Airtasker (ASX:ART) share price jumps 3% as FY21 results top forecasts

Airtasker topped prospectus forecasts across key metrics.

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The Airtasker Ltd (ASX: ART) share price is on the move this morning following the release of the company's FY21 full-year results.

In early trade, Airtasker shares are trading 3% higher at $1.03.

Airtasker share price lifts as revenue leaps

The Airtasker share price is off to a good start today after the company delivered its maiden full-year results. Airtasker listed on the ASX on 23 March this year. Some key highlights from the company's FY21 performance include:

  • Revenue of $26.6 million, up 38% year on year and ahead of the prospectus forecast of $24.5 million.
  • Gross marketplace value (GMV) of $153.1 million, up 35% year on year and exceeding the prospectus forecast of $143.7 million.
  • UK marketplace GMV surging 232% year on year and 93% quarter on quarter.
  • Zaarly acquisition integration and US expansion planning progressing well.
  • Underlying pro forma earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $0.0 million compared to a $4.0 million loss in FY20.
  • Positive operating cash flow of $5.5 million, ahead of prospectus forecasts of $0.1 million.

What happened for Airtasker in FY21?

The Airtasker share price made its ASX debut on 23 March, closing at $1.05 before running as high as $1.965 in the next two days. This represented a 262% increase from its listing price of 65 cents.

From a revenue, GMV and EBITDA perspective, Airtasker topped prospectus expectations, thanks to the company's continued investment in building its user experience and expanding horizontals.

The strong growth and outperformance of key financial metrics were underpinned by a 13% increase in unique paying customers to approximately 415,000 compared to around 367,000 a year ago. This was in addition to growth in the average task price to $198 compared to $159 twelve months earlier. The company also passed on a booking fee hike to customers in February 2020 from $19.90 to $24.90.

COVID-19 has resulted in more volatile business conditions for the company, with weekly GMV across Sydney, Melbourne and Adelaide down approximately 12% in July compared to pre-lockdown figures.

The company flagged that current and potential future lockdowns may further impact market activity. However, as with previous lockdowns, the group has seen taskers and customers adapt during these phases, with various services experiencing a boost in demand or being provided remotely.

Airtasker is eyeing the US market as a significant opportunity to lift its growth trajectory, acquiring a local US marketplace, Zaarly, on 21 May. The Airtasker share price would rally 12.96% on the day of the acquisition to $1.22.

The company said that the integration of Zaarly is progressing well, with planned market launches in Kansas City, Dallas and Miami in 1H FY22.

Management commentary

Airtasker co-founder and CEO Tim Fung was pleased with the company's FY21 performance and growth trajectory, saying:

It's been a super awesome year and I'm really stoked to see the Airtasker marketplace create more job and income opportunities than ever. Now that our Australian marketplace is operating cash flow positive – and with our UK marketplace starting to flourish – we're really excited to get to work on international growth!

What's next for Airtasker?

Airtasker has highlighted that the US local services total addressable market is $500 billion and the UK is worth upwards of $70 billion. This combined opportunity is worth more than ten times the size of the Australian market.

The company said that its marketplace platform is now fully enabled in the US and UK, with plans to invest in growth and brand marketing to penetrate these markets.

Airtasker share price snapshot

Despite the company's exciting growth plans, the Airtasker share price is currently down almost 2% year to date since listing in March. Based on the current share price, the company has a market capitalisation of around $400 million.

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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