Airtasker’s $37.7M Loss Highlights Risks of Aggressive Global Expansion
Airtasker Limited reported a 12.8% increase in revenue to $52.6 million for FY25, driven by growth in Australia, the UK, and the US. However, the company’s net loss widened significantly to $37.7 million, reflecting heavy investment in global marketing and media partnerships.
- Revenue up 12.8% to $52.6 million
- Net loss after tax expands to $37.7 million
- Sales and marketing expenses surge 220% due to global expansion
- Positive free cash flow achieved for second consecutive year
- Media-for-equity deals underpin marketing in UK and US markets
Financial Performance Highlights
Airtasker Limited (ASX, ART) has released its FY25 results, showcasing a 12.8% rise in group revenue to $52.6 million, up from $46.6 million in FY24. This growth was primarily fueled by the Australian Airtasker marketplaces and accelerated expansion in the UK and US. Despite this top-line growth, the company reported a substantial net loss after tax of $37.7 million, a near tenfold increase from the prior year’s $4.4 million loss.
The widening loss is largely attributable to a 220% jump in sales and marketing expenses, which soared to $46.3 million as Airtasker aggressively pursued global brand awareness and user acquisition. Notably, $27 million of this marketing spend was non-cash, stemming from media advertising services acquired through innovative media-for-equity partnerships.
Operational Expansion and Market Growth
Airtasker’s core Australian marketplaces delivered solid performance with revenue growth of 13.4% to $41.6 million. The company also reported strong momentum in its newer UK and US marketplaces, with UK revenue more than doubling to $2.9 million and US revenue surging over 400% to $560,000. These gains were supported by strategic media partnerships with major broadcasters and digital platforms such as Channel 4 in the UK and TelevisaUnivision, iHeartMedia, Sinclair, and Mercurius in the US.
The company’s gross marketplace volume (GMV) increased 9.5% to $208.7 million, driven by a 7.3% rise in booked tasks and a modest increase in average task price. Improvements in cancellation rates and monetisation rates also contributed to healthier marketplace economics.
Innovative Media Partnerships and Financial Structure
Airtasker’s marketing strategy leverages non-cash media advertising services in exchange for equity or unsecured convertible notes. These arrangements have added $45.4 million in prepaid media assets to the balance sheet, with corresponding share purchase liabilities now totaling $53.6 million. The accounting treatment of these complex transactions involves significant judgment and has been identified as a key audit matter due to the valuation and classification challenges.
While these partnerships provide a cash-efficient way to fund marketing, they also introduce volatility through remeasurement of liabilities and foreign currency translation effects, which contributed $5.2 million in unrealised losses during FY25.
Cash Flow and Financial Position
Despite the net loss, Airtasker maintained a positive net cash flow of $1.2 million for the second year running, supported by a 43.9% increase in cash from operating activities to $4.4 million. The company ended FY25 with a strong cash and term deposits balance of $19.1 million, providing a solid runway for continued investment in growth.
Net assets declined sharply to $2.1 million, reflecting the recognition of share purchase liabilities and accumulated losses. The company did not declare any dividends during the year.
Executive Remuneration and Governance
Airtasker’s executive remuneration remains closely tied to performance, with short-term incentives linked to revenue growth, marketplace metrics, and free cash flow, and long-term incentives aligned with relative total shareholder return. The FY25 remuneration outcomes reflect the company’s strategic priorities and operational achievements, with executives electing to receive a significant portion of their variable pay in equity.
Outlook and Strategic Focus for FY26
Looking ahead, Airtasker aims to drive profitable growth in its Australian marketplaces by enhancing brand salience and customer trust. The company plans to maintain its aggressive marketing investment in the UK and US to scale these newer marketplaces, leveraging its replicable playbook and media partnerships. Management remains optimistic about improving macroeconomic conditions and consumer sentiment, particularly in Australia, which should support increased marketplace demand.
Key risks include the evolving regulatory environment, competitive pressures, and the inherent uncertainties in monetising new markets. Airtasker’s innovative media-for-equity financing model and disciplined approach to cash flow management will be critical as it navigates these challenges.
Bottom Line?
Airtasker’s FY25 results underscore the tension between rapid global expansion and near-term profitability, setting the stage for a pivotal FY26 focused on scaling and sustainable growth.
Questions in the middle?
- How will Airtasker manage the remeasurement volatility of its share purchase liabilities going forward?
- What is the timeline and expected ROI for the media-for-equity marketing investments in the UK and US?
- How might evolving payroll tax rulings and regulatory changes impact Airtasker’s gig economy business model?
