Redbubble (ASX:RBL) doubles marketplace revenue over July

• Online retailer Redbubble (RBL) has released a strong business update today, highlighting a 132 per cent year-on-year boost to revenue
• The company booked $49 million in marketplace revenue over July after bringing in $368 million in marketplace revenue over the 2020 financial year
• The company introduced face masks to its product range in late-April and has already made $26 million from mask sales alone
• Audited 2020 financial year figures are slated to be released later this month
• Shares in Redbubble closed over 17 per cent higher today and worth $3.49

Online retailer Redbubble (RBL) has released a strong business update today, highlighting a 132 per cent year-on-year boost to revenue.

With COVID-19 keeping people indoors in 2020, online shopping has seen a surge in demand, and Redbubble is no exception. The company sells everyday products from clothing to bags to stationery, all with unique designs from a massive team of independent creatives. Redbubble sells products through both the Redbubble and TeePublic websites.

Over July, the company’s marketplace revenue hit $49 million, which is more than double the same time last year.

The company reaffirmed its strong fourth-quarter revenue, which is up 107 per cent on last year. For the full 2020 financial year, Redbubble booked $368 million in marketplace revenue — up 43 per cent from the year before.

Of course, for all the company’s creative household products and clothing ranges, a major catalyst for this year’s strong performance has been the tactical inclusion of face masks in light of the COVID-19 pandemic.

Redbubble introduced face masks into its product range in late-April and has already made $26 million from mask sales alone. While not medical-grade, Redbubble’s masks come with the same quirky designs found across the site.

Of course, Australian government medical professionals only recently began to recommend the use of face masks to the general public in light of the outbreak of coronavirus cases in Victoria. As such, it’s likely Redbubble’s face mask demand will continue throughout the September quarter as more Australians buy the products.

This being said, Redbubble said it books 93 per cent of its marketplace revenue outside of Australia. TeePublic books 89 per cent of its marketplace revenue in U.S. dollars. As such, the demand for Redbubble’s face masks has so far been driven from overseas sources.

This also means the company’s financial figures for July are slightly different on a constant currency basis, but the discrepancy is marginal.

Audited 2020 financial year figures are slated to be released later this month.

Shareholders liked today’s update and Redbubble shares closed 17.1 per cent higher at an all-time high of $3.49 each. Since the start of 2020, Redbubble shares have increased by around 220 per cent.