Why is the Airtasker (ASX:ART) share price falling on Friday?

The ASX tech share has released its results for the first quarter of FY22…

| More on:
Dollar sign made from grass growing from ground as one person drips water on it and another holds coin

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Airtasker Ltd (ASX: ART) share price is currently down by more than 2% as the ASX tech share delivered its quarterly update for the three months to September 2021.

Airtasker is a business that aims to match up people who want to work with people who need work doing.

First quarter of FY22

The marketplace company explained that it demonstrated "solid" performance in the first three months. Its gross marketplace volume (GMV) went up 6.2% to $35 million. That was achieved despite the lengthy lockdowns in both Melbourne and Sydney which were for (substantially) all of the quarter. Other markets also experienced lockdowns in different parts of the quarter.

International growth

The international part of the Airtasker business remains a small part of the overall picture, but it continues to grow rapidly.

International GMV saw a rise of over 100% thanks to growth in the UK. It is making progress in the US as well, with launches in Dallas, Kansas City, and Miami after the Zaarly acquisition.

However, the company said that while Australia is benefiting from seasonal growth, the northern hemisphere marketplaces in the US and UK are now entering winter, which represents a seasonally slower period.

Cashflow

The company said this result showed the underlying growth and resilience of the marketplace. Receipts from customers were up 2.3% to $6.5 million in the first quarter.

The overall operating cash outflow was $4 million.  This outflow was higher compared to the fourth quarter of FY21 due to an increase of international marketing investment in line with expectations, annual bonuses triggered by FY21 revenue outperformance compared to the target, one-off payroll tax payments relating to historical equity awards which crystallised after the initial public offering (IPO), and timing differences.

Airtasker said it has spent $5.8 million of the $16.1 million of funds that were raised. Offer costs amounted to $2.7 million, with $1.6 million spent on marketing and $1.5 million on product development.

Chief product officer appointment

Airtasker said it continues to strengthen its leadership bench with the appointment of former Zip Co Ltd (ASX: Z1P) chief technology officer Patrick Collins. He has been appointed as the new chief product officer.

Airtasker CEO Tim Fung commented:

Patrick brings to Airtasker more than two decades of product leadership experience developed in leading Silicon Valley and Australian technology companies including Fifth Finger and Zip Co. We're very excited to bring him on board as we scale internationally and continue to invest in a world class customer experience.

Lockdowns ending

Post-lockdown activity could have an impact on the Airtasker share price.

Both Sydney and Melbourne are exiting their months-long lockdowns. Airtasker said it has experienced a sharp bounce back. This is seen in its latest weekly GMV of $3.6 million. If you turn that into an annualised number, it's $185 million on an annualised run-rate basis.

Airtasker says it's heading into its strongest southern hemisphere seasonal growth period.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

a young woman looks happily at her phone in one hand with a selection of shopping bags in her other hand.
BNPL shares

Up 87% since April, why the Zip share price can keep flying higher into 2026

A leading fund manager expects more outsized gains from Zip shares ahead.

Read more »

Man in mining hat with fists raised and eyes closed looking happy and excited about the Newcrest share price
Share Market News

Why BHP and these ASX dividend stocks are buys

The mining giant and these shares have been named as buys by brokers.

Read more »

a woman holds her finger to the side of her face and looks upwards as she thinks about something.
Share Market News

Where to invest when the ASX 200 hits an all time high?

With the ASX creeping towards a record high, here are some options to consider

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

5 things to watch on the ASX 200 on Friday

Will the market end the week on a positive note? Let's find out.

Read more »

Young man with a laptop in hand watching stocks and trends on a digital chart.
Share Market News

Which investment trends drove equity markets in May according to Macquarie?

The ASX 200 increased 4.2% in May.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a miserly session for investors today.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Opinions

Too high? These 2 ASX shares might be due for a correction

These popular blue chips are looking dicey to me.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares could rise 20% to 35%

These shares are being tipped to deliver market-beating returns by analysts.

Read more »