Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-3

Solid quarter. Standouts for me:

• 2nd straight quarter of positive operating cash flow ($0.7m).
• $17.2m net cash and now consistently cash flow positive, so a good cash buffer in place to invest for growth.
• Established AUS marketplaces generated $4.1m of EBITDA in the quarter (>30% EBITDA margin which is very strong).
• This line was probably the standout for me as it addresses my core concern of platform leakage:

"This strong revenue result was driven by successful funnel optimisation programs including theintroduction of a revised cancellation policy designed to improve platform reliability and addresstask leakage. These programs saw cancellations reduce by 22.5% on pcp resulting in the take rate improving by 3.4 percentage points to 20.0%."

Concerns:

• Overseas marketplace growth has decelerated much more than I would've expected at such an early stage. Is there more competition in US/UK than in AUS?
• GMV down high single digits YoY - cannot rely on expanding take rate forever for revenue growth.
• Where does the next leg of growth come from? Any more acquisitions on the horizon?