• Marketplace revenue continued to decline, but unit economics improved
• Combining marketplace operations to drive $12-$14M in annualized savings
• Increased FY25 gross profit margin guidance to 25-27%, reaffirmed positive cash flow

Articore Group Limited (Articore or the Group) provided a trading update ahead of the release of its financial results for the half year ended 31 December 2024 (1HFY25). While marketplace revenue (MPR) continued to decline, the Group has delivered a sustainable improvement in unit economics. Following a restructure to combine the two marketplaces' operations, the Group has identified approximately $12 million to $14 million of annualised savings. As a result, FY25 opex is now expected to be between $89 million to $92 million, down from the previous guidance of $96 million to $100 million. The Group has also increased its FY25 gross profit after paid acquisition (GPAPA) margin guidance to 25% - 27%, previously 24% - 26%, and reaffirmed the Group's expectation to deliver positive underlying cash flow in FY25. Articore CEO Martin Hosking noted that the measures being implemented are expected to have a near-term benefit without compromising the company's long-term ambitions. The company also announced the launch of a new product, Dashery, a platform that enables creators to further monetise their followings by selling print-on-demand merchandise to fans via their own storefronts.

For FY25, Articore expects its GPAPA margin to be between 25% - 27% (previously 24% - 26%) and opex to be between $89 million and $92 million (previously $96 million to $100 million). The company continues to expect to deliver positive underlying cash flow in FY25.

Articore will remain focused on optimising unit economics, maintaining cost discipline, and maximising synergies across the Group as it expects trading conditions to continue to be soft in its key markets.