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  • Redbubble shares are up 23 per cent following a successful first quarter in 2020 financial year
  • The online retail business said both its Redbubble and TeePublic brands were cash flow positive
  • The company achieved a 43 per cent increase to $70 million in marketplace revenue
  • Additionally, Redbubble saw a $7.4 million increase in free cash flows since quarter one of the previous financial year
  • The company plans to continue delivering on strategic initiatives
  • Redbubble is up 23 per cent today, with shares trading at $1.80 apiece

Redbubble shares are up 23 per cent following a successful first quarter in FY 2020.

The online retail business reported both its brands of Redbubble and TeePublic were cash flow positive.

The company achieved a 43 per cent increase in marketplace revenue which reached $70 million.

Gross profit grew by 48 per cent to $27 million which represents a 42 per cent increase on a constant currency basis.

Redbubble Group owns and operates the global online marketplaces hosted at Redbubble.com and TeePublic.com. These websites are powered by over one million independent artists.

The platforms sell uniquely designed items ranging from stationary, homewares, accessories, wall art and apparel.

The company has also experienced a significant improvement in EBITDA profit from a loss of $1.8 million in the first quarter of FY 2019, to a $2.2 million profit.

Additionally, Redbubble saw a free cash flow result of $7.8 million which represents a significant improvement from $0.4 million in the first quarter of the previous financial year.

The online retailer’s closing cash balance on September 30 was $37.9 million.

Redbubble is currently working through a marketing shift which has, so far, provided a short-term reduction in marketing spend.

The company wants to move from higher cost social media channels, to lower cost, brand-associated channels and improving customer retention through its iOS app.

Importantly, Redbubble’s iOS app saw a marketplace revenue growth of 146 per cent. The company is also moving towards an Android app.

Critical to its long-term marketplace growth, Redbubble Group is making progress in areas of strategic investment.

During the quarter, marketplace revenue from members soared by 133 per cent.

RB Group also on-boarded five new brands during quarter one. This brings the company’s total content partners to 53 brands.

Looking forward, the company is focused on meeting its strategic initiatives as well as the upcoming holiday season.

Redbubble is up 23 per cent today, with shares trading at $1.80 apiece as at 1:02 pm AEDT.

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