Articore has reported its third-quarter marketplace revenue fell 12 per cent year on year to $78.1 million amid a short-term disruption due to changes in the company’s paid marketing strategy.

The company – which owns Redbubble and TeePublic online marketplaces – reported gross profit up 4 per cent to $34.8 million and gross margin rose to 44.6 per cent.

“Driving profitable revenue growth for the group remains our primary objective going forward,” said Martin Hosking, Articore CEO and MD.

“This quarter, the Redbubble marketplace implemented significant changes to its paid marketing strategy to enable it to scale its paid marketing spend, while maintaining the marketplace’s disciplined approach of being profitable on first order.”

The company expects marketplace revenue to moderate in the fiscal fourth quarter as it witnessed improvement in Redbubble’s performance in April to date.

“The group has implemented a marked turnaround this financial year but there is more work to be done. The first step is returning to positive underlying cash flow, which the group remains focused on achieving for FY24,” said Hosking.

“Reinstating profitable revenue growth is the next step that will assist the group to be underlying cash flow positive on a quarterly basis going forward.”