Announcement PDF Airtasker Limited ABN 53 149 850 457 7 August 2024 ASX Announcement Airtasker Limited (ASX:ART) RAAS Research Group Webinar Presentation Airtasker Limited (ASX:ART) (Airtasker) is pleased to lodge the attached presentation being made by Chief Executive Officer Tim Fung and Chief Financial Officer Mahendra Tharmarajah to the RAAS Research Group Stock Take Webinar to be held today as follows: Date: Time: Webinar link: Wednesday 7 August 2024 12:00pm AEST https://techinvest.online/techinvest-webinars/raas-group-stock-take-webinar Mr Fung and Mr Tharmarajah will also participate in a moderated Q&A session where Webinar attendees will have the opportunity to submit questions directly to management. A recorded copy of the Webinar will be made available following the event. -- Ends – For further information, please contact: Media Enquiries Andrea Philips andrea.philips@airtasker.com Investor Relations www.investor.airtasker.com investors@airtasker.com About Airtasker Airtasker Limited (ASX:ART) is Australia’s leading online marketplace for local services, connecting people and businesses who need work done with people who want to work. With a mission to empower people to realise the full value of their skills, Airtasker aims to have a positive impact on the future of work by creating truly flexible opportunities to work and earn income. Since launching in 2012, Airtasker has put more than $600m into the pockets of workers (payments made after all fee revenue is deducted) and served more than 1.3m unique paying customers across the world. For more information visit: investor.airtasker.com. This announcement was approved for release by the Board of Directors of Airtasker Limited. 7 August 2024 Disclaimer The following disclaimer applies to this presentation. Please consider its contents carefully. By accepting this presentation, you acknowledge that you are receiving it on the basis set out in the following paragraphs. This presentation has been prepared by Airtasker Limited (Airtasker). Forward looking information (continued) Airtasker does not undertake any obligation to release any revisions to any “forward-looking statement” to reflect events or circumstances after the date of this presentation, except as may be required under applicable laws. Currency of information The information contained in this presentation is current as at the date of this presentation or such earlier date as specified in this presentation. Financial information This presentation contains certain financial information. The financial information has been presented in an abbreviated form insofar as it does not include all the presentation and disclosures, statements or comparative information as required by the Australian Accounting Standards, the International Financial Reporting Standards (including the interpretations of the International Financial Reporting Interpretations Commiee) and other mandatory professional reporting requirements applicable to financial reports prepared in accordance with the Corporations Act. All currency is in Australian dollars unless indicated. Summary information The information in this presentation is of a general nature only and does not purport to be complete. Not an oer This presentation is not a prospectus or other disclosure document, and is not an invitation or oer of securities in Airtasker for subscription, purchase or sale in any jurisdiction. Third party information Certain market and industry data used in connection with this presentation may have been obtained from research, surveys or studies conducted by third parties, including industry or general publications. Neither Airtasker nor any of its related bodies corporate, directors, employees, agents or advisers have independently verified any such market or industry data. Historical information Past performance information in this presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. Forward looking information This presentation contains certain forward-looking statements that involve risks and uncertainties. Airtasker can give no assurance that these expectations will prove to be correct. You are cautioned not to place undue reliance on any forward-looking statements. Actual results may dier materially from those anticipated in these forward-looking statements due to many important factors, risks and uncertainties including, without limitation, risks associated with future capital needs and general economic uncertainty. Disclaimer (continued) You should carry out your own investigations and analysis of Airtasker and verify the accuracy, reliability and completeness of the information contained in this presentation. Neither Airtasker nor any of its related bodies corporate, directors, employees, agents and advisers accept any responsibility for any loss arising from anyone acting or refraining from acting in reliance on the contents of this presentation. Distribution This document has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. By receiving this document you are deemed to confirm, represent and warrant to Airtasker and its related bodies corporate and each of their directors, employees, agents and advisers that you agree to be bound by the limitations and conditions set out in this disclaimer. All FY24 financial information is unaudited. All financial information has been previously lodged with ASX through the Quarterly Activity Reports, Appendix 4C Quarterly Cash Flow Reports, the Appendix 4D Half Year Report and the Interim Report. Non-IFRS financial measures Airtasker uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards or International Financial Reporting Standards (IFRS). These measures are collectively referred to in this presentation as ‘non-IFRS financial measures’ under Regulatory Guide 230 ‘Disclosing non-IFRS financial information’ published by the Australian Securities and Investments Commission (ASIC). Management uses these non-IFRS financial measures to evaluate the performance and profitability of the overall business. Although Airtasker believes that these measures provide useful information about the financial performance of Airtasker, they should be considered as supplements to the income statement measures that have been presented in accordance with the Australian Accounting Standards and IFRS in Airtasker’s audited financial statements released on ASX and not as a replacement for them. Disclaimer No representation or warranty, whether express or implied, is made by any person as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. 2 Our mission: To empower people to realise the full value of their skills. Creating jobs isn’t a by-product of the work that we do: it’s our core purpose. “Airtasker allows me to tailor my work around other commitments as a single parent - something I thought I could never do.” “After a motorcycle accident nearly claimed my life, I’m so grateful that I was able to turn to Airtasker to earn a full time income. I haven’t looked back.” 3 Airtasker is building the world’s most trusted marketplace to buy and sell local services. New brand image that speaks to two people connecting We connect people who need work done, with people who want to work. 4 Unique value proposition: Open community Infinitely horizontal Built on transparency and accountability to enable trust with an eicient light touch operating model. Unifying a fragmented local services industry and creating entirely new service categories. For customers: For Taskers: ● Super fast responses ● Huge range ● Great value ● Instant work ● Pricing control ● Complete flexibility 5 Revenue model tightly aligns Airtasker with the success of Taskers in our community Sales tax 2.0% Revenue 20.0% Paid to Users 78.0% GMV 1,3 Revenue 2,3 Insurance 0.9% Merchant fees 3.7% Gross profit 95.4% How does Airtasker make money? ● Free to post a task and receive oers. ● Free to access jobs and create quotes. ● Connection Fee is charged when customers are successfully connected and a Service Fee is charged when the task is completed. A truly win-win business model: ● Low risk for Taskers. Unlike advertising models, Taskers can access jobs with no upfront fees. ● Widest range. Removing upfront fees means customers access the greatest range of services. ● Strong gross margin. Light touch model delivers 95%+ gross margins. 1. Gross marketplace volume (GMV) for Airtasker only. GMV represents the total price of all tasks booked through the Airtasker marketplaces before cancellations and inclusive of price adjustments between customers and Taskers, bonuses paid by customers to Taskers, fees payable by customers and Taskers to Airtasker, and any applicable sales taxes. 2. Revenue comprising the Airtasker and Oneflare marketplaces. 3. Based on FY24 financial data. 6 Competitive landscape: Airtasker is uniquely positioned as a global platform for local services Ecommerce model Community model Free to join. Customers choose who they work with based on ratings, reviews and verified qualifications. Curated supply model Remote outsourcing Local services Workers pay an upfront fee to join and Taskrabbit selects which workers can access jobs. *US/UK markets only. Not operating in AU. Advertising model 7 Financial Results 8 FY24 Highlights Full year positive free cash flow and solid revenue growth achieved through sales funnel optimisation and operating eiciency improvements: 🏆 FY24 Positive free cash flow of $1.2m, improved $8.8m (115.3%) on pcp 🏆 FY24 Airtasker marketplaces revenue of $38.1m, up 9.8% on pcp 🏆 UK 4Q24 revenue up 76.3% on pcp 🏆 $17.8m in cash and term deposits on balance sheet 🏆 $11.0m in advertising inventory from oOh!media and ARN A foundational period seing Airtasker up for the next phase of growth… 4Q24 Financial Highlights Group Revenue Airtasker Marketplaces Revenue Non-Statutory Free Cash Flow1 Operating Cash Flow $11.2m $9.1m -$1.9m -$1.4m up 3.2% on pcp up 6.8% on pcp improved $2.2m on pcp improved $1.9m on pcp $17.8m cash and term deposits on balance sheet 1. Non-statutory free cash flow calculated as movement in cash and cash equivalents net of investments in term deposits. FY24 Financial Highlights 1. 2. Group Revenue Airtasker Marketplaces Revenue Positive Free Cash Flow1 Positive Operating Cash Flow2 $46.6m $38.1m +$1.2m +$3.1m up 5.6% on pcp; 4 yr CAGR 24.9% up 9.8% on pcp; 4 yr CAGR 18.7% improved $8.8m (115.3%) on pcp improved $13.9m (128.1%) on pcp Positive free cash flow included proceeds from the issue of shares to the value of $10.4m in FY20, $37.6m in FY21 and $3.8m in FY22. No financing activities occurred in FY23 and FY24. Positive operating cash flow included proceeds from government grants to the value of $1.0m in FY21. Media partnership turbocharges international growth in the UK ● 4Q24: GMV up 34.9% on pcp to £1.5m (A$3.0m) and revenue up 76.3% on pcp to £250k (A$0.5m). ● FY24: GMV up 9.4% on pcp to US$520k (A$791k) and revenue up 73.7% on pcp to US$69k (A$104k). ● FY24: GMV up 20.0% on pcp to £4.5m (A$8.6m) and revenue up 41.1% on pcp to £682k (A$1.3m). ● Healthy growth in marketplace activity with disciplined marketing investment while continuing to explore media partnership opportunities. Growth Strategy 13 Cash generated in Australian marketplace funds global expansion, turbocharged by local media-for-equity partnerships ● Airtasker’s marketplace model is proving to be cash generative at scale but requires upfront marketing investment to establish network eects. Airtasker Limited Investment in new marketplaces Cash flow generation 100% 1. 2. 3. 4. 5. 6. 80%4 Cash Airtasker Australia1 Airtasker UK2 $17.8m cash and term deposits Cash generative in FY24 Cash invested 100% x Airtasker US 3 Cash invested Airtasker Australia includes Established Marketplaces (Airtasker Australia and Oneflare) plus global head oice costs. Airtasker UK refers to Airtasker UK Limited. Airtasker US refers to Airtasker USA Inc. Channel 4 invested A$6.7m for a 20% stake in Airtasker UK in June 2023. Total Addressable Market (‘TAM’) in the UK A$78.0b and in the US A$876.6bn (Frost and Sullivan, 2024). Seven West Media (‘SWM’) invested in Airtasker in May 2016 enabling Airtasker to grow revenue 20x and generate a 5x ROI for SWM over 5 years. ● We’ve proven the success of the model in Australia and the excess cash generated in Australia enables investment into the UK and US markets where there is a greenfield opportunity and significant TAM.5 ● Following the success of our partnership with Seven West Media6 in Australia, we have commenced replicating the media-for-equity partnership model in new markets to leverage our investment and turbocharge growth. Our media partnership strategy enabled Airtasker to build Australia’s leading marketplace for local services. Over 5 years, we generated: ● 60%+ brand awareness ● 20x revenue growth ● 5x investment partner returns We’re now replicating this model to drive rapid scale in new markets. 25 $91M Marketing Spend (AUD millions) Roll out proven media partnership model to scale in new markets $112M 20 $68M 15 $36M 10 9.7 8.4 6.8 5 $12M 2.2 0 FY16 1.2 FY17 FY18 Marketing Spend FY19 FY20 GMV 15 Airtasker’s UK television campaign “Airtasker. Yeahtasker!” launched on Channel 4 in October 2023. Commenced roll out of proven media partnership model to scale in new markets £41B+1 Local Services TAM ● A media-for-equity partnership with Seven West Media enabled Airtasker to build a trusted household brand name and scale network eects in Australia. ● Over a 5 year partnership, Airtasker grew revenue 20x, establishing Australia’s no. 1 marketplace for local services and generating a 5x return multiple for Seven West Media. £4m ● Our partnership with Channel 4 in the UK provides Airtasker with $6.7m in advertising media power and access to 47 million UK people each month (78% of the UK population). Annualised GMV UK marketplace 1. Frost and Sullivan, 2024. Australian marketplace 17 Our premium suite of media partners set to turbocharge growth: Television Outdoor Audio £3.5m equity investment into Airtasker UK Ltd $5m unsecured convertible note issued by Airtasker Ltd $5m unsecured convertible note issued by Airtasker Ltd £17m post-money valuation of Airtasker UK entity, share buyback in June 2028 5.8% coupon, 2 year maturity, 10% discount if converted to ordinary shares 5.8% coupon, 2 year maturity, 10% discount if converted to ordinary shares Solid foundations to accelerate growth in FY25 👊 Positive free cash flow of $1.2m in FY24 👊 Solid Airtasker marketplaces revenue growth of 9.8% in FY24 👊 $17.8m in cash and term deposits on balance sheet at 30 June 2024 👊 $11.0m in advertising inventory from oOh!media and ARN 👊 FY25 targeting full year Group positive free cash flow (Australian marketplaces generate suicient cash to fund UK/US investment) Thank you! Airtasker Limited | ABN 53 149 850 457 20