Airtasker (ART) Q1 2025 TU earnings summary

Executive summary

• Achieved positive free cash flow of $0.1m and operating cash flow of $0.9m, a 31.6% improvement year-over-year.

• Group revenue grew 8.5% year-over-year to $12.1m, with marketplaces revenue up 13.6%.

• UK revenue surged 104.4% year-over-year, and US revenue increased 116.8% year-over-year.

• Secured $5.0m in media capital from ARN in Australia and $14.4m in media capital from iHeartMedia and Televisa Univision in the US.

• Ended the quarter with $17.9m in cash and term deposits.

Financial highlights

• Operating cash flow improved by $2.4m sequentially from 4Q24, driven by higher cash receipts and lower operating outflows.

• Cash receipts from customers rose $1.6m (13.2%) year-over-year, while marketing expenditure increased $1.9m (109.2%).

• Group EBITDA loss of $2.7m, including a $5.6m net investment in New Marketplaces.

• Australian net EBITDA was $2.9m, flat year-over-year.

• Positive cash flow from Established Marketplaces of $7.8m, with $2.3m available for international expansion.

Outlook and guidance

• Confident in maintaining revenue growth momentum and reaffirmed guidance for positive Group free cash flow in FY25.

• Expect Australian net EBITDA to decline in 2Q25 and 3Q25 due to increased brand marketing investment, with payback anticipated over 2-3 years.

• Group EBITDA loss expected to widen in coming quarters as US marketing investment ramps up.