Red Bubble Annual Report 2022

Company Overview Business Model Redbubble Group operates two digital marketplaces – Redbubble and TeePublic. Marketplaces are especially difficult to create as without buyers there are no sellers and without sellers no buyers, but once established they have considerable resilience. They typically also have a second inflection point as the offering is accepted by more mainstream consumers with even more rapid uptake by the sellers. The Group is now moving through this point as in the last year: • we had 809,000 selling artists; • they earned a total of $91 million; • they attracted 8.3 million customers; • who bought $630 million from these artists; and • with the products created from 44 fulfilment locations all over the world. Redbubble operates a unique threesided marketplace with genuine flywheel effects where improving one side creates a positive reinforcing impact on the other side. It is a flywheel because the greater number of artists in the marketplace, the higher the volume of relevant content which creates more reasons for customers to come to the marketplace. More customers enables the fulfilment network to scale, lowering costs and improving services, thus attracting additional customers. With more customers, comes more artist revenue, encouraging new artists to the platform adding more content and the cycle continues. The third arm of the marketplace is the fulfilment network. It is this network which enables an artist in South Africa to sell wall art to someone in Italy. The network has taken over a decade to build and is without parallel in any other marketplace. With 44 fulfiller locations at 30 June 2022, the majority of products sold are fulfilled by a third party fulfiller local to the same geographic region as the customer who bought them. There are 107 products available in the marketplaces and 7 new products that were added last year. The RB Group Flywheel Our Strategy The Group’s mission is to create the world’s largest marketplace for independent artists, to enable our vision of being the most loved place at the intersection of expression, empowerment, and commerce - bringing every person the very thing that gives them joy. To achieve this mission we have a very clear set of mid term aspirational outcomes: FY22 FY26-FY27 Implications for next 4-5 years Artist Revenue $90.8m $250m+ Step change in value for Artists Marketplace Revenue $482.6m $1.25b+ Grow MPR at historical CAGR of 20-30% GP (% of MPR) 38.0% 40-42% Improving margin structure through scale and efficiencies Marketing (%) 15.8% 12-15% Improve paid marketing efficiency to enable brand investment Operating expenses (%) 22.9% 12-15% Realise scale efficiencies in core systems and processes EBITDA (%) (2.32)% 13-18% In the short-term EBITDA as a percent of MPR will reflect ongoing investments across the business Key Strategic Themes To enable these outcomes we are investing in four key strategic theme areas, which contain the high potential levers to drive value over the medium and long term: Artist activation and engagement Acquisition and engagement of artists to support growth and improvement of the library of unique content User aquisition and transaction optimisation Ongoing optimisation of user acquisition and transaction flows to drive uplift in overall user value Customer understanding, loyalty and brand building Deeper understanding of customers and their behaviour to create more compelling experiences and increased customer loyalty Product range and 3rd party fulfilment network Addition and changes to available product range from 3rd party fulfilment network to reinforce user acquisition and customer loyalty 18 Redbubble – Annual Report 2022 19 Redbubble – Annual Report 2022

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