Why Freelancer (ASX:FLN) is likely to become Australia's largest global online technology business.

With August 2016 reporting season having now kicked off, investors will again focus on real numbers versus 'blue sky' technology promises. FLN sets itself well apart by having a genuine cash-flow positive business that has proven itself over an 8 year lifespan. Operating as a true global business, FLN matches its 20m user base of employers and contractors across 52 countries. Total contract value totalled $80m (not including the recent escrow.com acquisition) in the first half of 2016, up 27% on the pcp. The company has $35m in net cash on its balance sheet and generated $4.5m in positive cash flow in the half. The key theme to appreciate is the immense scale and global thematic of global outsourcing. This is only set to continue as developing nations increasingly move online and western businesses look to further decrease costs through outsourcing. As the largest player in this massive global marketplace (FLN's main competitor is the privately owned and smaller Upwork), we have little doubt that FLN's growth trajectory (and we expect share price) will continue to rise.