Airtasker Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Airtasker Limited (ASX: ART) operates a technology enabled platform for local taskers and users/ employers to connect for outsourcing local services.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~53.65% of the total shareholding. Firetrail Investments Pty Limited and BridgeLane Capital Pty. Ltd. hold a maximum stake in the company at ~2.26% and ~2.19%, respectively.

1.4 Key Metrics: During 1HFY22, the company has reported a current ratio of 3.92x against the industry median of 1.67x. In addition, the asset turnover ratio stood at 0.26x in 1HFY22 as compared to 0.14x of the industry median. Below captured the trend of Revenue and Cash Receipts from Customers:

Section 2: Business Updates, Financial and Operational Highlights

2.1 Recent Updates:

2.2 Insights of 4QFY22: During 4QFY22, ART reported an increase of 49% in the US posted task relative to 3QFY22. Additionally, during 4QFY22, the growth in GMV led to a monthly annualized run rate (ARR) of AUD 9.5mn in May 2022.

2.3 Growth Strategy: During 4QFY22, the company completed the acquisition of Oneflare for AUD 9.8mn, which is expected to aid the company in strengthening its network effect, provide a single technology platform and help in unlocking trades opportunities.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: EV/Sales Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 19 August 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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