Redbubble Reports Strong Growth in FY21 but Warns of Forthcoming Losses

The online marketplace recorded an increase in GTV of 48 percent to $701 million and Marketplace Revenue lifting by 48 percent to $553 million (Marketplace Revenue is total revenue less artist revenue).

Redbubble reported growth in Gross Margin of 66 percent to $223 million, and an EBITDA of $53 million, indicating an increase of 930 percent. Mask sales accounted for $57 million of FY21 Marketplace Revenue, resulting in underlying FY21 revenue of $497 million.

“The Redbubble marketplaces are flywheel businesses, where improving one side creates positive, reinforcing impacts on the other sides of the marketplace. We have witnessed this powerful flywheel effect throughout FY21,” explained CEO, Michael Ilczynski. “I am proud of the record financial results and
operational achievements that the team has delivered during that time.”

Artists on the Redbubble platform made a record figure in sales, earning $104 million in revenue – this is the highest ever annual record, the platform explained. As artists are a core focus for the online marketplace, Redbubble indicated that it would be further investing in the activation and growth of the Artist base, with commitments to optimising the library of user-created content.

“We remain focused on the tremendous opportunity we have as a business, and on our medium-term
aspirations to grow GTV to more than $1.5 billion, to grow Artist Revenue to $250 million, and to
produce Marketplace Revenue of $1.25 billion per annum,” said Ilczynski.

According to Redbubble, there are now more than 728,000 selling artists on the platform, an increase of 54 percent. Additionally, Redbubble recorded 9.5 million unique customers, which has increased 40 percent YoY. Its repeat purchases have continued to grow, up 67 percent YoY – repeat purchases now make up 42 percent of the total Marketplace revenue. Interestingly, 55 percent of its total sales were made via mobile devices, with 14 percent made using its App.

Redbubble will target investments into the customer experience, in both digital and physical platforms, which are aimed at driving cumulative increases in users, order rate, AOV and repeat rate.

In the first half of Fy22, Redbubble is forecasting a loss in Gross Margin, as the pandemic heavily accelerated growth in 2020, and may not continue as restrictions lift globally. From the second half of FY22, Redbubble expects a ‘steady’ return to YoY growth.

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