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

sdf

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

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Broker Notes

Guess which ASX 300 stock was downgraded to sell today

Bell Potter has become bearish on this stock. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

The ASX gave up an afternoon lead to close lower today.

Read more »

a gas worker with hard hat and high visibility vest stands cross armed and smiling in front of an elaborate steel structured gas plant.
Share Market News

Morgans names 2 ASX energy shares to buy now

These shares could be top picks for investors with a high tolerance for risk.

Read more »

Young businesswoman sitting in kitchen and working on laptop.
Broker Notes

Is the ResMed share price still cheap? What the numbers say

Let's see what analysts are saying about this blue chip as it nears a 52-week high.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Broker Notes

What does Macquarie think REA shares are worth?

Top broker Macquarie has reviewed its rating and price target on REA shares.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today

These shares are pushing higher on Thursday. But why?

Read more »

Woman checking out new TVs.
Broker Notes

Does JP Morgan think JB Hi-Fi shares can keep rising?

The retailer is up 16% for the year to date.

Read more »