Airtasker (ASX: ART), Australia’s leading marketplace for local services, has started FY25 on a high note, reporting strong growth across key metrics in its latest quarterly update. For the September quarter, Airtasker posted revenue gains, an increase in booked tasks, and maintained a positive free cash flow position, signalling resilience in a challenging economic environment.
Key Financials and Cash Flow
Airtasker’s marketplace revenue grew by 13.6% year-on-year, reaching $10 million, while total group revenue rose to $12.1 million, up 8.5% compared to the previous period. The company achieved positive operating cash flow of $0.9 million, an increase of 31.6%, alongside free cash flow of $0.1 million—a crucial indicator of Airtasker's ability to self-fund its growth. Airtasker ended the quarter with $17.9 million in cash and term deposits, underscoring its solid financial standing and capacity to support ongoing and planned initiatives.
Australia’s Solid Performance and Media Partnerships
The Australian segment, responsible for most of Airtasker’s revenue, saw steady growth in marketplace revenue despite a 4.6% drop in gross marketplace volume (GMV) due to broader economic headwinds. This slight decline in GMV was offset by improved monetisation rates, which grew 13.9% to 20.2%, following adjustments to Airtasker's cancellation and fee policies.
The domestic market is set to benefit from Airtasker’s $5 million media capital arrangement with ARN Media and oOh!media, secured earlier this year. These strategic media partnerships aim to boost Airtasker’s brand presence across Australia, particularly through out-of-home and audio advertising, with higher engagement expected during the upcoming peak spring and summer quarters.
UK and US Market Expansion
Airtasker’s international expansion strategy is proving fruitful, particularly in the UK, where marketplace revenue soared by 104.4%, thanks to its partnership with Channel 4. This collaboration brought the “Airtasker. Yeahtasker!” campaign to UK screens, contributing to an impressive 66.7% increase in posted tasks and a 63.9% lift in GMV year-on-year. Airtasker’s UK segment continues to leverage this media-for-equity model to build brand recognition in the highly competitive UK market.
In the US, Airtasker’s newly inked media deals with iHeartMedia and TelevisaUnivision, valued at $14.4 million, are set to supercharge brand awareness. The partnerships grant Airtasker access to an extensive audience—276 million monthly iHeart listeners and 100 million daily TelevisaUnivision users—which is expected to help establish a robust customer base as the company rolls out its US marketing campaign in the next quarter.
CEO’s Perspective
Airtasker CEO Tim Fung expressed optimism over the quarterly results, highlighting the strength of Airtasker’s core operations and its ability to drive international growth through strategic media alliances. “We’re thrilled with the strong momentum we’re seeing in our Australian marketplace, boosted by marketing support from ARN and oOh!media,” Fung stated. He was particularly enthusiastic about the UK’s record growth, crediting Channel 4’s partnership as a game-changer for Airtasker’s UK trajectory. Looking to the US, he added, “We’re excited to work with iHeartMedia and TelevisaUnivision to elevate Airtasker’s presence in the US market.”
Challenges and Outlook
While Airtasker continues to make strides, its Group EBITDA took a slight hit with a loss of $2.7 million, impacted by increased investment in the US and UK markets. Specifically, the company’s New Marketplaces segment, comprising the US and UK, recorded a $5.6 million EBITDA loss, largely due to the upfront costs associated with scaling its brand in these regions. However, Airtasker expects this investment to pay off over the next two to three years as these campaigns mature and convert brand recognition into active task bookings.
Airtasker’s guidance remains optimistic, with the company reaffirming its outlook for positive group free cash flow for FY25, fuelled by anticipated revenue growth in its domestic market and supported by the heavy marketing push in the US and UK. With strong foundations laid and additional media capital available, Airtasker appears well-positioned to accelerate its growth and scale profitably in the years ahead.
Airtasker’s Q1 FY25 performance underscores its resilience and effective growth strategies amid competitive pressures. With its domestic market delivering steady returns and international expansion gaining traction, Airtasker’s strategy of combining media-for-equity partnerships with operational efficiency is bearing fruit. For shareholders, the company’s focus on maintaining positive cash flow while investing for future growth suggests Airtasker is navigating a balanced path in its journey to become a global leader in the gig economy.
