Temple & Webster (ASX: TPW) has once again delivered record-breaking results, with revenue surging 24% to $314 million for the half-year ending December 2024. Despite ongoing economic headwinds, the company continues to expand its market share, grow its customer base, and improve profitability—proving that Australians still love sprucing up their homes.
Strong Growth Across the Board
The online furniture and homewares giant saw net profit more than double, hitting $9 million—up 118% from the previous period. EBITDA jumped a staggering 76% to $13.2 million, well above expectations, as the company benefited from increased scale and operational efficiencies.
CEO Mark Coulter described it as another standout half, emphasizing that the company is gaining market share (now at an all-time high of 2.9%) while maintaining profitability in a tough retail environment.
Key Highlights from H1 FY25
- Revenue: $314 million (+24%)
- EBITDA: $13.2 million (+76%)
- EBITDA Margin: 4.2% (above guidance of 1-3%)
- Net Profit: $9 million (+118%)
- Free Cash Flow: $32.5 million (+61%)
- Cash Balance: $139 million (debt-free!)
Customer Growth and AI Efficiency
Temple & Webster now boasts 1.2 million active customers, up 22% from last year. Even more impressive, revenue per customer climbed 2% to $470, showing shoppers are spending more per order.
AI is also playing a huge role in improving efficiency—over 60% of customer service inquiries are now handled by AI, slashing customer care costs by more than 50% since FY23.
Meanwhile, home improvement sales jumped 41%, as more customers turned to Temple & Webster for DIY and renovation needs.
Strong Financial Position and Growth Strategy
The company remains debt-free, with a cash balance of $139 million, ensuring it has plenty of firepower to continue executing on its long-term growth strategy. Its on-market share buy-back program remains in place until June 2025.
Looking ahead, Temple & Webster reaffirmed its EBITDA margin guidance of 1-3% for FY25, with a continued focus on scaling towards its mid-term goal of $1 billion+ in annual revenue.
Momentum Continues into H2 FY25
The strong growth has carried over into the second half, with year-to-date revenue up 16% and an acceleration to +19% in February so far. This suggests that despite cost-of-living pressures, Temple & Webster’s value-driven approach is resonating with shoppers.
With market share at record levels, an asset-light, cash-rich model, and an AI-powered operational edge, Temple & Webster looks well-positioned to keep leading Australia’s online furniture and homewares market.
