The Airtasker Ltd (ASX: ART) share price is under the spotlight today after announcing its FY23 half-year result.
This business operates a marketplace for local services, “connecting people and businesses who need work done with people who want to work.”
Airtasker HY23 result
Here are some of the highlights from the half-year result:
- Revenue increased by 57% to $21.8 million, and increased 23% to $17.1 million excluding Oneflare
- Gross profit for Australian marketplaces jumped 58.3% to $20.3 million
- Gross marketplace volume (GMV) went up 58% to $131.7 million, and increased 24% to $103.5 million excluding Oneflare
- Operating cash burn reduced by 29% year on year
- EBITDA (EBITDA explained) loss of $5.1 million
- Cash balance of $23.3 million at 31 December 2022
Airtasker’s numbers reflect the Airtasker platform, as well as the acquired Oneflare business, which was a competitor in Australia.
The ASX tech share revealed that UK trailing twelve month GMV was up 83% year over year to £3.5 million, with trailing twelve month revenue up 153% year on year to £0.4 million.
US posted tasks were up 5.5x on the prior corresponding period to 34,000, with tasker offers up 9.4x year on year to 54,000. Airtasker said there is a consistent growth trend in the US with both posted tasks and tasker offers following the transition to a focus on the Los Angeles city marketplace at the start of the FY23 first half.
Overall, the international marketplace saw growth of 116.4% to $0.4 million. This could be the key driver of the Airtasker share price in future years.
Airtasker explained that the EBITDA loss worsened from $3.7 million to $5.1 million, reflecting “increased employee expenses with the addition of Oneflare staff as well as engineering, product development and marketing staff to support the expansion of the business.”
Oneflare is performing “ahead of revenue expectations communicated when the acquisition was announced.”
Management commentary
The Airtasker co-founder and CEO Tim Fung said:
We’re super pleased to announce another record result for Airtasker, with revenue up 57% and our operating cash burn down 29% against the prior comparative period. The integration of the Oneflare business acquired in FY22 is progressing well with revenues also on plan. Meanwhile, our new international marketplaces in the UK and the US are continuing to develop as expected, with growth in both customer demand and supply of taskers.
Final thoughts on the Airtasker share price
I think Airtasker is one of the most promising small ASX growth shares around. Strong revenue growth, combined with a high gross profit margin, could lead to strong profit growth, which could then help the Airtasker share price.
I’d be happy to buy shares for the long-term.
