Freelancer Ltd

FLN Details

During Q1FY17 (ending March 31, 2017) Freelancer Ltd reported a 20% yoy growth in cash receipts at $12.5 million on a rolling 12-month basis, with strong positive operating cashflow of $2.1 million. Q12017 witnessed a strong bounce in accepted projects as issues in the core desktop project funnel were corrected in mid-January 2017, while projects posted on mobile reported an exceptional growth of 79% yoy during the quarter. Moreover, the company’s advantage lies in the revenue composition as USD is the main operating currency of the group and contributed to 75% of revenue in FY16. The company held cash and equivalents of A$34.7 million with no debt on balance sheet as on March 2017.  The stock declined 53.6% in last one year (as on July 14, 2017) owing to slowdown in Escrow.com revenue and increased operating costs in FY16, and currently trading at its 52-week low levels. Given the improving operating performance across business segments in Q1FY17, and strong balance sheet, we maintain a “Buy” recommendation on the stock at the current market price of $0.76


FLN Daily chart; (Source: Thomson Reuters)

iSentia Group Ltd

ISD Details

iSentia is leveraging technology to increase SaaS penetration by media portal recharge rollout, while increasing penetration of VAS products through cross-sell and expanding its regional sales and service teams for multiple market client wins. During Q3FY17, the company launched the improved Media portal and 97% of users have migrated to the new platform, while the client churn has returned to historic norms.  For FY17, ISD expects to report revenue of $162m and underlying EBITDA of $44m. In last three months, the stock moved up 50.7% (as on July 14, 2017), while it is down 35.4% in the last one year owing to poor financial results led by acquired King Content business. Given the new product launches and retention of clients with low churn, we maintain a “Buy” recommendation on the stock at the current price of $2.07


ISD Daily chart; (Source: Thomson Reuters)

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