Airtasker Limited

ASX:ART

Airtasker Limited

ASX:ART
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$0.335 (+3.1%)
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#130
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Reports (5) My Report Forum Investors
Forum Topics ART ART ASX Announcements

Pinned straw:
Goldfish
Added 2 months ago

Some interesting announcements from ART.

There is another US $5 million "strategic partnership" with iHeartMedia. This is similar to previous deals, which I have discussed on SM in the part. In short, it is unconventional, but makes sense IMO for ART and follows a playbook that achieved success in Australia. So no surprises, and no problem here for me.

A bit more surprising, is a $10 million cap raise. Backed by institutional investors, including iHeart Media, as well as Exto partners (a related party of one of the directors). It's good to see a vote of confidence from iHeartMedia. Presumably they have good visibility with relation to the product and it's success, and it also increases alignment (ie they have a good incentive to make sure that their advertising of ART is effective). Also good to see Exto partners (which is a "related party" of one of the directors) taking $500k worth of shares. The cap raise is reportedly for "marketing investments in the US and UK and balance sheet flexibility".

I am a little surprised, and a little disappointed that this cap raise was needed, in addition to the media partnerships. It is at the discounted price of 30 cents and of course retail shareholders aren't able to participate. Although we will probably be able to buy shares on the market at the same or even cheaper prices.

I am prepared to trust managements judgement on this. It basically seems that they are doubling down on the UK and USA. Signs from both markets are positive. Management have lots of skin in the game

They have also slipped some new quarterly figures (for Q1 2026) into the presentation for the cap raise. I will do a separate post for these. In short, they are quite positive. Growth is on track in all markets and the investment case is intact
WINGMAN
Added 2 months ago

Thanks @Goldfish

Have been enjoying your updates as they come in - have been some good ones and keep them coming!

Was buying before the last full year announcement call and then SP shot up a bit, almost getting to 50cents - I tried to sell out again at that point but found difficult to sell allotment without big gap downs in orders, so am riding it the way down and almost back to where I started. It is very interesting the cap raise (the media partnership not so surprising) and like you, I was a bit disappointed when they have kept such a clean balance sheet. Obviously, we don't like dilution but like you allude to, big opportunity if the metrics play out like they do in Australia (which they do the UK and appear to be in America)

I do really wonder what they are seeing that is getting them to accelerate into the US. For a tech company I find them very "slow and steady", not overleveraging and just deliver steady growth, period after period (I have said before, the SP can often not move when they report). I think it's just more of the same; methodical growth to the next big city, then the next across America and the UK. This is more "risk on" which I suggest is perhaps what they need a bit more of.

I noticed Tim seemed genuinely excited and happy with how things were going in the last call and expect it might be the same at the upcoming investor day in Sydney. I have some work to do updating my model (with all these deals, not the dilution, it is getting more and more complex to come up with a value). Once that is done, I will be trying to find some more funds to top up before next week, anywhere under 0.30cents.

After your recent posts, did you end up investing in RL or still considering ?

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Goldfish
Added 2 months ago

@WINGMAN Thanks for the comment

Yes I did buy a bit today (around 1%) at 30.75 cents. I think that will prove to be a fairly good price, although in the short term, who knows


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