Online services marketplace Airtasker (ASX: ART) has reported an unaudited $6.3 million EBITDA loss for the December quarter and expects losses to mount in the current half due to a blitz of non-cash marketing activity in Australia, the UK and the US to drive awareness.
The listed tech scale-up has struck multiple media deals across all markets over the past year, issuing shares to large media companies in exchange for advertising inventory and exposure to broader consumer bases with partners including oOh!media, ARN Media, TelevisaUnivision, iHeartMedia, Channel 4, Sinclair Broadcast Group, Mercurius Media Capital, and more.
If it weren't for $8.3 million worth of marketing investments in the UK and the US, where its 'Airtasker. Yeahtasker!' campaigns drove revenue higher by 83 per cent and 118.5 per cent respectively in trailing 12 months (TTM) terms, the company would have most certainly been in the black with Australian net EBITDA of $2 million.
This was around half its earnings for the prior corresponding period in Australia, where non-cash above-the-line brand marketing investment was also made. The established and dominant marketplace for Airtasker Australia saw double-digit revenue growth in the December quarter by 12.8 per cent to $11 million.
The group's presence in the UK and US is much more nascent, but significant growth rates in both countries helped push group marketplaces revenue 15.8 per cent higher to $11.7 million. The group also delivered positive free cash flow of approximately $500,000.
"I'm super pleased to announce another quarter of positive free cash ow with Airtasker marketplaces revenue up 15.8 per cent and importantly, international revenue growth momentum picking up as our global brand investments pay off," says Airtasker founder and CEO Tim Fung.
"With UK revenue up over 95 per cent, US revenue up over 279 per cent and more than $51 million in media capital from some of the world’s best media companies, we feel super well positioned for the next phase of Airtasker’s global expansion."
ART shares rose 4.49 per cent today to $0.465 following the news, and have risen 60.34 per cent over the past 12 months.
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