The Airtasker Ltd (ASX: ART) share price could be a mover today after revealing a strong final quarter of FY21.
Airtasker is a leading marketplace for local services, connecting people and businesses who need work done with people and businesses that want to work.
Airtasker’s FY21 Q4
The ASX tech share reported a continuing strong marketplace performance in the fourth quarter. It produced a positive cashflow from operating activities of $763,000.
FY21 numbers
Now that the fourth quarter is over, the business was able to tell investors about its overall FY21.
The FY21 operating cashflow (excluding IPO costs) was $7.4 million, with statutory operating cashflow of $5.5 million, compared to the prospectus forecast of $0.1 million.
Gross merchandise volume (GMV) for the full year was $153.1 million, beating the prospectus forecast of $143.7 million.
In FY21 it had 415,000 unique paying customers, beating the prospectus forecast of 405,000.
Management said that this positive cashflow demonstrates the strength of the Airtasker model and its operating leverage at scale. The marketplace performance was achieved despite a 14-day lockdown in Melbourne and the start of the Sydney lockdown from 26 June.
The positive variance was due to higher revenue, lower expenses and a number of working capital timing differences.
It finished with a closing cash balance of $45.9 million.
International growth
The UK marketplace is performing well off a small base, with the June quarter GMV up 93% on the March quarter and 232% growth year on year.
Management also said that the Zaarly integration and US expansion is progressing well.
FY22 outlook
Airtasker said the lockdowns have impacted the start of the first quarter, with weekly GMV down around 12% compared with pre-lockdown. It’s expecting a strong bounce back once restrictions are lifted.
It continues to invest in its growth and capabilities. The company said is going to make a significant investment into marketing infrastructure and user acquisition in FY22 to drive domestic and international expansion and begin to maximise the growth opportunity provided by its large cash balance.
Summary thoughts on the Airtasker share price
Airtasker seems like a very promising business. It has a huge potential addressable market. If Airtasker can just capture a small fraction of that in Australia, the UK and the US it could become a much larger business. The business has a very high profit margin.
It’s one of the ASX growth shares that I’m going to keep my eyes on.
