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FY21 report: Airtasker (ASX:ART) beats guidance in first public full-year result

Newly listed Airtasker Ltd (ASX: ART) has provided its first full-year report since its IPO underlined by 35% growth in revenue.

Newly listed Airtasker Ltd (ASX: ART) has provided its first full-year report since its initial public offering (IPO) underlined by a 35% jump in revenue.

The market has reacted indifferently to the announcement, with shares trading up 0.5% to $1.005.

In simple terms, Airtasker is a digital version of the yellow pages, enabling contractors and potential customers to connect.

ART share price

Source: Rask Media ART share price since IPO

Key metrics beat prospectus guidance

Airtasker has delivered some impressive numbers full-year numbers for its reporting date of 30 June 2021:

  • Gross marketplace volume (GMV) of $153.1 million, increasing 35% on FY20
  • Revenue of $26.6 million, growing 38% on FY20
  • Gross profit of $24.8 million, jumping 39% on FY20
  • $45.9 million cash on hand
  • Positive operating cash flow of $5.5 million
  • Active customers of 415 million, increasing 13%

Despite being listed for a little over three months, the company beat its prospectus guidance across a number of metrics including revenue, GMV and operating cash flow.

Its operating metrics remain strong, with the average task price increasing 24% to $198 and an average frequency of 1.9x per user.

The business’s entry into the United Kingdom (UK) remains on track with GMV up a whopping 232% year on year. Keep in mind this is off a very low initial base.

Key operating metrics. Source: ART FY21 presentation
Key operating metrics. Source: ART FY21 presentation

Outlook for FY22

Lockdowns have impacted marketplace activity in the first quarter of FY22 with weekly GMV down ~12% during July compared to pre-lockdown.

Positively, the company is set to launch its platform in three cities in the United States (US) – Kansas City, Dallas and Miami.

Quantitative guidance provided by management for FY21 includes

  • GMV to exceed $200 million
  • Revenue to exceed $35 million
  • International GMV run rate of $8 million to $10 million
  • Invest $20 million over FY22/FY23 into the United States and the UK

My take

It’s tough to get a read on Airtasker.

All its reporting metrics seem to be tracking in the right direction. Moreover, beating its own prospectus guidance is a tick for management.

However, the current take rate of 17.4% (the percentage Airtasker takes for facilitating each job) seems very high.

To illustrate, you hire an electrician to do an hours work. She charges $200. Airtasker takes $34.80 and the electrician takes home $165.20.

Then the electrician has to pay GST and income taxes on the ~$165.

I’m unsure if this is sustainable. Moreover, Airtasker is not the only online jobs marketplace. For example, the company competes with Hipages Ltd (ASX: HPG) for tradies.

To understand the business better, I’d need to take a deeper look at the financial report and undertake a discounted cash flow valuation.

To keep up to date on all the latest news regarding Airtasker and the ASX, be sure to bookmark the Rask Media home page.

And to stay up to date with the flurry of reports this month, bookmark our ASX reporting season calendar.

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Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, Lachlan does not have a financial or commercial interest in any of the companies or funds mentioned.
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