The Airtasker (ASX:ART) share price is up 5%. Here’s why

An upbeat June quarterly result rallies the Airtasker share price from near-record lows.

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The Airtasker Ltd (ASX: ART) share price has opened higher on Thursday after the company announced its June quarter results.

At the time of writing, shares in the freelancing marketplace are up 5% trading at $1.01 after shooting up to an early morning high of $1.04.

Airtasker share price tips higher on quarterly results

In today’s release, Airtasker said it delivered a positive cash flow from operating activities of ~$763,000 in the fourth quarter.

For the full year FY21, cash flow from operating activities was $7.4 million while statutory cash flow from operating activities was $5.5 million, greatly exceeding the company’s prospectus forecast of $0.1 million.

Airtasker continued to top prospectus expectations, with FY21 gross marketplace volume (GMV) of $153.1 million compared to its forecast of $143.7 million.

In addition, the company recorded ~415,000 unique paying customers in FY21, compared to the prospectus forecast of ~405,000.

Airtasker said the strong performance “demonstrates the strength of the Airtasker model and its operating leverage at scale”, despite disruptions such as the 14-day lockdown in Melbourne and the start of the Sydney lockdown from 26 June.

Airtasker business is going global

On 24 May, Airtasker announced the acquisition of local services marketplace Zaarly in the United States.

The acquisition would bring on board more than 597,000 registered users and over 900 verified service providers to accelerate the company’s US growth plans.

The Airtasker share price rallied 12.96% to $1.22 on 25 May, when its shares returned from its Zaarly acquisition trading halt.

Today’s update advised that the integration of Zaarly and US expansion plans were “progressing well”.

In addition, the company said that its UK marketplace operations were “performing well off a small base”.

UK June quarter GMV was up 93% on the March quarter and up 232% compared to a year ago.

Could lockdowns impact the Airtasker share price?

The Airtasker share price has tumbled 12% in July, closing at a low of 94 cents on Tuesday.

According to today’s announcement, the Sydney, Melbourne and Adelaide lockdowns have witnessed a 12% decline in weekly GMV in July.

The company believes that as with previous lockdowns, a strong rebound in marketplace volumes is expected once restrictions ease in each city.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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