The Airtasker Ltd (ASX: ART) share price has surged more than 15% after giving its quarterly update.
Airtasker is a rapidly growing marketplace where people who need work doing can get help from people willing and able to do the work.
Airtasker’s strong FY22 second quarter
The ASX tech share revealed that its growth has returned to a stronger pace again.
FY22 Second quarter gross marketplace volume (GMV) grew 39% quarter on quarter to $48.6 million, whilst second quarter revenue rose by 37.5% to $8.1 million.
In December, the business managed to achieve a record weekly GMV run rate of $4.5 million.
The business is rapidly scaling internationally as well. Australia is currently its biggest market, but it also has big aspirations for both the UK and the USA. The UK second quarter GMV was up 121% year on year, whilst the US saw task growth of 71% quarter on quarter.
In the US, Airtasker is focused on Atlanta, Kansas City, Dallas and Miami. However, it’s also seeing growth in non-core cities across the US.
In the second quarter, the average task price increased by 24% year on year to $255. This could be helpful for the long-term performance of the Airtasker share price. Customer acquisition continues to ramp up as well.
Management comments
The Airtasker co-founder and CEO Tim Fung said:
“The strong performance this quarter demonstrates the robust and resilient underlying growth of the Airtasker marketplace. Based on our current growth trajectory, a clear outlook on no further lockdowns and an exciting product and marketing roadmap – we’re super pleased to be upgrading our second half guidance for FY22.”
Guidance upgrade
Previously, the business was expecting that FY22 second half GMV would be $105 million. Whilst lockdowns impacted the first half, the second half has been upgraded thanks to its strong growth trajectory and increased marketing investment.
The second half GMV is now expected to be between $107 million to $110 million, representing full year GMV of between $191 million to $194 million.
Final thoughts on the Airtasker share price and update
It’s very promising to see that Airtasker has gone back to its pre-COVID growth rate. Airtasker is rapidly growing overseas and this should help grow its scale very nicely in the coming years.
The business has seen its share price fall 13% over the past month. It would have been better to buy the shares last week, but I still think it’s very attractive for the long-term. It’s one of the ASX growth shares I’m keeping a close eye on with its high gross profit margin and large target market.
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