Dealmaking Airtasker’s transformational year driven by brand-building cashflow boom

Gig economy connector Airtasker has had a massive turnaround thanks to some canny dealmaking and operational efficiencies.

ART keeps connecting Aussies – and the poms – during the current cost of living crisis. Pic: Getty Images.

Special Report: Aussie-listed Airtasker has delivered a massive FY24, with a more than 115% improvement in positive free cash flow in a breakout 12 months.

The online platform, which connects people seeking or assigning tasks – like mowing lawns, creating logos or babysitting cats – has hit its ambitious guidance, trimming costs and tightening the bottom line while amping up revenue.

Airtasker (ASX:ART) FY24 positive free cash flow of $1.2m, is nothing less than an $8.8m improvement on last year, or a 115.3% turnaround.

ART says it’s all down to FY24 Group revenue of $46.6m, a 5.6% improvement which has come on the back of strong operating efficiencies across the business.

ART cut headcount costs by almost a full third during the year, while slashing admin and corporate costs by $3.3m or 31.9%.

Meanwhile, UK FY24 revenue jumped 76.3% in the fourth quarter.

At the end of FY23, Airtasker scored a five-year media-for-equity deal with Channel 4 in the UK which saw ART instantly gather a war chest of more than $6.7m in UK media advertising and access to Channel 4’s reach of 47 million viewers or 78% of the UK population.

With some $17.8 million in cash and term deposits, Airtasker says it’s now poised for further growth, with plans afoot to boost Aussie revenue in FY25 with a similar $11 million media advertising investment.

Deal Tasker

In July, the gig connecting platform secured two dynamite deals with major Aussie media names, in a groundbreaking equity-for-advertising plan worth circa $11 million.

First was the $5m buy in by oOh!media – Australia’s largest outdoor media company – for $6 million in inventory on its sprawling network of billboards and outdoor screens.

That was followed by the $5m ARN Media deal, securing the partnership of a business which runs both the KIIS and Pure Gold radio networks.

In FY24, Airtasker marketplaces total revenue grew by 9.8% on pcp to $38.1m.

Marketplaces total revenue includes breakage revenue, which decreased as a result of a higher task completion rate and a correspondingly lower volume of cancellations.

“The breakage revenue trend is pleasing as it indicates an improved customer experience and higher earnings quality,” ART said.

Overall, the monetisation rate in FY24 also improved by 13.7% on pcp to 20%.

The resurgence in brand investment in Australia in FY25 follows two years of reduced and predominantly digital marketing spend.

Airtasker founder and CEO Tim Fung said the company will support this increased brand focus through out-of-home and audio advertising with continued complementary online marketing strategies, including search and social.

“During FY24 we focused on platform reliability which saw cancellations decrease 26.3% and Airtasker platform fee revenue grow 13.9%,” Tim Fung said.

“This now lays the foundation for re-acceleration of Australian revenue growth in FY25, with the support of our recently announced media advertising partnerships with oOh!media and ARN.”

Fung added that Q4 cash flow from operating activities also rose $1.9m on pcp while the Q4 versus Q3 movement reflected a $2.8m investment to raise brand awareness here and in the UK as well as the timing of annual software subscription renewals for FY25.

Airtasker finished the financial year in a solid financial position with $17.8m in cash and term deposits on its balance sheet.

Fung told shareholders that despite challenging macroeconomic conditions, this solid growth was achieved through a successful program of investment into platform reliability which saw cancellations reduce by 26.3% on pcp, reflecting a decrease in platform leakage and an all-time record in completed task volumes.

“In the UK, we’ve been blown away by the results of our ‘Airtasker. Yeahtasker!’ campaign and partnership with Channel 4 which has delivered a 76.3% increase in 4Q24 revenue, and 41.1% increase in full year revenue, as we enter the UK summer season!”

This article was developed in collaboration with Airtasker, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.