Edited Transcript of FLN.AX earnings conference call or presentation 21-Oct-20 12:01am GMT

Q3 2020 Freelancer Ltd Earnings Name SYDNEY Oct 21, 2020 (Thomson StreetEvents) — Edited Transcript of Freelancer Ltd earnings convention name or presentation Wednesday, October 21, 2020 at 12:01:00am GMT TEXT model of Transcript ================================================================================ Company Contributors ================================================================================ * Adam Byrnes Freelancer Restricted – VP of Merchandise & Progress * Neil Leonard Katz Freelancer Restricted – CFO & Firm Secretary * Robert Matthew Barrie Freelancer Restricted – Founder, Govt Chairman & CEO ================================================================================ Convention Name Contributors ================================================================================ * Gregory James Ward Trafalgar Capital Administration (UK) LLP – Associate ================================================================================ Presentation ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [1] ——————————————————————————– (technical problem) When it comes to headwind, appreciated by 8.8% for the quarter because it went from 0.6567 to 0.7149. If we go all the way down to the phase outcomes, as I’ve stated a couple of minutes in the past, gross market quantity, which is the funds to the freelancers in — for the Freelancer market continues to get all-time highs, report highs. Within the third quarter of ’20, the GMV was $25.5 million, up 16.9% on pcp. The gross cost quantity, which is the funds into {the marketplace} plus income, so it is GMV’s funds out GPV’s funds in, was the second highest on report after the second quarter at $48.4 million, up 6.1% on PCP, or USD 34.1 million, up 11.5% on pcp. You’ll be able to see right here from the graph, which is displaying multiyear gross market quantity that we had a giant uptick in 2020, and it continues to develop and that is contributed to by a couple of issues. Clearly, we’re in a positive setting when it comes to the tailwinds, however we have additionally made fairly plenty of vital product enhancements. And we have actually had a giant focus within the final 12 months on high quality and product execution, and we have completed some fairly good issues throughout the board there. Within the third quarter, we had — internet visitors to the location was up 31% to 36 million web page views, up 88 — sorry, internet visitors periods up 30.8% to 36 million. Web page views have been up 88% year-on-year to 312 million. This resulted in 2.07 million new registered customers within the third quarter, up 80% on pcp. And equally, jobs posted, and these are jobs posted the place we have eliminated the spam and check initiatives and different work initiatives and so forth, have been 657,000 within the third quarter, up 19.1% on pcp. When it comes to labor, we truly continued to be the world’s largest market for freelancer expertise by a really massive margin. Total order of magnitude at the moment of writing, the whole variety of registered customers has ticked over 48 million. And shortly, we’ll expertise our 50-million-user occasion so we should always simply advertising and marketing round that. Within the first half of ’20 report, we talked about how {the marketplace} responded to this large progress in person sign-ups. And it was a mixture of what we name rookie shoppers and in addition rookie freelancers. And so rookie shoppers are those who have by no means posted a job earlier than, and rookie freelancers are those that have by no means need a job earlier than. We had a giant inflow of individuals searching for work, individuals trying to rent individuals, clearly resulting from COVID and so forth, plus the product enhancements. And that led to the common undertaking measurement — common accomplished undertaking measurement dropping from USD 216 to USD 161. Now what’s occurring right here is rookie shoppers are likely to spend much less on their first undertaking, and over time, as they construct familiarity with the web site, they spend extra. By the top of the third quarter, the common accomplished undertaking measurement had lifted by about $10 to $172. So we do count on that to raise once more within the quarterly report, which I am going to in all probability swap to now. I am going to simply present there is a graph right here, which can present you — present you this. We will see within the — you possibly can see with the massive spike up in accomplished initiatives, and that led to a spike down within the common undertaking measurement. Now you possibly can see that over the long-term pattern line, this goes again about 16 years, you possibly can see the common pattern — or the pattern for common accomplished undertaking measurement is up over time. So we do count on this to proceed again up, it is simply that we had a giant inflow of each expertise and rookie employers that usually spend a bit of bit much less after they get going. They’ll see that the GMV could be very sturdy, it is — and continues to rise. I believe that we have set a brand new base right here when it comes to — there is a step change, I believe, when it comes to utilization of the location and money coming to the enterprise and deposits, bodily cash coming in to the stability sheet. And when it comes to provide or the labor, the month-to-month energetic bidding customers peaked in about April and July. It was 2 peaks when it comes to the expertise. However it’s about up 70% from January, January 6. And the variety of month-to-month rolling 28 days energetic bidding customers is up 39.8% from January to September. And it is simply going to come back off a slight quantity in September, October due to the summer season interval within the Northern Hemisphere, which is seasonal. And it is beginning to pattern up once more now as we converse. So we count on a pattern off within the stats from right here to the top of the yr as we historically have seen, plus we have got plenty of actually good product enhancements that we’re making, which we’ll proceed to kind of — [I’ll talk about it] in a second. One of many large product enhancements, as you possibly can see in these 4 graphs, it may be a bit of bit small. ——————————————————————————– Unidentified Participant, [2] ——————————————————————————– I am simply on a convention name, can I provide you with a name and see? Okay, I am going to give a name again and see. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [3] ——————————————————————————– The place did that come from? In order you possibly can see this, when it comes to hourly initiatives, we have truly made some enhancements to the hourly funnel. In 2019, as we migrated to the brand new single web page structure or the webapp structure that we’ll discuss later right here, which is known as a main overhaul on the entrance finish of the web site to make it actually quick, responsive so it really works on cellular, so we will deprecate the legacy cellular web site. But in addition total, present a significantly better expertise to customers. It’s going to be like Fb. So if you click on round, the pages are immediately loading and conversions go up, et cetera. We have been actually working via that in a giant method, plus we actually put a giant focus within the final 2 quarters on the UI enhancements within the hourly funnel, fixing up an entire bunch of little bits and items, not simply on the desktop aspect, but in addition throughout the time tracker. And you may see right here in our stats when it comes to funds into milestones for hourly initiatives in addition to hours tracked, we have gone again to the long-term progress numbers, that are fairly fast. So we predict this — issues will proceed to develop from right here, and it is nice that we have lastly mounted this funnel. We have a couple of issues to repair up within the mounted worth funnel nonetheless, however milestone worth in U.S. {dollars} is up 26.5% within the third quarter on pcp, and we count on that to proceed to develop in tremendous quarters. When it comes to contests, which is one other method of getting work completed. I imply that is simply going gangbusters. In truth, in some ways, it is a sufferer of personal success. I imply the common variety of entries per contest now could be over 230. And you will get contests for as low-cost as $10. And I’ve talked about in earlier quarters how I posted a contest for $10 to get some enterprise playing cards completed, I’ve received 430 entries in that contest. It is nowhere on the planet there may be as liquid as our market for labor, and contest is actually a giant — can showcase in a giant method. And I encourage you, if you have not tried utilizing our contest on Freelancer to take action, you are able to do it in any of the 1,800 classes. So it would not simply need to be design work. However it’s very iterative in nature, you bought to say, I like this, I do not like this, what have you ever. We have completed a contest in current durations the place we stated simply merely go round your native space, choose up some garbage and add some movies and a few photographs. And we had hundreds of individuals can — collaborating in that. So it is an unimaginable option to marshal expertise and get issues completed. It is getting used proper via from shoppers proper as much as enterprise. So with an instance right here, Philip Morris within the quarter posted a USD 20,000 contest to supply concepts to automate grocery retail checkout processes. On common, 82% of contest is now getting entry throughout the first hour. You’ll be able to see right here that these stats are trending up very, very strongly. And we recover from 1.2 million entries a month, which is up 36% on pcp, and that is simply taking off. So contests when it comes to provide, when it comes to liquidity is unparalleled, and there may be nowhere on the planet that’s as liquid as we’re in these on-line contests. And I encourage you to exit and do your individual analysis there, however it’s completely phenomenal, what’s occurring there. When it comes to another issues that have been occurring within the quarter, when it comes to dynamics. Clearly, we function in a fancy system. When you consider Marc Andreessen’s thesis that software program is consuming the world and each business is turning into a software program enterprise. So the biggest phone firm on the planet in all probability at the moment is Zoom, which we’re utilizing now, which is a software program enterprise. And the biggest shoe vendor on the planet is a software program enterprise, which is Amazon. The best way we sort of take into consideration ourselves is we’re in all probability one of many firsts in software program. We now have a GDP, which ranks about 183 out of 187 nations on the planet. If we have been a rustic, we now have labor drive, we now have employers and companies posting jobs. We make choices each day round ought to we raise minimal wage right here or there. We now have a rudimentary monetary system, which is in 38, 39 currencies or so. We now have an arbitrary — we now have a reasonably primary authorized system when it comes to arbitration and dispute decision. And we now have a police drive when it comes to the help crew and when it comes to the individuals reporting violations locally and so forth. So it truly is a fancy and dynamic system. And so you need to be sort of cautious with very a lot the way you modify use habits right here. And one of many issues we have been doing is — one of many greatest feedbacks we get from employers or job posters on a website is freelancers are bidding very, in a short time, which is nice when it comes to liquidity. It exhibits them immediately, notably the brand new person, there actually is that this eureka second the place you put up your undertaking and increase, 80 bids are available and also you go, wow, this cannot be actual, are there actually 80 individuals desirous to do my job and so they’ve come over in minutes. And I’ve seen initiatives now with hundreds and hundreds of bids on them. So I imply, it is an unimaginable useful resource for marshaling expertise. However typically these bids are available rapidly and the freelancer is reducing and pasting their bid on, not studying the proposal correctly and never submitting a high-quality bid. So we have cracked down in 2019 on this, and we carried out some software program and a few operational processes to crack down on low-quality bids. And what we do successfully is we now have a mixture of algorithms and mainly efficient machine studying, detecting poor high quality bids and so they get flagged as much as an operational crew that may then apply a penalty in. The penalty that we usually apply right here is an exponential backoff. So the primary time you get hit, you get a 5-minute trip. You get a proof about what’s unhealthy about your bid and how one can enhance it and a few hyperlinks to some guides and so forth. After which after that 5-minute time, you possibly can proceed bidding once more. And the second time you get hit is a 20-minute trip, third time it is 80-minute trip, and it simply retains going exponentially. And finally, the freelancers get the image and really begin offering high quality bids. Now that is nice and it has had a improbable impact on high quality. The freelancers are taking their time now to — regardless that we have got liquidity to proceed to develop, I imply, the freelancers are taking extra time to consider their bids and write high-quality bids. The consequences of this, nonetheless, within the market. And I assumed I might spotlight this simply to point out you an instance of the complexity of working this enterprise is that the very best bidders was these — the ability customers. And that is sensible, proper, as a result of the ability person have constructed up profiles over time with hundreds and hundreds of feedbacks. They’re those within the highest-level plans. They’ve quite a lot of bids. They’re those — in a method, we would like bidding, however we would like them to really write good high quality bids fairly than spraying bids out. However if you’re high of the ranks, you could be a little bit lazy. And in among the organizations, you might need a devoted bidder who will write high-quality proposal. However in others, you may get some freelancers who have been simply sitting there simply placing bids on all the pieces. And so the response — cracking down on successfully bid spam was that plenty of these greater stage freelancers mainly received hit as a result of they’re placing extra bids on and so forth. And plenty of these freelancers truly downgraded their plans. And so the ratio of bids within the market by membership, we noticed the Premier plans dropped from 37% to twenty% when it comes to the ratio. Now that is sensible as a result of we even have — and the scheme of issues out of 48 million individuals, we now have a comparatively small variety of individuals within the higher-end plans, proper? So that they should not actually be above 35% of all bids within the market. However once we — it will be nice to have 48 million individuals on plan. So even when we had 48 million individuals on $1 plan, we’d be making $48 million a month within the U.S., proper? So clearly, it would be nice to get increasingly individuals onto plans. However we did see the ratio of bids within the market dropping 37% to twenty% from these greater plans. And successfully, additionally some individuals within the greater plans additionally downgraded to some decrease plans. And on the similar time, we have been seeing a big inflow of freelancers coming to {the marketplace}. And that is truly even earlier than COVID. Final yr, I believe we had about 9 million new sign-ups into {the marketplace}. And we get now about between 20,000 and 40,000 new prospects a day signing up. So it is a fairly phenomenal stage of sign-ups. And since we have got this inflow of individuals bidding on initiatives and so forth, the ratio of bids coming in on the Freelancer truly went up from 20% to about 35%, which is sensible, and it ought to be about that stage, regardless that we’re making an attempt to get increasingly individuals within the plans on the time. However the flip aspect of that is that new freelancers are the least dependable to finish a undertaking. They’re those that do not have a monitor report they’re making an attempt to guard, that do not perceive absolutely how the location works and so they’re new to it, et cetera, and perhaps least dedicated to really getting a job completed. So what we truly noticed there when it comes to the flip aspect of that is we now have a enterprise mannequin across the undertaking charges, which we predict is a good mannequin for attracting individuals to the location. We mainly say it is free to enroll, free to bid on initiatives and we ship your fee to you of 10% if you win the undertaking. However we truly let the freelancer pay that fee as much as 90 days after the fee has been levied. So it is an opportunity for somebody who would not have any cash to get on the location, who wants cash, who may be gifted that may’t afford proper now to pay a undertaking fee upfront earlier than they full the undertaking. And notably, in the event you’re a primary time person, you may be a bit of unsure about whether or not you are going to be paid finally, if this complete idea is new to you. And so — as a result of we had a giant inflow of latest freelancers and we now have the proportion of bids being gained by new freelancers went up, we had a rise in expired charges 90 days later for some — from freelancers that — it might be a mixture of issues, the freelancer may be unreliable, they may haven’t accomplished the undertaking on time, they could not accomplished as much as spec or the employer might need been — the job poster might need been new to the location as nicely and perhaps take it off their curiosity in finishing the undertaking. However the expired charges has been rising and did rise over the primary half of this yr. It peaked at about USD 300,000 a month of expired charges, which clearly is a quantity we wish to convey down. We now have introduced it down a bit of bit with some enhancements we have completed to this point. However we wish to actually, actually convey this down now, and that is going to be our focus for the following quarter and a bit. And so you need to sort of watch out if you make modification within the market to keep away from, my new favourite phrase, which is schlimmbesserung, which is mainly making issues worse in an effort to enhance. Now we do suppose net-net, we have made an enchancment right here with the spam, and we do understand how we will scale back these expired charges. We will do plenty of issues. One factor we will do is we have got to tighten our cost verification for freelancers. So some freelances shall be required to cost confirm earlier than they’ll bid. The second is we will gently collaborate the free plan providing to encourage extra individuals on paid memberships. As I stated earlier than, it will be nice if we might get even a fraction of the 48 million on — many, many thousands and thousands on even a $1 plan as a result of that will be a giant — an ideal recurring month-to-month income. Third is we will additionally raise the belief and security parameters on accounts earlier than they’re allowed to bid. So there’s issues like they already need to be e-mail verified, however we’d require them to fund confirm. We will (inaudible) areas we already require them to be KYC or ID verified. We would roll out to extra areas. There are a bunch of different belief elements we might take a look at. For instance, deal with verifying and so forth. After which lastly, we will require the high-value initiatives, can I be bid on by these within the Verified by Freelancer program, which is a program whereby we undergo and we interview the freelancers in depth about their abilities, expertise, et cetera, make sure that they’re dedicated and so forth earlier than giving them a badge or the Most well-liked Freelancer Program, that are our elite freelancers. In order that’s just a bit aspect observe there. Clearly, if we will stamp that out and get that down. A few of that when it comes to expired charges shall be rookie job posters — posting initiatives for foolish quantities, like perhaps $1 million that get awarded and so forth after which if it will get levied, then it will get expired, however a really, very small variety of that. However for essentially the most half, we should always capable of seize at the very least half of this into precise income, which shall be a great enhance to the underside line and so forth in addition to getting market conversion elements all up. One actually large enchancment that I have been speaking about for a few quarters, and we have delivered on, and we proceed to ship on is round cellular. And we have been paying off quite a lot of technical debt over the past couple of years. And that is — we’re actually within the dwelling streak now when it comes to the key work objects. And with the enhancements on the entrance finish interface that we have made, we will now — we’re now able to sort out cellular in a giant method. And the very first thing we did was with the brand new webapp responsive web site. We ripped out the legacy cellular web site, I believe it was about June. And since we have ripped that out, so now we use the cellular internet expertise, it is precisely the identical codebase as a unique — so was it June? Do you bear in mind once we… ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [4] ——————————————————————————– July. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [5] ——————————————————————————– July? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [6] ——————————————————————————– Early July. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [7] ——————————————————————————– Early July. So since we have ripped that out, undertaking charges truly within the cellular internet have truly been up 54.8% in pcp within the third quarter, and total charges are up 57.6% on pcp. And what’s occurring right here is that earlier than we had a devoted crew on a separate web site, which is the outdated method of doing cellular. It was by no means had characteristic parity in any method, form or type. It was a really, very poor cousin to the desktop website. It was exhausting — It is exhausting to maintain it updated. You could not run AB exams on it such as you’re doing on the desktop website. It was at all times dragging in characteristic compatibility, and it was only a horrible expertise. And we have lastly managed to tear that out, and we have seen a giant uplift when it comes to income being generated from that. Now the following large factor that is occurring imminently is we’re ripping out each the iOS and the Android apps and change them with the identical codebase wrapped in a capacitive framework. And we are actually in the course of alpha testing on that. And we will beta testing, Adam? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [8] ——————————————————————————– A couple of week’s time. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [9] ——————————————————————————– A couple of week’s time from now. And so it is going to go to the — some inner beta testers just like the Most well-liked Freelancer Program and the Verified Program and have entry to the early entry options. However imminently and definitely earlier than the top of the yr, iOS and Android, we ripped out and changed by improbable new apps which have full performance, similar codebase shall be lockstep as a result of it is the identical codebase with the desktop website. And as an alternative of getting 4 separate groups engaged on 4 separate codebases, there’s 1 crew, 1 dream. And so this can do a couple of issues. One is it is going to raise the income from iOS and Android, and we hope to see charges like we’re seeing with cellular internet. It should imply that the productiveness of the engineers is quite a bit quicker as a result of we do not have 4 groups making an attempt to do the identical factor. And the general expertise to the purchasers goes to be quite a bit higher and it is going to be nice. In order new options come into the desktop web site, they’re out there all over the place. In order that’s been an enormous quantity of labor to get us up to now, and I am glad to say that in 1 week from now, we may have higher prospects from our freelancers and our job posters utilizing these apps and going via them. In order that’s an enormous quantity of technical debt. And from right here, one of many large focus is now on design. So we will get the design improbable. And we now have a world-class design crew run by Michael Strelan who got here from Foxtel. He posts a bunch of individuals from Foxtel. He introduced in another nice designers, and we have got some actually, actually good issues they will begin being deployed now that we have gone via quite a lot of the extremely technical and engineering-focused technical debt. We will now put the luxurious to start out wanting on the precise design, technical debt and getting that in a great place. Another issues we did within the quarter is we launched Discovery — Freelancer Uncover, which is a option to showcase content material. There’s quite a bit that is going to come back right here. That is actually 1 step of 100 steps down the showcase course. So there’s much more to come back sooner or later. We additionally did quite a lot of issues round area companies. Specifically, I do not know if any of you have been conscious of Freelancer World Fleet. When you go to www.freelancer.com/globalfleet, we now have an enterprise providing of our area companies resolution. However we have been actually, actually upgrading the platform when it comes to having the ability to do freelance jobs, that are required in a bodily location. So issues like supply, transport, dwelling transferring and so forth, ship me a photographer out to a location, even sending somebody I must in a location. And so we have completed quite a bit round that interface. And quite a lot of — quite a bit has been demanded by our enterprise prospects. And I am going to discuss enterprise in a second. However World Fleet is successfully our enterprise model of area companies. We have additionally been doing a bit of work within the API round location-based work. After which very shortly, we will launch a stand-alone app, displaying the ability of the Freelancer market, coupled with an API the place we summary away from {the marketplace}, and we successfully ship an Uber for X and that is fairly wonderful. The app we’re delivering doesn’t exist in the mean time anyplace on the planet, and we uniquely are positioned to supply it as a result of we now have individuals actually all over the place in all kinds of various abilities. And nobody else actually ship what we’re doing right here. So it is actually going to point out off the ability of what you are able to do. When you summary away from {the marketplace} and you’ve got a stand-alone app, simply working by API. When it comes to enterprise, and I could remind you, we do have Sarah Tang, who is out there for Q&A on the finish of this name, who can reply any questions you might need. However we made nice progress with enterprise this quarter. We actually have quite a lot of work to do in enterprise, and it retains getting — retains increase. A few of the issues that is level of observe when it comes to what we achieved within the quarter is we rolled out a report variety of pilots, together with a pilot with an American multinational meals firm, a $70 billion American know-how firm, a $26 billion telecommunications firm, considered one of Australia’s newest retailers, 2 of India’s largest conglomerates and a multinational conglomerate and one other in know-how house. We have plenty of pilots that we have accomplished final quarter, and we’re truly now increasing and one contains an accelerated rollout for a $17 billion chemical firm. I’ve talked about World Fleet. This has truly been already parted with enterprise prospects. This mainly is in partnership with Routable AI, which is a few guys at Uber, who even have a greater routing algorithm that Uber has internally. And Freelancer World Fleet mainly allows enterprises constructing and operator of world fleets {of professional} companies expertise to ship experience anyplace on the planet on-demand. And so it is designed for on-demand platforms, akin to fleet supply platforms, fleet administration firms, logistics companies, different massive enterprise infrastructure, power and know-how. And mainly, fairly than you going on the market and hiring an entire bunch of individuals and placing them on a pink bike with a pink hat and a pink T-shirt and working round, for instance, supply infrastructure, you can also make an API name to the cloud. We have already got the individuals all over the place. They already — we already know who’s good and who’s unhealthy. We have all of them rated and reviewed. We all know the place they’re in real-time. We will ship them out for you on-demand. And so it actually — it is like Twilio for individuals, proper? And so we partnered with Routable AI, which I discussed earlier than, individuals out of Uber. Some fairly, fairly senior individuals at Uber, and we cowl it with the biggest community of freelancers on the planet with their main on-demand car routing and administration platform. And what they allow you to do is that they allow you to mainly route the workforce, they’ll share routes, they’ll pull routes. And mainly, with the two of us mixed, you possibly can scale up them in demand, tapping into 48 million freelancers in 1,800 abilities. And we piloted this with a U.S. laptop firm, offering area companies to laptop and printer repairs in Indonesia. I’ve talked about within the earlier quarter how that was profitable and going out to a number of nations. We begin the following nation in 2 weeks, which is India. And imminently after that, the third nation is already scheduled, which is Australia. And that is going to occur finish of this yr, starting of subsequent yr. And there is 13 nations focused right here. And Indonesia remains to be working, regardless that we accomplished the pilot. It is nonetheless working as a result of what we’re doing successfully is a world rollout in 13 nations. And so we’re doing all the pieces we will to make this profitable. And the GMV that we have been offering in whole from right here goes to be — if we’re profitable, this shall be materials to the Freelancer GMV in a reasonably substantial method. We’re within the means of integrating with the ERP techniques to automate the workflow for the sector engineers at scale. And it is fairly wonderful. There is a video of this on freelancer.com/globalfleet, simply offers you a little bit of a touch of sort of what is going on on. Sadly, I can not point out the corporate’s identify at this level, however they seem to be a fairly substantial firm globally. When it comes to Deloitte. The Deloitte engagement continues to develop at an ideal tempo. We have truly — I simply wish to observe the scope of labor to give attention to not simply the interior Deloitte to Deloitte hiring, however Deloitte to freelancers to the cloud. We now have a public quote, which we printed from the Chief Innovation Officer from Deloitte Consulting U.S.A., who stated that success for us is 20% of all U.S. consulting gigs going internally Deloitte to Deloitte and 10% of all U.S. consulting gigs going from Deloitte to the cloud. And so that is fairly phenomenal contemplating Deloitte is the largest Huge 4, and Deloitte U.S.A. is the largest a part of Deloitte. So it continues to scale, and we have completed over 90,000 to 100,000 hours now in Deloitte to Deloitte internally and about 20,000 consultants are on-boarded on the best way to 52,000. So that they’re very dedicated to 52,000 being on-boarded. So not even midway but when it comes to the variety of Deloitte consultants that we’re dedicated to placed on the platform. And that is simply stage 1. There is a stage 2, which is definitely multiples of that. Within the quarter, we additionally gained RFP with $100 billion medical tools and companies firm from considered one of our largest opponents. That is why that is notably pleasing. One in every of our opponents had this account for 3 years, and we gained it off them. They usually’re our greatest competitor. And we additionally closed a bunch of extra MSAs with locations akin to European and Asian universities and loads of different. Our landmark deal, nonetheless, within the quarter was closing an MSA with one of many world’s largest know-how firms that gives {hardware}, software program and cloud-based companies and cognitive computing. They’ve stated that success for them is 100,000 initiatives within the comparatively brief to medium time period. In order that’s going at pace. After which on high of that, we introduced a partnership with Fb and Coursera. And what’s occurring right here is, successfully, Fb cannot develop quick sufficient as a result of there will not be sufficient professionals which can be expert within the Fb APIs and different bits and items that they want to have the ability to develop issues just like the advert program, their advertising and marketing applications and so forth. So what they’ve completed is that they’ve launched a bunch of programs on Coursera. They usually’re posting a bunch of jobs into our market for the graduates of these applications. And that is coming from the Fb mainly advert gross sales groups and advertising and marketing groups and so forth. And there are a bunch of shoppers on high of that, who use Fb, who’re additionally posting initiatives into our market, together with Johnson & Johnson. And in order a part of this, we’re mainly co-curating with Fb and a group of Fb licensed professionals. And we now have a particular part the place they’ll talk with one another and be educated and so forth. And we’ll proceed to be doing this with different companions. I talked about in June how we collectively gained a $25 million NASA Open Innovation Collection 2 tender. The duty orders have began coming in, and we began bidding on these job orders. I wished to level out that the $25 million pool is definitely — that share aren’t — the winners is definitely tender charges, and that doesn’t embody the GMV for initiatives posted or contest posted. So the cash awarded to Freelancer is definitely on high of that. So there’s quite a bit occurring. In truth, there’s one other e-mail that got here via this morning with extra job orders from NASA. So we’re bidding on that, and we’ll hold the market in efficiency as we go on there, however there’s clearly a a lot deeper relationship with NASA. And thus far, they’ve had 13,000 designs for merchandise submitted by 6,000 freelancers and that continues to develop, and we proceed to deepen our relationship. And on high of that, we’re additionally constructing a buyer advisory board with executives from bunch of those high prospects to information our enterprise product and innovation highway map. In order that’s Freelancer Enterprise, except for we now have a customized Freelancer Enterprise substantiation that we’re reporting throughout to, which is Freightlancer, which is Freelancer Enterprise for Freight. We have talked about this firm many instances up to now. However actually, the massive focus for it proper now could be placing throughout the enterprise stack. So once more, it will likely be 1 crew, 1 dream. And we have got some sneak previews of what it appears like the place you have to customise, put up jobs web page for freight, which we have truly — we’re using the client fields performance that we constructed for Deloitte to mainly enable buyer fields for this explicit web page for the freight instantiation. We like freight as a result of the common undertaking measurement in freight is $4,500. And you may see there that this web page, it has been custom-made and it offers you a sense for what is going on to occur sooner or later. And so Freightlancer shall be working off the Freelancer Enterprise codebase similar to Arrow is, similar to Deloitte is and similar to a bunch of different prospects shall be sooner or later. We will discuss them. And so we hope it to be a class killer within the space of freight, the place we layer on knowledgeable community of robust truck drivers with a 48 million freelancers doing metro point-to-point supply. So something you need delivered, we’ll have all of the individuals. I imply Uber — final time I checked, Uber had 6 million drivers. It may be a bit of bit greater than that now. We now have 48 million freelancers. We in all probability have extra drivers than Uber does. So theoretically, you construct Uber on high of Freelancer in the event you had an ideal API and an effective way of doing issues, we’re working very exhausting to sort of make {that a} actuality. And definitely, with the work on classification legal guidelines and the best way it is heading around the globe with the assorted supreme courts and FERC commissions and so forth, that could be sooner or later that firms like Uber want to come back to us to supply expertise, similar to the massive firms of the world go-to Adecco, Randstat, PERSOLKELLY, KellyOCG recruit and so forth to rent contingent labor. Switching gears a bit of bit and going throughout to Escrow.com. We had an ideal quarter for Escrow.com and extra to come back. We achieved gross cost quantity of $164.9 million, up 8.4% on pcp in Australian {dollars}. In U.S. {dollars}, which is definitely the foreign money that the location operates in, it is $117.9 million, up 12.9% on pcp. We’re primarily U.S. {dollars}, Canadian {dollars}, Australian {dollars} and kilos, however U.S. {dollars} nonetheless is by far I believe 85% of the amount is at proper now? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [10] ——————————————————————————– Sure. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [11] ——————————————————————————– Ex China, Escrow GPV was an all-time report at USD 108.4 million. You’ll be able to see there is a 20-year historical past of GPV, and we’re actually at pattern, if not barely above pattern within the 20-year pattern line. And there is a lot coming. And a few of these thrilling issues are occurring as we have gained eBay Motors, U.S.A., and we have talked about that previously. That is built-in into each the web site and cellular apps, et cetera, and it is the primary and solely digital cost possibility within the eBay Motors app. It is an non-compulsory cost methodology for now in personal occasion listings. And so there is a bunch of client schooling that must be completed round why you’d use a cost system to purchase a automobile versus attempt to meet somebody in individual and pay them money or give them a verify and so forth. There’s clearly quite a lot of hazard in transport a automobile throughout 1 aspect of the nation to the opposite. And the primary transaction we efficiently carried out at eBay Motors is a 1931 Ford Mannequin A pictured right here. That is truly the purchaser. Really, I believe it is the vendor truly. The vendor, it went from New Jersey to Poway, California. And so it is built-in in a deep integration with eBay Motors. However on high of that, and we simply put an announcement out yesterday, that is going stay. We’re now in eBay Watches, U.S.A. And so successfully now, we’re doing a few issues. And the primary factor we’re doing is we’re securing a brand new Authenticity Assure, which is stay on the eBay U.S.A. web site. You will must set your IP deal with to be from the united statesA. to see this. When you — perhaps a bit of little bit of a VPN, in the event you’re not within the U.S. However successfully, it is a deep integration. And what occurs now could be now not will you as a vendor of a watch on eBay, will you be capable of ship your watch on to the customer in case your watch is $10,000 or extra, proper? And so what’s occurring right here is that the watch now will get despatched to an authenticated community and the authenticated community, which has been arrange by eBay, not by us, will take a look at the watch, pull a component, verify all the pieces, be sure that all components will not be faux. It’ll then put a stamp on it or sticker on it and offer you a certificates, put it in a field and ship it to you. All this time, the cash is held in Escrow.com in escrow. You’ll obtain your watch, you’ll be examine it, take a look at the certificates, take a look at the sticker and so forth. After which you may resolve to launch the funds. Or in the event you’re not pleased, you possibly can return it throughout the inspection interval and get your a reimbursement, proper? This can be a phenomenal expertise. Prior to now, what you needed to do was you had to determine, do I ship my cash first or do they ship the watch first. Sometimes, you do ship your cash first. And in the event you received the watch and there was an issue, you needed to fill in an insurance coverage claiming type. Was it appropriately as described? Was it throughout the limits? Did you comply with the procedures correctly? And it was a whole mess, proper? So this can be a phenomenal expertise that is going to utterly stamp out fraud on eBay and eBay Watches. It is obligatory for $10,000 watches and above. It is non-compulsory for $2,000 watches and above. And there is 2 choices you will have for $2,000 and above. One possibility is you possibly can truly use Escrow.com as a cost methodology independently of the Authenticity Assure. The opposite possibility is you should utilize the Authenticity Assure, of which we’re the one cost methodology, we are the unique cost methodology. So there’s a few totally different choices there. It went stay final evening within the U.S. We have already got transactions which were arrange and agreed to by the customer and vendor and is ready for cash to be despatched via. In truth, I have never checked this morning, perhaps some cash has are available, I do not know. However it’s ramping up via the ability sellers as we converse. So over the following 2 weeks is a little bit of a comfortable launch because it goes to the ability sellers. And that goes to mainly all sellers. And as I stated earlier than, the massive distinction between eBay Motors and eBay Watches is for $10,000 and above, that is obligatory. So it is obligatory to make use of Escrow. In order that’s fairly thrilling. Now if we perhaps pull the Zoom off for only a second off my display and simply put it into the room right here, I am going to load the video of this that explains a bit of bit extra. And hopefully, that may stream. Effectively, we’ll check out it and see. Hopefully it would stream, we’ll give it a go. So in the event you can mainly take the video off my laptop computer the place I can discover the video. Okay. That is loading up now, simply give me 1 second. Okay. And that is — it is a good video as a result of it sort of describes very superbly sort of what we’re doing. Now can — you possibly can in all probability moderately count on that if we’re in eBay Motors and we’re in eBay Watches that we’re in all probability going to proceed to attempt to deepen our relationship with eBay, and that will be an accurate assumption. So there are different classes we’re clearly speaking to now, and we do anticipate that sooner or later, we shall be in additional classes inside eBay websites. Okay, my connection so I can truly get the video. Okay, the place’s the code generator? Sorry, 1 second, right here we go. Okay. So simply loading up the video now. And simply be 2 extra seconds. Okay. Now in the event you can swap again to my display. (presentation) ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [12] ——————————————————————————– Okay. So hopefully, the audio got here via. If not, I can share the video afterward with the individuals. However this can be a fairly wonderful providing. And I’ll say that eBay shall be rolling out the Authenticity Assure in different classes on their website, and we hope to be the unique cost methodology in these as nicely and in addition the obligatory cost methodology. Now you additionally might need picked up in that video, which I uncared for to say earlier is that the price of the authenticator service and the price of Escrow is being picked up by eBay. So there isn’t any value to the customer or the vendor for this wonderful service, which I believe actually stamps out forgeries, fakes and fraud in an enormous method, and it actually ups the sport within the house. We’re in already a bunch of different watch marketplaces globally. We’re in WatchPayer and Watch Purchaser. And there are a few extra which can be already within the pipeline, plus a bunch of inbound has occurred since this has gone public. So we intention to mainly beat the cost system for luxurious watches globally, similar to we intention to be the cost system for automotive autos, boats and airplanes globally as nicely. I believe it is also some fairly good validation of the place Escrow is as a enterprise. We have gone via a interval the place we acquired the enterprise, we rebuilt it, we have launched an API, and we began our gross sales exercise and we’re already stay in 2 main classes in eBay, which is about as large a buyer as you will get. In order that’s sort of the place we’re heading with this, is excessive quantity and Tier 1 kind of marketplaces the place the — the place we’re focusing our gross sales exercise, and we clearly have quite a lot of inbound occurring on the similar time. And this is a screenshot of sort of what it appears like at the moment on the eBay web site in the event you’re within the U.S. now. System additionally does work. For the sellers within the U.S., you possibly can truly purchase a watch anyplace on the planet and in addition undergo Escrow.com as nicely. That is about to be turned on so different individuals see it visibly. It is a vendor’s prerogative to decide on optionally above $2,000 and obligatory above $10,000. Our IPv4 deal with house enterprise can be going gangbusters. I believe I’ve talked about in earlier quarters how that is up about 500% year-on-year within the earlier quarter or quarter earlier than that. That continues to develop. Once more, we’re just about the unique cost system for the worldwide IPv4 house outdoors of financial institution transfers. And we — within the quarter, we truly did the primary ever IP deal with switch from Latin America to a different area. Really, truly to Latin America from one other area as a result of Latin America is correct out of IPv4 for deal with blocks. And so due to this fact, they purchase them from round the remainder of the world. And we’re truly those which can be facilitating these transactions. And really, what we’re making an attempt to do is we’re making an attempt to get ICAN to advocate us as the one cost methodology to switch IP deal with field. Within the quarter, we additionally rolled out digital KYC, which permits the friction for individuals to — for patrons and sellers to make use of the location. So we now do real-time id checking in opposition to authorities databases for some patrons and a few sellers. And when it comes to our licensing, we’re authorized in 48 states in america. New York is within the last, last, last rounds of, hopefully, a lifetime of license being granted (inaudible) subsequent earlier than the top of the yr. And that is the massive state that is left. After which we have got left is Hawaii and Nevada. And Nevada is simply just because the regulation has — it doesn’t require — it does now enable third-party background checks, it is going to be a authorities background verify, and we have equipped the — equipped background checks from each Australian Federal Police, New South Wales Police, et cetera, however they’re very temporary in nature. So we’re — hopefully, that mixed with the Interpol background verify and in addition to a third-party background verify with a supplier, we’ll get Nevada. We will assure you our lives as [captive] it was within the state of Nevada are over. We have been captives right here sadly. Unlucky to listen to that, however we have been — I do not suppose there’s in all probability an ASX listed firm the place the executives have been background checked as a lot — many instances as we now have. It is actually — it is about 50 totally different jurisdictions now, we have been fingerprinted, background checked and police checked. And another issues when it comes to the Escrow enterprise is we have appointed a Business Supervisor for Europe. So they’re mainly doing the identical position that Jackson Elsegood is doing within the U.S. So that they’re in control of the funds enterprise in addition to mainly gross sales. And so he began a few weeks in the past. He is up there and up and working and firing. And we stay up for constructing out the European and the U.Okay. enterprise with him on the helm. And in conclusion, we had optimistic internet working money circulation of $1.6 million for the quarter, 4 quarters in a row, $7.8 million year-to-date and ended with money and money equivalents of $37.1 million, up 9.9% on pcp. In order that’s it for the commentary. We will now divulge heart’s contents to Q&A, which goes to be moderated by Chris. So perhaps if we will transfer the video again to the room. You have to see myself, Matt Barrie, you could direct your inquiries to me or to Neil Katz, the Chief Monetary Officer; or to Adam Byrnes, the VP of Product; or to Sarah Tang, who’s dialing in, who’s the VP of Enterprise. And so Chris, if we might now open it up. I am unsure how we will do that whether or not you are going to read-up questions or whether or not we will unmute these microphones. Chris? ================================================================================ Questions and Solutions ——————————————————————————– Unidentified Firm Consultant, [1] ——————————————————————————– I’ve requested for individuals to message within the chat, and I am going to unmute you. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [2] ——————————————————————————– (Operator Directions) So please ship questions. You might have the video simply now going from the room fairly than this laptop? ——————————————————————————– Unidentified Firm Consultant, [3] ——————————————————————————– Sure. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [4] ——————————————————————————– All proper. Now you’ll want to ask questions. As at all times, it takes a short while for any person to get the braveness to ask a query and so they sort of are available. So Sarah Tang is unmuted, so you possibly can direct your query to both the 4 of us. (Operator Directions) So do not be shy. Any questions? ——————————————————————————– Gregory James Ward, Trafalgar Capital Administration (UK) LLP – Associate [5] ——————————————————————————– Matt, I am going to ask a query. It is Greg Ward from Trafalgar right here. Only a fast query. You talked about sort of the expertise of those rookie each shoppers but in addition freelancers. From a Freelancer perspective, these people who sort of have not executed the job and have not gone forward, has that really completed a lot harm to your loyal shoppers who’re truly posting jobs and being upset that issues have been disappearing or issues weren’t getting executed? ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [6] ——————————————————————————– Effectively, I imply, as I stated earlier than, there’s about USD 250,000 to USD 300,000 in expired charges monthly on the pay and it is down now — Adam, what is the variety of that, roughly? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [7] ——————————————————————————– It is about $190,000, I consider. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [8] ——————————————————————————– That $190,000. In order that USD 190,000 price of initiatives are a mixture of both spam initiatives that have been awarded to people who by no means supposed to be accomplished or paid by the job poster or it is initiatives that have been supposed to be accomplished by the job poster the place the freelancer has managed to comply with via and the charges have expired as a result of the freelancer has been paid. I estimate, of the $190,000, in all probability over half of which can be actual initiatives that haven’t been accomplished efficiently. And in order that’s why we have got these 4 initiatives — there’s truly greater than that, however there’s 4 issues I identified within the commentary that we will do to cease that. It is a mixture of not letting high-value initiatives be bid on by freelancers that aren’t a part of the Most well-liked program or Verified; by tightening up the freight plan a bit of bit to encourage individuals to be on a plan and put their cost strategies, et cetera; tightening up the cost verification necessities of the freelancers in order that they’re dedicated and so forth. So sure, I’d say that there was some harm to the job posters to the tune of, at most USD 190,000 a month. It is in all probability extra more likely to be a bit of bit over $100,000, in all probability $120,000 is my guess. We’ve not completed a root trigger evaluation on that, however I’ve awarded one within the final variety of weeks. That is what we’re utterly wanting via. However we are going to tighten it up and we are going to crack down on that. I imply finally, what we might do, at the very least we might, for instance, simply require cost confirm from everybody. However the issue with that’s that we then will kill among the liquidity from new freelancers who may be distinctive on the job, will truly comply with via with the work and full it efficiently, however are a bit too afraid to place their bank card within the upfront earlier than they really get a job awarded and paid to them. So we now have to watch out. It is a extremely dynamic system with 48 million energetic, clever individuals making an attempt to adapt to something we put in place. And if you consider, for instance, the federal authorities and state authorities, each time they implement a legislation, it sort of goes the flawed method and so they get unintended penalties and blowback. You are going to be actually light and actually cautious and principally cautious at what you do. So we wish to watch out right here that we — and enhance as we make up net-net optimistic and do not have unintended penalties. However sure, that sort of quantifies the extent of what we predict the problem is round expired charges. ——————————————————————————– Gregory James Ward, Trafalgar Capital Administration (UK) LLP – Associate [9] ——————————————————————————– And do you will have visibility all the way down to the consumer posting or whether or not you’ve got truly misplaced any long-term sort of prospects of measurement? ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [10] ——————————————————————————– Sure. So we all know who the client is. We all know precisely the undertaking. We all know what we’re making an attempt to get completed. There is a root trigger evaluation that is being carried out proper now to find out what the breakdown is when it comes to spam initiatives or job posters who will not be critical versus freelancers who will not be critical and I am ready for the outcomes for that. And I can discuss that extra within the subsequent quarter, maybe when that is available in. ——————————————————————————– Gregory James Ward, Trafalgar Capital Administration (UK) LLP – Associate [11] ——————————————————————————– Okay. And only one extra follow-up. The debt burden of the tech that you have lastly accomplished. What has been the momentum in the previous few weeks because of ending that? ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [12] ——————————————————————————– Proper. So I talked about, for instance, with cellular, since we ripped out the cellular legacy web site and we changed that with a responsive website, that is up about 56%, 57% when it comes to charges. We hope to realize related numbers for Android and iOS. And as I discussed earlier than, that is going into beta in a couple of week. And we hope by — actually on this quarter, we ripped out and — rip and change of the legacy iOS and Android apps. And when it comes to the hourly funnel, I talked about that. And we have truly received that — we’re already again to pattern, received the long-term pattern. So the milestones for hourly, that was up 26.5% within the quarter on pcp. And we count on that pattern to proceed, if not speed up, as a result of we have got a couple of different enhancements we nonetheless need to make to that funnel, together with requiring a wise upfront cost from the job poster earlier than the hourly undertaking can start. So we should always get a bit of little bit of uplift from that as nicely. Adam, every other feedback to make right here round enhancements in technical debt that what we will observe within the market when it comes to metrics enhancing? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [13] ——————————————————————————– Sure. So I imply, clearly, we — now you’ve got coated cellular and you have coated hourly, I suppose, another — among the metrics of curiosity. I imply simply usually throughout the charge mounted worth funnel, we’re always making small tweaks and is enhancing. We have additionally seen a big improve in milestone worth all through {the marketplace}. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [14] ——————————————————————————– We must always — let me discuss that a bit of bit. So these are — so we have clearly received a giant improve in money coming to the enterprise. Deposits are up and GPV and GMV are up. However the different factor that is been rising is milestones which were created for initiatives which have but to be launched and but to probably have a charge levy on that. So perhaps you wish to discuss — do you will have the numbers, the worth of the milestones and the way a lot they’ve elevated? Is that… ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [15] ——————————————————————————– I haven’t got them useful. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [16] ——————————————————————————– It is about 20-something %. ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [17] ——————————————————————————– Sure, that is appropriate. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [18] ——————————————————————————– Low 20s. So there may be… ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [19] ——————————————————————————– There’s a lot (inaudible) ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [20] ——————————————————————————– There’s lots of money that is coming to the enterprise that is in initiatives, they’re in progress nonetheless, which we should always see the profit from ensuing quarters as nicely. ——————————————————————————– Gregory James Ward, Trafalgar Capital Administration (UK) LLP – Associate [21] ——————————————————————————– And simply with the… ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [22] ——————————————————————————– Neil? ——————————————————————————– Neil Leonard Katz, Freelancer Restricted – CFO & Firm Secretary [23] ——————————————————————————– There is a retention issue. So we have had a big improve in person deposits. So as soon as the cash is within the system, not all of it goes out and it stays within the system. So over time, as deposits continue to grow, our money balances are going to continue to grow. ——————————————————————————– Gregory James Ward, Trafalgar Capital Administration (UK) LLP – Associate [24] ——————————————————————————– Proper. Okay. And when it comes to the character of the development and the elevated quantity, is that coming from extra skilled posters and the enterprise prospects or at the very least the larger ticket merchandise prospects or is it new prospects as nicely? So simply discovering the performance quite a bit simpler to work with. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [25] ——————————————————————————– The worth GMV has a hockey stick progress to it, however it’s nonetheless off a low base. So we now have quite a lot of irons within the fireplace for some large moon pictures with enterprise the place the GMV is within the tens of thousands and thousands or in some circumstances, truly an order of magnitude greater than that the place we have got to do quite a lot of work to get there. But when we get to — considered one of these large prospects to actually get to the promised land, it is going to be materials like very, very, very materials enterprise, in actual fact, might be even bigger than the present GMV of the entire enterprise is at the moment. So there’s quite a bit getting in there within the enterprise. However proper now it isn’t a significant contributor within the large scheme of issues. Within the final quarter, there was a giant contributor from new customers, new shoppers and new freelancers and so forth. Everybody went to lockdown. The one method they may work was on-line, large circulation of labor got here in. Within the third quarter, the ratio went a bit of bit extra within the course of repeat customers and among the freelancers and among the shoppers in Q2 that posted jobs received extra expertise. And so issues like the common undertaking measurement lifted a bit of bit. However we have got some large contributors from product enhancements on high of that, all proper? So we now have gone via an enormous quantity of technical debt. And it is — a few of these — among the adjustments are like evening and day. When you used, for instance, the legacy cellular web site earlier than, and so they used the cellular web site now, it is actually evening and day, prefer it’s no comparability. So it is like 100x higher when it comes to options, performance, usability. It is unimaginable. ——————————————————————————– Gregory James Ward, Trafalgar Capital Administration (UK) LLP – Associate [26] ——————————————————————————– Nice. And is among the key metrics there may be conversion charges or completion of put up charges? Is that the place you are seeing it come via? ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [27] ——————————————————————————– Completely. And in some circumstances within the cellular legacy webapp, their conversion price was 0. What have been among the issues… ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [28] ——————————————————————————– Hourly. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [29] ——————————————————————————– Like hourly initiatives? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [30] ——————————————————————————– Hourly initiatives. We could not do, actually. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [31] ——————————————————————————– You could not? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [32] ——————————————————————————– Actually, I imply, you may, however you’d need to revert again to a desktop machine about midway via the circulation. Now you are able to do it utterly end-to-end on a cellular machine, which implies an enormous distinction. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [33] ——————————————————————————– And memberships will not be out there typically? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [34] ——————————————————————————– Right. Memberships was one other one which — you actually simply could not purchase a membership beforehand. So now you can. It is simply nice on the freelancer aspect of issues. Only a fast replace on the milestone worth, it is up 26.5% within the third quarter. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [35] ——————————————————————————– That is pcp. ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [36] ——————————————————————————– Pcp, USD. ——————————————————————————– Gregory James Ward, Trafalgar Capital Administration (UK) LLP – Associate [37] ——————————————————————————– And Adam, simply to get a really feel of these hourly put up, hourly on cellular, what portion of that might be extra lately the GMV as a proportion of whole GMV? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [38] ——————————————————————————– It isn’t notably excessive. The hourly as an entire is kind of excessive. However in the event you’re speaking about hourly completed solely on a cellular machine, then no, it isn’t notably excessive in any respect. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [39] ——————————————————————————– It touches one thing like 80% of jobs. ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [40] ——————————————————————————– That is appropriate. So the exhausting half is how do you establish what’s and is not a cellular job. When you’re speaking about solely cellular as in end-to-end, by no means touches a desktop machine, that share is kind of low. However in the event you’re speaking about, in some unspecified time in the future, touches the expertise on a cellular machine, then that share grows dramatically. It relies upon precisely the way you outline cellular versus desktop. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [41] ——————————————————————————– However now you even have the total performance — as for the online, for instance, we count on these numbers to rise quite a bit. And definitely, with iOS and Android being changed as nicely. You simply count on that the entire contributor from cellular as an entire will go up. And on condition that — I believe — is it — it is over 50% of our visitors is cellular? ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [42] ——————————————————————————– It is about that. Really, it is simply over, sure. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [43] ——————————————————————————– Sure. Over 50% of visitors is cellular and cellular is a minority contributor to the income line of the enterprise. For the primary time on cellular, you’ll truly entry the total performance of the location. There’s a few pages left to go which have to maneuver to the SPA or webapp structure. They’re minority pages for essentially the most half, little bits and items right here or there. When you’re like looking the settings web page, for instance, it won’t convey that nicely or you possibly can… ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [44] ——————————————————————————– Browse analytics. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [45] ——————————————————————————– Shopping the FAQs or among the search web page, et cetera. However we have got groups engaged on a bunch of stuff. We’re actually over the hill. And the important thing pages have been migrated. Now we’ll proceed to make enhancements on these key pages to make them extra cellular pleasant, and there is quite a lot of UX and UI polish we have to make all over the place on the location, even on the desktop website, to enhance the expertise for customers. However we’re bidden off an enormous quantity of technical debt, and we’re within the dwelling streak when it comes to SPA and when it comes to, nicely, the entrance finish and when it comes to (inaudible) And the beauty of that is together with that permitting us to get into new issues and construct new merchandise and new options, the collaborative instruments and so forth, along with improve the productiveness of the employees massively as a result of it is one crew when doing the codebase. David has a query. ——————————————————————————– Unidentified Analyst, [46] ——————————————————————————– Matt, sure, only a fast one, and apologies, I used to be a bit of bit late to the decision. However simply was questioning with the association with eBay Motors, whether or not there was alternative to increase that to markets outdoors of the united statesA.? After which perhaps simply as a follow-up, I believe within the final quarterly, you talked about that one other main automotive market was signed and being built-in. I am unsure if there’s any updates on that. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [47] ——————————————————————————– Sure. So with eBay, we’re in discussions with different classes in addition to different nations. I believe it is extra probably that we’ll get one other class earlier than we get one other nation, however we now have had discussions already. Jackson has been in discussions there, the place we now have talked to different nation managers of, for instance, Motors. However we’re in discussions with a number of class managers. And the chance — after which the Authenticity Assure shall be rolling out to different classes of eBay. And we’re at the moment the unique cost supplier for the Authenticity Assure, in actual fact, that I do know who probably present a aggressive cost resolution for the Authenticity Assure. As well as, we built-in as a cost methodology individually for the Authenticity Assure. So for $2,000 watches and the $10,000 watches, you possibly can select both the Authenticity Assure, which is obligatory or Escrow.com cost methodology outdoors of the Authenticity Assure. So there are quite a lot of efforts occurring with eBay. And I’ve some stage of confidence that we’ll — if we’re in automobiles, we’re in watches, then we’re in different places, proper? So and — however the large focus is on the U.S., and I believe that we’ll see much more exercise within the U.S. on eBay earlier than we are going to see going to different nations. Now your different query was in regards to the different main North American automobile market, we truly combine and gained that enterprise a very long time in the past. COVID got here alongside after which they’ve restricted assets, switched their focus to sellers. As you understand, the second-hand automobile market around the globe is booming as a result of nobody will get to public transport anymore. And they also discuss your assets and put it into that. We had — we did have a problem once we launched with them, the place it was a brand new — paying via Escrow was new. And so customers weren’t very skilled, et cetera. And one factor that occurred was these automobile labeled websites do not know the place the automobile is bought. They make an assumption that the automobile is bought as a result of the itemizing would not get renewed. However as a result of they do not take the cost, they do not know something in regards to the purchaser or something about vendor actually. They may know, in some circumstances, okay, you are a vendor, there’s quite a lot of vendor stock. We all know who you’re, et cetera, visits you, et cetera. However in personal stock, so that is the peer-to-peer, the place it is simply somebody promoting the automobile to any person else. They do not know something about them. In some circumstances, they do not even know the cellphone variety of the individual, proper? They simply have an e-mail deal with for them. Or perhaps they’ve the e-mail or the cellphone quantity, proper? And so there’s truly a good bit of fraud occurring in these marketplaces. And so one factor that occurred is once we went stay in that market, there was a bit of little bit of fraud that we detected the place somebody was making an attempt to fake to be Escrow. And so we stated, “Okay, what we’d like is we’d like the cellphone numbers for these customers.” So that you begin clicking the cellphone numbers despatched to us, so we will ship SMS to a bunch of different issues, et cetera. They usually stated, “No downside,” and so they begin constructing that kind of work, however there was a bit of bit of labor to tighten that up. Within the meantime, COVID hit and so they go truly — as a result of sellers are going loopy promoting second-hand automobiles and so forth, that is actually targeted on sellers now. And sellers additionally get a little bit of infrastructure as a result of much less individuals strolling out and in of the dealerships, in order that they want a bit extra infrastructure information and purchase and promote on-line. And they also’re simply sadly disadvantaged us a bit of bit. We have gained the account. We have built-in. There is a bunch of labor that is in progress, however we’re simply sort of ready to get again in there. And so we’re hopeful now with the U.S. and so forth — and Canada kind of opening up a bit of bit that we will mainly get that transferring once more. However there’s quite a bit occurring with Escrow. And once more, we have additionally received restricted assets and we wish to extract the utmost worth. And since we’re sort of transferring via issues like eBay and there is truly some bunch of different automobile marketplaces that come via now who gained the enterprise for this watch marketplaces. We have completed quite a lot of that within the artwork world. So we’re in as, we’re in Artsy, we’re in Artland and Artland is the third artwork market we’re in, as we’re aspiring for the tremendous artwork world. We’re mainly — if the deal is scorching, I imply, we will make an integration occur, we soar on it and we make it occur. And the beauty of Escrow is the combination is pretty easy, and it is pretty fast. I imply with eBay Watches, we introduced that I believe in June, and we’re stay as of Monday U.S. time. So regardless that it is a deep complicated integration, we’re doing this quicker and quicker and quicker now which is sweet. So if we scent blood within the gross sales funnel, we soar on it, proper? In order that’s sort of — sadly, we have gained that enterprise when it comes to the opposite North American automobile marketplaces. It is main, it is #1 in its area. It is simply that we now have to get some extra time with their engineers to really make it occur. Any questions? Do not be afraid to ask a query. Simply ping one thing on the chat and I am going to gladly reply them. Okay. And as at all times, if you wish to ask your query privately, we now have an organized time after the quarterly to debate with you. However open up for one more minute or 2 to questions if anybody needs to ask one. In any other case, we’ll… ——————————————————————————– Unidentified Analyst, [48] ——————————————————————————– Matt, if I can. Perhaps only a fast follow-up. Simply on the eBay Motors integration. Once more, that is simply my anecdotal statement, however it looks like there’s some excellent take-up from personal sellers. However in the event you take a look at the sellers, quite a lot of them, at the very least, that do not appear to have but jumped on to the combination. Are you noticing extra of the sellers approaching board with Escrow? Or is it nonetheless predominantly one thing that you just see as assembly a necessity or being utilized by the personal sellers on the Web? ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [49] ——————————————————————————– Correction. It isn’t out there to sellers, it is solely out there to personal sellers. Sellers — usually, in the event you purchase a automobile from Toyota, you usually do not have downside sending your cash to Toyota. There’s not a belief, proper, it is a problem Toyota will give your a reimbursement. And the opposite factor is that sellers usually require — they make them out of financing. So that they usually don’t desire the cash to be despatched to them. They usually need you to go and get financing. So it is designed for this problems with belief, proper? And in order that’s why it is designed for personal occasion to personal occasion. So it isn’t out there for sellers. There are some instances the place some sellers have used us outdoors of the combination, each with eBay and in addition externally, the place they’re transport a automobile over a really lengthy distance. The client is nervous in regards to the state of affairs. And so the cash is held in Escrow whereas the automobile transits. However for eBay’s integration, it isn’t out there for sellers in any respect. ——————————————————————————– Unidentified Analyst, [50] ——————————————————————————– Okay. Okay. I used to be considering there was a necessity in that in the event that they have been promoting second-hand automobiles, a part of the consolation you’d get with Escrow is that you just get to see if it was described precisely. And — however you are saying it is predominantly there simply to guard funds and such. So you do not actually see integration with sellers as being probably? ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [51] ——————————————————————————– We do have plans in some unspecified time in the future to have a vendor [offering] earlier than it is financed as a result of the sellers must see a finance element to make it their finance element the place they make their cash to make it occur. It is attention-grabbing you convey that up. The AAA of the U.S., just like the NRMA, we had an engagement with them about 2 years in the past, the place they wished to show their AAA places into a spot the place you may convey second-hand automobiles and it will undergo Escrow and AAA would certify, a bit just like the Authenticity Assure that I (inaudible) it was that equal for automobiles. So we did a component with them. That did not transfer ahead in a giant method, however they’re — truly had come again to us and so they’re speaking to us once more. So in some unspecified time in the future, one thing may occur there. As well as, we have had one other equal of AAA from a unique nation come to us. They usually’re very eager to do one thing, which is definitely extra of a market mannequin. So I believe we are going to tip automotive globally over the following few years. It’s going to take a bit of little bit of time. There is a little bit of client habits that has to alter. And definitely, as we will transfer from an non-compulsory cost methodology to a compulsory cost methodology and so forth and folks get comfy. I bear in mind after I was at Stanford College at 1997 and eBay got here out simply earlier than that, individuals have been saying, why would you ship cash to somebody upfront that you do not know to purchase one thing off this eBay, like they’re going to simply take your cash and run. And I bear in mind the primary time I ordered a pizza from an internet site. I used to be within the computing lab and I ordered pizza from the college in Palo Alto to the computing lab at 10:00 at evening, I assumed there is no method my pizza goes arrive. No — there is no method. Cannot purchase pizza, the Web would not make any sense, proper? And we actually put the order in and there was no cost as a result of there is no method of gathering the cash, simply they needed to come, convey the pizza, and you then give them some money. And the man truly tracked us down on-campus, discovered the lab, discovered the room we’re in, banging the door a couple of hours later and say that your pizza’s right here and — we’re shocked to suppose that you just order a pizza on the Web. The identical factor goes occur with automobiles the place individuals did not suppose you may pay for a automobile over the Web sooner or later that they will discover out, it is truly going to be a greater method of paying for a automobile as a result of the issue you will have now could be you choose up a automobile, [you’re as a lemon]. It is an entire area of analysis. Really, I’ve learn a paper the opposite day about marketplaces the place there’s lemons. I believe Doug from Ford, he is on the decision, he talked to me about this intimately, proper, you will have this data asymmetry between one occasion who know if there is a lemon or not and the opposite occasion has no concept. And in consequence, you will have issues in liquidity and pricing. However sooner or later, if you go purchase a automobile from somebody or a vendor or what have you ever, the higher expertise from a client’s perspective is give me 7 days or 3 days to drive it round. I put the cash into the system into Escrow belief. You will get your cash if I do not come again in 3 days or 7 days. But when I come again inside 3 days or 7 days for any purpose by any means, I give my a reimbursement immediately, proper? And examine that to the state of affairs of at the moment, we have got a vendor, you drive a automobile on the block, you’ve got already paid them as a result of they will not give it to you except you pay them upfront. And you do not know what’s good — whether it is working or not. After which down the monitor, there may be a problem, however it may be 3 months down the monitor or 4 months down the monitor and even may be simply after you’ve got pushed it out and also you go to a — you are on mechanic and also you’re making an attempt to determine what — if it is okay or not, making an attempt to get that rectified could be very troublesome, proper? Effectively, sure. I imply, that is the entire purpose why eBay went to us for Motors as a result of their insurance coverage premiums for his or her Motors product went up within the tens of thousands and thousands of {dollars} when it comes to insurance coverage prices because of the purchaser safety they’re providing. And the expertise of shoppers was horrible is actually filling in a declare type, was appropriately as described, did you comply with the procedures correctly, is it the precise classes after which wait 4 weeks, 6 weeks, 8 weeks till an assessor appears at it and decides what is going on to occur and perhaps get your a reimbursement, proper? So as an alternative with us, we maintain the cash, you get the products, you bought a time period to examine it. You’ll be able to return any time inside that interval unconditionally or get your a reimbursement. You will get the cash that goes via to the vendor. So it is a significantly better expertise from a client’s perspective. And in addition, the opposite factor to recollect is that nobody can supply Escrow like we provide it due to the regulation and the best way it is — the regulatory setting, it is state by state licensing. And it will take — I imply I couldn’t recreate Escrow from scratch, even when I wished to at the moment as a result of the one purpose that exists is it pretty began 1999. SoftBank and others put USD 40 million into it and it has been working for 20 years, proper? And over the 20 years, it is picked up (inaudible) 48 states to function when it comes to licensing. And if I wished to do that once more, it will take a decade and a hell lot of cash, and it will be inconceivable to get going as a result of the cash sits off-balance sheet and belief, and you may’t use it to for working capital. So to make $1 million, you want $70 million of quantity, proper? You’ll be able to’t — it is a enterprise that may’t be replicated. And the optimistic factor is now that regulators just like the DBO in California, which is simply Chase that modified its identify, has written, for instance, for Airbnb and stated, it’s worthwhile to have an Escrow license. And Airbnb could make the choice, “Sure, okay, I am going to go for an Escrow license in California.” Perhaps after 2 years, they’re going to get that license. However then they want one in Florida and New York and North Carolina and South Carolina and Alabama and Alaska and I get to work. I imply, Neil, perhaps you will have some phrases so as to add. May anybody — might we begin this once more from scratch and construct it? ——————————————————————————– Neil Leonard Katz, Freelancer Restricted – CFO & Firm Secretary [52] ——————————————————————————– No, not simply. I imply the lead time to getting licenses could be very lengthy. Once we took over the companies to — the change of management course of was lengthy sufficient for every license, however simply new license software is months, years in some instances, plus the bonding necessities, the capital necessities is large. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [53] ——————————————————————————– And the auditing, how typically do you? ——————————————————————————– Neil Leonard Katz, Freelancer Restricted – CFO & Firm Secretary [54] ——————————————————————————– Auditing. Effectively, we successfully received an examination occurring virtually on a regular basis. As a result of each state does an examination, the regulation requires exams to be completed, in some instances, each 2 years, in some instances, yearly, some instances each 3 years. So we have virtually received the regulator doing an examination at any time of the yr. So I might say about 9 months of the yr, we have got an examination occurring in 1 state or the opposite. So there are quite a lot of limitations to entry into this enterprise. ——————————————————————————– Unidentified Analyst, [55] ——————————————————————————– Thanks for that. It looks like an ideal alternative. And I do agree that with eBay, it does appear to be there’s quite a lot of different classes that come to thoughts that will be simply as useful of this integration than simply jewellery. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [56] ——————————————————————————– Effectively, we’re truly not in jewellery at at all times, just about in watches. So jewellery is a pure place the place we will go. Wherever the place there’s fakes, forgeries or fraud and high-value objects is a pure place for us to go. And actually, even in simply the mass market, there are many locations the place an merchandise of worth is being bought. And if you consider this enterprise in industrial, bringing in transport containers, proper? You order from a manufacturing unit in China and the primary order of the transport container arrives, and it is all nice. The fourth order comes via and all of the defects from the primary 3 orders are shopped into the ground transport it down. In the meanwhile, all of your high quality infrastructure is up in such a method — and the worldwide transport enterprise is up in such a method that is all freight and board. So you’ve got you bought a letter of credit score and supply the cash and as quickly because it release — as quickly because it’s free on board in someplace in China or wherever it could be, (inaudible) proper? And perhaps SGS to do the standard inspection (inaudible) there will be containers, take some [furloughs] ship it throughout — apparently what is going on on. However as an alternative, with Escrow, you possibly can have the product and the transport container delivers to your warehouse after which you possibly can examine after which you possibly can launch the cash, proper? After which perhaps as a part of the contract, you stated the defect price shall be 2% and above that, I have to be refunded. ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [57] ——————————————————————————– Certain. I imply, I would simply say one different factor. We’ve not even actually touched on quite a lot of the value-added companies we will present on this enterprise. The second we’re simply doing the straight cost, however there’s a lot intelligence one might get on motor autos. When there is a VIN quantity and a [retro] — and in any piece of kit that have gotten serial numbers if we’re capable of probably add worth to customers about details about that asset that they are buying might actually add worth as nicely. ——————————————————————————– Robert Matthew Barrie, Freelancer Restricted – Founder, Govt Chairman & CEO [58] ——————————————————————————– Sure. I imply, we — in the mean time, for instance, motor autos, we do issues like whole assortment we do lien holder energy of, we do lease swap preparations. There is a vary of issues we do round that. And over time, we’ll in all probability know the worth of all the pieces. So there is a bunch of issues we do — can do to that. In the meanwhile, we all know the worth of domains as a result of we’re successfully the key cost methodology used globally for area identify. So we have purchased and bought the domains for SpaceX, uber.com, snapchat.com, instagram.com, wechat.com, JD.com, aws.com, prime.com for Amazon, chrome.com, gmail.com. And in the event you identify it as a website identify, we — it is gone via us in some unspecified time in the future. And so we do the worth of each area identify. And actually, we construct a pricing instrument, for instance, we kind the identify regardless of the worth is. And this stuff are actually promoting for $5 million, $10 million a [poll] if they seem to be a premium identify. So similar to we will try this for domains over time, we should always be capable of do it with automotive, we should always be capable of do it with a bunch of various carriers. However it’s fairly attention-grabbing. Another questions? Okay. Effectively, if there is no additional questions, we’ll name the assembly to an in depth. Thanks very a lot for attending. And as I stated earlier than, you are at all times welcome to contact us privately to have a dialogue with any of the administration crew. So thanks on your time. ——————————————————————————– Adam Byrnes, Freelancer Restricted – VP of Merchandise & Progress [59] ——————————————————————————– Thanks. ——————————————————————————– Neil Leonard Katz, Freelancer Restricted – CFO & Firm Secretary [60] ——————————————————————————– Thanks.