👉 Background: RedBubble is the ASX-listed, global online marketplace for print-on-demand products. Think: designs on clothes, stationery, housewares, bags, and wall art. In fact, RedBubble has more than 800,000 independent artists who generate income on the marketplace.

👉 What happened: During COVID, RedBubble couldn't stop and wouldn't stop - its market capitalisation was nearly $2 billion. But as consumer spending dropped post-pandemic, RedBubble was still caught in hyper-growth mode. And, they suffered a loss of over $40 million for the 2023 financial year and its market cap dropped to just $120 million.

👉 What else: Now, its founder is back in the hot seat and RedBubble is cash flow positive for the recent quarter. And while its revenue dropped 6%, its share price boomed 30% on the back of this news.

What's the key learning?

💡"Shrinking to greatness" is a business strategy that focuses on trimming down a company to its core competencies and more profitable lines of business.

💡Over the past few years, RedBubble has been  losing money as it tried to grow aggressively. But instead of doubling down on high-risk strategies, It went through two rounds of redundancies and pulled back significantly on its marketing spend.

💡While RedBubble's revenue dropped by around 6% in the past quarter, its financials have never looked better. It managed a $17 million turnaround from its results in the same period last year... and investors loved it.

‍