Why the Freelancer Ltd (ASX:FLN) share price dropped 16% today

Here's what you need to know about the half-year report from Freelancer Ltd (ASX: FLN).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Freelancer Ltd (ASX: FLN) was one of the worst performers in the local market on Tuesday, down 16% to $0.50, after the release of its half-year results.

The critical point seems to be the lack of revenue growth. Despite a record-high volume of payments processed through the company's two websites – the online marketplace Freelancer.com and the escrow service Escrow.com – revenue declined 6% from the first half of FY17, which was itself a disappointing 0.4% increase on the first half of FY16. The company reported a negative EBIT of $1 million and an $800,000 loss.

Freelancer.com held promise to develop into a profitable global hub for job seekers, a sort of SEEK Limited (ASX: SEK) for freelancers, with dozens of dedicated country websites across five continents. While SEEK has delivered meaningful earnings growth over time, Freelancer results have disappointed investors and the stock price has dropped 23% in the past year.

The highlight of today's release is the 11% growth in revenue from the escrow business, which might become more and more important as the need for a reliable third-party regulating online payments increases with the success of e-commerce.

Should you invest $1,000 in Freelancer Limited right now?

Before you buy Freelancer Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Freelancer Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freelancer Limited and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Emerald Resources, New Hope, Paladin Energy, and Pilbara Minerals shares are dropping

Let's see why these shares are ending the week in the red.

Read more »

a mine worker holds his phone in one hand and a tablet in the other as he stands in front of heavy machinery at a mine site.
Share Fallers

Why did this ASX 200 uranium stock just crash 9%?

The ASX 200 uranium miner is under heavy selling pressure on Friday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Brickworks, Judo Capital, Kelsian, and Myer shares are falling today

These shares are falling on Thursday. But why? Let's find out.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Helia, Mineral Resources, Ora Banda, and Webjet shares are tumbling today

These shares are having a tough time on hump day. But why?

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Share Fallers

Why Appen, Credit Corp, Endeavour, and Gold Road shares are falling today

These shares are having a poor session on Tuesday. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Austin Engineering, DroneShield, Meridian, and Ramelius shares are falling today

These shares are starting the week in the red. But why?

Read more »

A senior couple sets at a table looking at documents as a professional looking woman sits alongside them as if giving retirement and investing advice.
Value Investing

Forecast earnings growth of 10% a year but down 11%, is now the time for me to consider this ASX 200 high-flyer?

Despite recent good news, the shares are down...

Read more »

Bored man sitting at his desk with his laptop.
Share Fallers

Why Black Cat, CAR Group, Data#3, and Helia shares are falling today

These shares are ending the week in the red. But why?

Read more »