RBL -23.05%: the online marketplace business saw more than one fifth of its market cap wiped off today after it announced some lofty revenue targets but coming at the cost of margins. EBITDA margins are now expected to fall to mid-single digits, down from 9.5% last year, before climbing again after CY24, by that time the company is hoping revenue will have doubled. It’s a lofty top line target which requires plenty of spending in the meantime – the market wasn’t drinking the Redbubble cool-aide today with many throwing the towel in on the new strategy. The news also weighed on others in the space.
We are neutral RBL at best
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