Airtasker’s quarterly report confirms positive free cash flow of 1.2 mil for FY24. I assume the market was looking for more given the drop in SP but pretty illiquid I guess.

I like the deals with Australian media to get advertising and re-new the focus on Aussie growth.

The growth of the platform of 14% is pretty good too. Looking forward to many years of double digit growth (I hope).

held in a very small allocation IRL

33

   ABN 53 149 850 457 ASX ART

Quarterly Activity Report and

Appendix 4C Quarterly Cash Flow Report 30 June 2024

Lodged with ASX under Listing Rules 4.7B and 4.7C. www.airtasker.com

 ASX Announcement

30 June 2024 - Quarterly Activity Report

Full year positive free cash flow as

FY24 Airtasker platform fee revenue grows 13.9% and 4Q24 UK revenue grows 76.3%

4Q Highlights

● FY24 positive free cash flow $1.2m, an improvement of $8.8m 115.3%) on pcp1

● FY24 Airtasker platform fee revenue up 13.9% on pcp

● UK 4Q24 revenue up 76.3% on pcp

● $17.8m in cash and term deposits on balance sheet

● $11.0m in advertising from oOh!media and ARN to accelerate Australian revenue growth in FY25

Airtasker Limited

ABN 53 149 850 457

 29 July 2024

    1 Prior comparative period.

1

 Full year positive free cash flow of $1.2m

Airtasker has delivered on its promise with FY24 positive free cash flow of $1.2m, up $8.8m 115.3%) on pcp and FY24 positive operating cash flow of $3.1m, up $13.9m 128.1%) on pcp. This strong cash flow result was achieved by delivering solid FY24 Group revenue of $46.6m, up 5.6% on pcp and achieving strong operating eiciencies across the business through reductions in headcount costs of $9.5m (down 31.8%) on pcp and increased eiciency in administration and corporate costs with a reduction of $3.3m (down 31.9%) on pcp.

Cash flow from operating activities in 4Q24 improved $1.9m on pcp while the 4Q24 versus 3Q24 movement reflected the timing of a $2.8m increase in marketing expenditure to invest in brand awareness in Australia and the UK and an $0.8m increase in payments associated with 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.

Airtasker platform fee revenue up 13.9%

In FY24, Airtasker platform fee revenue, which includes the newly introduced cancellation fee, increased 13.9% on pcp to $34.1m.

Despite challenging macroeconomic conditions, this solid growth was achieved through a successful program of investment into platform reliability which saw cancellations reduce by

Airtasker Limited

ABN 53 149 850 457

    2

 Airtasker Limited

ABN 53 149 850 457

26.3% on pcp, reflecting a decrease in platform leakage and an all-time record in completed task volumes.

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. Overall, the monetisation rate2 in FY24 improved by 13.7% on pcp to 20.0%.

Media partnership delivers 76.3% increase in UK revenue

In June 2023, Airtasker formed a 5-year media-for-equity partnership with Channel 4 in the UK which provides Airtasker with £3.5m (A$6.7m) in media advertising and access to Channel 4’s reach of 47 million UK people 78% of the UK population).

Following the successful release of the UK television advertising campaign ‘Airtasker. Yeahtasker!’ in October 2023, UK marketplace demand accelerated over the balance of the financial year with 4Q24 GMV up 34.9% on pcp, to £1.5m (A$3.0m) and revenue up 76.3% on pcp, to £250k (A$0.5m). Seasonally, marketplace activity in the northern hemisphere is strongest in the first and fourth quarters of the financial year, principally during spring and summer.

In FY24, Airtasker’s UK marketplaces demonstrated strong performance with GMV up 20.0% on pcp to £4.5m (A$8.6m) and revenue up 41.1% on pcp to £682k (A$1.3m) as a result of increased brand awareness.

       2 Monetisation rate represents Airtasker’s revenue in a given financial period, expressed as a percentage of gross marketplace volume GMV in the same period.

 3

 Airtasker Limited

ABN 53 149 850 457

In Airtasker’s US marketplaces, FY24 GMV increased 9.4% on pcp to US$520k (A$791k) and FY24 revenue increased 73.7% on pcp to US$69k (A$104k). In the US, Airtasker continues to see healthy growth in marketplace activity while maintaining a disciplined approach to marketing investment as it continues to explore several media partnership opportunities.

Australian media partnerships to provide $11m to turbocharge growth

In late June and early July 2024, Airtasker announced two new media partnerships in Australia with oOh!media Limited ASX OML (oOh!media) and ARN Media Limited ASX A1N) (ARN) for the provision over two years of $6.0m in out-of-home advertising services and $5.0m of audio advertising services, respectively.

oOh!media is a leading provider of out-of-home advertising in Australia. The partnership will enable Airtasker to scale in a capital eicient way through access to oOh!media’s over 35,000 sites across Australia including billboards, street furniture, airports, oice towers and retail centres.

ARN is a leading provider of broadcast and on-demand audio advertising in Australia. Airtasker will access ARN’s extensive Australian network of 58 radio stations including KIIS FM, Pure Gold and CADA - which feature popular Australian media talent including Kyle & Jackie O, Will & Woody and Jonesy & Amanda - as well as the world’s fastest growing digital entertainment platform iHeartRadio.

This planned resurgence in brand investment in Australia in FY25 follows two years of reduced - and predominantly digital - marketing spend. Airtasker will support this increased brand focus through out-of-home and audio advertising with continued complementary online marketing strategies, including search and social.

The terms of the partnerships involve Airtasker issuing each of oOh!media and ARN with two year $5.0m unsecured convertible notes with a 5.8% annual coupon payable at maturity (Notes). At maturity, the Notes are convertible into ordinary shares at a 10% discount to Airtasker’s 30-trading day volume-weighted average share price or redeemable in cash, at the option of Airtasker.

Commenting on the results, Airtasker Founder and CEO Tim Fung said, “I’m super pleased to announce that Airtasker has delivered on our promise of positive full year free cash flow of $1.2m. During FY24 we focussed on platform reliability which saw cancellations decrease 26.3% and Airtasker platform fee revenue grow 13.9%. 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.

 4

 Airtasker Limited

ABN 53 149 850 457

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!”

Relatedpartypaymentsin4Q24totalled$662k. Thepaymentscomprised$113ktonon-executive directors for director’s fees, superannuation and expense reimbursements, $239k to Tank Stream Labs Pty Ltd for leases, utilities and cleaning costs related to oice facilities and $310k to Channel Four Television Corporation for VAT related to media advertising services.

 All numbers are unaudited.

For further information, please contact:

Media Enquiries

Andrea Philips [email protected]

About Airtasker

Ends–

Investor Relations

www.investor.airtasker.com [email protected]

Airtasker Limited ASX ART is Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work. With a mission to empower people to realise the full value of their skills, Airtasker aims to have a positive impact on the future of work by creating truly flexible opportunities to work and earn income. Since launching in 2012, Airtasker has put more than $550m into the pockets of workers (payments made after all fee revenue is deducted) and served more than 1.3m unique paying customers across the world. For more information visit www.investor.airtasker.com.

This announcement was approved for release by the Board of Directors of Airtasker Limited.

5

 Appendix 4C

Quarterly Cash Flow Report for Entities Subject to Listing Rule 4.7B

Name of entity

Airtasker Limited (the “Company”)

ABN

53 149 850 457

Consolidated statement of cash flows

1. Cash flows from operating activities

1.1 Receipts from customers

1.2 Payments for

Quarter ended (“current quarter”)

(a) research and development

(b) product manufacturing and operating costs

(c) advertising and marketing

(d) leased assets

(e) staff costs

(f) administration and corporate costs

1.3 Dividends received (see note 3)

1.4 Interest received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Government grants and tax incentives

1.8 Other (GST and FBT)

1.9 Net cash from operating activities

2. Cash flows used in investing activities

Current quarter A$’000

12,204

- (1,522) (4,630) (2) (4,987) (2,212) - 419 (35) - - (675) (1,440)

Year to date (12 months) A$’000

49,446

- (4,621) (11,231) (8) (20,430) (7,062) - 614 (147) - (78) (3,433) 3,050

- - - -

(1,948) (13,000)

2.1 Payments to acquire or for:

(a) entities -

(b) businesses -

(c) property, plant and equipment -

(d) investments -

(e) intellectual property

(f) other non-current assets

(investment of surplus cash in term deposits)

(260) -

Quarterly cash flow report for entities subject to Listing Rule 4.7B

1

30 June 2024

Appendix 4C

 Consolidated statement of cash flows Current quarter A$’000

2.2 Proceeds from disposal of:

(a) entities -

(b) businesses (non-core business disposals) 41

(c) property, plant and equipment 4

(d) investments -

Year to date (12 months) A$’000

- 461 11 - - 13,503

- - -

(973)

- - - -

- - - -

(877)

(877)

16,052 3,050 (973) (877) (24) 17,228

(e) intellectual property

(f) other non-current assets

(receipts from maturing term deposits)

2.3 Cash flows from loans to other entities

2.4 Dividends received (see note 3)

2.5 Other (provide details if material)

2.6 Net cash used in investing activities

3. Cash flows used in financing activities

3.1 Proceeds from issues of equity securities (excluding convertible debt securities)

3.2 Proceeds from issue of convertible debt securities

3.3 Proceeds from exercise of options

3.4 Transaction costs related to issues of equity securities or convertible debt securities

3.5 Proceeds from borrowings

3.6 Repayment of borrowings

3.7 Transaction costs related to loans and borrowings

3.8 Dividends paid

3.9 Other – lease liabilities

3.10 Net cash used in financing activities

4. Net decrease in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of period1

4.2 Net cash from operating activities (item 1.9 above)

4.3 Net cash used in investing activities (item 2.6 above)

4.4 Net cash used in financing activities (item 3.10 above)

4.5 Effect of movement in exchange rates on cash held

4.6 Cash and cash equivalents at end of period1

1. Excludes investment of surplus cash in term deposits.

- 11,000

- - -

10,785

- - - -

- - - -

(219)

(219)

8,134 (1,440) 10,785 (219) (32) 17,228

Quarterly cash flow report for entities subject to Listing Rule 4.7B

2

Appendix 4C

 5. Reconciliation of cash and cash equivalents

at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

5.1 Bank balances (item 4.6 and item 4.1)2

5.2 Call deposits

5.3 Bank overdrafts

5.4 Other (provide details)

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)2

2. Excludes investment of surplus cash in term deposits.

6. Payments to related parties of the entity and their associates

Previous quarter A$’000

8,134 - - - 8,134

Current quarter A$'000

6.1 Aggregate amount of payments to related parties and their associates included in item 1

6.2 Aggregate amount of payments to related parties and their associates included in item 3

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

(499) (163)

7. Financing facilities

Note: the term “facility’ includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

7.1 Loan facilities

7.2 Credit standby arrangements

7.3 Other - convertible security3

7.4 Total financing facilities

7.5 Unused financing facilities available at quarter end

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

3. On 25 June 2024 the Company issued an unsecured convertible note in the amount of $5,000,000 to oOh!media Limited with a maturity date of 25 June 2026 (oO!hmedia Note). The consideration for the oO!hmedia Note is the provision of non-cash out-of-home advertising services to the value of $6,000,000 (ex GST).

On 4 July 2024, subsequent to the end of the quarter, the Company issued an unsecured convertible note in the amount of $5,000,000 to ARN Limited with a maturity date of 4 July 2026 (ARN Note). The consideration for the ARN Note is the provision of non-cash audio advertising services to the value of $5,000,000 (ex GST).

The oO!hmedia Note and ARN Note both pay a coupon of 5.8% per annum to be settled at maturity and at maturity both are convertible into ordinary shares at a 10% discount to the 30-trading day volume-weighted average share price or redeemable in cash, at the option of the Company.

Quarterly cash flow report for entities subject to Listing Rule 4.7B 3

Total facility amount at quarter end A$’000

Amount drawn at quarter end A$’000

- - - -

5,000

Current quarter A$’000

17,228 - - - 17,228

-

- 5,000 5,000

Appendix 4C

 8. Estimated cash available for future operating activities

8.1 Net cash from operating activities (item 1.9)

8.2 Cash and cash equivalents at quarter end (item 4.6)4

8.3 Unused finance facilities available at quarter end (item 7.5)

8.4 Total available funding (item 8.2 + item 8.3)4

8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1)

A$’000

(1,440) 17,228 5,000 22,228

15

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: N/A

8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: N/A

8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: N/A

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered. 4. Excludes investment of surplus cash in term deposits.

Compliance statement

1 2

Date:

This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

This statement gives a true and fair view of the matters disclosed. 29 July 2024

Authorised by: The Board of Directors

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

Quarterly cash flow report for entities subject to Listing Rule 4.7B 4

Appendix 4C

Some other members have put out some interesting content on them recently, well done to @Magneto and @WINGMAN.

I wrote my thoughts on their latest quarterly for a rich life here :https://arichlife.com.au/4-strong-fy24-q3-quarterly-cashflow-reports/

Here's the post

Airtasker Ltd (ASX: ART)

Airtasker is a name likely familiar to anyone who’s ever enlisted help assembling the difficult IKEA wardrobe or other odd jobs around the house. While I’ve yet to cross paths with the elusive “trampoline whisperer” reportedly earning $10,000 a month assembling surprise gifts for kids (Source : Daily Mail), perhaps I’ll encounter them one day.

Operating in the gig economy, Airtasker connects users with skilled individuals for various home and office tasks.

Historically, what has given me pause about the company is the inherent difficulty in successfully navigating online labour marketplaces. A prime example can be found in the locally listed Freelancer, which has struggled with unattractive unit economics despite its longer tenure as a listed business. Its long term share price performance has been disastrous, making me cautious of Airtasker. 

The other challenge is that we’ve got some very big gorillas in the space such as Fiverr and Upwork who could be considered to be potential competitors.

But Airtasker has grown in its niche of odd jobs and what I liked about their quarterly report is that their metrics are improving without a doubt.

The March quarter had also marked their strongest performance last year, indicating positive seasonality likely working in their favour. This year, it translated into a nice outcome of $2.24 million in free cash flow, defined as operational cash flow minus investments in IP, and subtracting lease liabilities as well.

You can see how the free cashflow has improved over the last seven quarterly reporting periods, below: 

As pleasing as it is to see the positive developments on the bottom line, we quickly notice the top-line appearing to flatten out. 

I’m also not expecting cash to start gushing in now, given the company is telling us “Given the strong 3Q24 free cash flow result, and with northern hemisphere seasonality peaking in 4Q24, Airtasker expects to accelerate international growth through investment in a number marketing initiatives during 4Q24.” 

As demanding as this sounds, what I would like to see from Airtasker is the continuation of positive cashflow results, even after funding growth. There is no doubt the company is led by a motivated founder, but the plan seems to be to operate around breakeven while the Australian business funds expansion in the UK and USA. 

While there is therefore every expectation that the company will only hover around breakeven, if it can even modestly grow free cashflow while also boosting revenue from the nascent international operations, then shareholders would be on to a winner.

Airtasker Acquisitions

·      May 2022 Acquires Australia 3^rd largest local services platform Oneflare. A$9.8m. Oneflare will strengthen marketplace network effects, offering more job opportunities to Service Pros (including both independent Taskers and verified businesses) whilst providing customers with access to a greater range of services, skills and faster response times.https://announcements.asx.com.au/asxpdf/20220504/pdf/458p2pw94h0p6j.pdf

·      May 2021 Acquires US local service marketplace Zaarly ~$3.4m. The acquisition of Zaarly provides Airtasker with more than 597,000 registered users (Customers) and 900+ verified service providers (Taskers) to jump start expansion in the US. https://announcements.asx.com.au/asxpdf/20210521/pdf/44wpbcx801vq08.pdf

Capital Raises

·      May 2022Raised $6.25m fully underwitten placement at an issue price of $0.43 per share.

·      May 2021 Raised $20.7m via a fully underwritten share placement to insititutional, sophisticated and professional investors at $1.00 per share.

·      IPO March 2021 at $0.65 Raising  $83.7m

First straw after recently joining premium so go easy....the actual first trade on strawman was a while back purchasing airtasker for around $0.46. Continued to purchase on the way down being a very happy buyer at $0.16 recently in my personal portfolio. Hopefully we can get more posts on the company on strawman moving forward.

bull case

I believe the company ticks a lot of boxes, high level of founder ownership / founder led. No net debt, expanding into new markets after becoming profitable in AUS. In the recent reporting season, the day the company announced the share price did not move - they take a measured approach, there is slower growth but also become cash flow positive in the near future. Like many tech companies last year, they cut employment costs / staff which has helped with the above.

forecast

extrapolating the recent HY numbers out to June 2024 I have EBITDA of ~$4 MIL. This grows steadily with true free cash flow coming later in FY 2026. A lot of assumptions in these numbers at this point granted, but a good point to start an intrinsic value model to support the thesis. Will continue to refine the model as more financials flow through with actual profit figures.

The terminal value I have used is 291,669 which is high and will likely revert back to the EBITDA multiple 7.5x which is the $173,025.

Would have expected fair value for airtasker to be around $0.36, however the current valuation, based on the 451.8 MIL shares on issue is $0.46 or approx. a 60% premium to the current $0.28 price. May be overcooking this and will continue to refine and provide an update once the QTRLY cash flows are scrutinised further. While it felt obvious to buy around $0.16-$0.17, the share price recently got to $0.34 before selling off. Aware the below valuation is a little stretched however I believe it will get there at some point in the next 24-36 months and this is a long term story.

Things to continue to monitor:-

• UK expansion via media agreement. This was how they achieved 20x growth in Australia - the agreement has given them $6.7Mil in advertising with other strategic initiatives. US is an unknown and could be a bonus, however they need to do well in the UK primarily.
• Gross margin per sale.
• Recently cash position has fallen back around $5 MIL, not sure is this is due to timing or planned inflection point.
• Free cash flow beyond FY24.
• The market may believe that airtasker will be caught up in gig-economy / ride share labour laws in the near future.
• Rebooking rates / time between bookings (one of the biggest challenges).

Will post some more detail on airtasker in the near future.

Good to be part of strawman for real.

 I’m pretty bullish on the long term future of the business… I’m an easy sell but I can see the long term future of the is kind of business and I think if they get their first the network effects of this kind of business will be immensely valuable.

I didn’t check too closely their suggestion they will be cash flow positive in the next financial year but even being close to that would mitigate concerns about further cap raises.

As previously airtasker seems quite willing to include one flare revenue in their comparisons which is a bit cheeky but their is double digit growth even without it…

● Record revenue up 40% on pcp to $44.2 million.1

● Gross Marketplace Volume GMV2 up 34% on pcp to $253.5 million.1

● UK GMV up 35% on pcp to £3.7 million with revenue up 93% on pcp to £0.5 million.

● US posted tasks up 158% on pcp to 64,000 with tasker oers up 300% on pcp to 106,000.

● Net cash outflow reduced by 24% on pcp with $16.1 million cash on balance sheet and on track

for positive free cashflow result in FY24.

The Airtasker Group posted revenue growth of 40.4% on pcp to $44.2 million1 primarily reflecting organic growth in the Australian Airtasker marketplaces and the full year contribution from the Oneflare marketplace acquired in May 2022. The result also reflected strong revenue growth in the UK and US marketplaces of 83.3% on pcp to $0.9 million.

Group marketplace activity, represented by GMV, grew 33.7% on pcp1 to $253.5 million.2 The Airtasker marketplace take rate3 increased to 17.6% in FY23 (compared with 16.6% in pcp) driven by an increase in task completion rates and the ongoing optimisation of Airtasker’s fee structure.

EBITDA for FY23 was an improvement of 53.1% to a loss of $8.0 million versus a loss of $17.1 million in pcp. The movement was largely driven by top line revenue growth of $12.7 million in FY23 and prudent ongoing cost management.

1 pcp included the contribution from the Oneflare marketplace from its acquisition date of 25 May 2022.

2 Represents the total price of all tasks booked through the Airtasker marketplaces before cancellations and inclusive of price adjustments between customers and taskers, bonuses paid by

customers to taskers, and fees payable by customers and taskers to Airtasker, and any applicable sales taxes plus Oneflare marketplace GMV estimated by dividing total Oneflare marketplace

revenue by the budgeted Airtasker marketplaces take rate.

3 Represents revenue in a given financial period, expressed as a percentage of GMV in the same period within the marketplaces.

Airtasker Limited

ABN 53 149 850 457

 30 August 2023

ASX Announcement

Airtasker Limited ASX Code: ART

FY23 Financial Results

Airtasker delivers 40% revenue growth in FY23; On track for positive free cashflow result in FY24

FY23 Financial Highlights

 1

    Group Revenue: $44.2m +40.4% on pcp

In April 2023, Airtasker announced it would undertake a cost management program which would reduce expenditure through a 20% reduction in headcount. The headcount reduction was completed in 4Q23 incurring full year one-o costs of $1.2 million. At the same time Airtasker announced its plan to exit from non-core businesses acquired as part of the Oneflare portfolio in May 2022. The exit from these businesses is expected to be completed in 1H24 and will reduce FY24 revenue by approximately $1.0 million whilst also having a positive impact on operating expenses and cashflow.

The implementation of the cost management program positions Airtasker to be free cash flow positive on a full year basis in FY24.

Australian marketplaces

The Australian marketplaces, comprising the Airtasker and Oneflare marketplaces, are the most advanced and at the “scaling” stage, meaning there are established network eects, strong unit economics and organic customer acquisition that enable realisation of positive EBITDA.

The Australian marketplaces generated revenue of $43.2 million, up 39.7% on pcp. The Australian Airtasker marketplace generated revenue of $33.7 million, up 13.0% on pcp, while the Oneflare marketplace contributed revenue of $9.5 million for FY23. Gross profit for the Australian marketplaces grew 41.7% on pcp to $41.0 million.

This performance was driven by improved conversion rates in the Airtasker marketplace and the full year contribution from the Oneflare marketplace, which continues to perform ahead of expectations communicated when the acquisition was announced.

Airtasker Limited

ABN 53 149 850 457

 2

 Airtasker Limited

ABN 53 149 850 457

Australian Revenue: $43.2m +39.7% on pcp Australian Gross Profit: $41.0m +41.7% on pcp International marketplaces

Airtasker’s international marketplaces, principally the UK and US, are still in the early stages of growth, generating total revenue of $0.9 million, up 83.3% on pcp. The UK marketplace is still in the ‘one to 100’ stage during which the goal is to build network eects by balancing supply and demand to drive marketplace activity and grow GMV. During FY23, Airtasker experienced steady growth in its UK marketplace with GMV up 34.6% on pcp to £3.7 million while revenue increased 92.5% on pcp to £0.5 million.

In June 2023 Airtasker announced a media-for-equity partnership with UK television network Channel 4, which has a monthly reach of 47 million people 78% of the UK population) and operates the UK’s largest free streaming service with over 1.2 billion views per year.4

Channel 4 will invest $6.7 million (£3.5 million), through the provision of media advertising services, in exchange for a 20% stake in Airtasker’s UK subsidiary. The investment will allow Airtasker to leverage Channel 4’s significant audience reach and accelerate its UK marketplace growth by building brand awareness, growing users and building network eects.

Airtasker successfully implemented a similar strategy in Australia through its partnership with Seven West Media resulting in 20x revenue growth over 5 years and a 5x investment return for Seven West Media.

Airtasker’s US marketplace is in the ‘zero to one’ stage during which the focus is on creating a steadily increasing flow of job opportunities (posted tasks). In FY23, the US marketplace customer demand (posted tasks) increased significantly, up 158.0% on pcp to 64,000 while supply (tasker

4 hps://www.channel4.com/corporate/about-4/who-we-are/channels-and-platforms

       3

 Airtasker Limited

ABN 53 149 850 457

oers) increased 300.2% on pcp to 106,000. There is a consistent growth trend in both posted tasks and tasker oers following the transition to a focus on the Los Angeles city marketplace at the start of FY23.

UK GMV £3.7m +34.6% on pcp US Posted tasks: 64,000 +158.0% on pcp

UK Revenue: £0.5m +92.5% on pcp US Tasker oers: 106,000 +300.2% on pcp

Commenting on the results, Airtasker Co-founder and CEO Tim Fung said “I’m super pleased to report another record result for Airtasker in FY23 with revenue up 40%, net cash outflow down 24% and strong growth in our US and UK marketplaces. We’re now really well positioned with more than $16.1m in cash on balance sheet and are on track for a free cashflow positive result in FY24.

“At the same time, we’re super excited to turbocharge Airtasker in the UK via our $6.7m media-for-equity partnership with Channel 4, replicating the success we achieved in Australia and readying our media partnership strategy for further global scale. Let’s do this!”

Ends–

      4

 For further information, please contact:

Media Enquiries

Andrea Philips [email protected] +61 415 113 908

About Airtasker

Investor Relations

www.investor.airtasker.com [email protected]

Airtasker ASX ART is Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work. With a mission to empower people to realise the full value of their skills, Airtasker aims to have a positive impact on the future of work by creating truly flexible opportunities to work and earn income. Since launching in 2012, Airtasker has put more than $500m into the pockets of workers (payments made after all fee revenue is deducted) and served more than 1.3m unique paying customers across the world. For more information visit: investor.airtasker.com.

This announcement was approved for release by the Board of Directors of Airtasker Limited.

Airtasker Limited

ABN 53 149 850 457

 5

Posted about them in my weekly newsletter. No comments on them yet from half-yearly so thought I would share here. Link here for those interested.

Airtasker impressed no one with their beautiful slides and 57% revenue growth. 

Because, if we were going to look at growth, then we would want organic growth that factors out the Oneflare acquisition. As you can see on the slide, this came in at 23%. This in itself is pretty good, but the price to achieve this seemed significant at a high-level. 

A loss of A$7.7M is scary in this environment, even for a company with A$23M in the bank. 

The acquisition of Oneflare means AirTasker’s cost base is now inflated given more staff increasing. 

The interesting commentary was on parts of the costs which aren’t expected to scale over the future:

• “The Oneflare staff investment accounted for 47.8% of the movement against pcp. 
• The balance of the increase was due to the lower rate of capitalisation of platform development expenditure which was down 62.7% on pcp. The reduction reflected a change in process and the fact that the engineering and product teams invested more time in non-capitalisable activities during the half-year, including the new Airtasker branding.”

It seems questionable to invest so much in branding in this current environment, but it is true that the new website feels more user friendly and easier to navigate. 

For airtasker, monitoring future growth will be key to understand if there is indeed an added network effect value that came from Oneflare. 

What I like about them is the transparency in the announcements; they didn’t shy away from saying that the growth was in part due to a weaker comparison given last year was impacted by Covid. 

I was also pleased to see the CEO pictured on slides with users. This means the company may well have the mentality of talking to their users and improving the product on the right direction. That’s bonus points for me.

So let’s see what these guys can accomplish in future reporting periods. If growth continues and operating leverage starts to cross the chasm, then this may become a different type of company. 

 the highlights for me:

that in Australia where the marketplace is most mature they are EBITDA positive

that they are growing very rapidly in UK and US (off a very low base in the US in particular)

they have 9 quarters of cash in the bank at current cash burn.

hoping to avoid any further cap raises…

2023

ABN 53 149 850 457 ASX Code: ART

Quarterly Activity Report and

Appendix 4C Quarterly Cash Flow Report 31 December 2022

Lodged with ASX under Listing Rules 4.7B and 4.7C. www.airtasker.com

Airtasker Limited

 ● Revenue up 40.2% on pcp1,2 to $11.3m (up 13.6% on pcp to $9.2m ex-Oneflare contribution).

● GMV3,4 up 40.2% on pcp2 to $68.2m (up 13.6% on pcp to $55.2m ex-Oneflare contribution).

● UK TTM5 GMV up 83.1% on pcp to £3.5m6 while TTM revenue increased 152.5% on pcp to £398k6.

● US quarterly posted tasks up 5.4x on pcp to 21k while tasker oers up 7.1x on pcp to 33k.

● Cash burn reduced by 44.3% on pcp to $2.6m with $23.3m cash on balance sheet.

Airtasker Limited

ABN 53 149 850 457

 31 January 2023

ASX Announcement

31 December 2022 - Quarterly Activity Report

Highlights

    1 Prior comparative period.

2 pcp did not include a contribution from the Oneflare marketplace acquired on 25 May 2022.

3 Gross marketplace volume.

4 GMV represents the total price of all tasks booked through the Airtasker marketplaces before cancellations and inclusive of price adjustments between customers and taskers, bonuses paid by

customers to taskers, and fees payable by customers and taskers to Airtasker, and any applicable sales taxes plus Oneflare marketplace GMV estimated by dividing total Oneflare marketplace

revenue by the Airtasker marketplaces take rate.

5 Trailing twelve months.

6 Calculated on a T TM basis.

  3

 Airtasker Limited

ABN 53 149 850 457

2Q23 saw Airtasker revenue increase 40.2% on pcp to $11.3m whilst GMV grew 40.2% on pcp to $68.2m. The strong revenue result in 2Q23 was achieved through a combination of organic growth within the Airtasker marketplaces and the contribution of the Oneflare marketplace.

Excluding the benefit of the Oneflare marketplace contribution, 2Q23 revenue increased 13.6% on pcp to $9.2m, GMV grew 13.6% on pcp to $55.2m and UPC7 increased to circa 450k8 (up 9.0% on pcp). The Oneflare marketplace revenue is ahead of expectations communicated when the acquisition was announced.

Airtasker achieved this strong revenue result whilst also reducing operating cash burn 44.3% on pcp and 28.1% QoQ9, with 2Q23 net cash used in operating activities reducing to $2.6m. Cash receipts in 2Q23 increased 43.7% on pcp due to the impact of COVID related lockdowns on pcp cashflows. Cash receipts in 2Q23 increased 13.1% QoQ due to the summer seasonal volume increase in the Australian marketplace.

Airtasker remains in a strong financial position with $23.3m in cash on its balance sheet at the end of 2Q23.

7 Unique paying customers.

8 Calculated on a TTM basis.

9 Quarter-on-quarter.

         4

 Airtasker Limited

ABN 53 149 850 457

Airtasker operates marketplaces at multiple stages of development. In Australia, our marketplaces are at the “scaling” stage. In the UK, our marketplaces are in the “one to 100” stage during which the goal is to carefully balance supply and demand to drive marketplace activity and grow GMV. In the US, our marketplaces are in the “zero to one” stage during which the focus is on creating a steadily increasing flow of job opportunities (posted tasks).

In the UK, Airtasker’s marketplaces demonstrated continuing growth with posted tasks increasing 1.4x on pcp and tasker oers increasing 1.8x on pcp. UK TTM GMV was up 83.1% on pcp to £3.5m10 whilst TTM revenue increased 152.5% on pcp to £398k10 as a result of higher tasker oer rates and the ongoing impact of fee changes introduced in the preceding quarter.

Airtasker’s US marketplaces continued to accelerate with 2Q23 posted tasks increasing 5.3x on pcp to 21k and tasker oers increasing 7.1x on pcp to 33k. There is a strong growth trend in both posted tasks and tasker oers as the transition to a focus on the Los Angeles marketplace continues.

Our UK and US marketplaces continued to demonstrate strong momentum throughout the seasonally lower northern hemisphere autumn/winter period.

Related party payments in 2Q23 totalled $251k. The payments comprised $117k to directors for director’s fees, superannuation and expense reimbursements and $134k to Tank Stream Labs for leases, utilities and cleaning costs related to oice facilities .

       10 Calculated on a TTM basis.

 5

 Airtasker Limited

ABN 53 149 850 457

Airtasker reports and manages its business as a single operating unit. However, as the Airtasker marketplaces are at dierent stages of maturity the economics dier at each stage. As such, management has prepared a notional (non-statutory) split of financial performance for 2Q23 in the table below.

   Economics of marketplaces at dierent stages of maturity11

AUD millions

Established marketplaces (Australia) EBITDA12

6.1

Global head oice operating costs13

6.1

Net EBITDA

0.0

Global innovation expenditure14

1.0

New marketplaces UK and US EBITDA

1.7

Airtasker Group EBITDA

2.7

    Commenting on the results, Airtasker Co-founder and CEO Tim Fung said, “I’m super pleased to announce that Airtasker’s second quarter revenue was up more than 40% on pcp with unique paying customers growing to circa 450,000. Even more pleasingly, we achieved these strong results whilst reducing cash burn in the quarter by more than 40% and maintaining a strong balance sheet with over $23 million in cash. Whilst we’re forecasting increasing labour supply and lower demand as macroeconomic conditions tighten, our marketplace model has proven both adaptive and resilient and we’re excited for what’s ahead!”

All numbers are unaudited.

Ends–

 11 The amounts in the table, including EBITDA splits, are estimates based on management assumptions and judgement, are unaudited and are provided for illustrative purposes only to demonstrate the contribution of various marketplaces.

12 Excluding global head oice operating costs and global innovation expenditure.

13 This is operating expenditure relating to the Airtasker and Oneflare marketplaces (engineering, product support and maintenance), as well as back oice support functions (leadership, legal,

finance and people operations).

14 Described as “R&D expense” in prior periods, this is non-capitalisable operating expenditure relating to the Airtasker and Oneflare marketplaces associated with the development of new features

designed to enhance the customer experience, increase long term GMV and grow long term revenue.

6

 For further information, please contact:

Media Enquiries

Andrea Philips [email protected] +61 415 113 908

About Airtasker

Investor Relations

www.investor.airtasker.com [email protected]

Airtasker ASX ART is Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work. With its mission to empower people to realise the full value of their skills, Airtasker aims to have a positive impact on the future of work by creating truly flexible opportunities to work and earn income. Since launching in 2012, Airtasker has enabled more than $2 billion in working opportunities and served more than 1.3 million unique paying customers across the world. For more information visit: investor.airtasker.com .

This announcement was approved for release by the Board of Directors of Airtasker Limited.

Airtasker Limited

ABN 53 149 850 457

 7

 Appendix 4C

Quarterly Cash Flow Report

for entities subject to Listing Rule 4.7B

Name of entity

Airtasker Limited

ABN

53 149 850 457

Consolidated statement of cash flows

1. Cash flows used in operating activities

1.1 Receipts from customers

1.2 Payments for

(a) research and development

(b) product manufacturing and operating costs

(c) advertising and marketing

(d) leased assets

(e) staff costs

(f) administration and corporate costs

1.3 Dividends received (see note 3)

1.4 Interest received

1.5 Interest and other costs of finance paid

1.6 Income taxes paid

1.7 Government grants and tax incentives

1.8 Other – GST and FBT

1.9 Net cash used in operating activities

2. Cash flows used in investing activities

Quarter ended (“current quarter”)

2.1 Payments to acquire or for:

(a) entities -

(b) businesses (23)

(c) property, plant and equipment (56)

(d) investments -

(e) intellectual property (515)

ASX Listing Rules Appendix 4C (17/07/20) Page 1 + See chapter 19 of the ASX Listing Rules for defined terms.

31 December 2022

Current quarter $A’000

13,235

- (1,476)

(2,437) (2) (8,322) (2,893) - 16 (38) - - (679) (2,596)

Year to date (6 months) $A’000

24,939

- (2,361)

(5,158) (3) (16,132) (5,990) - 25 (38) - - (1,487) (6,205)

- (23) (66) - (1,852)

Rule 4.7B

 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows Current quarter $A’000

Year to date (6 months) $A’000

(530)

-

(f) other non-current assets 2.2 Proceeds from disposal of:

(22)

(a) entities -

(b) businesses -

(c) property, plant and equipment 2

(d) investments -

(e) intellectual property

(f) other non-current assets

2.3 Cash flows from loans to other entities

2.4 Dividends received (see note 3)

2.5 Other (provide details if material)

2.6 Net cash used in investing activities

3. Cash flows (used in) / from financing activities

3.1 Proceeds from issues of equity securities (excluding convertible debt securities)

3.2 Proceeds from issue of convertible debt securities

3.3 Proceeds from exercise of options

3.4 Transaction costs related to issues of equity securities or convertible debt securities

3.5 Proceeds from borrowings

3.6 Repayment of borrowings

3.7 Transaction costs related to loans and borrowings

3.8 Dividends paid

3.9 Other – lease liabilities

3.10 Net cash (used in) / from financing activities

4. Net decrease in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

period 26,540

4.2 Net cash used in operating activities (2,596) (item 1.9 above)

ASX Listing Rules Appendix 4C (17/07/20) Page 2 + See chapter 19 of the ASX Listing Rules for defined terms.

- 12 - - - 197 197 - - - - - - (417) (2,262)

- 3,550 - -

- 250 (121) (155)

- - - - - -

- - (172) (179) (293) 3,466

28,235 (6,205)

 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows

4.3 Net cash used in investing activities (item 2.6 above)

4.4 Net cash (used in) / from financing activities (item 3.10 above)

4.5 Effect of movement in exchange rates on cash held

4.6 Cash and cash equivalents at end of period

5. Reconciliation of cash and cash equivalents

at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

5.1 Bank balances (item 4.6 and item 4.1)

5.2 Call deposits

5.3 Bank overdrafts

5.4 Other (provide details)

5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)

6. Payments to related parties of the entity and their associates

6.1 Aggregate amount of payments to related parties and their associates included in item 1

6.2 Aggregate amount of payments to related parties and their associates included in item 3

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 4C (17/07/20) Page 3 + See chapter 19 of the ASX Listing Rules for defined terms.

Current quarter $A’000

(417)

(293)

25

23,259

Current quarter $A’000

Year to date (6 months) $A’000

(2,262)

3,466

25

23,259

Previous quarter $A’000

26,540 - - - 26,540

Current quarter $A'000

179 72

23,259 - - - 23,259

 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

7. Financing facilities

Note: the term “facility’ includes all forms of financing arrangements available to the entity.

Add notes as necessary for an understanding of the sources of finance available to the entity.

7.1 Loan facilities

7.2 Credit standby arrangements

7.3 Other (please specify)

7.4 Total financing facilities

7.5 Unused financing facilities available at quarter end

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

N/A - no financing arrangements available to the company.

8. Estimated cash available for future operating activities

8.1 Net cash used in operating activities (item 1.9)

8.2 Cash and cash equivalents at quarter end (item 4.6)

8.3 Unused finance facilities available at quarter end (item 7.5)

8.4 Total available funding (item 8.2 + item 8.3)

8.5 Estimated quarters of funding available (item 8.4 divided by item 8.1)

$A’000

Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5.

8.6 If item 8.5 is less than 2 quarters, please provide answers to the following questions:

8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer: N/A

8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: N/A

8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer:

N/A

Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

ASX Listing Rules Appendix 4C (17/07/20) Page 4 + See chapter 19 of the ASX Listing Rules for defined terms.

Total facility amount at quarter end $A’000

Amount drawn at quarter end $A’000

- - - -

-

- - - -

(2,596) 23,259 - 23,259

9.0

 Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

This statement gives a true and fair view of the matters disclosed.

...................................................................................

 Compliance statement

1 2

Date:

 Authorised by: ................................................................................... (Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

 ASX Listing Rules Appendix 4C (17/07/20) Page 5 + See chapter 19 of the ASX Listing Rules for defined terms.

Online Marketplaces Australia

• Hipages (ASX: HPG) - Local service in building trades
• Freelancer (ASX: FLN)
• Oneflare (Private) - Local services
• ServiceSeeking (Private)

Online Marketplace USA

• Angi Home Services (Nasdaq: ANGI) USA
• Fiverr (Nasdaq FVRR)
• Mechanical Turk (Owned by Amazon)
• Pro Referral (previously Red Beacon - USA Private owned by Home Depot)
• TaskRabbit (Private USA - owned by IKEA in 2017)
• Tumbtack (Private USA)
• Upwork (NYSE: UPWK Global)

Online Marketplace UK

• PeoplePerhour (Private)
• Rated People (Private)
• 
  

• Once a customer and a Tasker Connect there's nothing stopping them from exchanging phone numbers and not going though the platform for repeat tasks
• Data breaches and other data security incidents - Airtasker and its suppliers collect data and other confidential information from Airtasker’s users and store that data electronically
• New technologies
• Changes to laws and regulations
• Use of Airtasker’s marketplace
• Competition