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.
Image source: Getty Images
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.
