top of page
ASX:ART
Airtasker Ltd
Investment Summary
The fund managers believe that Airtasker Ltd (ART) presents a compelling investment opportunity, particularly given its recent strategic media partnerships and solid revenue growth. In their opinion, the $51.6 million raised in media capital within 2024, coupled with its initiatives to enhance brand awareness in Australia and the US, positions ART for significant market expansion. They note the company's positive cash flow generation and a cash balance of approximately $18.3 million, indicating financial stability. Despite experiencing share price volatility, fund managers remain optimistic about the company's future, pointing out the potential of ART's marketplace model, which leverages its 90%+ gross profit margins. With growth reported at 276.6% in the US and a positive outlook for FY25, they believe that ART is currently undervalued and poised for long-term shareholder value increase as it capitalizes on international opportunities.
Commentary From The Managers
Saville Capital
28 Feb 2025
$0.36
- ART’s share price remains under significant pressure despite solid revenue and cash flow results.
- EBITDA in 1H FY25 decreased; however, this was well-flagged by the Company.
- Airtasker is focusing on utilising advertising inventory acquired through various media company deals.
- The impact of EBITDA changes is non-cash and ART remains cash flow positive.
- Increased brand investment is expected to lead to accelerating top-line growth in target markets.
- There is currently aggressive selling pressure from at least one party affecting the share price.
- Saville Capital continues to hold because of the potential for increased awareness and customer engagement.
Endeavor Asset Management
31 Jan 2025
$0.43
- Endeavor Asset Management initiated a position in Airtasker (ART), an Australian digital marketplace for everyday tasks.
- Airtasker allows users to post jobs specifying details and payment, while taskers propose interest and pricing.
- Revenue model includes a service fee of 12.5% to 20% charged to taskers upon task completion.
- Airtasker has shown self-sustaining growth with a strong market presence in Australia.
- In FY24, Airtasker reported $45.2 million in revenue and 24% growth in attributable EBITDA, reaching $31.0 million.
- Managed to retain $12.8 million in EBITDA for reinvestment in international expansion, targeting the UK and US markets.
- Early indicators in the UK and US markets show rising gross marketplace volume and increased brand awareness.
- With an enterprise value of $170 million, Airtasker’s $13 million cash flow from Australia limits downside risk.
- Potential for significant upside if Airtasker successfully scales in the UK and US.
- Company’s 90%+ gross profit margins enhance the ability to scale without replicating costs.
- Endeavor Asset Management remains positive on Airtasker’s growth trajectory and long-term shareholder value potential.
Saville Capital
31 Jan 2025
$0.43
- Airtasker Ltd (ART) showed further improvement in 2Q FY25, with revenue growth accelerating to +11.4% on pcp, compared to +8.5% in 1Q FY25.
- Airtasker marketplaces revenue grew by 15.8% on pcp, though OneFlare remains a drag on overall revenue growth.
- Airtasker Australia marketplaces revenue was up 12.8% on pcp, marking a welcome return to double digit growth.
- UK revenue increased by 95.2% on pcp, while the US revenue skyrocketed by 278.6%.
- The momentum in revenue growth was driven by strong consumer demand, with booked tasks up 10.9% on pcp.
- Cancellations reduced by 1.2% on pcp and the monetisation rate improved +3.6% to 20.8%.
- ART continues to generate positive free cash flow and increased its cash balance to $18.3m.
- Funds from media deals are being utilized for a significant investment in brand marketing.
- Marketing initiatives are expected to provide an initial uplift in consumer demand, focused on brand awareness which typically has a longer payback period.
Saville Capital
30 Nov 2024
$0.32
- Airtasker Ltd (ART) announced a US$12.0 million (A$18.4 million) media capital deal through a partnership with Sinclair Broadcast Group.
- This partnership enables promotion of the Airtasker brand across Sinclair’s 185 television stations and digital networks in the US.
- Airtasker UK Ltd secured an additional £4m (A$7.8m) in media capital from Channel Four Television Corporation, enhancing their initial investment of £3.5m from June 2023.
- These recent investments bring Airtasker’s total media capital raised in 2024 to A$51.6 million.
- Saville Capital believes the market underestimates the optionality and upside from these media partnerships.
- Saville Capital maintains confidence in observing the impact of these deals before determining the most efficient funding mechanisms.
Saville Capital
31 Oct 2024
$0.31
- Airtasker (ART, +2%) has reported a strong quarter with marketplace revenue growth of +13.6% on a quarter-on-quarter basis.
- Significant growth in the UK, with a remarkable +104.4% increase, attributed to an effective targeted media strategy.
- Positive free cash flow generation reflects ART's strategic reinvestment approach.
- Airtasker is focusing its profits from Australian operations into international markets, specifically the UK and US, while maintaining a solid net cash position of -$18m.
- Anticipated increased seasonality in the Australian marketplace over the next two quarters.
- Plans for heightened marketing investment in Australian, UK, and US markets through enhanced media partnerships.
- Airtasker is confident in sustaining current revenue growth momentum, reaffirming guidance for positive Group free cash flow in FY25.
- The market is currently pricing Airtasker as if it has no growth potential; however, recent media partnerships are expected to accelerate growth rates.
- Increased growth should garner more investor interest across all markets.
Saville Capital
30 Sept 2024
$0.30
- Airtasker USA raised US$9.75m (~A$14.4m) through partnerships with iHeartMedia and TelevisaUnivision.
- iHeartMedia, a leading audio company, offers access to 276 million monthly listeners.
- TelevisaUnivision provides access to 100 million daily users across TV, digital, and audio platforms.
- Multi-year partnership with iHeartMedia includes US$5m (~A$7.4m) in advertising inventory via a convertible note with a 5.0% coupon.
- Partnership with TelevisaUnivision secures US$4.75m (~A$7m) in advertising inventory in exchange for a 17.1% equity stake in Airtasker USA.
- These deals are seen as strategically and financially savvy, fostering partnerships with key US media organizations.
- Focus on preserving cash and avoiding equity dilution while the stock remains undervalued.
- Saville Capital continues to hold because of the positive implications for brand awareness in the US market.
Saville Capital
31 July 2024
$0.31
- Airtasker (ART) experienced a solid finish to FY24.
- 4Q revenue growth was impressive at +76.3% in the UK.
- Monetisation strategy involves an advertising campaign with Channel 4.
- GMV growth in Australia remains subdued but is expected to improve in FY25.
- Recent marketing deals with ARN and OML set to begin in September.
- Potential for further upside in ART’s monetisation rate.
- Ongoing changes aimed at enhancing this key business metric.
- Saville Capital continues to hold an optimistic view on Airtasker’s prospects.
Saville Capital
30 June 2024
$0.26
- Saville Capital updates its investment thesis on Airtasker Ltd (ART, 0%).
- Airtasker announced a $6m media partnership with oOh!media Limited (OML) to enhance brand awareness across Australia.
- The partnership enables ART to scale capital efficiently via access to OML’s network of >35,000 sites.
- Terms include $6m in OML inventory for a 2-year $5m convertible note with a 5.8% coupon rate.
- At maturity, ART has the option to convert the note into ordinary shares at 10% discount or repay in cash.
- ART has a current brand awareness of 64% and a cash balance of ~$20m.
- Saville Capital views the deal as a strategic move to maintain brand recognition and stimulate growth.
- Continued marketing is essential for ART, which is critical for activating both existing and new clients.
- Saville Capital prefers ART to preserve its cash balance for potential strategic M&A opportunities.
- This deal may help avoid future reliance on expensive equity funding for operating losses.
Saville Capital
31 May 2024
$0.26
- Saville Capital continues to hold Airtasker Ltd. as a core position, emphasizing its strong market presence.
- Despite fluctuating share price over recent years, Saville Capital sees solid fundamentals with consistent growth.
- Airtasker's exposure to emerging sectors, particularly in gig economy services, positions it favorably for growth.
- The Fund identifies significant potential driven by strategic growth initiatives and partnerships.
- Continued investment in technology and user experience is viewed as critical for sustaining competitive advantage.
- As Airtasker adapts to market conditions, Saville Capital believes it remains an attractive opportunity for long-term investors.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
bottom of page