Airtasker has reported a significant financial turnaround in FY24, marked by a 115.3 per cent improvement in free cash flow, resulting in a $1.2 million positive balance. The improvement contrasts sharply with the company’s performance in the previous fiscal year, highlighting the impact of stringent cost management and strategic revenue growth.
At the heart of Airtasker’s financial turnaround is a 97.8 per cent improvement in EBITDA, reducing its losses to just $0.2 million from a substantial $8.0 million in FY23. This was driven by a balanced approach combining revenue growth with cost management. Group revenue rose by 5.6 per cent to $46.6 million, while aggressive cost-saving measures saw employee expenses slashed by 26.1 per cent and technology, general, and administrative costs reduced by 16.4 per cent.
Airtasker’s focus on enhancing its marketplace reliability, evidenced by a 26.3 per cent drop in cancellations, played a crucial role in boosting its monetisation rate to 20.0 per cent from 17.6 per cent in the previous year. These improvements underline the company’s commitment to leveraging marketing to enhance user experience and drive profitability.
Leveraging Media Partnerships for Brand Amplification
Airtasker’s FY24 success story is heavily influenced by its strategic media partnerships, which have provided the company with a significant boost in brand visibility and market penetration. In June and July 2024, Airtasker announced $11.0 million in advertising inventory secured through partnerships with oOh!media and ARN Media. This media inventory, spanning out-of-home (OOH) and audio channels, is set to be a game-changer for Airtasker’s marketing efforts.
oOh!media, a leader in the Australian OOH sector, offers Airtasker access to over 35,000 sites across the country. This expansive reach includes premium locations such as billboards, street furniture, and key transit areas like airports and retail centres. Such visibility is crucial for Airtasker as it aims to cement its brand in the everyday lives of Australians.
Similarly, the partnership with ARN Media taps into Australia’s extensive audio landscape. Airtasker will benefit from exposure across ARN’s 58 radio stations, including major networks like KIIS FM, Pure Gold, and CADA. These platforms not only offer broad reach but also feature prominent Australian media personalities such as Kyle & Jackie O, ensuring Airtasker’s brand resonates with a wide and engaged audience.
“Our marketing objective at Airtasker is really to increase our brand salience… we want you to think, ‘I should hire someone from Airtasker’… we’re measuring in unprompted brand awareness,” Airtasker’s Founder Tim Fung told B&T. “I actually think audio and outdoor, very ambient marketing channels, are very cost-efficient for basically building up that kind of ground service”.
Expanding Internationally Through Marketing Excellence
Airtasker’s marketing prowess has also fueled its expansion in international markets. In the UK, the company recorded a 20.0 per cent growth in GMV to $8.6 million (£4.5 million) and a 41.1 per cent increase in revenue to $1.3 million (£0.7 million). This success was amplified by a Channel 4 television campaign that significantly increased consumer engagement, driving a remarkable 76.3 per cent revenue growth in the final quarter of FY24.
The US market also showed promise, with Airtasker’s revenue surging by 73.7 per cent on pcp to $0.1 million (US$0.1 million). Here, Airtasker has been methodical in its marketing efforts, exploring media partnerships and investing in targeted campaigns that align with local market dynamics, all while maintaining fiscal discipline.
“FY24 was a very disciplined year for us in the Australian market. We spent about $2 million in marketing for the full year to drive a GME of about $190 million in the Australian market. So we’re incredibly lean in Australia,” said Fung. “In FY25, we’re really gonna start accelerating… We have about $11 million of marketing firepower for FY25”.
Sustained Growth in Australia: A Blueprint for Success
In Airtasker’s home market of Australia, the company’s established marketplaces delivered $45.2 million in revenue and a positive EBITDA of $31.0 million, up 24.0 per cent on pcp. This solid performance has not only covered global head office expenses but has also allowed Airtasker to reinvest in innovation and new market expansions. The Australian operations stand as a testament to Airtasker’s ability to leverage effective marketing strategies to generate strong financial returns, even amid challenging economic conditions.
“Our big focus was getting to cash flow profitability. We made a promise to the market that we would do that, and I think we delivered on that promise, and delivered full-year positive free cash flow of $1.2 million,” Fung told B&T. “Our Australian business generated about $30, $31 million of cash, and we’re using that cash to invest in the long term, into building new marketplaces in the US and the UK”.
Looking Ahead: A Positive Outlook Fueled by Strategic Marketing
Fung summed up the company’s achievements by noting, “In the face of macroeconomic challenges, Airtasker has delivered on our promise of positive full-year free cash flow while driving solid revenue growth and expanding our international footprint. With the momentum we’ve built in FY24, supported by our strong media partnerships and disciplined marketing investments, we are well-positioned for a positive FY25.”
Airtasker’s ability to combine strategic marketing initiatives with financial discipline has set the stage for continued growth and success in both domestic and international markets. As the company looks to FY25, its innovative approach to media and marketing will be crucial in sustaining its upward trajectory.
