we've achieved in the first quarter, we're now at And as I mentioned, it's the ninth month consecutively of operating profit, and we're about two-thirds of the way along towards my target of consistently hitting 500k a month of operating profit every single month. And we're about a million and a quarter of operating profit at this point in time, and I think that will offer some good foundations for the business. We generated a positive cash flow of $2.2 million in the first quarter compared to break-even on PCP. For the first quarter, the operating cash flow was $3.5 million, up from $1 million on PCP. And then, you know, the financing cap, the cash outflows of $1.3 million due to the lease, the changes in accounting standards for leases. We're also in the process of establishing a sponsored level one American deposit to receive with Deutsche Bank as a depository bank. So it will provide greater ability for our customers, of which there are now 83 million across all the group, to become shareholders of Freelancer. I think that'll be fairly well received. And as of 31 March, the company held cash reserves of $25.4 million, up 9.6% on the end-of-year number in December. Forward-looking in FY25, the key focus of the businesses will be to four things. The first is to enhance marketplace engagement through continued improvements in user experience and matching capabilities to attract, activate, and retain high-quality freelancers and clients. That's both on the customer acquisition front, and good team with the good work we've done there, as well as continuing to lift the retention. And in the full year of last year, we lifted retention by five points, and we continue to do that over the first quarter of of this year, so every unit of retention is worth so much more than acquisition, but we're lifting on both sides, both the acquisition and the retention. The second is to accelerate AI-driven innovation and expand integration of AI solutions into our products and services. We've got some pretty exciting things we want to show off very soon, in the second quarter, around that, with mobile efficiency automation and the opportunities in addition for enterprise growth. The third thing is to expand our financial service offerings, both on the freelancer and the escrow platforms, and broaden the streamline of payment methods, financial structure, transaction needs, security and scalability. We're building a local aquarium in some parts of the world. We're looking at real-time payment methods that are out there, and obviously making our escrow solution as slick as possible, and really set the standard for the world's best in terms of ease of use. And the final thing is really driving operational excellence. So strengthen the platform reliability, quality, and performance through rigorous internal processes and enhancing customer satisfaction. We've got a great track order of customer satisfaction. We want to obviously keep that going and keep driving that, and with that comes market leadership. So that is it for the overall, for the commentary. And what I'll do now is I'll open up the call to questions from anyone that may be joining. And as I mentioned before, you may address your questions to either myself or any of the management team. And I have on the call Neil Katz, the Chief Financial Officer, Adam Burns, the VP of Product, Andrew Bateman, who is the Head of Enterprise, August Pial from Escrow, I believe we've got some of the load shift guys. I'm not sure. I can't see them because there's too many cases. But again, you can address your questions to myself or any of the management team. Or alternatively, if you'd like to do that privately, we can arrange for a one-on-one after the call. Just shoot us a note at either investor at freelance.com to reach the IR team or to myself, matt, M-A-T-T at freelance.com. Either way, and we'll arrange a one-on-one with you. So now, Oscar, if we could open up the call to questions. I know that sometimes it takes a little bit of a kickstart before people can ask questions, but hopefully we'll do one from the callers. So let's open it up now. Kate Thompson looks like she's got a question.

Maybe, Oscar, if you can... Hi there, everybody. Can you hear me?

Yes, I can hear you. Yes.