Freelance.com: 2023 results; strong EBITDA growth (+9%)

Freelance.com Freelance.com: 2023 results; strong EBITDA growth (+9%) 22-Apr-2024 / 18:40 CET/CEST Dissemination of a French Regulatory News, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.   Press Release – 22 April 2024   2023 Revenue: €857.7m (+7%) EBITDA*: €29.4m (+9%)   Freelance.com (Euronext Growth Paris - FR0004187367 - ALFRE), a leader in the relationship between companies and their external talents, has announced its consolidated results for 2023 (from 1 January to 31 December 2023). The audited financial results have been prepared on a consolidated basis in accordance with French accounting standards and were approved by the Board of Directors at its meeting of 19 April 2024.   Audited consolidated data (€m) 2023 consolidated 2022 consolidated Change Revenue 857.7 800.2 +7% EBITDA 29.4 27.0 +9% Operating income/(loss) 26.0 24.7 +5% Net financial income (4.6) (3.1) (1.5) Non-recurring profit/loss (1.1) 0.4 (1.5) Income tax (4.1) (3.9) (0.2) Goodwill impairment expense (1.6) 0.0 (1.6) Consolidated income 14.6 18.1 -19% Net income (Group share) 14.5 18.1 -19% *EBITDA = EBITDA = Operating income before depreciation and amortization and operating provisions, primarily for liabilities and charges and post-employment benefits.   Consolidated 2023 revenue: €857.7m (+7%) Consolidated revenue for full-year 2023 amounted to €857.7m, up 7% from 2022 (+4% organic growth). International economic uncertainty and the slowdown in hiring momentum have decelerated our customers' use of freelancers in 2023. When accounting for 12-month business volumes for OpenWork, pro-forma 2023 revenue came to €902.6m. In France, Freelance.com grew 15%, reaching €583.7m, buoyed by strong organic growth in the first half of the year and the integration of OpenWork on September 1, 2023. International activities decreased by 6%, reaching €274.0m. Strong EBITDA growth, albeit some non-recurring items impacting net income Freelance.com generated €29.4m EBITDA in 2023, up 9% year-on-year, from €27.0m in 2022. The slightly higher growth than that of sales is due to a steady gross margin over the year, while benefiting from economies of scale. The use of bought-back shares under the employee bonus share plan had a negative impact of €1.2 million on operating expenses. Operating income rose by 5% to €26.0m, impacted by significant ongoing IT investments which increased amortization. Net income (group share) amounted to €14.5m, compared to €18.1m in 2022 on the back of several non-recurring elements. Expenses relating to exceptional items, the impairment charge for the planned discontinuation of TMC's historical training activities, and negative foreign exchange losses lowered net income by € 3.7m.   Strengthened shareholder’s equity position and healthy financial capabilities At the end of 2023, the Group had a reinforced balance sheet structure, with shareholder’s equity of €153.6m compared with €137.9m a year earlier. Available cash rose by 8% to 87.9 M€, reflecting a +€8.7m net cash flow generation excluding loan issuances over the year. Cash and cash equivalents, including marketable securities, amounted to €129.4m. The Board of Directors has proposed the distribution of an eight-cent dividend per share for the current year. The dividend policy will be reassessed next year.   2024, a transitional year In the context of a persistently uncertain labor market, the Group remains cautious regarding both its French and international outlooks and is targeting slightly positive organic growth for the year. However, the integrations of OpenWork on September 1, 2023, and STA on January 11, 2024, raise Freelance.com's combined sales above the billion-euro mark. These two acquisitions will strengthen our position in the external talent management market and allow the Group to recover a growth momentum in line with our objectives.   Upcoming events First quarter 2024 revenues, 20 May 2024. Annual General Meeting: 14 June 2024. Second quarter 2024 revenues, 26 August 2024.       About Freelance.com Positioned at the heart of the transformation of the labor market, Freelance.com is a European leader in Talent as a Service (TAAS) solutions, connecting large companies with their external talents. The group offers a full range of services: expertise sourcing, project management, commercial support, wage portage, and compliance management. Freelance.com relies on a community of over 150,000 (106,000 in France) qualified consultants and experts, working as freelancers or within highly specialized SMEs, having delivered a total of more than 15,000 services in 2023. With 321 employees and a proforma turnover of 902.6 million euros in 2023, a presence in France and internationally (Switzerland, Belgium, Morocco, England, Germany), Freelance.com is a reference player in the "Future of Work," recognized as one of the "Growth Champions 2023" by Les Echos.   Label: FREELANCE.COM ISIN Code: FR0004187367 Mnemonic Code: ALFRE Number of shares composing the share capital: 56 535 254 Additional information on: https://www.freelance.com       Groupe Freelance.com Tristan DE VILLEMEUR Head Investor Relations Tel. [phone] [e-mail] Groupe Freelance.com Florent BRIANT Chief Financial Officer Tel. [phone] [e-mail]                       APPENDIX 1. BALANCE SHEET / Total ASSETS Audited consolidated data (in €m, French accounting standards) 31/12/2023 31/12/2022 Fixed assets o/w Goodwill 197.2 184.4 191.2 181.1 Actif circulant o/w Trade receivables o/w Other receivables 193.4 144.8 48.6 192.5 145.7 46.8 Marketable securities 41.5 0.0 Cash 87.9 81.1 Accrual account 3.0 2.0 Total assets 523.0 466.7   APPENDIX 2. BALANCE SHEET / Total LIABILITIES Audited consolidated data (in €m, French accounting standards) 31/12/2023 31/12/2022 Shareholders’ equity (Group share and non-controlling interests) 153.6 137.9 Provisions for risks and charges 2.5 1.1 Debt o/w Borrowings and financial debt o/w Trade payables o/w Tax and social charges o/w Other payables 364.0 137.4 120.3 98.4 7.8 326.7 110.0 121.3 88.6 6.8 Accrual accounts 2.8 1.2 Total Liabilities 523.0 466.7 APPENDIX 3. Cash flow statement Audited consolidated data (in €m, French accounting standards) 31/12/2023 31/12/2022 Opening cash position 81.0 67.1 Cash flow from operations o/w Funds from operations o/w Decrease in WCR 27.4 21.6 5.8 27.9 20.0 7.9 Cash flow from investing activities o/w Capital expenditures o/w Variation in fixed asset liabilities o/w Changes in scope of consolidation o/w Others  (3.9) (4.2) (0.1) 0.4 0.0 (9.0) (4.2) (5.8) 0.6 0.4 Cash flow from financing activities o/w Increase in long term debt o/w Decrease in long term debt 24.2 39.7 (15.5) (5.3) 6.0 (11.2) Others 0.7 0.2 Closing cash position 129.4 81.0   Regulatory filing PDF file File: CP Freelance Q423_ENG V2

Language:	English
Company:	Freelance.com
	1, parvis de La Défense
	92044 PARIS LA DEFENSE CEDEX
	France
Phone:	0614455821
E-mail:	[e-mail]
Internet:	www.freelance.com
ISIN:	FR0004187367
Euronext Ticker:	ALFRE
AMF Category:	Inside information / News release on accounts, results
EQS News ID:	1886371

End of Announcement	EQS News Service

1886371  22-Apr-2024 CET/CEST