Hipages announces 18% growth in revenue for Q2 of FY21
Online tradie platform Hipages has announced another quarter of financial growth, revealing an increase in total revenue for Q2 FY21 of 18% on the previous corresponding period, with recurring revenue growth of 26%.
Total revenue for the period was $13.9 million, with the quarter also marking a year since Hipages moved to a subscription-only model.
Hipages Monthly Recurring Revenue [click to enlarge]
Recurring revenue now accounts for 94% of total revenue, with Hipages forecasting a total revenue growth of 15% for FY21 as a whole (with recurring revenue growth predicted to be 20%).
The platform is also in a strong financial position with cash and funds on deposit of $31.5m and no debut. Operating cash receipts for the quarter were $15 million, compared to $12.7 million in Q2 FY20.
Hipages also successfully listed on the ASX in November, 2020 after an IPO raised $100.4m.
Hipages Co-founder and CEO Roby Sharon-Zipser said the strong performance so far in FY21 has been posted by growth in demand for trade services as Australians increase their investment in home improvement.
“FY21 is proving to be an exciting year for Hipages with our recent ASX listing giving us the financial flexibility to drive future growth, while our shift to a subscription-only model continued to pay off with a strong performance across our key metrics,” she said.
“The business has performed ahead of expectations with 26% growth in recurring revenue in the December quarter due to a significant increase in ARPU and tradie subscriptions. A 31% lift in ARPU was driven by new subscribers joining the platform at a higher price point and existing subscribers upgrading to higher price tiers in order to claim more jobs.
Hipages also completed its second season as a platinum sponsor of Nine’s The Block, which helped increase brand awareness by 10%.
The platform continues to invest in marketing to build greater awareness of the Hipages brand and value proposition. Hipages also appointed Avenue C as its media agency partner in late 2020.
Sharon-Zipser added: “Hipages had another successful season as sponsor of The Block which delivered a further step up in brand awareness reinforcing our position as brand leader in the on-demand tradie economy.
“During the second half of FY2021, we will remain focused on ensuring we have the right mix of jobs on our platform and the highest quality tradie network in Australia. At the same time, we will continue our evolution to a SaaS model extending the capabilities of our platform and delivering an end-to-end product offering for tradies and consumers.”
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