Interesting update with some key highlights.key positives:Cash...

Interesting update with some key highlights.
key positives:

1. Cash flow positive: This is incredibly important as this time last year there were warnings Airtasker would run out of cash in less than 2 years. This change moves Airtasker from the faker list of micro caps to actual sustainable business showing growth which is a vitally important change. Excess cash confirmed invested in term deposits which was a key question from last update.
2. US Market breakout now tracking revenue and delivering $86k AUD on trailing 12 months. Revenue growth up 136% YOY but growth primarily from plugging leakage of users in addition to growth. This is proper mature reporting that allows us to determine true value.
3. UK market growing at 34% YoY and 12 month revenue now at $1m+ AUD for UK. Breaking the $1m barrier is an important milestone for any business.
4. offloading non-core businesses: OneFlare had an odd long tail of businesses that were operating at losses. In the notes Airtasker looks to have sold a side brand for $241k. In FY23 report they flagged selling these businesses would reduce FY24 revenue by $1m but this is a positive as these were loss making companies taking up resources.

Things to watch:
1. Growth declining in Aus and UK. In current environment being sustainable is more important than growth but obviously we need to outperform other micros to make it to Mid-cap.
2. UK ad campaign not showing obvious returns. It’s unclear how much of the 5 year partnership was spent going into winter which isn’t traditionally a strong time for Airtasker. This is a key item for questions in H2 report as it’s not a big deal if they spent $100k of $6.7m partnership but if they spent significantly into that sum in an off season that was a bad leadership call within marketing.
3. US growth is still progressing and great to see real commercial reporting not but unclear on growth strategy here compared to well defined strategies in UK and Aus.